Hydrogen fuel cell technology combines hydrogen and oxygen to produce electricity and water as byproducts. It is one of the clean energy solutions that works through a chemical reaction and zero emissions. The electricity produced can power everything from cars to buses and backup generators.

In this blog, we’ll explore:

• How do hydrogen fuel cells work?

• How are hydrogen fuel cells important for the future? 

• Real-world applications

• Benefits and challenges of adopting hydrogen fuel cell technology

• How is the hydrogen fuel cell market in 2025?

How do Hydrogen Fuel Cells Work?

Imagine a fuel cell as a power plant. This consists of an anode, a cathode, and a Proton Exchange Membrane (PEM). Hydrogen is injected at the anode, and oxygen is injected at the cathode of the cell separately.

Now the hydrogen splits into electrons and protons at the anode end of the cell. 

Reaction at Anode: 2H2​→4H+ + 4e−

The tiny protons (H+) pass through the PEM, blocking larger electrons (e−). These protons travel through an external circuit, creating electricity. The remaining protons pass through the PEM and move towards the cathode side. 

At the cathode, the protons and the oxygen combine along with the electrons from the external circuits to form water (H2O) and some heat as byproducts. 

Reaction at Cathode: O2​+4H++4e−→2H2​O

Overall Reaction: 2H2​+O2​→2H2​O+Electrical Energy+Heat

Types of Hydrogen Fuel Cells with Uses

Hydrogen Fuel Cells are of different types based on their features and their applications:

Proton Exchange Membrane Fuel Cell (PEMFC)

Also popularly known as a Polymer Electrolyte Membrane Fuel Cell uses a solid polymer membrane as the electrolyte and is most commonly used in automobiles, buses, and portable applications. PEMFC is popularly used in hydrogen-powered vehicles like the Toyota Mirai and the Hyundai Nexo.

Solid Oxide Fuel Cell (SOFC)

SOFC uses a solid ceramic material that makes it suitable for stationary power generation and industrial energy systems. Its hybrid nature allows it to operate on multiple fuels such as natural gas, hydrogen, and biogas. SOFCs are popularly used in Bloom Energy Servers for powering large buildings and data centers

Alkaline Fuel Cell (AFC)

The Alkaline Fuel Cells use an alkaline electrolyte and provide efficiency, but require pure hydrogen and are popularly used in space missions and experimental setups.

Phosphoric Acid Fuel Cell (PAFC)

The PAFC uses liquid phosphoric acid as the electrolyte, which is known for its durability and heat recovery features making it well-suited as a power backup in hospitals and commercial spaces

Molten Carbonate Fuel Cell (MCFC)

The Molten Carbonate Fuel Cell uses a molten carbonate salt mixture as the electrolyte that can operate on hydrogen or hydrocarbon fuels and is best used in utility-scale power generation and large industrial facilities.

Applications of Hydrogen Fuel Cells

Hydrogen fuel cells are known for their ability to convert chemical energy into electrical energy with only water and heat as by-products. While hydrogen fuel cell systems offer diverse applications, they are more widely used in transportation, power generation, and storage sectors. Here is a breakdown of their applications: 

Transportation

Hydrogen Fuel Cell Vehicles (FCEVs) are widely adopted due to zero emissions, quick refuelling time, and longer ranges than BEVs. The Toyota Mirai and Hyundai NEXO are a few of the popular FCEV passenger vehicles. While initiatives are proposed to deploy hydrogen fuel cells in heavy-duty vehicles such as buses, trucks, and railways. 

While plans of launching hydrogen-powered trains are already in motion, such as India preparing to launch its first hydrogen-powered train, which is also expected to be the world's most powerful train. Similarly, hydrogen-fuel buses are also launched through pilot projects across countries such as China, Germany, and India. 

The JIVE Program (Joint Initiative for hydrogen Vehicles across Europe) played a significant role in the deployment of hydrogen fuel buses in several European countries.  

Stationary Power Generation

Hydrogen Fuel Cells are highly preferred for backup power across critical infrastructure such as data centers due to their fast response and extended run time over Battery storage. 

Hydrogen Fuel Cell vs Battery Electric Vehicles (BEVs) 

Battery Electric Vehicles (BEVs) and Hydrogen Fuel Cell Vehicles (FCEVs) in 2025 are highly promoted to replace the reliance on fossil fuels; they offer different features and show different functions in how they store and use energy. BEVs run on electricity stored in lithium-ion batteries, whereas FCEVs generate electricity using hydrogen gas. 

Below is a comparison of BEVs and FCVEs

Hydrogen Fuel Cell Advantages And Disadvantages

Hydrogen fuel cells are becoming a major source of clean energy across sectors, but offer distinct advantages and disadvantages as follows: 

Advantages of Hydrogen Fuel Cells

Zero Emissions Energy: The hydrogen fuel cells are known for their zero tailpipe emissions of greenhouse gas emissions such as carbon dioxide and carbon monoxide, with fuel cells producing only water and heat as by-products, making it one of the highly reliable sources of clean energy. 

Higher Efficiency Compared to Power Plants: Fuel cells convert chemical energy into electrical energy, which is directly converted, often leading to higher efficiency compared to conventional power plants.

Quick Refuelling Times Compared to BEVs: Hydrogen Fuel Cells are known for faster refuelling compared to battery electric vehicles, which take hours to charge. This feature makes it more adoptable in the transportation sector compared to BEVs.

Longer Range for Vehicles: Travellers preferring longer routes can prefer FCEVs compared to BEVs due to their energy density by weight. 

Potential For Energy Storage: Hydrogen fuel cells can be used as an energy carrier for renewables like wind and solar energy that can be converted back to electricity through fuel cells when needed. 

Disadvantages of Hydrogen Fuel Cells

Highly Expensive: From manufacturing fuel cell stacks to hydrogen production and hydrogen infrastructure is highly expensive; additionally, hydrogen fuel cell stacks require expensive materials like platinum as a catalyst.

Lack of Infrastructure: Apart from the deployment of hydrogen fuel cells into FCEV's it requires establishing several refuelling stations for complete deployment. 

Safety Concerns: Hydrogen is a highly flammable gas and requires continuous monitoring and safety precautions in order to avoid potential leaks and explosions. 

Hydrogen Fuel Cell Market 2025

The International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE) is a global government-to-government initiative focused on increasing the adoption of hydrogen and fuel cell technologies. Member countries collaborate to support clean energy transitions, reduce reliance on fossil fuels, and contribute to international climate goals. In line with this mission, several nations have announced policies and incentives to promote clean hydrogen and fuel cell vehicle (FCV) adoption.

United States

The 45 V Hydrogen Production Tax Credit introduced under the Inflation Reduction Act (IRA) is a new 10-year incentive for clean hydrogen. This credit is worth up to USD 3.00 per kilogram of clean hydrogen. The actual amount varies based on carbon intensity (CI), based on the hydrogen production method, and if the project meets prevailing wage and apprenticeship standards. Emissions are calculated using the 45VH2-GREET model developed by the U.S. Department of Energy.

India 

While introducing about five pilot projects in March 2025 under the National Green Hydrogen Mission, which includes 15 fuel-cell vehicles, 9 refuelling stations, and promoting the adoption of FCVs across the transportation segment. 

Japan

Japan is leading the hydrogen fuel cell technology with massive adoption in transportation and residential applications. It was the first to introduce commercially available FCVs with the Toyota Mirai. It continues to expand the adoption of FCVs, including buses and trucks, and aims to achieve 800,000 fuel cell vehicles by 2030.

China

China continues to lead the hydrogen fuel cell market, particularly in transportation. About 24,000 fuel cell vehicles, including buses, trucks, were promoted in China in 2024. It further aims to promote hydrogen fuel cell vehicles in heavy-duty freight, port machinery, and other energy fields.

Conclusion

Hydrogen fuel cells generate electricity with zero tailpipe emissions and hold the potential to reduce our reliance on fossil-fuel-based energy that produces greenhouse gases. It is widely being adopted in the transportation sector, from cars and buses to heavy-duty vehicles, through pilot projects. While challenges such as production costs and limited infrastructure remain, several countries have introduced policies, incentives, and financial support to promote hydrogen adoption across several sectors.

In 2025, these moves are bringing in major shifts in the global hydrogen fuel cell market, thus promoting clean energy to meet the carbon neutrality goals of the future. 

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