Rather than expanding its network of light-duty hydrogen-fueling stations, California lost three stations last year, casting doubt on the state’s ability to meet a 200-station goal, a new report found. 

As of July 15, 2024, there were 62 light-duty hydrogen-fueling stations in California, down from 65 stations in 2023, according to the December 2024 report from the California Air Resources Board. Although four new stations opened during the year, seven stations owned by Shell closed, for a net loss of three stations. 

The number of hydrogen-fueling stations in CARB’s 2022 report was 60. 

CARB is now projecting 129 retail hydrogen-fueling stations in the state by 2030 — well short of the target of 200 stations by 2025 set by Gov. Jerry Brown in a 2018 executive order. 

The latest projections have also fallen behind those from CARB’s 2023 evaluation, in which 92 open stations were expected by the end of 2024, based on developer feedback. 

Link to FCEV Sales

CARB’s annual report on hydrogen-fueling station development tallies stations where drivers of light-duty fuel cell electric vehicles (FCEVs) can pull up, fuel and pay, like at a conventional gas station. Among the 62 retail stations counted in the 2024 report, seven were considered temporarily non-operational, but expected to reopen. 

The slow progress in station development also means projected sales of FCEVs have dropped. The report noted the close tie between automakers’ FCEV sales estimates and the rate of fueling station development, fuel supply cost and reliability, and range of FCEV models. 

“In multiple studies and surveys, consumers have repeatedly ranked charging and fueling infrastructure as a top concern for either purchasing a new ZEV or even using the ZEV they currently drive,” the report said. 

That sentiment could be key as California will require all new cars sold in the state to be zero-emission or plug-in hybrids by 2035. 

Through September 2024, 17,999 FCEVs had been sold in California, including 427 in the first nine months of last year, according to a California Energy Commission ZEV dashboard. 

In comparison, 293,747 battery-electric cars and 49,039 plug-in hybrids were sold in the state from January through September 2024. 

Shell Pull-out

Shell announced in February 2024 that it was permanently closing its seven light-duty hydrogen-fueling stations in California “due to hydrogen supply complications and other external market factors,” according to a notice from the company posted by the Hydrogen Fuel Cell Partnership. 

The announcement came after Shell asked the California Energy Commission to cancel grant funding the company had been awarded for 50 new hydrogen-fueling stations and one station upgrade. 

Reasons for canceling the grant included political and economic uncertainty, permitting hurdles, high construction costs and problems sourcing green hydrogen, according to a letter from a Shell official cited by CleanTechnica. 

Although slow progress on station development has been noted in CARB’s previous reports, reasons for the lag have shifted, the agency said. 

“Barriers identified in past analyses, including securing site access, permitting timelines, utility connection timelines and other site-specific issues, may still linger but are not the dominant issues today,” the report said. 

Instead, station developers have cited economic factors — including high inflation rates, low credit values from the Low-Carbon Fuel Standard program and the small size of the hydrogen refueling industry — along with trouble finding skilled, affordable contractors. 

Factors that could cause the pace to pick up are time limits on spending station-development grants, an expected resolution of hydrogen-supply bottlenecks in Southern California and efforts to address supply-chain issues, CARB said. 

CARB also suggested that progress could be made in partnership with California’s hydrogen hub known as ARCHES, or Alliance for Renewable Clean Hydrogen Energy Systems. 

“The state should continue to support the production of clean hydrogen and lay the groundwork for ARCHES to scale up the market and drive down prices,” the report said.