French hydrogen taxi operator Hype is pivoting away from hydrogen fuel cell vehicles to battery-electric taxis, citing rising hydrogen costs, infrastructure shortcomings, and the insolvency of electrolyser maker McPhy as key factors behind the decision.
Hype, which has operated a hydrogen-powered fleet in Paris since 2015, said the economic environment for hydrogen mobility in the Île-de-France region has become unsustainable. “Hydrogen prices have exploded since 2021,” the company wrote in a post published on LinkedIn, accusing major suppliers Air Liquide and TotalEnergies of creating “a kind of oligopoly.” The operator claims there is currently no credible path to green hydrogen in the region.
The turning point came with the recent bankruptcy filing by McPhy, France’s only domestic electrolyser manufacturer. Hype said it stands to lose up to €6 million from four joint hydrogen projects with McPhy. “What happened to McPhy is a warning sign,” the company wrote on LinkedIn, adding that trust in France’s hydrogen sector is increasingly difficult to maintain.
Once targeting 1,000 hydrogen taxis in Paris, Hype had only deployed around 300 by 2023. It now plans to add several hundred battery-electric vehicles to its fleet this year and aims to help convert all 60,000 taxis and private hire vehicles in the Paris region to zero-emission models by 2030.
The company’s criticism extended to former allies in the HysetCo joint venture, which includes Air Liquide, TotalEnergies, Toyota, and others. Hype accused its partners of prioritising grey and blue hydrogen while delaying viable green hydrogen pathways. Air Liquide has denied the accusations, calling them part of a broader legal dispute between Hype and HysetCo.
While Hype is exiting the hydrogen taxi market, it says hydrogen still has potential for commercial vehicles such as buses, dump trucks, and mobility vans—provided it finds an industrial partner ready to meet the technical and economic demands.