Does hydrogen have a place at a local level? This question seems to answer itself. There are near-endless debates about its roll-out and value as a future fuel within so-called ‘hard to abate’ industries. And it also seems to be a natural replacement for petrol- and diesel-powered vehicles, allowing public transport to effectively eliminate its emissions.

There can be no denying hydrogen has huge potential and, in many respects, it’s already making in-roads across Europe’s depots. But this potential is also what defines its biggest challenge today, especially when considering IMI’s latest research.

In 2024, we surveyed 300 senior decision-makers working within public transport across the UK, Italy and Germany. Published in The Road Ahead: Is decentralisation the key to unlocking hydrogen in public transport?, the aim of the poll was to understand more about the perceived barriers to hydrogen adoption at a wider scale and whether some of these can be overcome without relying on major national-level infrastructure projects.

The results of this research paint a challenging picture for local authorities. And it seems clear that new approaches, such as decentralisation, will be necessary if we are to secure enough fuel and avoid missed opportunities.

Expected shortfalls

The first issue to emerge relates to the grid and its ability to manage the ongoing electrification of society.

Many will be familiar with the challenges surrounding the UK’s ailing grid, especially during the winter months when demand is highest. According to a report from the UK Energy Research Centre, in the coming years many industrial sites across the country will be unable to access the power needed to decarbonise their operations without a major upgrade to the country’s electricity network. Perhaps worst of all, the same report concludes that 42% of large sites could also face power shortages by the end of the decade, rising to 77% by 2050. Similar problems can also be seen across Europe, where upgrades are deemed a requisite for alleviating strain on the grid.

Given these challenges, it’s not difficult to see the problem for those working in public transport. Many have been tasked to cut emissions by phasing out their older vehicles in favour of battery electric and hydrogen-powered designs, which to date has been mostly successful. However, there may come a time when the electricity necessary to charge or generate fuel for these vehicles is in short supply or inaccessible during certain periods. While this is the worst-case scenario, it’s one that should be taken seriously given the time, investment and political will required to upgrade national infrastructure.

IMI’s research only reinforces this idea. Well over 90% of those surveyed, for instance, expressed concern about the capacity of their grid connection as they transition to greener fuel sources. In other words, public transport has a viable model to keep today’s fleets running, yet it’s one that will become increasingly unreliable as we head further into the decade. That is, unless we think differently about accessibility and delivery.

Running before we can walk

Perhaps one of the more startling findings from the research relates to investment. For instance, 21% of respondents said they had already purchased hydrogen vehicles, while 61% said they would invest in their fleet over the next two years. On the face of it, these results do not present a problem, as they show that public transport operators are taking action on emissions. It’s only when you compare them against the number of respondents with access to permanent fuelling infrastructure that potential issues begin to emerge.

Only a quarter of respondents, for example, said they had a secure and reliable way to access hydrogen fuel for their fleet. This relatively small portion of the sample does not correspond with the much larger cohort who either already have hydrogen-powered vehicles or those who plan to purchase soon.

Put simply, most of those making major investments into hydrogen-powered vehicles run the risk of misallocating public money without an alternative means to generate and hold the fuel needed to run them. Moreover, with a scarcity of national-scale pipework available to transport hydrogen, it’s safe to assume that most of what’s used today is being delivered via compressed gas cylinders or tube trailers. In these cases, some might argue that the emissions generated during transit undermines the benefits of using hydrogen in the first place.

Towards a decentralised model

Bottlenecks are hardly uncommon for an emerging technology, though for hydrogen there appears to be a critical imbalance in the market.

On one side, there’s an enthusiasm to scale-up use of the fuel within transport; on the other, a demonstrable lack of access and storage capability. The latter is especially urgent – more than two-thirds of IMI’s survey respondents in the UK, Germany and Italy said the ability to safely store hydrogen was a significant barrier to deployment.

So, hydrogen’s current position in public transport can best be described as delicate. But there are routes forward.

Decentralised electrolysis appears the best solution for the position most operators find themselves in – not least those who have already invested in vehicles. While not without its own limitations, this technology has a far more satisfactory answer to the challenges uncovered by IMI’s research. It’s compact, scalable and – most important of all – eliminates the waiting times that are inevitable with roll-out of centralised production and transport infrastructure.

But it’s not just about bringing the fuel closer to where it’s needed. Its ability to work more independently of the grid – via a connection to distributed energy resources – also affords the technology legitimately low-carbon credentials, as well as greater protection from the threat of power shortfalls.

Decentralised electrolysis is still developing, but it features timelines that are far more manageable. If hydrogen transport is to succeed – and in my opinion it must – then it’s an essential resource for addressing both short- and long-term challenges.

To read more about local government fleet decarbonisation, then check out Will ICE vehicles trump the alternatives? by Rob Bailey, APSE Principal Advisor, on the LAPV website.

This article was originally published in the Summer 2025 issue of LAPV. Sign up here to receive your free copy of future issues.