Top 4 Fuel Cell Applications Driving Sustainable Development in 2025 and Beyond
Published Date: February 28, 2025
With the global energy landscape accelerating its transition towards sustainability, fuel cells have emerged as a crucial technology in reducing carbon emissions and promoting clean energy. With minimal environmental impact, these devices efficiently convert chemical energy into electricity. This makes them a powerful alternative to fossil fuels. According to Global Market Insights Inc., the global fuel cell market, exhibiting a 12.8% CAGR, is set to reach USD 16.7 billion in 2032 from USD 5.4 billion in 2023. This growth can be attributed to favorable government policies, investments, and a surge in demand for green energy solutions. By 2025 and beyond, fuel cells are set to reshape industries, from transportation to power generation, ensuring a cleaner and more efficient energy future. Let’s explore four key fuel cell applications driving this transformation.
1. Fuel Cell Electric Vehicles (FCEVs): Transforming Transportation
The automotive industry is on the way to rapid transformation with the adoption of fuel cell electric vehicles (FCEVs). Unlike conventional gasoline or diesel-powered vehicles, FCEVs use hydrogen fuel cells for electricity generation. These vehicles only emit water vapors, which makes them an environmentally friendly alternative to internal combustion engines. These attributes have prompted major automotive giants such as Toyota, Hyundai, BMW, and Honda to make significant investments in hydrogen-powered vehicles.
Quoting an instance, in October 2024, Hyundai introduced the INITIUM, a hydrogen fuel cell electric concept vehicle, highlighting its strong commitment to hydrogen mobility and sustainability. This concept offers a glance at a new production FCEV that the automaker plans to launch in the first half of 2025. With 27 years of experience in hydrogen technology, the INITIUM represents the company’s dedication to building a sustainable hydrogen-powered future.
Similarly, in September 2024, BMW and Toyota teamed up to develop hydrogen-powered cars, marking a major step away from traditional fossil fuels. As part of their push for sustainable transportation, the two automakers announced plans to launch their first hydrogen-powered vehicle in 2028.
Many governments worldwide are introducing incentives to accelerate FCEV adoption. Countries like Japan, South Korea, Germany, and the United States are leading in FCEV deployment, with infrastructure expansion playing a key role. In the US, for example, the Inflation Reduction Act introduced several incentives to boost the hydrogen vehicle industry. This includes a 30% investment tax credit for projects focused on manufacturing fuel cell electric vehicles (FCEVs) and developing hydrogen infrastructure and production. Likewise, the EU, as part of the EU Green Deal, is investing over €352 million in 26 infrastructure projects to build a more sustainable and eco-friendly transport network.
2. Stationary Fuel Cells: Reliable and Clean Power Generation
Stationary fuel cells provide an efficient and sustainable solution for on-site power generation, especially in commercial and residential sectors. These systems can operate independently of the grid, making them ideal for backup power and energy security. Companies such as Bloom Energy, Plug Power, and Ballard Power Systems are pioneering large-scale stationary fuel cell applications in data centers, hospitals, and corporate campuses. For example, in February 2025, Ballard Power Systems partnered with Vertiv, a global leader in critical digital infrastructure, to develop, supply, and install a fully integrated, zero-emission backup power system for data centers. This fuel cell-based UPS solution is built using industry-ready components for seamless reliability.
Large corporations are integrating these fuel cells to cut reliance on fossil fuels. For example, In November 2024, South Korean state utility Korea Southeast Power and Samsung C&T signed an MoU with the Chungnam regional government to develop the “Dangjin Green Energy Hub,” a hydrogen fuel cell power plant integrated with a data center. This will be first hydrogen fuel cell power plant in South Korea, featuring a 900MW hydrogen facility paired with 300MW of battery energy storage to power a large-scale data center.
3. Fuel Cells in Aerospace: A New Era of Sustainable Aviation
With growing pressure to cut carbon emissions, the aviation industry is turning to hydrogen fuel cells as a cleaner, more efficient alternative to traditional aviation fuels. Unlike conventional engines, hydrogen-powered propulsion systems can significantly reduce greenhouse gas emissions. In 2023, aviation accounted for about 2.5% of global CO2 emissions, according to the International Energy Agency. However, the Waypoint 2050 report by the Air Transport Action Group (ATAG) suggests that innovations like new aircraft designs, hybrid power systems, and the shift to electric or hydrogen propulsion could help cut emissions by 12% to 34%.
Governments and industry leaders are already investing heavily in hydrogen-powered aviation. In April 2024, the Japanese government committed ¥17.3 billion ($110 million) to two hydrogen research projects, including the development of a massive 4MW fuel cell propulsion system—the largest of its kind in development—which is expected to be demonstrated within five years. Meanwhile, in February 2025, the UK Civil Aviation Authority (CAA) launched the second phase of its Hydrogen Challenge program, aiming to speed up the adoption of hydrogen propulsion through expanded research, development, and real-world trials.
4. Hydrogen Fuel Cells in the Maritime Industry
According to UNCTAD's Review of Maritime Transport 2023 report, the shipping industry contributes nearly 3% of global greenhouse gas emissions. Additionally, a study by Transport & Environment warns that without regulation, shipping could account for 17% of global CO2 emissions by 2050. To mitigate this, hydrogen fuel cells are being integrated into marine vessels, reducing reliance on diesel-powered engines and enabling cleaner shipping solutions.
In July 2024, the MV Sea Change, the world’s first commercial passenger ferry powered entirely by hydrogen fuel, was launched at the San Francisco Ferry Building. Unlike traditional diesel-powered ferries that release harmful emissions, the Sea Change produces only heat and water vapor, making it a clean and sustainable alternative. Japan and South Korea are also investing in hydrogen fuel cell-powered cargo ships to meet global decarbonization goals. The International Maritime Organization (IMO) has set an ambitious target to reduce the industry’s emissions by 40% by 2030, pushing maritime companies toward adopting fuel cell technology.
Fuel cells are playing an instrumental role in advancing sustainability across key industries. Whether in transportation, power generation, aerospace, or maritime, hydrogen fuel cells offer a viable pathway to reducing carbon footprints while enhancing energy efficiency. With ongoing innovations, increased infrastructure development, and strong policy support, fuel cell technology is poised to shape the global energy transition in 2025 and beyond.
