New chemistry aims to slash fuel-cell PGM costs by 50%

Hydrogen fuel cells are steadily proving to be a competitive zero-emissions solution for powering heavy trucks, railway locomotives and ships, as well as for and various stationary-energy applications. The cost of hydrogen fuel is coming down, with production of “green” hydrogen at parity with the price of diesel in some regions, according to recent industry reports. And production scale is playing a major role: studies by McKinsey & Co. and Deloitte have shown the cost delta of fuel-cell systems for trucks versus equivalent diesel powertrains to be narrowing, based on annual production volumes of 150,000 vehicles.

The cost reductions are being driven mainly by industrialization of the fuel-cell system. “Everything except the catalyst in a typical system - the bi-polar plates, the membrane material and related components - has potential for economies of scale,” explained Tom Stephenson, CEO and co-founder of Pajarito Powder, an Albuquerque, New Mexico-based manufacturer of catalysts for use with proton-exchange membrane (PEM) and alkaline fuel cells and electrolyzers. “It's the catalyst that is 40 percent of the overall cost, because of its PGM (platinum group metals) content,” he said, noting the most recent U.S. DoE projection for fuel-cell cost based on 500,000-unit volume.