EUROPE’S BIGGEST OPPORTUNITY: The Smallest Element

23.06.2025 | Tech & Innovation

Europe is in a race against reality: On the one hand, there is the ambition to be a global leader in climate protection. On the other, Europe’s industries are under immense pressure – driven by high energy costs, weak infrastructure, and declining competitiveness. This conflict of goals is also threatening transportation – the backbone of our economy and society. What we need now is a solution that makes ecological sense, is economically viable and fits into the broader energy system. One of the keys: a molecule. With “Hydrogen Week” taking place in Germany, an article by Andreas Gorbach.

No green world without green molecules

Our long-term goal is as ambitious as it is necessary: an economy without CO₂ emissions. To achieve this, green electricity alone won’t be enough – we also need green molecules. Hydrogen (H₂) will thus play a key role. Not just in transportation, but across almost all energy-intensive sectors.

Renewable electricity is the foundation for many applications – but especially in Central Europe, it reaches its limits when it comes to storing, transporting or flexibly providing large amounts of energy at the right time and place.

Today, Europe imports more than 50 percent of its primary energy as coal, oil, and gas – and this can hardly be replaced by locally generated green electricity if we want to keep our competitiveness.
Andreas Gorbach, Member of the Board of Management of Daimler Truck Holding AG, responsible for Truck Technology

This is where hydrogen (and its derivatives) unlocks its potential: it can be stored, traded globally and used in many ways – from industry and backup power generation during low-sun and low-wind periods to transportation. And the best part:

There is no shortage in terms of sun and wind. Regions with high solar radiation could soon become exporters of green hydrogen – if they harness their natural energy instead of letting the sun simply heat the ground.

The good news: It’s already happening. In lighthouse projects like those in Saudi Arabia, electricity from large solar and wind farms is used in electrolysis plants. The hydrogen produced there is then processed into ammonia, methanol, or liquid hydrogen. This results in hydrogen at attractive prices – around two Euro per kilogram, sometimes even less. Promising initiatives are also underway in transport. Companies from several countries aim to have ships in operation before 2030 that can transport large volumes of liquid hydrogen – similar to today’s LNG (Liquified Natural Gas) carriers. What matters now is the formation of energy partnerships that can shoulder the initial costs, build the production and transport chains and secure offtake agreements.

The bad news: Critics are still going in circles.

Efficiency? Impact matters

When it comes to hydrogen in trucks, the debate often still revolves around efficiency. But that’s too narrow a view.

WHAT IT’S ALL ABOUT

The so-called “sun-to-wheel” efficiency can be comparable for battery and hydrogen – depending on where and how the energy is generated. Meaning: If hydrogen is produced in sunny regions like Saudi Arabia, the high efficiency in production (more sun per solar panel) offsets the lower efficiency due to conversion losses compared to battery-electric drives.

Unused renewable energy has an efficiency of zero. In 2024 alone, about 10 terawatt hours – some sources report a figure even twice this big – of surplus green electricity were lost in Germany because they weren’t stored, as hydrogen for example. That’s about 2.8 billion Euro. Gone.

The real challenge isn’t the rising energy demand – it’s how intelligently we handle it. Hydrogen helps. Some energy providers agree – and are already investing in hydrogen-ready power plants.

Much traffic, (still too) much CO₂

A look at the transport sector – especially road freight – shows why hydrogen can be crucial.

More than six million trucks operate in Europe, around 800,000 of them in Germany alone.

They supply supermarkets, pharmacies, construction sites, and hospitals – and account for around seven percent of Europe’s CO₂ emissions. Forecasts predict that transport volumes in Germany will increase by another third by 2040. At the same time, the EU is demanding a 45 percent reduction in emissions by 2030. This goal will be extremely difficult to achieve with battery-electric solutions alone. And by 2035, the target is 65 percent!

Battery first – but not battery only

“Battery first” is undoubtedly the right approach: Battery-electric vehicles are efficient, locally emission-free, and initially “just” need a charger. But the power grid quickly reaches its limits. Charging ten long-haul trucks simultaneously at a service area in just 45 minutes requires about ten megawatts of power – roughly the same as a small town. Planning and construction time: ten years. We don’t have that time – 2030 is less than five years away.

That’s why building a hydrogen infrastructure in parallel isn’t just reasonable – it’s necessary. One advantage: it requires less space. While battery-electric trucks depend on high-power megawatt chargers and truck-compatible parking at service areas, hydrogen refueling works much like diesel today. Refueling times are similar and there are multiple pumps, making the throughput significantly higher compared to charging stations.

What may not seem intuitive at first, is even better news: Building both infrastructures in parallel is faster and more cost-effective for Europe. That’s not true for the first chargers being installed now – but once (and that’s soon) the power grid hits its limits (to such a massive extend), expanding it alone becomes much slower and more expensive.

What we need now are targeted investments in charging infrastructure AND a hydrogen infrastructure that enables the ramp-up of hydrogen-powered trucks. Not someday – but now. The hydrogen core network is already an important step toward a nationwide hydrogen infrastructure in Germany.

Two technologies, one goal

Transportation is diverse – and so must be its drive solutions. Battery-electric trucks are ideal for predictable routes and short to medium distances, including some long-haul routes. But when it comes to 1,000 kilometer distances and more, high payloads, refrigerated transport with high energy demand or flexibility for demanding routes, batteries hit economic, physical, and infrastructure limits.

That’s where hydrogen and fuel cells kick in. They enable zero-emission transport over long distances with high payloads and minimal downtime. Hydrogen combustion engines, in turn, have their sweet spot with high-payload and relatively low-mileage applications like construction, for example. It offers minimal costs, high robustness and requires the least installation space within the vehicle.

Therefore, fuel cell and hydrogen combustion trucks are the perfect complement to battery-electric trucks. This second energy source also reduces pressure on the power grid and increases supply and planning security – critical for the resilience of our entire energy system.
Andreas Gorbach, Member of the Board of Management of Daimler Truck Holding AG, responsible for Truck Technology

Our customers do the math – and rightly so

For a technology to succeed in transportation, it needs infrastructure and economic viability. A truck isn’t a lifestyle product – it’s an investment good. Our customers are entrepreneurs who have to turn every kilometer into profit. Today, operating costs for hydrogen vehicles are still too high – mainly due to energy prices.

But that can change quickly:

Once hydrogen drops to five Euro per kilogram, operations become economically attractive.

This level is achievable in transport by 2030, especially when factoring in the RED II quota. The necessary production capacities are also realistic. Also important: Hydrogen must be green – at least in the long term. During the ramp-up phase, however, the focus should be on reliable availability – regardless of color. Just like with battery-electric trucks and electricity in the early days.

A historic opportunity for Europe

Many companies are ready to go. Hydrogen-powered trucks and buses have already driven more than 15 million kilometers in Europe. Our Mercedes-Benz GenH₂ Truck is currently being tested by various customers in real-world operations. In the passenger car sector, 800 hydrogen taxis in Paris cover around three million kilometers every month. Much is already in place – even more is possible.

What’s missing is a clear political framework that enables investment, creates planning certainty, and gets the market moving.

And above all: the almost dogmatic debate over efficiency differences between battery and hydrogen must finally end.

Hydrogen offers Europe a historic opportunity. Thanks to our industrial base, technological expertise, and manufacturing capabilities, we are global leaders in hydrogen and fuel cell technology. For now. To make sure this does not change, we must act across the entire value chain – from electrolysis to transport, storage, refueling, and vehicle production. This can create new markets for European companies. And it can strengthen the future competitiveness of Europe and Germany.

The potential: up to 500,000 skilled jobs by 2030. At the same time, hydrogen reduces geopolitical dependencies – the platinum group metals needed for fuel cells are available and recyclable in Europe.

While Europe has already fallen behind in battery cell production, China has not overtaken us in fuel cells and hydrogen engines. Not yet. But the world’s leader in battery-electric vehicles is already investing heavily in the smallest element. Today, around 30,000 hydrogen vehicles are on the road in China, with over 400 hydrogen refueling stations in operation. By 2030, the goal is one million vehicles and 1,000 stations.

That makes one thing clear: Those who want to lead the transport of the future don’t choose either-or – they choose battery AND hydrogen. Because it creates synergies for the entire energy system – and is essential for achieving Europe’s climate, economic, and security goals.

A question of responsibility

At Daimler Truck, we believe: Those who keep the world moving carry responsibility. For the economy. For society. And for the climate. That’s why the electrification of our vehicle portfolio is in full swing – battery-electric trucks are already in series production. Not out of technical curiosity or idealism, but out of conviction and responsibility. Now it’s time for the next step – and for the political will to decisively drive the hydrogen transformation forward.

About the author

Dr Andreas Gorbach is Member of the Board of Management of Daimler Truck AG and Head of Truck Technology. Prior to his current position, he was CEO of the fuel cell joint venture cellcentric of Daimler Truck AG and the Volvo Group. Before that, Gorbach was Head of Product Management for the global generations of engines and axles at Daimler Truck. In addition, he was responsible for climate protection and air quality within the company’s sustainability strategy.

Gorbach started his career at Daimler Truck in 2005 in the powertrain development department. He held various management positions in the following years, including Head of Development for the global engine platforms.