Amit Saraswat 
Shell Hydrogen has announced the immediate closure of all seven of its California pumping stations, dealing a significant blow to the already struggling hydrogen car market in the state. The decision to cease operations of light-duty hydrogen stations in the U.S. underscores challenges related to hydrogen supply complications and other external market factors, according to Shell Hydrogen Vice President Andrew Beard.
This move comes as a notable setback for the hydrogen community, particularly in California, where hydrogen fuel is relatively more available compared to other states. With Shell’s withdrawal from the hydrogen market, concerns have been amplified for owners of Toyota Mirai, Hyundai Nexo, and Honda Clarity Fuel Cell vehicles, who now face even greater difficulties in accessing hydrogen fuel.
The closure of Shell’s stations is not an isolated incident, as a majority of hydrogen stations in Southern California are either offline or operating with reduced hours. Reports indicate that hydrogen supply shortages have been disrupting stations since August 13, exacerbating an already challenging situation for hydrogen vehicle owners.
Compounding the issue are reliability concerns plaguing many hydrogen stations, with some undergoing repairs and others experiencing disruptions due to supplier issues. Iwatani, a prominent player in the American hydrogen filling station market, is embroiled in legal disputes alleging equipment defects and misleading practices by its technology provider, further complicating the landscape.
The closure of Shell’s hydrogen stations casts a shadow over the future of hydrogen fuel-cell vehicles in the United States. Despite efforts to promote the technology, including incentives such as free fuel with vehicle purchases, consumers continue to face high costs and logistical challenges associated with accessing hydrogen fuel.
The situation raises questions about the viability of hydrogen infrastructure investment, particularly in light of Shell’s decision to exit the market. The expectation that proximity to the fossil fuel industry would make hydrogen production more economical has not materialised, underscoring the complexities of transitioning to hydrogen as a mainstream automotive fuel.
As one of the largest oil giants, Shell’s withdrawal from the light-duty hydrogen market signals broader uncertainties surrounding the future of hydrogen fuel-cell vehicles. The closure of its hydrogen stations highlights the ongoing challenges facing the hydrogen industry and underscores the need for concerted efforts to address supply chain issues and improve infrastructure reliability.
