How Public Policy for Climate Innovation Can Drive Hydrogen Fuel Cell Solutions for EV Charging: A Case Study by Stanford Business School Public Policy Program
Studying the intersection between sustainable energy innovation and public policy, students at the Stanford Business School analyzed the opportunity to leverage GenCell’s hydrogen fuel cell technology to deliver clean power to the U.S. E.V. charging market. These Stanford Business School Public Policy students reviewed how GenCell’s innovative solution can take advantage of favorable public policies to revolutionize EV charging infrastructure. Participating in a course focused on the impact of public policy on renewable energy companies, a group of students delved into the GenCell story, producing a case study recommending valuable opportunities where state and federal incentives can facilitate the entry to market for clean power technologies for EV charging.
GenCell’s journey began seeking to adapt complex space technology for applications on Earth. In 2016 the company launched its first hydrogen-fueled backup power product primarily targeting the telecom industry and then released a second backup power product targeting power utilities. These backup power solutions have been deployed globally, serving critical applications like hospitals and ensuring uninterrupted power supply at utility substations. Over time, GenCell evolved its technology in response to market limitations, launching its ammonia-fueled solution to extract hydrogen on-demand to deliver cost-effective and clean power for off-grid and poor-grid telecom towers.
The latest breakthrough came when an EV supplier approached GenCell to adapt its hydrogen fuel cell solution to deliver power for EV charging. This opportunity has opened up a much larger market for GenCell, propelling them towards the electric vehicle charging stations sector projected to be worth $207 billion by 2030. This development marks a significant turning point for GenCell after focusing on smaller niche markets for the past decade.
Governmental Initiatives Propel Technological Innovation towards Business Success
The Stanford graduate students look how in this case governmental initiatives can propel technological innovation towards business success. They sought to understand how U.S. public policy which aims to positively impact companies in the renewable energy sector can influence the route to market of GenCell’s green, grid-independent EV charging solution GenCell EVOX™. The study highlights GenCell’s strong potential in the U.S. market in general and in California in particular. The current favorable policy environment makes the U.S. an attractive arena for environmentally-conscious EV charging solutions. This case study underlines the nation’s broad availability of public and private initiatives focused on climate innovation, recommending opportunities for GenCell to leverage supportive policies and incentives for the EVOX to penetrate and gain presence in the U.S. EV charging market.
Strategies for Penetrating the U.S. Market:
The study cites opportunities for GenCell to actively engage with programs focused on reducing capital costs associated with EV charger installations. For instance, leveraging California’s Low Carbon Fuel Standard (LCFS) credits and incentive programs aimed at enhancing charging infrastructure can significantly lower barriers to EVOX adoption. Another valuable approach is through partnerships with local governments and utilities to tap into grants and funding opportunities, thereby facilitating the expansion of EV charging solutions across the state.
California’s ambitious zero-emission vehicle regulations and substantial market demand make it an ideal arena for GenCell to expand its EV charging solutions. The state’s objective of achieving 100% zero-emission vehicles for new cars and light trucks by 2035 highlights the need for reliable charging infrastructure. With an array of incentives and funding programs, California offers fertile ground for GenCell’s innovative technology.
To accelerate expansion of EV charging infrastructure, the case study highlights key policy measures that would benefit GenCell and other clean power solutions in the sector:
- Standardization and Interoperability: Developing common charging standards, including those for fuel cell systems, can streamline infrastructure integration.
- Strategic Market Segments and Coverage: Identifying priority areas, such as public transportation fleet charging, can ensure efficient emergency evacuation planning.
- Supply Chain Buildout: Establishing hydrogen fuel standards and pathways for carbon credit measurement will secure a stable supply of fuel inputs.
- Supporting Policies: Investment in talent development, promotion of vehicle-grid integration, equitable charger deployment, and innovative financing mechanisms will foster market expansion.
Taking the example of California, the study identified a number of public programs that can facilitate investment in technologies providing clean power for EV charging stations:
- California Clean Vehicle Rebate Project (CVRP): The CVRP offers rebates for purchasing or leasing new electric vehicles, including battery electric vehicles (BEVs). The EVOX solution, bringing complementary technology that enhances charging infrastructure reliability, could well provide value to CVRP participants.
- Low Carbon Fuel Standard (LCFS) Program: The LCFS provides incentives for low-carbon and renewable fuel solutions. Thanks to the environmental benefits of using hydrogen fuel cells for EV charging, EVOX users could potentially earn LCFS credits.
- California Energy Commission (CEC) Grants: The CEC offers grants to support innovative clean energy projects, including those related to transportation and charging infrastructure which are well-suited to fund EVOX projects.
- California Electric Vehicle Infrastructure Project (CALeVIP): CALeVIP provides incentives for the installation of EV charging stations in underserved communities. The EVOX may be eligible for CALeVIP funding to deploy charging stations in areas with limited grid infrastructure, addressing accessibility challenges and expanding its market reach.
- Investment Tax Credits (ITCs) and Depreciation Deductions: U.S. federal and state-level tax incentives are available for investing in renewable energy technologies. Leveraging ITCs and depreciation deductions increases the cost-effectiveness of the EVOX solution for U.S. charging station operators and investors looking to take advantage of these credits.
- California’s Charge Ahead Initiative: The Charge Ahead Initiative aims to ensure that low-income communities have access to clean transportation options. These communities could take advantage of EVOX to provide equitable EV charging alternatives for members of the community whose housing doesn’t support residential EV charging.
This public policy case study demonstrates that there are favorable U.S. public policies promoting climate innovation that can serve GenCell to facilitate penetration of the EVOX solution in the U.S. market. A variety of existing programs and incentives in California are available to lower capital costs associated with EV charging installations. These policies and programs can support GenCell’s efforts in the U.S. to drive adoption of the EVOX solution towards accelerating the transition to a greener and more sustainable transportation future. GenCell appreciates the efforts of the Stanford Business School students in preparing the case study and concurs with their recommendations that GenCell optimally take advantage of U.S. public policies and collaborate with public-private initiatives promoting climate innovation.
Click here to read the case study.
GenCell thanks Dr. Alon Tal, Visiting Professor of Business and Sustainability, Knight Management Center, Stanford University for the opportunity to work with the Stanford Business Graduate School Public Policy program.
