Hype, the Paris-based company that, no pun intended, created hype with the news that it was offering hydrogen cabs in the Île-de-France region, is pulling out of the hydrogen market.
“Gray hydrogen and its alibi of blue hydrogen have won this round in Île-de-France,” says an embittered Hype in a LinkedIn post, pointing an accusing finger at other key players in the sector.
The hydrogen price doubled
One of the stumbling blocks that prompted Hype to make the decision was the high cost of hydrogen in the Paris region. If hydrogen still cost €9 per kilo (excluding VAT) in 2021, today that price has nearly doubled to €16 to €18 (excluding VAT).
“Air Liquide and TotalEnergies have succeeded in establishing a kind of oligopoly in the Île-de-France region, through various legal entities such as the startup HysetCo, the Hy24 fund and the TEAL joint venture, legally independent entities of which these groups are directors, shareholders or minority investors,” claims the company, which also points out that green hydrogen supplied in Brussels costs €9,99 per kg (including VAT). At the same time, the electric variant is five times cheaper.
Bankruptcy of partner McPhy
And besides the high cost of hydrogen, there is a second setback: the bankruptcy of McPhy Energy, Hype’s sole French supplier of electrolysers. This device uses electricity to produce hydrogen and oxygen from water. McPhy, a company heavily reliant on EU subsidies, is in judicial liquidation following a failed takeover attempt and due to cash problems created by delayed projects and outstanding payments, despite having a strong order book.
McPhy and Hype had formed a partnership to roll out a green hydrogen station. McPhy would gain access to a potential network of about 50 stations and 15-25 MW of electrolysis capacity by 2025, with the prospect of further expansion to 100 stations.
Yet Hype hopes to recover money from McPhy still. “Will public authorities, who grant these subsidies and sit on McPhy’s board via BPI and EDF, ensure that McPhy’s commitments to clients at the heart of the green hydrogen sector are upheld?” the company writes on LinkedIn. “Hype is at risk for €6 million already paid to McPhy as part of four projects in the Paris region.”
Only EV’s
One consequence of those setbacks is that Hype will now concentrate exclusively on battery-electric vehicles for its cabs in the Île-de-France region. The transition involves adding a new model to the range, as well as a new partner manufacturer, on the same principle as Toyota did with the Mirai for its hydrogen-powered vehicles. “We will deploy several hundred of these new vehicles from 2025, to make 100% of the 60,000 cars and private rental vehicles in the Île-de-France region emission-free as soon as possible and before 2030,” the company says.
Hype also says that it remains open to hydrogen projects elsewhere in France or abroad, particularly in the heavy transport sector, in collaboration with partners such as Lhyfe and B.E. Green. Essentially, this also means that the project announced for Brussels regarding a cab service will proceed.
Hype’s disappearance from the Paris hydrogen market does not mean that no more hydrogen cabs are driving around in the French capital. Competitor HysetCodie still operates a fleet of several hundred cabs and is preparing to open a new station near Orly airport.
