Toyota Offers Massive Discounts on Mirai to Boost Hydrogen Adoption Amid Fuel Station Challenges

Toyota is pulling out all the stops to drive the success of hydrogen-powered vehicles, showcasing its commitment to advancing hydrogen fuel technology.

(Photo : Jesse Grant/Getty Images for Environmental Media Association)

WEST HOLLYWOOD, CALIFORNIA - SEPTEMBER 02: View of Toyota Mirai during the 2021 Environmental Media Association IMPACT Summit sponsored by Toyota, H&M Foundation & Montage International at Pendry West Hollywood on September 02, 2021 in West Hollywood, California.

Offering Discounts to Boost Hydrogen Adoption

Toyota is incentivizing the adoption of hydrogen fuel technology by offering substantial discounts on its Mirai model. Interested buyers can currently avail a discount of $40,000 on the 2023 Toyota Mirai, originally priced at $52,000.

Additionally, Wards Auto reported that buyers benefit from $15,000 worth of free hydrogen over six years and have access to a 0% interest loan, effectively resulting in Toyota paying buyers $3,000 to acquire the vehicle.

Hydrogen's application in powering passenger vehicles and trucks has yet to gain significant momentum. The infrastructure for hydrogen production and distribution remains inconsistent, making it impractical for owners of vehicles like the Mirai or CR-V to embark on long road trips.

Furthermore, for fuel cell electric vehicles (FCEVs) to significantly reduce carbon emissions, they must operate on green hydrogen rather than the predominantly used gray hydrogen derived from fossil fuels. Until this transition occurs, FCEVs offer only marginal environmental benefits compared to advanced hybrid vehicles.

Closing Hydrogen Fuel Stations

However, despite the enticing offer, potential owners may encounter challenges in finding hydrogen fuel to power the vehicle. Hydrogen Insight reported that this issue is exacerbated by Shell's recent announcement of the closure of its hydrogen filling stations in California.

While Shell operated only seven stations in the state, the closure affects over 10% of California's hydrogen stations, most of which are concentrated around Los Angeles and San Francisco.

Moreover, approximately a quarter of the remaining stations are currently offline, as reported by the Hydrogen Fuel Cell Partnership.

In California, where the presence of functional fuel stations is crucial for the viability of fuel cell vehicles, Honda has taken an unconventional approach. The automaker has transformed its popular CR-V into a hybrid vehicle that combines both plug-in and fuel cell technologies.

Equipped with a 17.7 kWh battery, the crossover offers a range of 29 miles solely on electric power. Once the battery is depleted, the vehicle seamlessly switches to its fuel cell system, drawing hydrogen from two carbon-fiber tanks.

However, the placement of these tanks, one beneath the rear seat and the other occupying significant trunk space, raises practical concerns.

Despite the intricate engineering and trade-offs, what does this complexity yield? A total range of 270 miles, roughly on par with many mid-range electric crossovers. However, unlike electric vehicles, fuel cell cars aren't confined to metropolitan areas like Los Angeles or San Francisco.

Nevertheless, hydrogen holds significant promise as a fuel source across various sectors of a carbon-neutral economy, including industrial heating, steel manufacturing, and long-haul shipping.

This potential has led to numerous hydrogen startups positioning themselves as zero-emission solutions for these industries.

Companies like Electric Hydrogen and Advanced Ionics, backed by substantial investments and innovative technologies, are targeting applications in steel production, power generation, and chemical manufacturing.

This trend underscores the growing interest and investment in hydrogen as a versatile and sustainable energy solution.