Challenging investment climate puts truck-delivered hydrogen supply at risk

Hydrogen for North American heat-treating applications has been traditionally provided using truck delivery of bulk liquefied or compressed hydrogen by one of four industrial gas companies. Rapid changes in the political and economic climate around hydrogen have created difficult market conditions resulting in the cancellation of many hydrogen projects required for supply expansion to meet anticipated demand growth.

The industrial gas industry is highly disciplined and prefers large investments in major projects with assured markets and returns as compared to the wildcatting practices common in other industries. Within the industrial gas industry, hydrogen investments have proven to be financially and operationally much riskier than alternatives such as air-separation units. 2025 has already seen the cancellation and write-off of multiple major hydrogen projects costing the industry billions and resulting in job loss of at least one industry luminary. Given the limited supply of internal investment funding, truck-delivered hydrogen investments no longer meet internal investment criteria.

Hydrogen users need to look ahead and determine how they are going to meet their own hydrogen needs in a market that faces tightening supply of delivered hydrogen. Our presentation will discuss simplifying and risk-reducing hydrogen supply through self-generation.