Thursday, May 8, 2025

California’s New Hydrogen Subsidy Sinkhole: 13 Cars, Millions Spent, Negative Impact

Share

Join CleanTechnica’s Weekly Substack for Zach and Scott’s in-depth analyses and high level summariesjoin our daily newsletterand/or follow us on Google News!


It’s all the time fascinating to observe public officers eagerly line up for ribbon-cutting ceremonies, gleaming scissors poised, able to announce one other shiny new clean-transportation initiative. The most recent spectacle unfolded not too long ago at UC Riverside in California to have fun the launch of the Riverside Clear Air Carshare (RCAC) program, that includes a fleet of exactly 13 hydrogen-powered Toyota Mirai sedans.

In the event you’re sensing an imminent drawback—like maybe 13 autos hardly constituting a revolutionary breakthrough in zero-emission transport—you’re already forward of the parents who greenlit this initiative. Even amongst questionable transportation initiatives, this one stands out as particularly ill-conceived, with a logic that’s roughly as sound as a field of floppy purple velvet hammers.

Let’s dig into the numbers, as a result of they converse volumes. California taxpayers, ever beneficiant, have handed over an eye-watering $3.5 million or so to place these baker’s dozen hydrogen autos on the streets. The California Air Assets Board (CARB) alone kicked in $1.5 million, with one other million from the Clear Mobility Choices Voucher Pilot Program. Further, unspecified funds flowed from the California Vitality Fee, and, simply to make sure the bureaucratic frosting was suitably thick, one other $1 million got here not directly by a Division of Vitality grant aimed toward resolving the standard allowing complications related to hydrogen. In complete, this provides as much as roughly $269,000 per car—a determine that would go away even seasoned subsidy hunters gaping in disbelief.

Leasing a Toyota Mirai prices round $44,000 for 4 years in California. Which means there are $226,000 per car unaccounted for.

Clearly, the residents of Riverside, uniquely amongst western cities, don’t have any alternate options to costly rental automobiles in the event that they need to drive as a substitute of strolling, biking, scootering, or grabbing an Uber. Oh, wait. A number of sensible carsharing alternate options are already out there in Riverside. Zipcar operates on the College of California, Riverside, offering quite a lot of autos, usually sedans and SUVs, and sometimes hybrids or electrical fashions. Getaround presents peer-to-peer automotive leases, the place residents can select from varied car sorts, together with electrical autos relying on native availability. Turo additionally serves the Riverside space, with native hosts incessantly renting well-liked electrical fashions such because the Tesla Mannequin 3, Tesla Mannequin Y, BMW i4, and Rivian R1T. Moreover, Envoy gives electrical carsharing as an amenity at choose residential developments, that includes autos just like the Hyundai Ioniq 5, Ford Mustang Mach-E, and Tesla fashions. So this can be a crowded marketplace for rental automotive alternate options already, and the present techniques have electrical automobiles, which truly make sense, and aren’t getting a whole bunch of 1000’s of {dollars} per automotive in governmental cash.

However absolutely, you would possibly assume, there’s some logic buried beneath this subsidy mountain. Maybe Riverside is teeming with infrastructure able to help these hydrogen-powered miracles. Sadly, no. The whole hydrogen refueling infrastructure in Riverside consists of precisely one station. That single lonely station operates strictly on a reservation-only foundation and is able to serving exactly one car each half-hour. Sensible? Environment friendly? Hardly. Anybody able to primary arithmetic would rapidly see that this association couldn’t scale to even modestly better fleet sizes with out inflicting important complications, logistical nightmares, and countless frustration for drivers.

In fact, they realized this. That’s why one of many recipients of great governmental largesse per automotive is Mobility Improvement Operations (MDO), which is managing the fleet, together with refueling the automobiles. I believe it’s making out like a bandit on this deal. MDO is a nationwide nonprofit group specializing in community-based carsharing applications, with a concentrate on affordability, environmental justice, and long-term sustainability. Apparently, it doesn’t perceive that hydrogen doesn’t match any of these three standards.

Talking of that hydrogen, let’s speak about its true coloration. Regardless of fixed guarantees of “clean” hydrogen manufacturing, actuality usually stays stubbornly grey. Riverside’s hydrogen provide arrives by truck, delivered in tube trailers crammed with hydrogen nearly definitely derived from pure fuel—rendering any claims of real environmental purity laughably hole. Whereas Toyota Mirais do certainly emit solely water vapor from their tailpipes, the upstream emissions stay appreciable. The purported environmental advantages rapidly evaporate below even a cursory look on the manufacturing chain.

And, in fact, hydrogen leaks and causes international warming. It has a 20 yr international warming potential 37 occasions worse than CO2 as a result of it interferes with the degradation of methane within the environment. Now that we’ve got began learning the smallest diatomic molecule on this planet’s propensity to leak, we’re discovering 1%+ per contact level. Making grey hydrogen, trucking it, pumping it into storage tanks, pumping it into automobiles, after which driving automobiles means 5% to 10% leakage of hydrogen alongside the worth chain.

There’s the opposite drawback that may undoubtedly rear its ugly head: these automobiles very possible gained’t be out there a number of the time, and so Riverside’s drivers will quickly be taught to disregard them, selecting dependable alternate options as a substitute. Why do I say this? Nicely, from international fleet experiences with hydrogen autos and refueling. Whereas Toyota Mirais are literally dependable sufficient, a lot better than common for hydrogen autos, partly as a result of they have a tendency to not be pushed very a lot, hydrogen refueling in California and globally experiences the identical issues time and again. Hydrogen pumps fail. Hydrogen provides dry up. The chances that each of these issues happen for the Riverside refueling answer are very excessive, and clients will be taught to not hassle in a short time. The outlook for these rental alternate options, in a market with a rare number of alternate options, together with truly inexperienced alternate options, is that they are going to sit on no matter parking is assigned to them and barely be used. If they’ve 20,000 km on their odometers when returned to Toyota in 2029, or earlier if this system is quietly shelved, I’ll be shocked.

Think about the opposite different already on Riverside’s streets—ride-hailing giants Uber and Lyft. Quietly, with out fanfare or lavish public ceremonies, tens of 1000’s of electrical autos have already built-in seamlessly into these platforms nationwide. Uber alone counts round 180,000 EV drivers in North America and Europe, whereas Lyft reported that greater than 20% of its rides have been offered by electrical or hybrid autos in 2023 already. These corporations obtain widespread adoption with minimal direct public subsidy per car, using a quickly increasing and more and more inexpensive community of private and non-private EV chargers. This infrastructure is confirmed, scalable, and straightforwardly aligned with California’s aggressive renewable power objectives. Additionally, it doesn’t get $269,000 per car in inane subsidies.

The comparability couldn’t be clearer. On one hand, we’ve got an eye-popping subsidy for 13 hydrogen automobiles, powered by hydrogen of detrimental environmental integrity. However, we’ve got tens of 1000’s of EVs easily working each day with more and more modest monetary help, infrastructure rising steadily extra strong, and emissions demonstrably dropping as the electrical grid will get greener. This raises the apparent query: who truly advantages from the RCAC program?

Definitely, Toyota advantages, absorbing some constructive PR for its struggling hydrogen wager. Politicians profit too, having fun with a fleeting picture alternative and a inexperienced headline for his or her marketing campaign leaflets. MDO is getting some huge cash for automobiles that may hardly ever be used. However the public? Taxpayers? The surroundings? They lose, every sponsored Mirai representing a missed alternative to allocate funds in direction of real, scalable decarbonization efforts. If Riverside or California policymakers have been severe about clear transportation, redirecting even a fraction of this absurd subsidy in direction of increasing EV infrastructure or additional incentivizing electrical autos in present ride-hailing fleets would produce tangible, substantial environmental outcomes.

As an alternative, Riverside taxpayers have now leased a minuscule fleet of hydrogen sedans whose restricted sensible utility, detrimental environmental advantages, and non-existent scalability make them an exemplary candidate for the title “most pointless climate initiative of the year.” As coverage goes, it’s genuinely tough to think about a clearer instance of misguided waste. Oh wait. Fossil gas subsidies.

Screen Shot 2024 11 22 at 11.08.15 AM

2025 04 14 Webinar How to Conquer Ground Mount Solar Design Challenges Article cover graphic 1200x675 CTA 1

Whether or not you have got solar energy or not, please full our latest solar power survey.



Screenshot 2025 04 10 at 2.52.23 PM


Have a tip for CleanTechnica? Need to promote? Need to counsel a visitor for our CleanTech Discuss podcast? Contact us here.


Join our each day publication for 15 new cleantech stories a day. Or join our weekly one on top stories of the week if each day is simply too frequent.


Commercial




CleanTechnica makes use of affiliate hyperlinks. See our coverage here.

CleanTechnica’s Comment Policy




Our Main Site

Read more

More News