Toyota is working with other companies and government bodies in Japan to create a carbon-neutral supply chain for hydrogen. They plan to use renewable wind energy to power electrolysis and extract hydrogen from water, rather than relying on traditional methane methods. Toyota will then use this clean hydrogen in its factories and operations. The goal is to demonstrate that hydrogen fuel cell vehicles can be environmentally friendly if the hydrogen is produced from renewable sources, rather than fossil fuels.

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INNOVATION OF THE MONTH
Toyota'scarbon-neutralhydrogensupply
Cooperation with suppliers and government are key for Toyota’s clean fuel cell development plans
Essential insight
• Toyota backs hydrogen fuel cell cars – a key part
of their future economic success.
• The company limits the impact of producing
hydrogen to create a carbon-neutral supply chain.
• This helps refine the debate around how/when
hydrogen fuel cells will replace fossil fuels in cars.
The global car manufacturer Toyota is working with
other businesses and the public sector in Japan to create
a supply chain for hydrogen that is carbon neutral. It is
trialling a system which combines the use of renewable
energy and hydrogen fuel cell technology to remove the
carbon impact along the chain.
Hydrogen is usually created through a reaction
between methane and steam. But it can also be
created from water through electrolysis. And it is this
that Toyota has been keen to explore – rather than
creating the required electricity in the usual way, with
fossil fuel-based power, it wants to use clean energy
to remove the emissions along the supply chain. After
all, the overall environmental benefit of hydrogen
is only as strong as the method used to produce it,
Toyota says – one of the key arguments against the
development and use of hydrogen-powered cars.
Smarter production
A recent study by the Swiss Federal Laboratories
for Materials Science and Technology (Empa)
used lifecycle assessment to understand the true
environmental benefits of hydrogen fuel cell cars. It
looked at fuel cells for cars and home heating units,
beginning with the hydrogen’s production, through
the life of the fuel cell and its eventual disposal. The
report concludes that "fuel cells for cars are only
ecologically sound if they are able to run on hydrogen
from renewable energy sources".
"Today, a small fuel-cell car that uses [traditional]
electricity to generate hydrogen would easily be the
worst option," it adds. "The car would have the same
environmental impact as a luxury sports car."
So, in a four-year project, a group of companies
– including the Toyota Motor Corporation, Iwatani
Corporation, Toshiba Corporation and Toyota
Turbine and Systems Inc – and government bodies
in and around the cities of Yokohama and Kawasaki
have agreed to collaborate and experiment.
Renewable power
They will develop a system whereby wind power
turns water into oxygen and hydrogen. They will
then create a system that will optimally store and
transport the hydrogen so that it can be used within
the business operations. For example, it will have
hydrogen-powered fork lift trucks within its huge
manufacturing plants and use hydrogen to power
many of its operations, including warehouses and
logistics centres. Power from the grid will only be
used for backup when absolutely necessary and any
excess clean energy produced could be sold to local
utility companies.
According to the Intergovernmental Panel on
Climate Change, almost half of carbon emissions
(25 gigatons of CO2
) is produced as a result of the
burning of fossil fuels to create electricity and heat for
industry and transport systems.
According to Toyota, the various project partners
involved are still discussing the specifics of the
project and which companies and organisations will
take on which roles. Implementation of new systems
and process is likely to begin in April 2016.
It is not yet clear how much Toyota will save as a
result of this project, but clearly the company is keen
to build a stronger case for the use of hydrogen fuel
cell cars – and sees the creation of a carbon-neutral
supply of hydrogen as part of the answer. ★
gigatons of CO2
is
produced
as a result of
the burning
of fossil fuels
A small fuel
cell car using
'TRADITIONAL'
HYDROGEN
ISTHEWORST
OPTION
TOYOTA WILL USE WIND POWER
TO GENERATE HYDROGEN FROM
WATER
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CORPORATE INSIGHTSUPPLY CHAIN RISK & INNOVATION