Special Focus: H₂ Mobility, Pipelines and Transportation

T. ANDERSON, PHINIA, Auburn Hills, Michigan (U.S.)

The internal combustion engine (ICE) is often overlooked in conversations about sustainability. However, as we push toward ambitious decarbonization targets, ICEs remain essential to the future of road transport, particularly in regions where the shift to electrification faces headwinds. Economic pressures, regulatory uncertainty and infrastructure challenges are slowing the transition, and too often the discussion centers solely on new propulsion systems and infrastructure. However, by upgrading and optimizing the ICE alongside emerging systems, we gain a faster, more scalable path to decarbonization.  

For more than a century, the ICE has evolved into a durable, globally adopted propulsion system, underpinned by a mature industrial base, skilled workforce and widespread distribution network. These assets form a strong foundation for delivering impactful sustainability gains without starting from scratch.

Driving innovation with existing technologies. The EU’s Clean Industrial Deal provides a powerful framework to decarbonize the transport sector while maintaining industrial competitiveness.¹ This framework includes support for industrial solutions that leverage existing technologies and infrastructures. Reducing emissions, controlling costs and building resilience across the European technology and manufacturing sectors are vital to meeting decarbonization targets. To remain globally competitive, European industrial companies require reliable, affordable energy. Policy frameworks should look to support innovation in all clean technologies, not just those that are newly emerging. Decarbonization policies must include efficient combustion systems designed for clean fuels, including hydrogen internal combustion engines (H₂ICE).

In addition to the large-scale infrastructure overhaul for new technology, a faster-track, fuel-agnostic approach offers an accelerated, pragmatic route by improving existing engines to run on alternative fuels. This approach bridges the gap between objectives and reality, while also ensuring decarbonization efforts are inclusive and scalable. Through recognizing the potential of current technological capabilities, sustainability improvements can take shape more rapidly.

To support technology neutrality, the Innovation Fund, a major EU financing program aimed at supporting the demonstration of innovative low-carbon technologies, must be accessible to all low-carbon solutions, including those that improve the performance and sustainability of ICEs.² Prioritizing only new, developing technologies risks overlooking the significant emissions reductions possible from enhancing existing systems. Inclusive ICE-based innovation, such as H₂ combustion and alternative fuel upgrades, helps the industry achieve faster progress toward decarbonization while supporting industrial competitiveness and energy resilience.

H₂’s expanding role in the energy transition. H₂ occupies a unique space in the clean energy mix, offering a zero-carbon fuel alternative and boasting broad applications: powering heavy-duty transport, off-road operation vehicles and machinery, and blending into existing gas grids. As the global demand for H₂ continues to grow, its role in shaping the automotive future is evolving, revealing its importance and promising potential.³ H₂ is also important as a feedstock for other alternative fuels, notably e-fuels and hydro-treated vegetable oil (HVO). 

However, H₂’s role in global energy systems is increasingly shaped by geopolitics. Countries are vying to secure production capacity and gain control of supply chains, often aligning their industrial strategies around H₂ hubs, trade agreements and national subsidy programs. These geopolitical activities bring both opportunity and risk. On one hand, they are fueling innovation and investment. On the other hand, they risk creating regional disparities in access, particularly where infrastructure is underdeveloped.

Without a parallel push to ensure broad, scalable deployment with use cases across vehicle fleets and energy systems, H₂ could be limited as a niche solution, rather than a broader market decarbonization tool.

Why electrification is not one-size-fits-all. A regional lens helps clarify where fuel-agnostic approaches can have a significant impact. While it is good to see electric vehicle (EV) infrastructure continuing to develop in mature markets, some regions outside the lead markets in China, North-Western Europe and coastal U.S. face grid limitations or economic barriers, making widespread electrification unfeasible in the near term.^4,5 Electrification remains particularly challenging in segments such as long-haul and heavy-load commercial vehicle transport (FIG. 1), off-road equipment and any application that operates in high load conditions, highly variable environmental conditions, continuous operating cycles or remote environments.

In these cases, cleaner ICEs that run on biofuels, ethanol/methanol, efuels, HVO, natural gas or H₂ present a promising alternative. They provide a quicker, more practical route to decarbonization using existing platforms. Utilizing clean fuels in modified ICEs helps reduce carbon emissions significantly, in parallel to the transition to EVs in the segments where it is most applicable.

Cleaner ICEs for hard-to-decarbonize segments. Alternative fuel vehicle ICE technology exists today and has been proven effective as a viable solution for on-road applications. Retooling engines and fuel systems to be compatible with drop-in or blended fuels is a simple, technically efficient solution already in place to support this option. Through adapting existing technology, we can begin to reduce emissions now. However, this requires access to cost-effective fuels that are available in adequate quantities. 

There are three critical barriers preventing cleaner ICE solutions from reaching their full potential: alternative fuel production, necessary infrastructure and associated cost.

Scaling up sustainable fuel production. First, alternative fuel production relies on existing technology, but scaling up is essential to meet broader market demand. Ideally, H₂ should be produced in a ‘green,’ sustainable manner to maximize decarbonization benefits during use. Other types of H₂ production may also be viable options in the near term to encourage technology adoption, while paving the way for longer-term green H₂ solutions. However, there is currently insufficient H₂ production to enable widespread market adoption in the transportation sector.

Although there have been announcements regarding the construction of sustainable H₂ production facilities and ongoing investment in various regions, we are still far from achieving the necessary volume and scale in the industry. For instance, global electrolyzer manufacturing capacity doubled to 25 gigawatts (GW)/yr in 2023. However, only 2.5 GW of that capacity was actually installed, indicating significant underutilization in the sector.6 Moreover, the cost of producing renewable H₂ remains 1.5 to 6 times higher than fossil-based alternatives, posing substantial economic challenges for widespread adoption.⁶

This barrier is particularly critical in the automotive industry, where the adoption of alternative fuels like H₂ is essential but currently limited by various constraints. The production of other alternative fuels varies by region, which necessitates targeted solutions in specific locations, such as ethanol in Brazil and compressed natural gas (CNG) in India. To effectively support this transition, production output must be increased.

The second barrier of infrastructure limitations complicates the widespread adoption of cleaner alternative fuel ICE technology. Establishing new fuel networks is both capital-intensive and time-consuming. Although the technology exists, many fueling stations, distribution systems and vehicle platforms are not yet available at the scale needed.

While the world continues to progress in a shift to EVs, charging infrastructure challenges are still prevalent. For example, in the U.S. and UK, public charger build-out has not kept pace with EV deployment, and the number of electric light-duty vehicles per public charging point increased in 2024.⁷ Conversely, ICE systems compatible with clean fuels require less drastic infrastructure overhauls, offering a critical pathway to decarbonization in parallel to EV expansion.

Infrastructure expansion remains crucial to alternative fuels gaining traction in the transport industry. A regional example demonstrates that Europe has taken formal steps to increase H₂ infrastructure via an Alternative Fuels Infrastructure Regulation (AFIR).⁸ Fortunately, H₂ already benefits from a foundation of industrial expertise in storage and safety protocols. Similarly, ethanol and biodiesel can be distributed through existing supply chains, further reducing the need for capital-intensive rollouts.

The third barrier to address is the cost of alternative fuels. While implementing sustainable solutions for our planet is important, it does not come without expense. Currently, the cost of alternative fuels is higher than that of traditional technologies. However, the cost of fuel can be reduced through advancements in the two previous areas. As production increases, costs tend to decrease, and the development of infrastructure that provides access to fuel can further enhance usage and overall volume. Although the cost gap can improve with increased production, achieving effective global scaling of these systems will require collaborative action from both policymakers and industry leaders.

ICE reimagined: A decarbonization enabler. For some parties, the ICE is seen as a symbol of emissions and environmental harm. However, when paired with clean fuels and advanced combustion technologies, ICEs can assert their position as a net-zero enabler. This solution is supplementary to electrification, as it will require the best of all our technologies to achieve our global decarbonization goals.

H₂ICEs represent one of the most advanced adaptations of ICE technology. By running on clean-burning H₂ while using the foundation of existing engines, H₂ICEs offer a unique combination of sustainability, reliability and cost-effectiveness. These engines are particularly well-suited for hard-to-electrify segments such as heavy-duty vehicles, long-haul trucking and off-road machinery. It is important to actively advance this technology through H₂ fuel injection systems that can integrate into conventional technologies, accelerating adoption while minimizing disruption. When supported by the right policy and investment, H₂ICEs can scale rapidly to reduce emissions across large portions of the global fleet.

By retrofitting engines to accommodate alternative fuels, and incentivizing upgrades to cleaner fuel injection and exhaust aftertreatment systems, significant carbon reductions can be achieved in the short term. Manufacturers are developing technologies and solutions, such as H₂ fuel injection systems, to make these transitions more seamless and meet the demands of both current and future emissions regulations. This strategy not only lowers emissions but makes the transition inclusive, addressing the needs of communities and businesses that cannot immediately shift to EVs or H₂ fuel cell technologies.

The author’s company is pioneering this approach with its H₂ fuel systems technology development and deployment. The company has constructed several demonstrator light-duty commercial vehicles, continuously improving the technology and optimizing their performance. The company is demonstrating the practicality and utility of the H₂ICE vehicle solution for users while gaining hands-on experience and learning about the optimum use cases. It is ready to expand the technology into larger fleets to demonstrate the widespread potential of H₂ICEs in the segment. Truck manufacturers have also started to build fleets of H₂ICE vehicles to put into users’ hands to gain experience and knowledge. These activities will help to accelerate the roll-out of the technology and make it a convenient option for decarbonization in the transport sector.

Making clean fuels a reality. Alternative fuels such as H₂, efuels, HVO, ethanol, methanol, natural gas and biodiesel have gained increased attention in policy and regulatory circles. Yet, there is still uncertainty and a lack of clarity in these areas. For fuel-agnostic strategies to reach their full potential, policies and investment frameworks are critical. The author’s company calls upon governments to thoughtfully explore implementing pragmatic solutions that emphasize outcome-based regulations aiming to reduce real-world emissions, irrespective of vehicle, technology or fuel type.

Key actions include fuel-neutral incentives rewarding lower emissions regardless of technology type. It is also important to consider improved infrastructure funding for clean fuel distribution, blending and storage. To do this, it is crucial to implement proper research and development support for combustion technologies optimized for alternative fuels. These policies would create a level playing field where electric, H₂ and low-carbon liquid fuels can coexist.

Market diversity in infrastructure, fuel availability and energy policy demands regionally specific strategies. There is no universal template for success. Global progress relies on enabling localized solutions, from bioethanol-driven fleets in Brazil to H₂-CNG hybrids in India. Tailored approaches offer a scalable, inclusive path forward, ensuring no region is left behind in the race to decarbonize.

Retrofitting the road to net-zero. Evolving global H₂ strategies and evolving policy frameworks are laying the groundwork for a more sustainable, secure and competitive energy future. We must ensure we do not overlook the present-day realities. Retrofitting and adapting existing engines and infrastructure to run on clean fuels is not necessarily a perfect solution, but it offers a credible, immediate step toward emissions reductions at scale.

As we navigate the intersections of geopolitics, industrial strategy and decarbonization economics, the most effective way forward is not just to chase what is new; it is to make smarter use of what already works. H₂T

LITERATURE CITED

¹ European Commission, “Clean industrial deal,” February 2025, online: Clean Industrial Deal - European Commission 

² European Commission, “Innovation fund,” online: Innovation Fund - Climate Action - European Commission 

³ International Energy Agency (IEA), “Hydrogen,” 2024, online: Hydrogen - IEA 

⁴ International Energy Agency (IEA), “Trends in electric vehicle charging,” Global EV Outlook 2024, online: Trends in electric vehicle charging – Global EV Outlook 2024 – Analysis - IEA 

⁵ Accept II, “Electric vehicle adoption in ASEAN; Prospect and challenges,” September 6, 2024, online: Electric Vehicle Adoption in ASEAN; Prospect and Challenges - ASEAN Centre for Energy 

⁶ International Energy Agency (IEA), “Hydrogen production,” Global Hydrogen Review 2024, online: Hydrogen production – Global Hydrogen Review 2024 – Analysis - IEA 

⁷ International Energy Agency, “Executive Summary,” Global EV Outlook 2025, online: Executive summary – Global EV Outlook 2025 – Analysis - IEA 

⁸ European Commission, “Alternative Fuels Infrastructure,” April 2024, online: Alternative Fuels Infrastructure - Mobility and Transport 

About the author

As Chief Technology Officer of PHINIA, TODD ANDERSON leads the product engineering function within the organization, representing PHINIA technologies to the marketplace and investors. He joined PHINIA in 2023 from BorgWarner, where he served as Vice President and General Manager for Fuel Injection Systems in Europe, the Middle East and Africa.  

With a fascination for how things work and extensive experience in Tier 1 commercial vehicle and automotive operations, engineering and management, Anderson is passionate about solving complex problems and driving innovation.