Thunderclap for the hydrogen sector, Hype throws in the towel

Hype, a pioneer of hydrogen taxis in Paris, has just announced its withdrawal from the light hydrogen mobility sector.

The company, which operated the world’s largest fleet of hydrogen taxis, is abandoning its core business, denouncing in a striking post on LinkedIn the failure of the current economic model.

For Hype, this departure is less an individual failure and more a collective alarm signal. At the center of the issue is a locked ecosystem dominated by an oligopoly including Air Liquide and TotalEnergies, accused of investing without a timeline or visibility. As a result, the price of hydrogen has risen from €9 to nearly €18/kg in four years. According to Hype, this is five times more expensive than a quick charge using green electricity.

This withdrawal illustrates a disturbing reality. The hydrogen sector today survives on a lifeline of subsidies, failing to demonstrate sustainable profitability. A salutary warning for a sector that aspires to play a central role in the decarbonization of transport.

Hydrogen is too expensive, and suppliers are struggling!

Another blow is the bankruptcy of McPhy, the only French supplier of electrolyzers for Hype, which leaves behind fragile projects and six million euros of uncertain investments. Hype is now calling on public authorities, including Bpifrance and EDF, to ensure the continuity of commitments.

But the company is not giving up on zero-emission mobility. It is announcing a transition to 100% battery-powered electric taxis, with several hundred new vehicles expected as early as this year. The objective is to convert all 60,000 taxis and VTCs in the Île-de-France region before 2030. The company has already started trials with a fleet of older generation Tesla Model 3s.

If Hype is turning the page, the hydrogen sector is not yet buried. Its competitor HysetCo continues its activities, including the upcoming opening of a new station near Orly, but Hype’s withdrawal marks a clear break. Hydrogen can no longer rely solely on promises and subsidies. To survive, it must prove it is viable.

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