Hydrogen Is Hitting Some Headwinds

A couple big-name hydrogen truck companies call it quits, but others forge ahead on hydrogen fuel cells and combustion engines for trucks and buses.

April 4, 2025

Ryan Gehm

Mercedes-Benz’ next generation of GenH2 Truck prototypes underwent “successful” winter testing in the Swiss Alps. (M-B Trucks)

Nikola announced on February 19 that it had filed for Chapter 11 bankruptcy and had begun pursuing “value-maximizing sale transactions” for its operations. Also a maker of battery-electric heavy trucks, the company began back in 2015 with an emphasis on hydrogen fuel cell technology for long-haul transport and began serial production of the Tre FCEV in 2023.

Nikola’s customers accumulated approximately 3.3 million fleet miles across both its FCEV (shown) and BEV truck platforms, and its HYLA fueling network has dispensed more than 330 metric tons of hydrogen. (Nikola)

The company also aspired to establish an extensive hydrogen fueling network through its HYLA brand. In its filing, Nikola stated that it intended to continue certain service and support operations for trucks currently in the field, including certain HYLA fueling operations, through the end of March 2025. The company would need one or more partners to support such activities beyond that point.

“Our customers have accumulated approximately 3.3 million fleet miles across both our FCEV and BEV truck platforms and our HYLA fueling network has dispensed well over 330 metric tons of hydrogen,” said Steve Girsky, president and CEO of Nikola. “Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate…Unfortunately, our very best efforts have not been enough to overcome these significant challenges.”

Orange County Transportation Authority recently ordered 40 Xcelsior Charge FC 40-ft hydrogen fuel cell-electric buses from New Flyer. (New Flyer)

Adding insult to injury, days after the bankruptcy filing Nikola announced a recall on 95 model year 2024-2025 Tre fuel cell electric heavy-duty trucks. The hydrogen tank’s mounting block bolts may be too long and could damage the tank, increasing the risk of a leak and subsequent fire, according to the National Highway Traffic Safety Administration.

Nikola is not alone. News of Illinois-based Hyzon’s demise came in January 2025, when its board of directors voted to dissolve the company. At the 2025 SAE Government/Industry Meeting in Washington, D.C., the COO of Hyzon participated on a panel discussing hydrogen in the heavy-duty sector.

“The one thing that was intangible was the customer sentiment around the entire sustainability space, at least in the U.S.,” Bappaditya Banerjee said. He noted there were many instances when potential customers decided last minute to pause and “see how things play out. That’s been extraordinarily difficult to overcome.”

System layout for New Flyer’s Xcelsior Charge FC hydrogen fuel cell buses. (New Flyer)

The session at the G/I Meeting also addressed the political environment and policy shifts taking shape under the new Administration that also may hamper hydrogen-tech adoption in the short term. But mostly the experts were optimistic that there’s a future for fuel cells in commercial vehicles.

“The work itself [in the hydrogen ecosystem] is absolutely vital, and the world needs it,” Banerjee declared in his closing remarks.

Buses have been a bright spot for hydrogen. Sustainable Bus Weekly reported that fuel cell bus registrations in Europe are up 82% in 2024 compared to 2023, with 378 new fuel cell buses over 8 ton registered. Solaris was the big winner, achieving a 65% market share. Even so, hydrogen buses still account for only about 5% of the zero-emission bus market on the continent.

In North America, hydrogen buses continue to gain steam as well. One recent contract sees Orange County Transportation Authority ordering 50 zero-emission buses from New Flyer, 40 of which are Xcelsior Charge FC 40-ft hydrogen fuel cell-electric buses.

Established truck OEMs such as Daimler Truck also continue to forge ahead on fuel cells. The company announced in March that two next-generation Mercedes-Benz GenH2 Truck prototypes underwent “successful” winter testing in the Swiss Alps. Testing focused on the “interplay” of the fuel cell system with other enhanced components, including the high-voltage battery, the e-axle, the tank system and thermal management.

Another focus for Mercedes-Benz Trucks engineers was the use of the Predictive Powertrain Controls system to efficiently employ the battery and the fuel cell for propulsion as well as recuperation when driving downhill. Refueled via a mobile hydrogen station from Air Products, the trucks covered a total of 6,500 km (4,040 miles) during a 14-day period on mountain roads with an accumulated climb of 83,000 m (272,300 ft).

A recent article from SAE Media highlights hydrogen’s potential but also its pitfalls in various mobility sectors. And hydrogen combustion engine development continues to progress – a recent example being Perkins’ development project combining a new spark-ignited H2-ICE with hybrid-electric technology.

The latest barrage of bad news for hydrogen trucks may just be a downward blip on a technology trend with more tailwinds ahead.