Key Points
Elon Musk, CEO of Tesla and SpaceX, has critiqued hydrogen fuel, referring to hydrogen-powered cars as “extremely silly.” In a statement from 2015, Musk noted the challenges in producing and storing hydrogen, claiming that “the best-case hydrogen fuel cell doesn’t win against the current-case batteries.” His skepticism reflects Tesla’s continuous focus on lithium-ion battery technology rather than hydrogen, which has seen minimal investment from the company.
Despite Musk’s opposition to hydrogen in transportation, alternative applications may exist. The CEO of Volkswagen emphasized the need for “green hydrogen” in sectors like steel and chemicals, apart from automotive use. While hydrogen technology, such as Plug Power’s proton exchange membrane systems, is being explored, they come with high costs—estimated between $1,500 and $2,500 per kilowatt—making them less competitive than natural gas systems which average under $1,000 per kilowatt.
The viability of hydrogen fuel remains uncertain, relying heavily on government support for long-term sustainability. This raises concerns about the investment potential in hydrogen-focused companies like Plug Power amidst a lack of cost effectiveness compared to conventional energy sources.
