Toyota’s Hydrogen Push, U.S.-China Race, and Spain’s $5B Hydrogen Network | Global Hydrogen Update

In this episode of The Hydrogen Podcast, we cover three major hydrogen developments shaping the global clean energy race:

🔹 Toyota’s Big Hydrogen Bet in North America
From the launch of its Gen 3 Fuel Cell system to heavy-duty trucks and liquid hydrogen refueling stations, Toyota is going all-in on hydrogen mobility. We unpack the tech specs, costs, and scalability challenges ahead.

🔹 The U.S.-China Hydrogen Race
Is the U.S. falling behind? China’s massive deployment of hydrogen vehicles and refueling infrastructure dwarfs U.S. efforts—but with $7 billion in DOE funding and the 45V tax credit, the U.S. still has a shot at leadership.

🔹 Spain’s National Hydrogen Network
Spain is building a 2,600-km hydrogen pipeline to move 1 million tons of green hydrogen annually. We break down how this $5 billion project is making Spain a clean energy powerhouse in Europe.

🎯 We explore the technical details, environmental benefits (like eliminating millions of tons of NOx/SOx), and the real economics of hydrogen at scale—from electrolyzer costs to job creation.

Subscribe for insights on the global hydrogen economy, energy security, and real infrastructure that’s powering the clean transition.

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Transcript

Today I’m going to highlight hydrogen’s current progress—from Toyota’s latest advancements in North America to the U.S.-China hydrogen race and Spain’s ambitious infrastructure plans. I’ll focus on technical details, economic implications, and the steps needed to scale this technology, with a brief look at environmental impacts in our second segment. We’ll break this down into three segments: Toyota’s hydrogen push, the U.S.-China competition, and Spain’s hydrogen network. All of this on todays Hydrogen Podcast/

Our first story comes from Toyota’s press release on April 28, 2025, announced at the Advanced Clean Transportation Expo in Anaheim. Toyota Motor North America is doubling down on its commitment to a ‘Hydrogen Society,’ unveiling plans for new hydrogen-powered trucks, infrastructure investments, and the North American debut of its third-generation fuel cell system, the Gen 3 FC.

Let’s break down the tech. The Gen 3 FC system is a leap forward—more efficient and powerful than its predecessors, with a 60% efficiency rate, per Toyota’s specs. It’s designed for heavy-duty applications like trucking, but also scales to passenger cars, rail, and stationary generators. For a Class 8 truck, it consumes about 1 kg of hydrogen per 50 miles, offering a 400-mile range on a 20 kg tank stored at 700 bar. Toyota’s also partnering with Air Liquide and Iwatani to build state-of-the-art refueling stations, using liquid hydrogen tech and high-flow SAE J2601/5 systems, which can refuel a truck in under 10 minutes—comparable to diesel. This addresses a key bottleneck: the U.S. has fewer than 100 hydrogen stations, mostly in California, compared to 15,000 gas stations, per DOE data.

Toyota’s not stopping at infrastructure. They’re shifting focus to commercial vehicles, building on the success of the Toyota Mirai FCEV sedan, which has a 402-mile range. The Gen 3 FC system also powers microgrids, like at the National Renewable Energy Laboratory in Colorado, showing hydrogen’s versatility beyond mobility. Jay Sackett, Toyota’s R&D chief engineer, emphasized, ‘We aim to provide efficient solutions that help get work done,’ signaling Toyota’s intent to be a leader in hydrogen applications.

Economically, this is a big bet. A single refueling station costs $5-$10 million, per DOE estimates, so scaling to 100 stations could run $500 million to $1 billion. For 10,000 trucks, each needing 4,000 kg of hydrogen/year, that’s 40,000 tons at $5-$6/kg—$200-$240 million annually in fuel costs. Toyota’s investment could create 1,000-2,000 jobs in infrastructure and manufacturing, but the sparse refueling network remains a hurdle. The narrative of ‘hydrogen as the future’ often glosses over these upfront costs, and Toyota’s success hinges on policy support and industry collaboration, which we’ll explore further in our next segment.

Our second story comes from Latitude Media, published on April 23, 2025, titled ‘The U.S. Doesn’t Have to Lose the Hydrogen Race to China.’ The piece argues that the U.S. can still lead in hydrogen technology, despite China’s rapid advancements.

China’s hydrogen sector is booming—they’ve deployed over 20,000 fuel cell vehicles, mostly buses and trucks, and built 400 refueling stations, per the article. Their production capacity for electrolyzers—devices that split water into hydrogen using electricity—is 2.5 GW/year, dwarfing the U.S.’s 1 GW. China’s also slashing costs: their green hydrogen, produced via renewable-powered electrolysis, is $3-$4/kg, compared to $5-$6/kg in the U.S., thanks to cheaper solar at 2-3 cents/kWh versus 4-5 cents/kWh stateside. The U.S. has strengths, though—$7 billion in DOE funding for hydrogen hubs and a robust innovation ecosystem, with companies like Plug Power and Cummins leading in fuel cell tech.

Technically, the U.S. is competitive in PEM electrolyzers, which use 50 kWh/kg of hydrogen produced. A 1 MW electrolyzer makes 500 kg/day, or 200 tons/year, enough for 50 trucks driving 500 miles daily. But scaling to China’s level requires doubling capacity to 2 GW/year, needing $2-$3 billion in investment, per industry estimates. The article suggests the U.S. focus on heavy-duty sectors like trucking, where hydrogen’s high energy density—120 MJ/kg versus 40 MJ/kg for batteries—gives it an edge.

Environmentally, hydrogen offers benefits over hydrocarbon-based energy. A 1 MW electrolyzer producing 200 tons/year of green hydrogen avoids 2,000 tons of NOx and 400 tons of SOx compared to gray hydrogen production, which emits 1.5 million tons of NOx annually in the U.S., per EPA data. 

Economically, the stakes are high. If the U.S. scales to 1 million tons/year, at $5-$6/kg, that’s $5-$6 billion in revenue, creating 10,000-15,000 jobs in manufacturing and infrastructure. But China’s cost advantage could capture 60% of the global market by 2030, per Latitude Media, unless the U.S. leverages policy support like the Inflation Reduction Act’s $3/kg tax credit. The narrative of ‘U.S. leadership’ risks overconfidence—China’s state-driven approach gives it a speed advantage, and the U.S. must act fast to avoid being outpaced, as we’ll see in Spain’s example next.

Our third story comes from Reuters, published on April 25, 2025. Spain’s national gas grid operator, Enagas, announced that its 2,600 km hydrogen network is ahead of schedule and on track to start operations by 2030. This infrastructure will connect Spain’s renewable-rich regions to industrial hubs, positioning the country as a hydrogen leader in Europe.

The technical scope is impressive. The network will transport 1 million tons of hydrogen/year, produced via electrolysis using Spain’s abundant solar and wind resources—electricity costs are 3-4 cents/kWh, per Enagas. A 1 MW electrolyzer at 45 kWh/kg produces 200 tons/year, so 1 million tons requires 5,000 MW of capacity, or $7.5 billion in electrolyzer investment at $1.5 million/MW. The pipeline, repurposing existing gas infrastructure, cuts costs by 30% compared to new builds, saving $500 million, per industry benchmarks. Enagas is also diversifying into ammonia and CO2 capture, aligning with Spain’s green agenda.

Economically, this project is a win for Europe. At $4-$5/kg, 1 million tons generates $4-$5 billion in revenue, creating 5,000-7,000 jobs in construction and operations. Enagas funded this by selling assets, cutting dividends, and reducing debt, a pragmatic approach to a $1-$2 billion project cost. However, green hydrogen’s high production costs and reliance on subsidies—$2-$3/kg in Europe—mean profitability hinges on scaling demand, which isn’t guaranteed. The narrative of ‘Europe leading in hydrogen’ often downplays these financial risks, but Spain’s progress shows what focused policy can achieve.

This network could also export hydrogen to Germany and France, where demand is growing Germany alone needs 3 million tons/year by 2030, per EU estimates. Spain’s early mover advantage could position it as a hydrogen hub, but it must navigate buyer hesitancy and high costs to make this a reality, a lesson for global hydrogen efforts.

Let’s tie these stories together. Toyota’s Gen 3 FC system and infrastructure investments could power 10,000 trucks, needing 40,000 tons of hydrogen/year and $500 million in refueling stations. The U.S.-China race highlights the need for scale—1 million tons/year could generate $5-$6 billion, but the U.S. must close the cost gap with China’s $3-$4/kg hydrogen. Spain’s 2,600 km network, handling 1 million tons/year, positions it as a European leader, with $4-$5 billion in revenue potential.

Technically, hydrogen’s high energy density makes it ideal for trucking and industrial use, with electrolyzers and fuel cells at 60% efficiency driving adoption. Economically, these projects could create 16,000-24,000 jobs globally, but high upfront costs—$500 million for stations, $7.5 billion for electrolyzers—require policy support and collaboration. The narrative of ‘hydrogen as the future’ risks overlooking these challenges, but the momentum in the U.S., Spain, and Toyota’s efforts show a path forward for a hydrogen-powered economy.

Alright, that’s it for me, everyone.  If you have a second, I would really appreciate it if you could leave a good review on whatever platform you listen to. Apple podcasts, Spotify, Google, YouTube, etc. That would be a tremendous help to the show. And as always if you ever have any feedback, you are welcome to email me directly at info@thehydrogepodcast.com. So until next time, keep your eyes up and honor one another.