Photo by Jethro Carullo on Unsplash
California Shell Hydrogen Stations Get Shut Down
February 12, 2024
Shell has decided to permanently close all seven of its hydrogen refueling stations for passenger cars in California. The move, attributed to “supply complications and other external market factors,” underscores the challenges faced by the company in maintaining these facilities.
This closure leaves Shell with just three operating H2 filling stations in the state, which serve heavy-duty vehicles. Furthermore, Shell has abandoned its ambitious plan to construct 48 new hydrogen filling stations in California, despite being awarded a substantial $40.6 million grant for the project.
The decision to discontinue the expansion of its light-duty vehicle fuelling stations was first disclosed by Shell last September. Following this announcement, the company temporarily shut down five of its existing hydrogen stations, unable to provide a confirmed reopening date. Now, with the closure of all light-duty stations, Shell has redirected its focus toward hydrogen for heavy-duty mobility, while also investing in electric vehicle charging infrastructure.
The rationale behind Shell’s decision remains multifaceted, likely influenced by market dynamics and potentially reflecting a lack of sufficient demand for hydrogen-powered passenger vehicles. Despite California being one of the few markets to witness growth in hydrogen vehicle registrations, the numbers remain significantly lower compared to battery-electric cars.
Interestingly, Shell’s decision in California mirrors its actions in the U.K., where it closed down all three hydrogen filling stations in 2022. Similar to California, the focus in the U.K. shifted toward serving heavy-duty trucks, which the existing stations couldn’t accommodate.
While Shell hasn’t explicitly stated the reasons behind the closure, it’s noteworthy that the company utilized filling station equipment supplied by Nel, a Norwegian company currently embroiled in a lawsuit by industrial gas company Iwatani. The lawsuit alleges major defects in Nel’s H2Station range, suggesting potential operational challenges faced by Shell’s hydrogen facilities.
The closure of Shell’s hydrogen stations in California marks a significant development in the state’s alternative fuel landscape, highlighting the complexities and uncertainties surrounding the future of hydrogen as a viable transportation option.
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