Shell Is Immediately Closing All Of Its California Hydrogen Fueling Stations

Shell once announced it would build 48 new Hydrogen fueling stations for light-duty vehicles in California, according to the blog Hydrogen Insights. But then in September, Shell told the site they'd "discontinued" that plan. And last month the Inside EVs blog noted that in all of 2023, just 2,968 hydrogen cars were sold "in the United States - and by that, we mean in California, where the series-produced models are available." That's according to data from the Hydrogen Fuel Cell Partnership - admittedly a 10% increase from 2022's sales figure of 2,707 - but with both numbers lower than 2021's sales of 3,341. "The overall cumulative sales of hydrogen fuel cell vehicles exceeded 17,940 as of the end of the quarter (not counting vehicles removed from use), which is 20% more than a year ago." Then this week Shell said it will "no longer be operating" any light-duty hydrogen fuelling stations in the U.S., and will close all seven of its California pumping stations immediately. (Three in San Francisco, one in Berkeley, one in San Jose, and two in the Sacramento area.) Inside EVs says Shell's move "represents another blow to the struggling hydrogen car market in the only state where the fuel is widely available at all."Shell had, until recently, operated seven of the 55 total retail hydrogen stations in California, per the Hydrogen Fuel Cell Partnership (H2FCP). That makes this a blow, but not apocalyptic news for the (small) hydrogen community.... In the letter announcing the closure, Shell Hydrogen Vice President Andrew Beard said they were shutting them down "due to hydrogen supply complications and other external market factors." It's not hard to see what Beard is referencing here... Hydrogen Insight reports that this shortage has been disrupting stations since August 13... Some are also down for repairs, as many hydrogen stations suffer from serious reliability issues. Iwatani, a Japanese gas company that is one of the two largest names in American hydrogen filling stations, is currently suing the company that provided the core technology for its stations. In a court filing viewed by Hydrogen Insight, Iwatini alleges that its provider did not test its equipment in a real-world commercial scenario, hid defects, and misled the company. It is, in short, a big mess. All of this makes the future of hydrogen fuel-cell vehicles in the United States even more uncertain. The technology has struggled to catch on, as the stations and their fuel remain expensive. Though hydrogen car manufacturers usually include a large amount of free fuel in the purchase of a vehicle, once that runs out consumers are left with eye-watering prices from stations that are often broken, out of fuel, or swarmed with long lines. It's why used hydrogen cars are so cheap, and why they still aren't a good deal. Few companies can make a better case for it than Shell, though, as the cheapest way to produce hydrogen involves a lot of natural gas. Its proximity to the fossil-fuel industry was supposed to make it cheaper, and provide incentive for robust fueling infrastructure. That hasn't played out, though, and one of the largest oil giants is throwing in the towel. If even a fossil giant like Shell can't justify investing in the future of light-duty hydrogen infrastructure, we're not sure who can.

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