Fuel cells

As the world moves toward sustainable energy solutions, fuel cells are emerging as a

transformative technology for power generation and transportation1. These electrochemical

devices convert chemical energy directly into electrical energy through a reaction between

hydrogen and oxygen, with water and heat as the only byproducts2-8In contrast to traditional

combustion engines, fuel cells provide higher efficiency and zero emissions, making them crucial

in the global decarbonization effort.3

The fuel cell concept dates back to 1839, when Sir William Grove first demonstrated the use of

hydrogen and oxygen to generate electricity1,9,10. Nevertheless, notable advancements did not

occur until the mid-20th century, especially during the U.S. space program, when fuel cells were

used to power NASA’s Apollo missions2,5,9-12. Since then, ongoing technological advancements

and growing environmental concerns have fueled efforts to commercialize fuel cells for vehicles,

stationary power production, and portable devices1,13-15.

Despite their promise, fuel cells encounter various economic, social, and political obstacles that

hinder widespread adoption. High production costs, limited hydrogen infrastructure, and

challenges in public acceptance have slowed progress1,16-18. However, supportive government

policies, research innovations, and global sustainability objectives propel development19-21.

This paper examines fuel cells’ characteristics and historical development, economic and

ecological performance, social impacts, and the policy and regulatory framework influencing their

future. Through this analysis, we aim to deliver a thorough overview of fuel cells as a viable

alternative to traditional energy sources and their significance in the shift toward a cleaner, greener

future.

A fuel cell consists of an electrically conductive anode and cathode, separated by an ion-

conducting electrolyte or membrane17. Typically, hydrogen or another fuel is supplied to the anode,

while oxygen or air is delivered to the cathode. The electrolyte enables ion exchange, facilitating

the electrochemical reaction that produces electricity, heat, and water. Fuel cells are modular and

3scalable, as multiple cells can be arranged in a stack to increase power output. They are categorized

based on the electrolyte used, influencing the electrochemical processes, required catalysts,

operating temperature range, fuel compatibility, and overall suitability for specific

applications17,21.

Fuel cells effectively transform the chemical energy in fuels like hydrogen into electricity, making

them a crucial component of a diverse set of solutions to achieve a sustainable and equitable clean

energy future. These systems can generate electricity, heat, and water from various fuels and

feedstocks, allowing for versatile applications across multiple industries2,5,17. Their uses span

transportation, including road and off-road vehicles, rail, marine, and aviation, and stationary

power generation for industries, data centers, and residential or commercial buildings5,6,22-24.

Additionally, fuel cells play a vital role in long-term energy storage for the electrical grid. They

can also be integrated into combined heat and power (CHP) systems or employed in innovative

hybrid solutions, such as tri-generation systems that simultaneously produce electricity, heat, and

hydrogen21.

The operation of a fuel cell follows a process that is essentially the reverse of water electrolysis. It

relies on two fundamental electrochemical reactions:

• Oxidation of hydrogen gas at the anode (negative electrode).

• Reduction of oxygen gas at the cathode (positive electrode).

In the presence of an electrolyte membrane, hydrogen molecules at the anode undergo oxidation,

forming hydrogen ions (H⁺) and free electrons (e-⁻). While the electrons move through an external

circuit, generating electrical power, the hydrogen ions migrate through the electrolyte membrane

toward the cathode.

2𝐻2 → 4𝐻+ + 4𝑒− 1

At the cathode, oxygen gas (O₂) reacts with the hydrogen ions and incoming electrons, forming

water (H₂O) and releasing heat. This reaction completes the electrical circuit, allowing for the

continuous production of usable electricity.

𝑂2 + 4𝐻+ + 4𝑒−

→ 2𝐻2𝑂 2

4The overall chemical reaction that produces electricity is given as:

2𝐻2 + 𝑂2 → 2𝐻2𝑂 3

A fuel cell consists of several essential components that work together to facilitate the conversion

of fuel (e.g., hydrogen) and oxygen into electricity. These key elements include:

• The anode is where hydrogen gas undergoes oxidation, breaking into hydrogen ions (H⁺)

and electrons (e-⁻).

2. • The electrons travel through an external circuit, generating electrical power, while the

hydrogen ions move through the electrolyte membrane toward the cathode.

Cathode (Positive Electrode): The cathode receives oxygen (O₂) from the air, where it

combines with the hydrogen ions and incoming electrons to undergo a reduction reaction,

forming water (H₂O) as the only byproduct.

3. Electrolyte Membrane:

• This ion-conductive layer separates the anode and cathode, allowing only hydrogen ions

(H⁺) to pass through while preventing electrons from doing so.

4. • This selective permeability forces the electrons to travel through the external circuit,

ensuring the generation of usable electrical power.

External Circuit: This component connects the anode and cathode, allowing electrons to

flow, which powers various applications such as electric motors, vehicles, and electronic

devices.

5. Current Collectors: These conductive materials (such as carbon paper or metal) are

positioned between the anode and cathode to facilitate electron flow into the external

circuit, enhancing efficiency.

6. Cooling System: Fuel cells generate significant heat during operation, necessitating a

cooling mechanism (either water or air-based) to regulate temperature and prevent

overheating.

Although the core components remain consistent across different fuel cell types, some variations

exist. For example, Solid Oxide Fuel Cells (SOFCs) use solid ceramic electrolytes instead of liquid

or polymer membranes, and Proton Exchange Membrane Fuel Cells (PEMFCs) utilize a proton

exchange membrane (PEM) electrolyte, ensuring fast ion transport and high efficiency.

Fuel cells are categorized based on their electrolyte composition, influencing their operating

temperature, fuel compatibility, efficiency, and application7. Each type has distinct advantages

and challenges, making them suitable for industrial, commercial, and transportation uses5.

Reactant Type: Fuel cells can use a variety of fuels (reducing agents), such as hydrogen, methanol,

methane, carbon monoxide (CO), and inorganic reducing agents like hydrogen sulfide (H₂S) and

hydrazine (N₂H₄). The oxidizing agents include pure oxygen, air oxygen, hydrogen peroxide

(H₂O₂), and chlorine. Other exotic reactants have also been proposed.

Electrolyte Type: Fuel cells commonly use liquid electrolytes (aqueous solutions of acids,

alkalies, salts) and molten salts. However, solid electrolytes (ionically conducting organic

polymers and inorganic oxide compounds) are often preferred as they reduce the risk of leakage,

prevent corrosive interactions with construction materials, and serve as separators to keep reactants

from reaching the wrong electrode space.

Working Temperature: Fuel cells are categorized into low-temperature (up to 120-150°C),

intermediate-temperature (150-250°C), and high-temperature (over 650°C) fuel cells. Low-

temperature fuel cells include membrane-type and most alkaline fuel cells. Intermediate-

temperature fuel cells include those with phosphoric acid electrolytes and Bacon-type alkaline

cells. High-temperature fuel cells comprise molten carbonate and solid-oxide fuel cells. Recently,

interim-temperature fuel cells operating in the 200-650°C range have been introduced6.

1. Alkaline Fuel Cells (AFCs):

• Concentrated KOH is used as an electrolyte, and depending on the concentration, it can

operate at high temperatures (~200°C) or low temperatures (65-100°C).

• CO₂ from air or fuel oxidation forms K₂CO₃ precipitates, affecting performance. High

purity hydrogen and CO₂ scrubbers are required.

2. Polymer Electrolyte Membrane Fuel Cells (PEMFCs):

• Use polymeric materials like Nafion as electrolytes, operating at ~80°C. They are

common in fuel cell vehicles.

• Utilize platinum (Pt) as a catalyst, which is facing issues of high cost and resource

scarcity. Efforts are made to reduce Pt usage and develop non-precious metal catalysts.

3. Phosphoric Acid Fuel Cells (PAFCs):

• Use 100% H₃PO₄ as electrolyte, operating at 150-220°C. Common in stationary power

generation.

• Less sensitive to CO poisoning but requires robust electrocatalysts and components due

to the corrosive nature of the electrolyte.

4. Molten Carbonate Fuel Cells (MCFCs):

• Use a mixture of alkali metal carbonates as an electrolyte, operating at 600-650°C.

Suitable for large-scale power plants.

• Utilize non-precious metal catalysts and can directly use CO as fuel. The molten carbonate

electrolyte is highly corrosive.

5. Solid Oxide Fuel Cells (SOFCs):

• Use solid ceramic electrolytes, operating at 600-1000°C. Do not require precious metal

catalysts.

• It can reform various fuels internally, offering high efficiency and suitability for stationery

and distributed power supply applications7.

The idea of fuel cells began with Sir William Robert Grove in 1839 when he created the gas voltaic

battery, an initial fuel cell model. Grove realized that by reversing the water electrolysis process,

electricity could be produced by combining hydrogen and oxygen in an electrochemical reaction,

establishing a foundation for subsequent fuel cell studies. His research was published in the

Philosophical Magazine. Despite its successful demonstration, Grove did not view fuel cells as a

practical energy source at the time, leading to stagnation in research5,7. Wilhelm Ostwald’s

significant theoretical contributions in 1894, proposing electricity generation through fuel

oxidation via electrochemical means, further advanced the field, though practical applications

remained elusive for several decades5 12.

Early experiments in fuel cells faced challenges due to a lack of advanced materials and an

understanding of electrochemistry. However, Francis Thomas Bacon developed the first practical

alkaline fuel cell (AFC) in 1932. Bacon’s research led to replacing corrosive acidic electrolytes

with alkaline electrolytes, significantly improving fuel cell durability and efficiency.5,7,12

. By 1959, Bacon successfully demonstrated a 5-kW alkaline fuel cell stack.5,7,25.

During this period, researchers such as Emil Baur also made significant advances in high-

temperature fuel cells, specifically solid oxide fuel cells (SOFCs) and molten carbonate fuel cells

(MCFCs). However, these technologies were not yet mature for practical applications5,7,12.

Fuel cells gained widespread attention in the 1960s when NASA adopted them for the Gemini and

Apollo space programs. They provided a reliable power source with no moving parts and produced

water as a byproduct for astronauts. During this time, several new types of fuel cells were

developed, including Polymer Electrolyte Membrane Fuel Cells (PEMFCs) used in the Gemini

spacecraft, Phosphoric Acid Fuel Cells (PAFCs) for stationary power applications, and Molten

Carbonate Fuel Cells (MCFCs) for large-scale power generation. Despite these advancements,

high costs and the lack of hydrogen infrastructure limited commercial viability adoption.

2,10.8

In the 1990s, fuel cells experienced a resurgence driven by concerns over energy security, climate

change, and the pursuit of renewable alternatives. Significant investments were made in hydrogen

fuel cell vehicles (FCVs), with automakers like Toyota, Honda, and Hyundai leading the

development of Fuel Cell Electric Vehicles (FCEVs)3,4. Key factors contributing to this resurgence

included government policies such as the Kyoto Protocol (1997)8, technological advances in fuel

cell catalysts, membrane durability, and the expansion of hydrogen infrastructure in countries like

South Korea, Japan, Germany, and the United States 1,26,27.

Today, fuel cells are being integrated into renewable energy systems, stationary power generation,

and zero-emission transportation. The push towards a hydrogen economy continues, with major

corporations and governments advocating for hydrogen-powered infrastructure15,27.

The economic performance of fuel cells is a critical factor in determining their viability and

competitiveness in the energy market. While government subsidies have played a crucial role in

accelerating adoption16, sustainable market requires stable business models where fuel cells can

thrive without subsidies. The Total Cost of Ownership (TCO), which includes production, usage,

and disposal, must reach levels comparable to internal combustion engines (ICEs) and battery-

electric vehicles (BEVs) for fuel cells to achieve mass market penetration16.

This section will explore the cost dynamics of fuel cells, including their initial costs, current cost

trends, and comparisons with alternative energy sources. Additionally, it will examine the growth

of the fuel cell industry, highlighting market trends, key companies, revenue generation, and

forecasts for industry expansion.

The initial cost of fuel cells has historically been high due to the expensive materials and complex

manufacturing processes involved28. For instance, early fuel cell systems for light-duty vehicles

(LDVs) were priced at approximately $60 per kW in 201618,29. However, advancements in

technology and economies of scale have led to a substantial reduction in costs. By 2022, the cost

of LDV fuel cell systems had decreased to around $45 per kW18,29. This trend is expected to

continue as further improvements in materials and manufacturing processes are realized.

9The current cost trends for fuel cells indicate a continued decline in prices. As of 2023, the cost of

LDV fuel cell systems is projected to reach $40 per kW by 2025 and $30 per kW by 203018,29,30.

Similarly, the cost of medium-duty vehicle (MDV) and heavy-duty vehicle (HDV) fuel cell

systems is also expected to decrease. For example, HDV systems are projected to cost $80 per kW

by 203030. These cost reductions are driven by advancements in manufacturing techniques,

increased production volumes, and improvements in fuel cell stack efficiency.

Currently, the cost of fuel cell systems remains high, particularly in the automotive sector. A top-

down analysis of the Toyota Mirai fuel cell system estimates a price of $200 per kW at the system

level16. However, industry experts suggest that actual costs are higher, as fuel cell vehicle (FCEV)

manufacturers do not yet recover full production costs from sales16,28. Expert assessments indicate

the following cost trends in fuel cell stack production16:

1. Most commonly cited cost range: €400–490 per kW.

2. Industry benchmark (high-volume production plants): €245 per kW.

3. Upper cost estimates: Up to €1,000 per kW, though such high costs are decreasing over time.

According to the European Clean Energy Technology Observatory17, the global installed capacity

of fuel cells has experienced steady growth, with Asia leading the charge. By 2021, the worldwide

installed capacity was estimated between 6.9 and 7.3 GW, with Europe contributing around 8.1 to

8.3% of this total. Recent data suggests a stagnation in growth rates despite an overall increase in

capacity5,6,17,19,22-24,30-33. The transport sector dominates fuel cell applications, accounting for the

majority share, driven by the demand for zero-emission vehicles. Stationary applications hold the

second-largest market share, while portable fuel cells represent a minor portion of the

market17,30,31.

Road applications lead with the highest share in the transport sector, followed by material handling

and aviation. Passenger cars dominate the global fuel cell vehicle fleet, with Asia, particularly

South Korea and China, leading deployments. China also leads in manufacturing capacities,

10contributing significantly to the global production of PEMFCs. Asia is leading in stationary

applications with the highest installed capacity, followed by North America and Europe 17,20,32.

Despite growth in fuel cell deployment over the last decade, the current deployment rate for

passenger cars is slowing. Higher operational costs, advances in battery electric vehicle

technology, and the 2022 energy crisis have impacted the financial viability of hydrogen-powered

transport20,30-33. However, global interest in sustainable transportation technologies is expected to

drive further expansion and diversification of fuel cell applications, particularly in heavy-duty

transport30,32.

A 2024 market review study by Research and Markets states that the worldwide fuel cell market

reached USD 6.6 billion in 2024. From 2025 to 2033, it is expected to grow at a compound annual

growth rate (CAGR) of 20.81%, reaching USD 43.7 billion. With a more than 56.6% market share

in 2024, the Asia Pacific now controls most of the market. Strong government backing,

infrastructural investments in hydrogen, and expanding industry use are the main drivers of this

supremacy30. Another 2025 market review by Fortune Business Insights34 states that in 2023, the

global fuel cell market was valued at USD 9.85 billion, and it is anticipated to increase from USD

12.75 billion in 2024 to a remarkable USD 105.01 billion by 2032, reflecting a compound annual

growth rate (CAGR) of 30.15% over the forecast period, with the Asia-Pacific region leading the

industry with a 61.21% market share in 2023 and, the U.S. fuel cell market expected to witness

substantial growth, potentially reaching USD 9.77 billion by 2032, driven by government-led

economic and stimulus initiatives promoting green energy development.

Projections for EU fuel cell deployment and installed capacity show an acceleration in fuel cell

vehicle uptake from 2035, with passenger cars leading the growth by 2050. Heavy goods and light

commercial vehicles will also grow significantly, while buses and stationary applications will have

a smaller share. Overall, the fuel cell industry is experiencing expansion, reflecting the increasing

global interest in clean and sustainable energy solutions17.

Fuel cells are a clean energy solution with significant environmental benefits over fossil fuels.

They use hydrogen to generate electricity, producing mainly water and heat with low emissions.

However, their environmental impact depends on hydrogen production methods, resource11extraction, and waste management. Concerns also exist regarding rare metal mining for

components and disposal after use. This section examines the carbon footprint, resource use, and

waste associated with fuel cell technologies to comprehensively evaluate their ecological effects.

According to Dunlap 35, fuel cell vehicles have the potential to be environmentally advantageous,

but their actual carbon footprint is heavily reliant on the cleanliness of the electricity used to

produce hydrogen and that fuel cell vehicles (FCVs) have a carbon footprint similar to gasoline

ICE vehicles (0.24 kg CO₂/km vs. 0.22 kg CO₂/km), making them a “neutral” alternative unless

hydrogen is produced from renewable sources. Wong et al. 36 carried out a comparative analysis

of fuel cells and concluded that for one full hydrogen tank, the CO2 emissions of a fuel cell are

70.7kg for natural gas-based hydrogen but only 11.9kg for green hydrogen, a reduction factor of

8.2. However, in terms of tank-to-wheel, hydrogen fuel cell vehicles have zero direct CO2

emissions during driving, similar to EVs. Several other studies, such as those of Xu et al37, Ma et

al.38, Perčić et al.39, etc., also agree with this conclusion.

According to a sustainability assessment study of fuel cells conducted by Canan et al.40, fuel cells

produce minimal solid waste during operation, especially when using pure hydrogen. However,

manufacturing waste and end-of-life disposal are concerns because catalysts (often containing

platinum) and membrane materials used in fuel cells require proper recycling and disposal. The

study also mentioned that high-temperature fuel cells (e.g., Molten Carbonate Fuel Cells, Solid

Oxide Fuel Cells) generate thermal waste, which can contribute to inefficiencies if not properly

utilized. Canan et al. further stated that in terms of air quality, fuel cells do not produce nitrogen

oxides (NOx), sulfur oxides (SOx), or particulate matter, but some fuel cell types produce excess

water as a byproduct which if untreated, temperature and contaminants could affect water

sustainability.

Fuel cells, especially proton exchange membrane fuel cells (PEMFCs), depend on catalysts made

from platinum (Pt). The limited availability and high cost of platinum restrict scalability. Recently,12however, there has been a surge in research aimed at enhancing the process. This includes

innovative catalyst designs like Pt-Pb nanoplatelets and Pt nanowires, which boost catalytic

efficiency while decreasing the overall platinum usage. Additionally, there’s ongoing exploration

of non-precious metal catalysts, such as those based on iron, cobalt, and nickel, which could

partially or completely substitute platinum in fuel cells. Furthermore, advancements in electrolyzer

technology are being pursued to utilize green hydrogen and minimize emissions overall41-46.

Fuel cell technology significantly impacts job creation, public health, and energy accessibility. As

a clean energy solution, it reduces air pollution by replacing fossil fuels, especially in urban areas.

The expansion of the hydrogen economy also creates jobs across sectors like research and

manufacturing. However, public acceptance hinges on cost, infrastructure, and awareness. This

section examines the social impacts of fuel cell technology.

In several countries, there is a growing acceptance of fuel cell technologies. However, studies show

that the level of acceptance often depends on factors such as awareness, positive impacts, and

potential cost. For example, a study conducted by Paula et al47 to assess public awareness, attitudes,

and acceptance of fuel cell technologies across multiple countries, showed that overall, public

perception was positive, with 56.3% viewing hydrogen fuel cells as a good or very good solution

for energy and environmental challenges and acceptance varied by country, with higher awareness

of hydrogen fuel cell vehicles than stationary fuel cells for home use. The study concluded that

despite regional variations in the acceptance of fuel cell technologies, increasing public knowledge

and addressing information gaps are critical for improving social acceptance and encouraging

wider adoption of fuel cell technologies. In another independent study to assess the level of

acceptance of fuel cells in Europe48 revealed a 60% acceptance rate, with the majority favoring

public funding to subsidize residential fuel cell systems ahead of fuel cell electric vehicles. There

has been good public acceptance in Malaysia49, in Japan50,51, China52,53, etc. particularly for

mobility applications.13

A 2020 study by Bezdek54 identified 42 emerging occupations related to fuel cells, spanning

engineering, manufacturing, maintenance, and policy analysis. The study estimates that the

hydrogen and fuel cell economy could generate nearly 1 million new jobs in the U.S. by 2030,

with wages generally exceeding the national average. According to the U.S Department of Energy,

shift toward a hydrogen and fuel cell economy will require new training programs for a diverse

workforce, ranging from technicians and engineers to policy analysts and business consultants,

and employment opportunities will open up in businesses that develop, manufacture, operate, and

maintain the fuel cell systems. The DOE 2016 reports on hydrogen and fuel projects that the

widespread adoption of fuel cell technology could potentially create 180,000 jobs in the United

States by 2020 and 675,000 jobs by 203555. According to the European Clean Energy Technology

Observatory, the automotive companies Hyundai and Toyota are the leading fuel cell

manufacturers in terms of the number of systems and deployed capacity, with Hyundai (South

Korea & Germany) employing 19100 in fuel cell-related research and development, while Toyota

(Japan & Europe) employs 1350 in their Fuel Cell unit launched in 2023. The report mentions that

US fuel cell companies employ about 8510 employees, while European-based fuel cell companies

employ about 250017. Overall, employment in the fuel cell sector is growing, with major

automakers and energy firms investing in new manufacturing and research facilities. The

expansion of fuel cell vehicle production, infrastructure, and green hydrogen projects will drive

further job creation worldwide.

A study by Knut et al.56 compares the negative impacts of solid oxide fuel cells (SOFCs) with coal

energy. It finds that while SOFCs offer significant environmental benefits, they have drawbacks.

SOFC plants generate 10-100 times less air and water pollution than coal and 50-98% less than

gas plants. Although they emit lower CO₂ levels, they still produce some greenhouse gases,

meaning they are not zero-emission. Fuel cells require rare metals like platinum and nickel, raising

concerns about sustainability. They reduce visual and noise pollution by about 30% compared to

gas plants, but these issues persist. SOFCs lower health hazards related to coal-fired plants and

14have about 70% of the health risks of gas plants, although risks may still arise from hydrogen

storage, transportation, and fuel processing.

Government policies, incentives, and regulatory frameworks significantly influence the adoption

and commercialization of both fuel cell technology and other new technologies and inventions

57,58. Various countries have implemented pro-fuel cell policies to support the transition toward

clean energy and hydrogen infrastructure development. This section explores key government

policies, incentives, and safety regulations.

Japan: Japan leads in hydrogen and fuel cell policies, launching the world’s first national hydrogen

strategy, the ‘Basic Hydrogen Strategy,’ in 2017, which inspired 26 other nations to create their

hydrogen strategies by 202259,60. Japan also hosted the Hydrogen Energy Ministerial Meeting

(HEM) to support policy initiatives and continues to be crucial in the global hydrogen sector. The

updated Basic Hydrogen Strategy aims to invest ¥15 trillion ($100 billion USD) in hydrogen

projects over the next 15 years, targeting a sixfold increase in hydrogen usage by 2040 through

improved production and distribution networks59,60. This has enabled Japan to achieve key

milestones, including commercializing the first fuel cell vehicles (FCVs), increased household

adoption of fuel cells, and numerous patents in fuel cell technologies20,23,32,61.

South Korea: south Korea leads globally in fuel cell technology, boasting 859 MW in installed

industrial capacity. This growth stems from the Renewable Portfolio Standard (RPS) by the

government, mandating fuel cells in energy generation and promoting on-site generation for large

buildings. In June 2022, the Hydrogen Economy Law was enacted to enhance the hydrogen

economy, targeting hydrogen to meet 2.1% of energy needs by 2030 and 7.1% by 2035. The RPS

will transition into a Clean Hydrogen Portfolio Standard, with details expected in 2023. The

Hydrogen Road Map sets a goal of 8 GW domestic stationary fuel cell capacity, 7 GW for export,

and 2.1 GW for Combined Heat and Power (CHP) systems by 2040, positioning South Korea as a

leading fuel cell exporter20,23,30,32,61.15

China: In March 2022, China launched its 14th Five-Year Plan for energy, prioritizing fuel cell

electric vehicles (FCEVs) and hydrogen as key industries62. The National Development and

Reform Commission and the National Energy Administration outlined a roadmap for hydrogen

expansion from 2021 to 2035, aligning with carbon neutrality goals. The policy emphasizes heavy-

duty FCEVs and industrial uses, especially in mining, ports, and industrial parks, while promoting

hydrogen infrastructure like storage, refueling stations, and supply chains. Goals include

producing 100,000–200,000 tons of green hydrogen annually and deploying 50,000 FCEVs by

2025, reducing 1–2 million tons of CO2 emissions annually20,32,60,63.

By the end of 2022, China saw a surge in fuel cell commercial vehicles, with 3,789 units deployed,

up from 1,787 in 2021. Light-duty FCEVs also rose from 20 in 2021 to nearly 100 in 2022. Over

5,000 commercial FCEVs were registered, showing increasing regional hydrogen investment. The

Beijing Winter Olympics contributed to this growth, with over 1,000 hydrogen-powered vehicles

used during the event 60,61.

The European Union: In 2022, the European Union (EU) advanced fuel cell and hydrogen

projects, notably approving the Important Projects of Common European Interest (IPCEI). This

initiative unites multiple EU countries to enhance hydrogen’s production, storage, and distribution

for transportation and industry. A total of 41 projects in 15 EU countries secured up to €5.4 billion

in public funding, unlocking an additional €8.8 billion in private investments17,31,60,61.

The United States: The Inflation Reduction Act (IRA) passed in August 2022 marked a policy

shift in the U.S. clean energy sector, offering $370 billion in tax incentives for low-carbon

technologies like fuel cells and hydrogen. The Clean Energy Investment Tax Credit (ITC) allows

up to 30% tax credits for renewable energy projects, including fuel cell generators over 1 MW. A

new Residential Clean Energy Credit provides 30% coverage for home clean energy installations,

though fuel cell incentives are capped at $1,667 per half-kilowatt 20,21,27,33,60,63-65.

The IRA also introduced the Clean Vehicle Credit, granting $7,500 for hydrogen fuel cell vehicle

(FCEV) buyers, limited to vehicles priced below $55,000 for cars and $80,000 for vans, excluding

many models. The Commercial Clean Vehicle Credit offers up to $45,000 for Class 1-4 fuel cell

trucks, but its market impact is uncertain. The Hydrogen Production Tax Credit (PTC), providing

16up to $3/kg for clean hydrogen production, is the most significant incentive under the IRA,

encouraging investments in low-carbon hydrogen solutions20,21,27,60.