Shell to permanently close all of its
hydrogen refuelling stations for cars in California
Oil major cites ‘supply complications and other
external market factors’ in decision to exit market for light-duty H2
vehicles in the US
Shell has permanently closed six of its seven
hydrogen refuelling stations (HRS) for passenger cars in California,
citing “supply complications and other external market factors”.
This leaves the oil major only operating three H2
filling stations for heavy-duty vehicles in the state, as well as one
light-duty station, in the city of Torrance, a Los Angeles suburb,
which remains open for the time being while Shell “is exploring
options to divest”, a spokesman told Hydrogen Insight on 14
February.
Shell had last September told Hydrogen
Insight that it had “discontinued its plan to build and operate
additional light-duty vehicle fueling stations in California”,
effectively scrapping the 48 new sites it had previously announced it
would build.
At the time, the oil major had also
“temporarily” shut down five of its hydrogen stations, with a note to
customers that was unable to confirm a date when these sites would
reopen.
A Shell spokesman told Hydrogen Insight
on 9 February: “Shell discontinued the build out of its light-duty
hydrogen station network in California in 2023, and after temporary
closure of five of its seven light-duty stations, made the decision to
permanently close its light duty station network in California in
early 2024. This was due to a number of market factors.”
Shell previously told Hydrogen Insight
in December that it would prioritise hydrogen for heavy-duty mobility,
while investing in EV charging to decarbonise light-duty vehicles.
This decision could also reflect a lack of
demand. While California was one of the few markets for
hydrogen-powered vehicles to grow this year, only 3,143 were
registered in 2023 — less than 1% of battery-electric cars in the same
period, according to the most recent figures from the California
Energy Commission.
The oil major had in 2022 closed down all
three of its hydrogen filling stations in the UK, with the company and
its partner Motive citing a similar focus on serving heavy-duty
trucks, which the sites would not be able to accommodate.
While Shell has not given any further reasons
for its decision to close down its California sites, the oil major had
also used filling station equipment supplied by Norway’s Nel —
currently at the centre of a
lawsuit by industrial gas company Iwatani, which alleges major
defects in its H2Station range.
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