Suggested Citation:
Fulton, Lewis (2024)

Brief: Developing a Hydrogen Vehicle Market in California Will Require Significant Upfront Investment, but Should be Self-Sustaining Thereafter

While hydrogen fuel-cell electric vehicles (FCEVs) are seen as a part of California’s efforts to decarbonize transportation, especially for the heavy-duty vehicle sector, their role remains unclear. This may change, however, with the launch of the California Alliance for Renewable Clean Energy Hydrogen Energy Systems (ARCHES) developed by the California Governor’s Office of Business and Economic Development (GO-Biz) as a public-private partnership. The U.S. Department of Energy and ARCHES recently signed a $12.6 billion agreement to build a clean, renewable Hydrogen Hub in California, including up to $1.2 billion in federal funding. The transportation sector will play a central role in this effort, including commitments to deploy 6,000 FCEVs, mainly trucks and buses, along with 60 refueling stations and other investments.

This policy brief is drawn from the report “Fuel-cell Vehicle and Hydrogen Transitions in California: Scenarios, Cost Analysis, and Workforce Implications” available at www.ucits.org/research-project/rimi-3o.