Despite ARCHES shutdown, public investment in hydrogen continues in California

The suspension of ARCHES is not slowing hydrogen initiatives in California, where public authorities are accelerating projects for production, transport and use of the fuel in local infrastructure.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The First Public Hydrogen Authority (FPH2), the first public hydrogen authority in the United States, reaffirmed the stability of California’s hydrogen market following the suspension of operations by the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES). Despite this withdrawal, public investment in hydrogen remains strong, with active projects across several sectors.

Public infrastructure remains committed

FPH2’s recent solicitation for hydrogen supply attracted new providers ready to enter the California market. At the same time, the Los Angeles Department of Water and Power (LADWP) approved the conversion of the Scattergood plant into a hydrogen-compatible site. This will be the first large-scale project of its kind in the state, supported by municipal funding. The development aligns with growing commitments by local governments to integrate hydrogen into their energy strategies.

Ports and cities are betting on hydrogen

California’s port operators are continuing to deploy hydrogen-based technologies to improve air quality and meet local regulatory requirements. Several cities, including Lancaster, Industry, Fresno and Montebello, have launched transition programmes for hydrogen buses and fixed backup power systems. These projects are supported by local public funds, independent of cancelled federal subsidies.

A development model driven by local initiative

Created to ensure the continuity of hydrogen projects despite fluctuations in national policy, FPH2 relies on municipalities and local authorities to maintain investment momentum. The organisation works with public agencies, labour unions and municipal infrastructure to implement projects across the state. According to FPH2, hydrogen demand is expected to rise significantly, requiring deployment of all planned production facilities.

California’s hydrogen sector benefits from an active public ecosystem, from local governments to port authorities. This structure ensures continuity of projects even without direct federal support, relying on regional partnerships and targeted public funding.

The French government has issued an exclusive mining exploration permit to TBH2 Aquitaine to explore natural hydrogen in the Pyrénées-Atlantiques, bringing the young company’s total number of authorisations to two.
Hurricane Ventures, the investment fund affiliated with the University of Tulsa, has invested in Tobe Energy, a startup developing a membrane-free electrolysis system to produce low-cost clean hydrogen at industrial scale.
RWE has started commissioning a 100 MW electrolyser in Lingen, the first phase of a 300 MW project set to supply TotalEnergies’ refinery via a new hydrogen network under construction.
European Energy increases the capacity of its Måde Power-to-X site to 8.1 MW, with a new electrolyser in service and ongoing tests for commercial production in 2026.
Lhyfe aims to double its revenue next year, refocuses industrial priorities and plans a 30% cost reduction starting in 2026 to accelerate profitability.
Plug Power has completed the installation of a 5 MW PEM electrolyzer for Cleanergy Solutions Namibia, marking the launch of Africa’s first fully integrated green hydrogen production and distribution site.
Indian group AM Green has signed a memorandum of understanding with Japanese conglomerate Mitsui to co-finance a one million tonne per year integrated low-carbon aluminium production platform.
Next Hydrogen completes a $20.7mn private placement led by Smoothwater Capital, boosting its ability to commercialise alkaline electrolysers at scale and altering the company’s control structure.
Primary Hydrogen plans to launch its initial drilling programme at the Wicheeda North site upon receiving its permit in early 2026, while restructuring its internal exploration functions.
Gasunie and Thyssengas have signed an agreement to convert existing gas pipelines into hydrogen conduits between the Netherlands and Germany, facilitating integration of Dutch ports with German industrial regions.
The conditional power supply agreement for the Holmaneset project is extended to 2029, covering a ten-year electricity delivery period, as Fortescue continues feasibility studies.
HDF Energy partners with ABB to design a multi-megawatt hydrogen fuel cell system for vessel propulsion and auxiliary power, strengthening their position in the global maritime market.
SONATRACH continues its integration strategy into the green hydrogen market, with the support of European partners, through the Algeria to Europe Hydrogen Alliance (ALTEH2A) and the SoutH2 Corridor, aimed at supplying Europe with clean energy.
Operator GASCADE has converted 400 kilometres of gas pipelines into a strategic hydrogen corridor between the Baltic Sea and Saxony-Anhalt, now operational.
Lummus Technology and Advanced Ionics have started construction of a pilot unit in Pasadena to test a new high-efficiency electrolysis technology, marking a step toward large-scale green hydrogen production.
Nel ASA launches the industrial phase of its pressurised alkaline technology, with an initial 1 GW production capacity and EU support of up to EUR135mn ($146mn).
Peregrine Hydrogen and Tasmania Energy Metals have signed a letter of intent to install an innovative electrolysis technology at the future nickel processing site in Bell Bay, Tasmania.
Elemental Clean Fuels will develop a 10-megawatt green hydrogen production facility in Kamloops, in partnership with Sc.wén̓wen Economic Development and Kruger Kamloops Pulp L.P., to replace part of the natural gas used at the industrial site.
Driven by green hydrogen demand and state-backed industrial plans, the global electrolyser market could reach $42.4bn by 2034, according to the latest forecast by Future Market Insights.
Driven by mobility and alkaline electrolysis, the global green hydrogen market is projected to grow at a rate of 60 % annually, reaching $74.81bn in 2032 from $2.79bn in 2025.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.