In a significant shift within the hydrogen sector, South Korean company Doosan and American firm Air Products have recently canceled contracts exceeding $1 billion related to hydrogen fuel cell projects.
This includes the termination of two major contracts by Doosan’s fuel cell division, which were announced amidst ongoing market turbulence and delays in obtaining necessary permits.
Both companies assert that the financial impact of these cancellations will be negligible, as the contracts did not involve advance payments or deposits and were not included in their financial statements or order backlogs.
Market Turbulence Leads to Major Hydrogen Project Cancellations by Doosan
One of the noteworthy cancellations involves a 110 MW supply agreement between Doosan and a consortium including Korea Hydro & Nuclear Power Engineering, which faced prolonged permitting delays.
A Doosan official noted that the emergence of the Clean Hydrogen Power Generation Obligation System (CHPS) bidding market also played a role in their decision to withdraw.
The pullback comes as French and German economists urge European governments to shift focus from hydrogen infrastructure to electric vehicle support, reflecting changing priorities in the energy market.
While some South Korean companies continue to invest in hydrogen-powered semi-trucks and fueling stations for diverse applications, the sustainability of such investments remains uncertain amid waning enthusiasm for hydrogen technology.
Air Products is feeling the impact as well, with the cancellation of a $500 million green hydrogen project in New York and a similar initiative in California. These moves cast doubt on the future of hydrogen ventures in the current environment, leaving other high-profile projects—such as Nikola’s HYLA and Hyvia—at a crossroads.
As industry leaders reassess the viability of hydrogen investments, one thing is clear: the landscape is rapidly evolving, and the future of hydrogen fuel cells has never seemed more precarious.