Australian Hydrogen Projects Struggling to Find Investors and Electric Buses being Introduced in India by SWITCH Mobility & JSW

Canada Issues Regulations for the Phase Out of Combustion Vehicles

Market Impact Factor: High

Humza Farhan | Analyst I – E-mobility

After previously launching initiatives to begin transitioning Medium and Heavy Duty vehicle fleets in the country to zero-emission, the Federal government has now issued regulations to complete the phasing out of Internal Combustion Engine vehicles within the Passenger and Light Commercial vehicle segments. The regulations are being launched to implement Canada’s goal of allowing only zero-emission passenger cars and light commercial vehicles to be sold in the country from 2035. Initially, an EV quota of at least 20% will be mandated from 2026.

Prior to launching regulations, the Federal government announced a formal 75-day consultation period after publishing regulations in the Official Gazette on 31 December 2022. Automakers and importers offering new vehicles for sale in Canada will be required to offer a growing percentage of their fleet as Zero Emission Vehicles starting in 2026 and increasing to 100% by 2035.

For intermediate-stage efforts, the government has published the following regulatory measures:

1) A ZEV quota of at least 20% is to apply from 2026

2) 60% from 2030

3) 100% from 2035

ZEVs, within these regulations, are not limited to Battery Electric and Fuel Cell Electric vehicles, but also Plug-in Hybrid vehicles that offer a certain electric-only range. These rules are to apply to manufacturers and importers of new passenger cars, SUVs, and pickups, and exclude emergency vehicles and fire engines. For medium- and heavy-duty vehicles, Canada aims to achieve 35% electric by 2030 and increase to 100% in certain vehicle categories by 2040.

The government has also announced intentions to invest CAD 1.7 million in purchase subsidies for electric passenger cars and light commercial vehicles and additional funds of CAD 400 million in charging stations to promote electric mobility in the country. In addition, the Canada Infrastructure Bank will invest CAD 500 million in charging and refueling infrastructure for zero-emission vehicles. The government has also committed to supporting the construction of 85,000 charging stations by 2027.

For the United States, states are following California’s example: Oregon, Washington, and Vermont have now also formally decided to phase out new internal combustion vehicles from 2035. In August 2022, the California Air Resources Board (CARB) passed the regulation “Advanced Clean Cars II”, which defines the path for the ban on internal combustion vehicles in the US state from 2035, which was passed by decree about two years ago. Other states are now joining this regulation.

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Hydrogen Projects in Australia are Struggling to Lure Investors

Market Impact Factor: Medium

Saad Siddique?| Junior Analyst??

According to Resources and Energy Major Projects Report 2022, an annual review of Australian project investment, published on Dec 19, 2022, Australia had only one committed hydrogen project worth A$100 million (67 USD Million) out of a vast pipeline of proposals worth A$266 billion (178 USD Billion).

Lately, Australia has been speaking a lot about its potential to be a clean energy economy alongside its ambitious goals to utilize Green Hydrogen as a clean energy source. Although, the availability of public seed funding has allowed many early hydrogen feasibility studies to be conducted only 2 out of 16 projects from 2022 have progressed. Because of the early stages of the Hydrogen industry, the majority of these feasibility studies have ended in failure leading to an estimated investment of just A$100 million so far.

On the other hand, investment in the country’s huge fossil fuel sector has continued apace with 55% of major resource projects in development as opposed to 0.1% for the hydrogen industry. Although, major global companies including BP Plc, Macquarie Group Ltd, and Forescue Metal Group Ltd have plans for an ambitious hydrogen project in Australia, as of now a major chunk of capital is being bet on the established market of carbon-emitting fossil fuels. A new investment of 46 billion, 10.7$ billion, and 7$ billion was also committed to Oil & Gas, Iron ore, and Coal industries.

Failure of Hydrogen feasibility studies shows that significant government support is required for low-carbon hydrogen projects to attract investors and help Australia achieve its aim to be the future hydrogen leader.

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SWITCH Mobility Partners with JSW to Introduce Electric Buses in India

Market Impact Factor: High

Amna Mumtaz?| Junior Analyst – E-mobility

In order to deploy electric buses for employee transportation in India, Switch Mobility (the UK subsidiary of Indian commercial vehicle manufacturer Ashok Leyland) has teamed with JSW. JSW Steel is receiving 71 buses for their Vijayanagar factory. In India, Switch Mobility wants to completely transform urban transportation, and Switch Mobility claims that this is the first substantial and largest order for an electric bus for employee transportation in India. Even though it has only been a short while since Switch Mobility produced its first electric bus for the continent, it has already secured several significant contracts as an electric bus manufacturer in India.

In India, buses account for 48% of daily travel, although there are only 3 buses per 10,000 passengers. Mahesh Babu, CEO of Switch Mobility said that the private bus market in India, is one of the key transportation markets in the country, constituting 70% market share, of which the private electric bus market is expected to be valued at ?60 billion in the next five years.

According to Switch mobility, 200 new employees will be hired in order to assure the efficient operations and services of these electric buses. The company claims that it wants to increase hiring by 30% over the next five years.

Switch Mobility introduced the first all-electric double-decker bus for the Indian market in August of this year. From Mumbai, Switch India has already received an order for 200 electric double-decker buses. Just a few months ago, Switch Mobility and the Indian bus manufacturer Chalo signed an agreement to work together strategically to deploy 5,000 electric buses around the country.

According to the PTR database, the Indian e-bus market is expanding. The Chalo and Switch Mobility program and this contract for employee transportation by JWS steel will contribute to the electrification of buses in India. More companies will be interested in the Indian BEV bus market after these projects are completed.

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