In a surprising move, Hype, a taxi company that once pioneered hydrogen fuel cell taxis in Paris, has abandoned its hydrogen-powered fleet in favor of electric battery-powered vehicles. The company, which had ambitious plans to operate 300 hydrogen-powered taxis, cited several reasons for the shift, including the skyrocketing cost of hydrogen, lack of infrastructure, and the bankruptcy of its hydrogen fuel cell supplier, McPhy.
Hype had big plans, aiming to have 600 hydrogen-powered taxis on the road by 2020 and 1,000 by the mid-2020s. However, the company’s dreams were dashed when the cost of gray hydrogen doubled since 2021, and the promised supply of green hydrogen failed to materialize in the Paris area. The final straw was the bankruptcy of McPhy, France’s only electrolyzer manufacturer, which left Hype without a supplier for spare parts and technical services.
Hype Blames “Oligopoly” for Hydrogen Taxi Failure
In a LinkedIn post, Hype argued that the situation worsened when TotalEnergies and Air Liquide entered the hydrogen market, creating an “oligopoly” that controlled the supply chain and drove up prices. The company accused these two giants of capturing public funds by promising to deliver green hydrogen, but failing to follow through on their commitments.
The lack of transparency and competition in the hydrogen market has led Hype to abandon its hydrogen-powered fleet and switch to electric battery-powered taxis. The company plans to deploy hundreds of electric taxis this year, with the goal of making Paris’ taxi fleet 100% electric by 2030.
Hype’s decision is a significant setback for the hydrogen fuel cell industry, which had hoped to gain traction in the transportation sector. However, the company’s move to electric battery-powered taxis is a major boost for the EV industry, which continues to gain momentum as governments and companies invest in sustainable transportation solutions.