Can decentralisation unlock hydrogen in public transport?

At the same time, hydrogen is widely expected to play a role in the future energy mix, provided it is produced using low-carbon and renewable energy sources.

Less clear is how operators in sectors such as public transport view its practical role. To address this, IMI commissioned research for its report The Road Ahead, capturing the views of more than 300 senior decision-makers across public transport organisations in the UK, Germany and Italy.

Public transport was selected as a focus for three key reasons.

First, many operators across the surveyed regions are already investing in hydrogen-powered fleets to support decarbonisation targets. Second, hydrogen may help address some limitations associated with electric vehicle (EV) technology, including vehicle weight, driving range and pressure on electricity grids. Third, the cost of decentralised electrolysis and hydrogen storage is falling, yet this area remains under-researched within the wider hydrogen economy.

The research, therefore, set out to assess how hydrogen is viewed within public transport as organisations transition away from conventional fuels, and how on-site hydrogen production may help address operational constraints.

Battery-electric fleets are currently more widely deployed in public transport than hydrogen-powered alternatives. However, hydrogen fuel cell vehicles, and hydrogen-assisted internal combustion engines, offer different operational characteristics. These include faster refuelling times, lighter vehicle configurations and reduced dependence on grid connections for refuelling infrastructure.

To understand how these differences are reflected in sector thinking, the research explored perceptions of hydrogen’s role in decarbonisation.

Despite the momentum behind EV adoption, almost 90% of respondents said hydrogen could help overcome limitations associated with battery technology. Of those, just over one-third described its potential as very effective.

However, the picture is not one of consensus. A significant proportion (83%) also indicated that decarbonising public transport without hydrogen would be either somewhat or entirely feasible.

This apparent contradiction highlights an important dynamic. While hydrogen is recognised as a potentially valuable complementary technology, many operators still expect EVs to dominate decarbonisation strategies. This may reflect the faster deployment and maturity of battery-electric solutions compared with hydrogen systems, particularly in refuelling infrastructure.

Prior to the research, orders for hydrogen-powered fleets were continuing, despite limited refuelling infrastructure. This suggests early-stage confidence in hydrogen’s role within specific public transport applications.

The research explored what would be required to sustain and scale adoption.

Financial support was identified as a key enabler. Nearly three-quarters of respondents (73%) said they would consider on-site hydrogen production if sufficient funding were available. This pattern was broadly consistent across all surveyed regions.

Safety in hydrogen storage was also a significant consideration. Overall, 72% of respondents identified storage safety as a barrier to deployment. Concern levels were highest in the UK (76%), followed by Italy (73%) and Germany (66%).

These concerns are particularly relevant when viewed alongside near-term investment plans. One-fifth of respondents (21%) had already purchased hydrogen vehicles, while 61% expected to invest within two years. However, only 26% reported access to permanent hydrogen refuelling infrastructure.

This mismatch between vehicle adoption and infrastructure availability highlights a key constraint in scaling hydrogen mobility.

The research also examined attitudes towards electricity grid capacity and its ability to support transport electrification.

Overall, 81% of respondents expressed confidence in securing sufficient low-carbon electricity from the grid for future fleet needs. However, 18% reported a lack of confidence.

While electricity grids across Europe are increasingly supported by renewable generation, operators continue to face challenges related to capacity, connection delays and stability. These constraints are already affecting project timelines in parts of the transport sector.

A further 93% of respondents expressed concern about the capacity of their current grid connections to support both existing and future fleet requirements. This concern was consistent across all regions surveyed, with at least 88% reporting issues in each country.

These findings highlight a structural challenge for full electrification strategies based solely on grid supply.

Hydrogen offers an alternative pathway in this context, particularly when produced on site using electrolysis powered by renewable electricity. This approach reduces reliance on grid connections for fuel production and distribution.

The findings point towards a transport sector that is actively exploring hydrogen, but still constrained by infrastructure and energy system limitations.

Decentralised hydrogen production—particularly through on-site electrolysis—may offer a practical route to address several of these challenges. By producing hydrogen close to the point of use, operators can reduce dependence on centralised refuelling networks and mitigate pressure on constrained grid infrastructure.

This approach also aligns with the broader development of distributed energy resources (DERs), where smaller-scale, localised energy generation supports system resilience. In this model, hydrogen can be produced using available renewable electricity or other low-carbon sources, depending on local conditions.

For public transport operators, this may provide a more flexible pathway to decarbonisation, particularly in regions where grid capacity is limited or where electrification alone is not sufficient to meet operational requirements.

While challenges remain, incremental deployment of decentralised hydrogen systems can help build operational confidence and provide real-world evidence of performance. IMI continues to focus on enabling wider access to on-site electrolysis technologies across Europe to support this transition.

Download your copy of The Road Ahead report at the link below this article.

A version of this article was originally published in the H2 Innovation magazine, as part of Hydrogen UK’s Annual Conference and Awards in March 2026 .