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Introduction
Hydrogen fuel cell technology has been viewed as a viable mobility technology since before it was used to put astronauts on the moon during the Apollo 11 venture. The relevance of this technology has only increased since then, particularly over the past 20 years where it has grown by leaps and bounds as organizations look for ways to improve the technology for use across the mobility spectrum.
And that growth is expected to continue, with our research showing significant near-term economic growth potential for hydrogen fuel cell technology. As part of our Road to 2030 initiative, we’ll take a deeper look at hydrogen fuel cell technology, what it is, how it works, and the opportunity it presents for growth and mobility diversity in Michigan.
How It Works
Fuel cells are used in the production of energy from a source like hydrogen to effectively produce energy while minimizing the impact on the environment, with heat and water as the only emissions or byproducts.
Within fuel cells, hydrogen and air are introduced through electrodes placed on either side of an electrolyte. Hydrogen is supplied through the negative electrode (anode) and air through the positive electrode (cathode). A catalyst near the anode splits the hydrogen into protons and electrons. The protons travel through the electrolyte toward the cathode, while the electrons travel through an external circuit to the cathode, which generates electricity. At the cathode, they reunite and combine oxygen to generate water and heat.
Growth Potential
The sustainability of this clean energy technology, as well as ongoing advancements in cost reduction, increased efficiency, and improved hydrogen infrastructure, combine to increase the potential of its application in a wide range of vehicles. According to the Future Mobility Technology Study, performed in 2024 in collaboration with S&P Global Mobility, the total U.S. hydrogen system unit production for all mobility sectors is projected to increase more than 5,500% from 569 units in 2024 to more than 32,000 units in 2030. Currently, hydrogen fuel cell technology is predominantly featured in heavy-duty trucking and buses.
In the State of Michigan, the Midwest Alliance for Clean Hydrogen (MachH2) initiative has resulted in multiple critical efforts across the state. These efforts include the creation of a hydrogen Truck Stop of the Future in Detroit, a clean hydrogen production facility in Ypsilanti, and the expansion of a clean hydrogen production and refueling center for public transit in Flint. The Flint MTA Transportation Project and the hydrogen Truck Stop of the Future effort in Detroit are key examples of the potential for success in implementing this technology.
- Since 2012, Flint MTA has worked to completely replace all its diesel buses with those using only zero-emission hydrogen fuel cells and is strengthening its reliance on clean energy by implementing a hydrogen supply chain in Flint.
- The Truck Stop of the Future project in Detroit will enable the future decarbonization of Gordie Howe International Bridge traffic and establish Michigan as the ideal location for building and testing hydrogen-powered heavy-duty vehicles.
Additional implementations of hydrogen fuel cell technology are found in passenger-vehicles, off-highway vehicles, boats, airplanes, and space travel, with each industry targeting lower emissions and the application of clean energy. The vast applications of hydrogen fuel cells evidence the growth potential of investment in this environmentally friendly technology.
The biggest obstacles with the implementation and expansion of this technology are threefold:
- the cost of hydrogen and fuel cell systems
- sustainable sourcing and adequate infrastructure for distribution of hydrogen
- and lastly, the weight of fuel cell stacks.
Currently, the U.S. Department of Energy aims to reduce the cost of clean hydrogen to $2/kg by 2026 and $1/kg by 2031 (U.S. National Clean Hydrogen Strategy and Roadmap). Pending the success of the Department of Energy’s strategy, the lowered cost of clean hydrogen would allow easier access to hydrogen for the further development of this technology. Further development in hydrogen fuel cell technology will also allow the technology to become lighter, and therefore more effective in widespread use.
As part of GEM’s Future Mobility Technology Study, we looked at near-term hydrogen fuel cell adoption and growth rates through 2030. Our findings show large growth potential across numerous applications, including:
- Medium and heavy-duty vehicles: 72% growth
- Light vehicles: 100% growth
- Construction equipment and agriculture: 216% growth
- Maritime technologies: 334% growth
These predictions create a pathway demonstrating the spaces in which investment will be most impactful.
Use Cases
Detroit’s hydrogen fuel cell technology sphere continues to grow, with multiple organizations landing in Detroit to develop and invest in this technology.
- Noble Gas Systems, based in Wixom, Michigan, recently invested in a new 32,000 square-foot facility to consolidate its commercial and manufacturing operations. Noble has developed a lightweight, conformable high-pressure gas storage solution for hydrogen and other gases. In 2025, they raised $4.2 million in Series B funding to expand production and complete regulatory approvals. The company currently employs about 15 people.
- Quantum Fuel Systems, headquartered in California, supplies lightweight storage solutions and full fuel systems for commercial vehicles. In 2024 the company announced it is establishing its first Michigan manufacturing facility in Wixom. The new plant will expand production of its hydrogen and CNG tank technologies to serve growing demand in the mobility sectors and support closer collaboration with automakers. The $22.5 million investment is expected to create approximately 87 jobs
- OneH2 Hydrogen, a private hydrogen fuel supplier, is building a hydrogen storage and distribution terminal Pontiac, Michigan that will support industrial hydrogen use in the auto industry. The primary use-case is supplying hydrogen for fuel cell forklifts and material-handling equipment at automotive assembly plants, helping factories eliminate emissions from warehouse vehicles. Once completed, this site will dispense about 2.4 metric tons of hydrogen per day to local clients. The terminal will feature on-site hydrogen generation and high-pressure storage to ensure a reliable fuel supply for Detroit-area manufacturing and logistics. This infrastructure investment by OneH2 underscores the demand for hydrogen storage and fueling services to support both industrial operations and future vehicle fleets in Michigan.
As more entrepreneurs, business leaders and other stakeholders look to invest in hydrogen fuel cell technology, GEM and the Detroit Regional Partnership are here to help. From fostering meaningful connections and relationship-building across Detroit’s mobility and investment ecosystem to site readiness and talent development, we have the knowledge, resources, and relationships to help you succeed regardless of where you are in your business development journey.
Visit gemdetroitregion.com to learn more.