Shell, Toyota to Build 7 Hydrogen Refueling Stations in California

Royal Dutch Shell plc and Toyota Motor Corp. have agreed to open seven hydrogen refueling facilities for fuel cell-powered vehicles in California, Bloomberg News reports.

The companies will contribute $11 million to the project, which also may be backed by $16 million in grants from the California Energy Commission. California, which has 25 hydrogen stations today, aims to make 100 such facilities accessible to the public by 2024.

Shell and Toyota are members of the Hydrogen Council launched last month to promote hydrogen-powered cars. The 13-member group has pledged to invest about $1.5 billion per year on hydrogen-related products. Toyota co-chairs the group.

Toyota targets 30,000 annual sales of fuel cell-powered cars by 2020 and predicts the price of such vehicles will be about the same as gasoline-electric hybrids by 2025. The company aims to convert almost all its models to hydrogen power by 2050.

Bloomberg says Shell is eager to explore the potential of hydrogen fuel because the energy giant expects demand for petroleum fuels to peak in as little as five years. The company, which already operates two hydrogen refueling station in southern California, is opening its fifth facility in Europe this month.

Shell also is part of a consortium backed by the German government that aim to open 400 hydrogen stations by 2023.