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Highlights
- California's hydrogen car infrastructure hindered by station faults.
- Legal disputes cast doubt on hydrogen technology readiness.
- Key players reconsider hydrogen initiatives.
California’s ambitious hydrogen car infrastructure is facing significant setbacks due to legal challenges surrounding, a Norwegian company at the center of allegations over defective hydrogen fuelling stations. The controversy has left thousands of drivers unable to refuel their hydrogen-powered vehicles and placed the state’s green energy transition under scrutiny.
Legal Dispute and Allegations
The legal case was brought forward by Iwatani Corporation of America, which alleges that knowingly sold defective hydrogen fuelling stations while providing false assurances of their operational readiness. According to claims, the hydrogen stations, marketed as "H2Stations," were not sufficiently tested for real-world conditions before their rollout. A California judge has ruled that these allegations are substantial enough to proceed to trial in October 2026.
Following the lawsuit filed in January, the California market by abandoning seven hydrogen stations operated by Iwatani and spinning off its hydrogen fueling division into Cavendish Hydrogen. Iwatani has argued that this restructuring is a strategy to shield assets from liability.
Impact on California’s Hydrogen Market
The collapse of the hydrogen infrastructure has caused severe disruptions for automakers like (TYO:7203), which had championed hydrogen-powered vehicles such as the Toyota Mirai. Customers have raised concerns about fuelling challenges, resulting in a class-action lawsuit against Toyota, with plaintiffs arguing that the vehicles are "unsafe and unreliable" due to a lack of functional fuelling stations.
Other major stakeholders have also pulled back from hydrogen initiatives for light-duty vehicles. In February, Shell closed all seven of its hydrogen stations in California and abandoned plans to construct 48 additional stations.
Shift Toward Heavy-Duty Hydrogen Applications
While the hydrogen infrastructure for passenger vehicles has stalled, California is now pivoting its focus to heavy-duty transport solutions like trucks and buses. Industry experts suggest that this shift could help stabilize the hydrogen market by increasing production and reducing costs over time.
Despite the setbacks, the state's hydrogen ambitions remain intact, albeit recalibrated. Whether these adjustments can revive confidence in hydrogen technology will depend on advancements in infrastructure and the resolution of ongoing legal battles involving.
