Hydrogen Supply Chain Disruption Causes Sharp Decline in Fuel-Cell Bus Mileage
The Orange County Transportation Authority (OCTA) in California recently announced a $27.6 million investment to construct a new hydrogen refueling station in Garden Grove, supporting the expansion of its fuel-cell bus fleet from 10 to 50 vehicles. However, this expansion is primarily a response to an earlier operational crisis caused by a hydrogen supply chain failure. OCTA’s hydrogen station in Santa Ana became inoperable after Air Products removed its liquid-hydrogen storage tank and vaporizers in January 2026, following a breakdown in commercial negotiations. As a result, the 10 fuel-cell buses logged only 14,232 miles in 2025, a 95% drop from the 270,462 miles recorded in 2024.
The Santa Ana station, which began operations in 2020, was originally designed to serve 40 to 50 buses daily. The failure to renew the commercial agreement with Air Products left the station unusable, forcing OCTA’s operations team to rely on external commercial hydrogen stations and temporary mobile refueling equipment to keep some buses running. An OCTA spokesperson noted that the incident underscored the high dependency of hydrogen infrastructure on a stable fuel supply chain, where any disruption could lead to severe operational interruptions.
Battery-Electric Buses Demonstrate Stability and Cost Advantages
In stark contrast to the challenges faced by fuel-cell buses, OCTA’s battery-electric bus fleet experienced no service disruptions due to charging infrastructure issues during the same period. Internal OCTA data shows that the cost of installing charging infrastructure for battery-electric buses was approximately $6 million, significantly lower than the investment required for hydrogen infrastructure. Additionally, battery-electric buses leverage the existing electrical grid, eliminating the need for specialized energy delivery systems and reducing operational risks and maintenance costs.
OCTA currently operates both fuel-cell and battery-electric buses, providing a direct comparison between the two technologies. According to OCTA’s records, battery-electric buses outperform hydrogen buses in operational stability and cost control. While hydrogen buses offer the advantage of rapid refueling, OCTA’s experience demonstrates that vulnerabilities in the hydrogen supply chain can negate this benefit and even lead to significant operational disruptions.
New Hydrogen Station Investment Covers Comprehensive Services
The new hydrogen station in Garden Grove represents a $27.6 million investment, encompassing design, construction, site modifications, hydrogen supply, operations, maintenance, and staff training. OCTA emphasized that this expansion is not merely about building physical infrastructure but also ensuring the long-term stability of the hydrogen supply chain. As of 2026, OCTA’s cumulative investment in hydrogen infrastructure has exceeded $100 million, reflecting the high dependency of hydrogen systems on specialized maintenance and long-term supply contracts.
Analysts point out that OCTA’s decision to expand its fuel-cell bus fleet is essentially a remedial measure following the earlier fuel supply failure. Fuel-cell buses have a service life of 12 to 15 years, and without a credible plan for affordable, low-carbon hydrogen supply, they face the risk of operational disruptions. OCTA’s case illustrates that hydrogen infrastructure is far more complex than simply constructing a refueling station; it requires integration across production, transportation, storage, and maintenance, resulting in higher costs and risks compared to battery-electric buses.
Experts argue that OCTA’s decision highlights the need to consider the long-term stability of the hydrogen supply chain when procuring hydrogen buses. While hydrogen may offer advantages in certain applications, OCTA’s experience serves as a cautionary tale, emphasizing the importance of carefully evaluating the operational risks and cost-effectiveness of hydrogen infrastructure. In comparison, battery-electric buses have proven to be a more reliable option due to their operational stability and cost efficiency.
