An implemented Operative-TCO analysis to assess the company cost of hydrogen compared to diesel and CNG-fueled buses

In the context of the transport sector’s decarbonization efforts, targeting zero direct emissions in urban areas by 2040, Local Public Transport (LPT) companies within the European Union (EU) are mandated with the task of fleet renewal, gradually replacing internal combustion engine (ICE) vehicles with electric vehicles, including those powered by hydrogen fuel cells electric (HFCE). Integrating novel vehicle technologies associated with the utilization of green energy carriers poses an additional challenge for LPT companies concerning the management of service production costs. For economic evaluation purposes, an effective method relies on Total Cost of Ownership (TCO) analysis, which encompasses both fixed and variable costs associated with vehicles and their corresponding functional systems over their operational lifespan. However, TCO analysis fails to encompass a segment of company costs attributable to operational vehicle performance aspects. This paper proposes and elucidates an implementation of the Operative-TCO (OTCO) methodology, which additionally incorporates costs stemming from vehicle operational constraints, such as mileage range and energy recharging time, as a function of the service requirements along a designated route. Utilizing data from the monitoring of an Italian LPT corporate fleet as a case study, the TCO and OTCO of green/grey-HFCE vehicles are computed in comparison to diesel and compressed natural gas (CNG) vehicles. The findings are presented and discussed in a comparative framework, inclusive of the assessment of emission-related costs.