Audi's Fired CEO Once Said Hydrogen Fuel-Cell Vehicles Are Absurd, Was He Right?

Like some gas-powered cars have diesel-powered counterparts, battery-electric vehicles (BEVs) should find in FCEVs a friendly rival. After all, both powertrain philosophies eliminate harmful tailpipe emissions from the mix and promote a more environmentally-friendly approach to mobility. But Audi's outgoing CEO confidently disagrees. And this belief appears to extend into the luxury automaker's family.

As BEVs, FCEVs need batteries too. The main difference is that you don't have to plug in the automobile and charge with energy via a dedicated charger. Instead, a high-pressure tank needs to be filled with hydrogen. Then, the fuel cell combines it with oxygen via an electrochemical reaction. This is how water (and heat!) is created. No combustion occurs, and no exhaust fumes reach the air we breathe.

In the process, the hydrogen atoms are split into positively- and negatively-charged ions known as protons and electrons. The latter gets its own circuit and creates electricity, which is consumed by a motor to produce kinetic energy. At the same time, the former goes through the membrane (usually a polymer) that separates the anode and the cathode to meet with oxygen and, as a result, "merge" and become water.

Not a very pretty picture

This type of fuel cell operates at low temperatures, so it cannot use natural gas, ethanol, or liquefied natural gas. These hydrocarbon fuels must be processed and converted to hydrogen. It's then cryogenically stored at -423 degrees Fahrenheit (-253 degrees Celsius) in tanks with up to 300 bar pressures. When it's this cold, hydrogen becomes a liquid. However, most stations today store it in gaseous form. But they still have to keep it at high pressures, and that's a bummer for such businesses because some can only hold 100 kg at one time.

Since green hydrogen is still unpopular, many claim that FCEVs are not as clean as some want them to be. Some even went as far as to say that hydrogen-powered cars are another way to keep fossil fuel producers in business.

Honda and General Motors started testing FCEVs in 2004 – one year after Tesla was founded. They wanted to figure out if filling up with hydrogen would be problematic in winter. They didn't bring forward a reliable production-ready FCEV, but Toyota did. The Mirai is in its second generation now. Hyundai managed a similar feat as well with the Nexo.

But, two decades later, Tesla's BEV turned out victorious, and FCEVs are nowhere near this level of popularity.

One reason for Tesla being the world's most valuable automaker today is that, unlike BEVs, FCEVs can't respond when the driver requests more power immediately. Thus, a battery is needed. It acts like a complementary accessory when the motor needs more electricity than the fuel cells can provide. The main advantage here is that FCEV batteries do not have to be as large as those put on BEVs, minimizing the environmental impact of mining for various metals like lithium.

So, if hydrogen-powered cars still have such an appeal to them, why is Audi's CEO against them?

Who's saving who?

The main problem is that production lines for FCEVs barely exist. Another great issue is that there is no hydrogen fueling station network. Moreover, legacy automakers are already spending billions to play catch up with Tesla. They would need a lot more money to make reliable FCEVs too, and it doesn't make sense to divert so many funds towards something that might work when the BEV has already proved it can satisfy environmental and transportation needs.

Germany, Australia, China, and the US want FCEVs to work. But they're not necessarily focusing on passenger cars, even though brands like BMW received money to develop them. The batch of iX5s with Toyota-inspired fuel cells, for example, didn't appear out of nowhere. Governments are more interested in popularizing this powertrain for aviation, road freight, and maritime transport – three sectors desperately needing decarbonization. Subsidies play a significant role in convincing automakers to follow this path, especially as BEVs are also heavily incentivized.

In China, automakers are fighting tooth and nail to gain more market share. But FCEVs didn't make a big splash at this year's Shanghai auto show. Everyone paid attention to BEVs coming from BYD, Neo, or Xpeng. And it's understandable. Many BEVs can go over the 300-mile mark on a full charge and reach insane top speeds. Plus, multiple companies are building comprehensive charging networks, and many customers are warming up to ditching fossil fuels.

But Audi CEO Markus Duesmann puts what seems to be the final nail in the FCEV coffin by describing this propulsion system as "simply absurd," according to Spiegel. This statement may seem confusing to some because, in 2016, the Ingolstadt-based company took the lead from VW and started working on making a better fuel cell in Neckarsulm. In 2020, a laboratory with 150 high-skilled workers allegedly had a fuel cell with excellent energy density. It felt like Audi had what it took to overcome Toyota and just needed the right car for the mission.

But shortly after, that space got turned into offices for rent. The Neckarsulm hydrogen development center is no longer something the four interlocking rings brand likes to talk about. Another location meant to develop better high-voltage batteries is the new center of attention.

Sadly, this has been prefaced publicly since 2020. After jumping from BMW to Audi, Duesmann said, "We will not be able to produce sufficient quantities of the hydrogen required for propulsion in the next few decades in a CO2-neutral manner. I, therefore, do not believe in hydrogen for use in cars." The brand announced it was pulling the plug on ICE-powered vehicles one year later. Starting in 2026, BEVs will remain the sole focus of Audi.

Duesmann may be leaving Audi, but he agrees with VW Group chief Oliver Blume who said hydrogen has no "universal application in cars." This is not sitting well with most Germans, who still believe hydrogen is the next great thing for powertrains. According to Spiegel, nearly half of the country's motorists believe fuel cells will become the norm.

But last year, as the European Union (EU) decided to offset the rising cost of fossil fuels, Audi's CEO doubled down and said it was a mistake to help keep gas- and diesel-powered cars attractive. He blamed the EU for falling into the trap set forward by entities who want to keep the status quo from changing.

Unfeasible? No. Unlikely? Yes.

That statement starkly contrasted what Porsche - another VW Group family member - believed. They wanted fossil fuel-powered cars to reign on and still invest in making a carbon-neutral alternative to today's fuels. But for Porsche, this move makes the most sense. After all, over three-quarters of the vehicles it made since its inception are still on the road today. The Stuttgart-based marque wants to save these units from oblivion, even though it's moving forward with its own battery-electric models.

Right now, one thing is clear – 2023 was an excellent year for BEVs. The Tesla Model Y was the world's best-selling car in the first three months of the year, and the now Texas-based brand had another record delivery quarter.

In contrast, Die Welt says only 168 FCEVs were sold in Germany in the first six months of 2023. The Toyota Mirai and Hyundai Nexo comprised most of those sales.

Filling up with hydrogen is also quite expensive ($17 per kg in the US and $15 per kg in Europe), and there aren't that many stations around.

Maybe VW wants to fully concentrate on great software, efficient drivetrains, and better batteries for its upcoming zero-tailpipe models. As such, it is safe to say that hydrogen is just a victim here. American rivals have the upper hand regarding BEVs, and the Chinese threat to the established European auto market is getting bigger and bigger by the day. It's a brave new world, but not for legacy automakers. They must do something about Tesla and others like BYD, and making FCEVs doesn't appear to be the winning solution.

Duesmann was right, unfortunately. Passenger FCEVs are currently not able to catch on. It remains to be seen what the future holds for this propulsion system.