Regional clusters for the energy transition a cost-benefit analysis

Hydrogen mobility could be a promising technology to decarbonize transport and decrease the atmospheric pollution.
The Zero Emission Valley (ZEV), in the French region Auvergne-Rhône-Alpes, is one of the most ambitious and politically supported projects developing captive fleet of hydrogen vehicles in France. It is an interesting project to explore the potential of projects based on fuel cell electric vehicles captive fleets.
This report uses the cost-benefit analysis framework to assess the economic efficiency of the ZEV, both from the private and public perspectives, compared to a diesel mobility status quo scenario. The public perspective encompasses social benefits of the ZEV such as the diminution of greenhouse gas (GHG) emissions or local atmospheric pollution. The report also uses the economic concept of dynamic abatement cost to assess the potential of a technology subject to learning-by-doing effects (decreasing costs with past cumulative production).
The cost-benefits analysis suggests that the economic efficiency and performance of the ZEV, both from the public and the private perspective, is not assured before 2035-2038, unless learning-by- doing effects and the longer-term is considered. This cost benefit analysis is based on a conservative (pessimistic) scenario. The main message is that the ZEV needs a higher demand for hydrogen to decrease costs.
This report then discusses the reach of the study, considering other technologies that could decarbonize transports, such as electric mobility, and formulates possible continuation of this work.
Some policy recommendations for hydrogen mobility such as developing synergies between hydrogen uses and regional cooperation to scale-up projects conclude this report.

Rapport réalisé par François TEYSSIER D’ORFEUIL dans le cadre de son stage de Master.

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