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Hyzon confirms exit from Australian and European markets

Hyzon has announced its decision to exit the Australian and European markets, citing market challenges and waning government support

US-based global supplier of hydrogen fuel cell systems Hyzon has announced it will officially halt its operations in Australia and the Netherlands, following last month’s announcement it would look to focus on its core North American markets.

Hyzon cited waning support from Australian and European governments in the field of fuel cell-powered transportation and the disbandment of hydrogen subsidies across multiple European countries as a key reason for its decision. Despite the exit, it still maintains an interest in returning to the Australian and European markets as a fuel cell system supplier.

The decision has come following an assessment of the challenging market conditions that are presenting across Europe and Australia.

The company expects to incur charges of roughly $17 million in connection with planned exit activities, including employee-related costs, non-cash inventory write-downs and non-cash impairment charges.

Hyzon CEO Parker Meeks says it was a difficult decision to pull out of the two international markets.

“I would like to express my gratitude to our dedicated European and Australian teams who have tirelessly worked toward advancing the hydrogen transition,” Meeks says.

“This was a complex and difficult decision. Given the challenges of bringing new technology to market in an emerging industry, we believe we need to focus our efforts on the North American market and refuse industry as well as overseeing our large fleet trial programs which commence this summer.”

The use of hydrogen as a fuel in heavy vehicles has been floated as a potential key pillar in decarbonising Australia’s transport industry in pursuit of net-zero targets.

It recently released a Australian-designed hydrogen fuel cell prime mover, which was unveiled at the Kangan Institute’s Automotive Centre of Excellence in March.

The Hyzon 200kW Prime Mover was manufactured at Hyzon’s US production facility in Bolingbrook, Illinois.

In 2021 Hyzon established Australia’s first purpose-built assembly plant in Melbourne’s south-east, which employed over 50 people at the time of Hyzon’s Prime Mover announcement.

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