Fuel cells have been promoted as a green solution for vehicles. Significant investments have been made in research and development to make this techno
Fuel cells have been promoted as a green solution for vehicles. Significant investments have been made in research and development to make this technology viable for the automotive market, aiming to reduce emissions and improve air quality. While scientists work on integrating this technology into cars, new companies have begun exploring hydrogen fuel cells for forklifts. And why not? Large distribution centers operate like small cities, with many people and vehicles. Therefore, some argue that more effort should be focused on introducing fuel cells into material handling equipment (MHE) first. If fuel cells are the solution, what problems do they solve? Some suggest these problems include:
- Emissions and air quality
- Fuel costs
- Equipment costs
- Refueling time
- 3-shift operation challenges
Let’s explore these challenges and how fuel cell technology can offer solutions.
Emissions and Air Quality
Undoubtedly, air quality in a warehouse is crucial. Like batteries, fuel cells produce no harmful emissions; they only emit water vapor, which can either evaporate into the air or be stored in a reservoir to be removed during refueling. However, the production of hydrogen for fuel cells is less straightforward. Hydrogen is typically produced through natural gas reforming, a process that uses steam to separate hydrogen. Unfortunately, this process produces more CO2 than simply burning the gas. Thus, the environmental benefits of fuel cells are not entirely straightforward.
Fuel Costs
Hydrogen isn’t cheap. While you might assume the cost of hydrogen fuel cells is competitive with propane or electricity, hydrogen is actually twice as expensive as the electricity used to charge a battery for the same amount of work.
Equipment Costs
One potential advantage of fuel cells is the reduced reliance on expensive forklift batteries. Batteries and chargers represent a large investment for powering forklifts, and their prices continue to rise. However, fuel cells are also costly, roughly equivalent to the price of three batteries, but they have an estimated operational life of 10 years, which is longer than the average life of a forklift battery. Still, while a battery charger costs about $2,000, hydrogen refueling infrastructure can range from $300,000 to $1,000,000. To justify the infrastructure costs, a fleet of around 75 forklifts would be needed, assuming $2,000 per forklift charger.
Refueling Time
The key advantage of hydrogen fuel cells for forklifts isn’t necessarily emissions, fuel costs, or equipment costs. The real benefit lies in the reduced time required to refuel. In a three-shift environment, changing a forklift battery can take 10-15 minutes. At $18 per hour for labor, this results in $3,375 wasted annually per lift truck, not including the cost of operating battery changers. Refueling a hydrogen fuel cell, however, takes around 5 minutes, saving approximately 10 minutes per forklift per shift.
For a 75-lift truck operation, this time savings translates to $168,750 per year. With a $300,000 minimum investment in hydrogen infrastructure, the payback period would be about 2 years. If more expensive hydrogen production infrastructure is needed, the return on investment (ROI) would be longer. Additionally, a greenfield site could save around $100,000 by eliminating the need for a battery charging area and battery changers, further shortening the ROI. Considering the $750,000 saved from avoiding replacement batteries over 5 years in a 3-shift environment, the ROI looks increasingly favorable.
Conclusion
If you’re considering fuel cells for forklifts, the ROI is possible, particularly through labor savings rather than capital, fuel costs, or emissions reductions. Feel free to comment below with your thoughts or ideas about fuel cells.
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