Hydrogen is an excellent solution as a high-performing alternative fuel.
trucks, forklifts, busses, and utility vehicles without degradation to horsepower. In fact, long-haul truckers cut their costs per mile in half when they switch from conventional diesel trucks to hydrogen fuel cell vehicles.
The main challenge to the widespread adoption of hydrogen fuel is infrastructure, and the hurdle for building hydrogen fuel stations is making those businesses profitable. Conventional fueling businesses involve purchasing gasoline from a wholesale distributor and storing the inventory in large tanks onsite until sold through the pump. Hydrogen fuel has worked similarly for many retailers–either by purchasing the hydrogen fuel as a gas or as a liquid.
This process presents many challenges for business owners, mainly as hydrogen fuel cell vehicles are still relatively new.
- First, future sales must be forecasted to establish orders from a distributor.
- Second, the fuel must be stored on the premises–in either large compressed hydrogen storage tanks or liquid hydrogen storage units.
- Third, profitability is limited by the wholesaler’s price, which is inflated to cover transportation costs.
Business owners may be wondering what makes a hydrogen fuel station profitable. That’s precisely the problem PowerTap Hydrogen has solved to make retailing hydrogen fuel accessible to all fuel retailers.
PowerTap Hydrogen makes introducing fuel to your customers much more manageable. Our smallest onsite blue hydrogen system takes up less than 1,000 square feet of space. Our patented technology allows you to produce the amount of hydrogen fuel your customers need, all for about $2.00 per kilogram. With the current retail price at around $13.00, that leaves plenty of margin for profitability.
Business owners in California can take advantage of sizeable carbon credits, too. For those investing an average of $5 million CAPEX in installing a PowerTap Station, an estimated $2 million is available as HRI carbon credits. Additional carbon credits are earned as hydrogen fuel is sold, increasing the location’s revenue.
As more businesses and consumers move to alternative fuels, now’s the time to diversify your products for the future. Deloitte’s report, “Fueling the Future of Mobility,” forecasts enough demand to support 7,100 fueling stations in the United States by 2030. Will your company be a part of the transformation?
Learn more about how you can add an Andretti Group PowerTap Station to your portfolio.
If you’re interested in diversifying your current product mix or would like to begin a journey in the exciting future of alternative energy solutions, contact our team today. We’d love to show you how easy it is to be a part of the hydrogen fuel revolution.