Daimler, Volvo partner up to produce hydrogen fuel cell

Daimler AG's truck unit and Volvo AB said on Thursday they will start making hydrogen fuel cells in Europe in 2025 via a joint-venture.

According to Reuters, the two manufacturers said they would provide more details on large-scale fuel production in 2022, but that cellcentric was already scaling up prototype output.

"Partnerships like cellcentric are vital to our commitment to decarbonizing road transport," Volvo Chief Executive Martin Lundstedt said in a statement.

The European Union has been pushing tighter emission standards, fueling a boom in zero-emission electric cars. In the case of long-haul freight trains, hydrogen fuel cells are more viable zero-emission power systems as EV batteries are very heavy.

Fuel cells produce electricity from hydrogen, emitting only water as waste.

The two truck makers called for the construction of around 300 hydrogen refueling stations suitable for heavy-duty vehicles in Europe by 2025 and around 1,000 stations by 2030.

Both companies called for the EU to introduce policies to help make the zero-emission technology commercially viable.

They also argued that policies should include subsidies for "CO2-neutral technologies and a taxation system based on carbon and energy content."

As zero-emission trucks are significantly more expensive than fossil-fuel models, Daimler and Volvo said a "policy framework is needed to ensure demand and affordability."