Summary
- Van Hool, a Belgian bus and coach manufacturer founded in 1947, was known for its innovation in producing diesel, hybrid, battery-electric, and hydrogen fuel-cell buses
- The company’s exploration of hydrogen fuel-cell buses proved to be costly due to high operational costs, limited infrastructure, and slow adaptation to battery-electric technology
- Van Hool’s financial struggles were exacerbated by its reluctance to shift manufacturing to lower-cost regions and prioritize battery-electric technology
- De Lijn, a public transit operator in Flanders, Belgium, abandoned its hydrogen buses due to high costs and maintenance issues
- The failure of hydrogen bus trials worldwide, including in cities like Vancouver, Vienna, and Liverpool, demonstrates that battery-electric buses are a more viable and dominant option in the market.
Article
Van Hool, a Belgian bus and coach manufacturer, was a pioneer in exploring hydrogen fuel-cell buses in the early 2000s. However, the company faced financial challenges and ultimately declared bankruptcy in 2023, with debt totaling nearly €400 million. Despite producing a range of vehicles including diesel, hybrid, battery-electric, and hydrogen fuel-cell models, Van Hool’s slow adaptation to the dominance of battery-electric technology led to its downfall. The company struggled to compete in the market as it maintained a mixed strategy across different powertrain technologies.
One of the main factors contributing to Van Hool’s financial struggles was its reluctance to shift manufacturing to lower-cost regions, unlike many of its competitors. By keeping the majority of its manufacturing in Belgium, where labor expenses were high, the company faced increasing financial strain. Opening a plant in North Macedonia in 2013 was insufficient to offset rising costs, leading to further challenges. Meanwhile, other European bus manufacturers embraced production facilities in lower-wage countries to reduce costs and remain competitive.
Public transit in Belgium is split among three major regions, each with its own official language and government structure. De Lijn in Flanders introduced hydrogen buses in 2014 but faced issues with operational costs and maintenance difficulties. By 2018, the Flemish government ruled out further purchases of hydrogen buses, citing their high costs and other challenges. After Van Hool’s bankruptcy in 2023, De Lijn dismantled its hydrogen filling station and retired the remaining hydrogen buses, focusing on battery vehicles instead.
Hydrogen bus trials globally have followed a predictable pattern of high costs, operational challenges, and eventual abandonment by transit agencies. From various cities around the world, agencies have launched pilot programs only to face economic realities such as soaring maintenance costs, unreliable refueling stations, and expensive hydrogen supply chains. The failures of hydrogen trials have led many agencies to shift to battery-electric buses, which are simpler, cheaper, and already dominant in the market. Despite promises of economies of scale fixing hydrogen flaws, the reality has proved otherwise.
The decisions by transit agencies like De Lijn to abandon hydrogen in favor of battery-electric buses reflect a broader trend in the industry. Van Hool’s bankruptcy and the subsequent withdrawal of support for its hydrogen fleet left agencies in a difficult position, highlighting the challenges of maintaining hydrogen buses. Despite ongoing promises from hydrogen proponents, the continued failures and financial risks associated with hydrogen transit have led agencies to opt for the more reliable and cost-effective battery-electric buses. The shift away from hydrogen is likely to continue as agencies prioritize operational and financial viability.
In conclusion, the downfall of Van Hool serves as a cautionary tale for bus manufacturers and transit agencies alike. With a focus on hydrogen proving to be a costly miscalculation, the industry is increasingly recognizing the practical benefits of battery-electric buses. As agencies around the world abandon hydrogen in favor of more reliable and cost-effective alternatives, the future of public transit appears to be with battery-electric technology. Despite the ongoing hype surrounding hydrogen, the economic realities and operational challenges continue to steer the industry towards a more sustainable and practical solution in battery-electric buses.
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