Weekly reading – 17th April 2021

What I wrote last week

Hydrogen fuel cells vs Batteries

Uber may deliver marijuana in the future. Update on Credit Karma and Square

Business

Business Insider has a story on Larry Page, especially when he was determined to fire all Project Managers. Even a genius like him made a mistake, it seems. Don’t be too hard on yourself.

Why Delaware is the sexiest place in America to incorporate a company

Vimeo CEO talks about how the company reinvented itself from a video platform, another Youtube competitor to a B2B SaaS company. To be honest, as a consumer, I didn’t know that Vimeo transformed itself into a B2B SaaS player.

TikTok says that it has 100 million monthly active users in the US and is planning to bring new eCommerce-focused ads products

How the pandemic helped Walmart battle Amazon Marketplace for sellers. It’s exciting to see these two behemoths go at it in the near future. While Walmart has the luxury of stores scattered across the country, Amazon is a bigger and more experienced marketplace player.

Why It’s Misleading to Say ‘Apple Music Pays Twice as Much Per Stream as Spotify’. The best article on this particular subject that I have seen this week.

Amazon Plans Furniture Assembly Service to Catch Wayfair. I look forward to reading more about this initiative. While it sounds great as first, the reality may offer some questions that Amazon has to answer. For instance, Amazon is known for pushing its drivers to complete deliveries as quickly as possible. Asking drivers to take time to assemble products goes against that mantra. Hence, how much would Amazon be willing to slow down deliveries? How much would the premium fee offset the cost of such slowed deliveries?

What I found interesting

French lawmakers approve a ban on short domestic flights. If there is a great network of trains; which I believe there is in France, this is a totally sensible decision.

Cloudflare Pages is now Generally Available

How to Create an Interactive AR Business Card Without Code

The vanishing billionaire: how Jack Ma fell foul of Xi Jinping. Jack Ma is one of the richest people on Earth and among the most influential business people. Yet, he has fallen from grace after what he said angered Xi Jinping. Another billionaire tried to lower his net worth to avoid trouble with the Chinese government. I am from that part of the world. I can tell you that no matter how rich a person or how big a Western corporation is, you don’t take your disagreement with the ruling party public. That’s one mistake you usually don’t come back from

Stats that you may find interesting

According to a new survey by National Restaurant Association, only 18% of delivery customers preferred to order from a 3rd-party app

Amazon Prime has 200 million members. 28% of purchases on Amazon were made in 3 minutes or less while 50% were made in 15 minutes or less.

Almost 20% of retailers’ sales in 2020 came from private labels

Hydrogen fuel cell vs Battery Electric

As the calls to combat climate change become increasingly louder, the interest in an alternative to carbon-based energy heightens. Because our combustible engines used in daily commute emit a lot of carbon dioxide, finding a greener and more environmentally friendly option is believed by many to help us reduce the greenhouse gas. There are two main approaches to replacing gas in our vehicles: hydrogen fuel cell and lithium-ion batteries. I spent a few days reading up on this topic because I believe that it will be an important aspect of our lives moving forward and I was looking for a new investment opportunity. If you aren’t familiar with the topic, the clip below is a very great summary

Hydrogen fuel cells contain higher energy density and release energy on demand, instead of packing it all in a container like Lithium-ion batteries. Because of its higher energy density, hydrogen powers vehicles over a much longer distance than the current batteries can. If battery electric vehicles want to cover a longer distance, they have to be equipped with bigger and heavier batteries which, in turn, require more energy to be transported. A classic Catch-22 problem. Moreover, because hydrogen fuel cells use hydrogen stored in a separate tank and oxygen from the air to produce energy on demand, it’s much faster to charge than batteries. While battery electric vehicles (BEV) take like an hour to charge, fuel cell electric vehicles (FCEV) take as long as an ordinary trip to the gas station. Hence, if we’re just talking about energy density and time taken to charge a vehicle, FCEVs are clear winners.

However, the story isn’t that simple. The problems with FCEVs start upstream, before the fuel goes into the vehicles. Even though hydrogen is one of the most abundant elements, it doesn’t exist as a standalone. It takes energy to produce pure hydrogen, store it and transport it to where the end users are. Because there is a lot of inefficiency and work to be done to deliver hydrogen as fuel, the costs in hydrogen production are currently much higher than the costs required to produce Lithium-ion batteries. As a consequence, FCEVs are significantly more expensive than BEVs, rendering it a much smaller and less consumer-friendly market than BEVs. From a manufacturer point of view, that serves a roadblock to the economies of scale. But if they can’t achieve economies of scale, it’s not easier to lower the price of FCEVs. Another Catch-22.

Hydrogen fuel and Battery efficiency rate
Source: Greencarreports

Due to their potential contribution in our fight against climate change and superior efficiency over burning gasoline in a propulsion, battery and hydrogen fuel technologies have received increasing support from governments around the world in terms of subsidies, research grants and friendly regulations. This kind of support will help fine-tune the technologies, accelerate the adoption and make them more economically viable. I believe that they both have a place in our society in the near future. BEVs already have a leg up in scale over FCEVs. Proponents of BEVs such as Tesla or Volkswagen already achieve the scale they need to make their vehicles economically appealing to consumers. As demand grows, so will the scale; which will drive down the total cost of ownership of BEVs even more. Supporters of FCEVs such as Honda, Hyundai and Toyota still believe in the potential of hydrogen fuel in passenger cars, but they have to solve the problem of producing and transporting hydrogen. On the other hand, batteries’ low energy density, barring any technological advances in the future, make them virtually disqualified for large transportation means such as trucks or planes. Due to its high energy density, hydrogen fuel is more apt to use in trucks, cargos, ships, planes or other commercial cases. Microsoft already uses hydrogen fuel to power their data centers. Walmart and Amazon are two prominent clients of Plug Power, a major producer of hydrogen fuel turnkey solutions.

Even though batteries and hydrogen fuel can provide greener energy, their net contribution to our planet remains a question mark. As mentioned above, it takes a lot of energy to produce pure hydrogen and as of now, there is inefficiency from when hydrogen is produced to when it goes into a car’s tank. If a hydrogen producer burns natural gas such as methane to get pure hydrogen, the cost will be cheaper than other methods, but the process will be harmful to our environment. If hydrogen is produced by using electricity, especially electricity from renewable sources (sun, wind), to break down water into constituents (this method is called electrolysis), the environmental harm will be lower, but this method is more expensive. Plus, the most efficient method of electrolysis right now uses Platinum, which is not a cheap material and whose mining can be detrimental to our nature.

On the other hand, the downside of Lithium-ion battery, in addition to those mentioned above, is the extract of Lithium. The mining practice is controversial in some countries such as Bolivia and can leave a lasting impact since requires a lot of water to extract Lithium, as you can see below.

This field is developing fast and sophisticated that the more I read up on it, the more interested I am. By no means do I think that by just spending a few days on research, I became an expert. Not even close. I will continue to educate myself on this important avenue and hope that this is helpful to you and triggers your interest.

Cost of ownership of a 300-ton dump truck when using Diesel or Fuel Cells
Source: Hydrogen Council
cost of ownership of a heavy-duty truck when using Diesel or Fuel Cells
Source: Hydrogen Council
US operational cost for a bus breakdown (FCEV vs BEV)
Source: Deloitte
Current policy support for hydrogen deployment
Source: IEA.org