enki09's  Instablog

Send Message
Community director with Pickens Plan. Hydrogen energy advocate.
My blog:
  • Will Toyota Corner The Hydrogen Vehicle Market In 2015? 0 comments
    Jul 27, 2009 9:16 AM | about stocks: TM, BLDP, DESC-OLD

     Recently Toyota announced that they would be introducing a hydrogen fuel cell vehicle in 2015 which would "shock" the US auto market. Assuming that to be true one has to wonder more about how they are going to do it than if they are going to do it. Toyota isn't stupid and to evolve transportation in a new direction would be a marketing coup even bigger than what they achieved with the extremely popular Prius hybrid.

    The development of a cheap fuel cell vehicle that is priced competitively with internal combustion cars would be like achieving the holy grail of the current race toward a green energy economy. Even if they do that though a big obsticle still remains which is to develop a fueling infrastructure for the vehicles. Currently there are very few hydrogen refueling stations worldwide. Hardly enough to justify the introduction of a mass produced hydrogen fueled vehicle.

    It will be interesting to see how this evolves and how Toyota overcomes that single largest obsticle. If they do it correctly I think it is possible. I doubt that they would be comfortable in assuming that the US government will build them a fueling infrastructure in the next 5 years and I also doubt that Toyota will take on the job of building a national hydrogen fueling infrastructure on their own.
    Toyota Dealers Nationwide
    One alternative for them would be to partner with a maker of hydrogen fueling stations such as Stuart Energy (HHO) or Distributed Energy Systems (NYSEARCA:DESC). Then they could install a hydrogen fueling station at all of their car dealerships nationwide (map at left). This would create a national fueling infrastructure for their fuel cell vehicles while at the same time creating a new revenue stream for their dealers. In addition it would create a huge surge in the hydrogen market and the value of the hydrogen companies that they partner with.

    I don't know that this is the path they will take but it does seem to be the only viable one open to them to both introduce an alternatively fueled vehicle to the US market while at the same time creating a fueling infrastructure for those vehicles. I will be watching Toyota closely over the next few years to see how this evolves.

    Disclosure: No positions.

    Stocks: TM, BLDP, DESC-OLD
Back To enki09's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • Natural Gas Fuel; A Bridge To....What? check out my latest story: http://seekingalpha.com/p/fv9
    Aug 3, 2009
  • how will Toyota (TM) handle a hydrogen fueling infrastructure for their fuel cell vehicle in 2015? http://bit.ly/17CWN7
    Jul 27, 2009
  • Trying to see the future of green energy in order to capitalize on it by making the best investment choices now
    Jul 21, 2009
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.