Shell scraps plan to build 48 new hydrogen filling stations in California, for which it had been awarded $40.6m grant
Oil giant also recently closed five of its existing H2 stations in the state
Shell has quietly scrapped previously announced plans to build 48 new light-duty hydrogen filling stations in California, despite having been awarded $40.6m of government grants back in 2020 for the initiative.
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And last month, the oil giant closed five of its existing hydrogen refuelling stations in the state, leaving it with only three in operation.
“We will continue to invest in hydrogen in a disciplined manner, with a focus on hard-to-abate sectors such as industry and heavy duty transport and emphasis on key regions where we have competitive advantage and strong adjacencies with our existing business.
“Shell remains active in hydrogen in California where we operate three heavy-duty stations as part of project ZANZEFF: Zero and Near Zero-Emission Freight Facilities Shore to Store Project.”
In other words, the company has now closed all its car-focused hydrogen filling stations in California and has formally scrapped plans to build more.
Formal rejection of funding
Shell had been awarded $7.3m from the California Energy Commission (CEC) in December 2020 for the first eight of the 48 new filling stations, from a total allocated pot of $40.58m (subject to future appropriations and funding allocations).
However, the funding appears to never have been actually been sent to Shell.
“These barriers need to be overcome in order to enable future investment from Shell in this segment of the market,” said the note, written by Abhishek Banerjee, Shell’s hydrogen commercial manager in the US.
He also wrote that the project had encountered difficulties getting permits and sourcing green hydrogen, and faced high construction costs.
However, the 2,707 figure is still the second highest annual mark since FCEVs first went on sale in the state in 2012.
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