BCC Research Blog | Industry Analysis and Business Consulting

7 key advantages of Global fuel cell forklifts Industry

Written by Olivia Lowden | Aug 4, 2023 2:10:00 PM

Fuel cells are primed to take over the world of energy, having already replaced gasoline and diesel in powering electric vehicles. Being leaps more efficient than conventional technologies, the material handling industry is also now benefiting from fuel cells to power forklifts. While traditional battery-powered forklifts need between 3-5 hours to recharge, fuel cell forklifts require just 2-3 minutes.

Evidently, fuel cell-powered forklifts offer industries huge amounts of benefits. Today, we’re diving into seven key advantages that the technology offers.

1.      Enhanced productivity

About 70% of any warehouse’s costs are spent on labor. According to industry experts, the productivity of a warehouse can be increased by nearly 15% by using fuel-cell vehicles. This is due to the time saved refueling, the high operational speeds, and the fact fuel cells are eco-friendly.

In an automotive warehouse operating 24/7, the average per-minute profit is around $7,000. So, one tiny delay in the warehouse operation could mean a loss of $7,000. Using the fuel cell forklift in a warehouse can increase the uptime as well as the production capacity.

The operational speed of fuel cell forklifts is almost constant, whether it has 20% fuel or 100% fuel in the tank. While the lead-acid battery can lose its output up to 14% in one shift in normal temperatures, in a cold or freezer storage facility that jumps to between 25% and 50%.

2.      Long term cost effectiveness

Fuel cell-powered forklifts are highly efficient for multi-shift working environments as they can run a long time after a single fuel. They require far less time to refuel compared to conventional and battery-powered forklifts. Although investment costs for lead-acid battery-powered forklifts are relatively low compared to fuel cell forklifts, there are many associated costs with conventional batteries. Battery acid overflow due to severe heat in the battery can entail extra costs, and li-ion battery is also a high-cost option, as these are rechargeable and require a battery changing station nearby to the plant. Still, the charging girds can charge a fixed amount of battery at a single time. The consequence is that the operational time of a forklift can be delayed.

All though fuel cells can be expensive up-front, the cost of hydrogen and its infrastructure will reduce as the adoption rate increases. Many companies are working on hydrogen-as-a-fuel since they have found that they can get financial support from the government for their work, and it will also help in the development of new infrastructure for a hydrogen fuel cell for warehouse applications. Furthermore, the cost of investment in hydrogen fuels is relatively less costly in the long term than developing an infrastructure for battery change, as this infrastructure requires a massive amount of money, in the form of copper wire, battery watering, maintenance equipment, and space-consuming racks.

3.      Slashes electricity use

Electricity prices are climbing due to low production and high demand. Lead-acid battery charging represents 25% to 30% of a distribution center’s electricity usage and approximately 50% of the peak demand charges, due to the spike in electricity usage when batteries are charged. Lithium batteries rely on opportunity charging, which leads to increased electricity usage and rates. Fuel cell forklifts could be the best solution for reducing the electricity consumption and the electricity can be used for some other material handling applications.