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.

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.
Plug Power will supply a 5MW PEM electrolyser to Hy2gen’s Sunrhyse project in Signes, marking a key step in expanding RFNBO-certified hydrogen in southern France.
The cross-border hydrogen transport network HY4Link receives recognition from the European Commission as a project of common interest, unlocking access to funding and integration into Europe’s energy infrastructure.
The withdrawal of Stellantis weakens Symbio, which is forced to drastically reduce its workforce at the Saint-Fons plant, despite significant industrial investment backed by both public and private stakeholders.
German steelmaker Thyssenkrupp plans to cut 11,000 jobs and reduce capacity by 25% as a condition to enable the sale of its steel division to India’s Jindal Steel.
Snam strengthens its position in hydrogen and CO₂ infrastructure with EU-backed SoutH2 corridor and Ravenna hub, both included in the 2025 list of strategic priorities for the European Union.
Driven by industrial demand and integration with renewable energy, the electrolyzer market is projected to grow 38.2% annually, rising from $2.08bn in 2025 to $14.48bn by 2031.
BrightHy Solutions, a subsidiary of Fusion Fuel, has signed a €1.7mn contract to supply a hydrogen refuelling station and electrolyser to a construction company operating in Southern Europe.
In Inner Mongolia, Xing’an League is deploying CNY6bn in public funds to build an integrated industrial ecosystem for hydrogen, ammonia and methanol production using local renewable resources.
Despite a drop in sales, thyssenkrupp nucera ends fiscal year 2024/2025 with operating profit, supported by stable electrolysis performance and positive cash flow.
ExxonMobil’s pause of the Baytown project highlights critical commercial gaps and reflects the impact of US federal cuts to low-carbon technologies.
State-owned Chinese group Datang commissions a project combining renewable energy and green hydrogen within a coal-to-chemicals complex in Inner Mongolia, aiming to reduce stranded asset risks while securing future industrial investments.
Möhring Energie Group commits to a green hydrogen and ammonia production project in Mauritania, targeting European markets from 2029, with an initial capacity of 1 GW.
Air Liquide deploys two hydrogen-powered heavy-duty trucks for its logistics operations in the Rotterdam area, marking a step in the integration of low-emission solutions in freight transport.
French hydrogen producer Lhyfe will deliver over 200 tonnes of RFNBO-certified hydrogen to a heavy mobility operator under a multi-year contract effective since 1 November 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.