Cummins axes Belgian hydrogen electrolyzer unit, 100 jobs lost
The Cummins factory in Oevel (Westerlo, Belgium), formerly known as Hydrogenics, is stopping production of hydrogen technology after a quarter of a century. According to the unions, one hundred jobs will disappear.
The publicly traded Cummins has halted global sales of electrolyzers; only current contracts are still being completed, leaving the company with losses of just under half a billion dollars. By the end of 2024, 100 jobs had already been cut, and today, another 100 jobs are at risk.
Hydrogen remains too expensive
Four years ago, the company announced it would invest millions in the factory, which produces electrolyzers to generate hydrogen, but now the American owner has decided to pull the plug because the hydrogen market is not taking off. Cummins’ hydrogen unit – Accelera – simply did not see demand materialize fast enough.
The core problem is that green hydrogen remains too expensive, and that subsidy frameworks are slow and bureaucratic. Industrial offtake projects are delayed, and in the meantime, battery electrification has won in passenger vehicles.
No complete closure
Social consultations are underway to reach an agreement and a social plan for Cummins in Oevel. For Cummins in Oevel, this is the end of the hydrogen chapter. However, a complete closure is not yet on the agenda. Approximately 80 functions will be retained, including for the aftercare of existing facilities.
The hydrogen market was once seen as a sustainable solution for various sectors, but it has proven difficult to reduce costs. But does this mean it is the end of hydrogen in Europe?
Belgium and Europe?
No. Hydrogen is not dead; it’s consolidating. But the sector is shifting toward heavy industry (steel, ammonia, chemicals), ports & industrial clusters, infrastructure players, and state-backed projects.
Specifically for Belgium, the country remains strategically positioned, with the Port of Antwerp-Bruges serving as a hydrogen hub, Fluxys investing in a hydrogen backbone, and EU IPCEI projects still active. However, offtake agreements are not closing fast enough, and power prices remain high.
Other Belgian companies, such as Agfa-Gevaert and Bekaert, have also had to adjust their expectations due to weak demand. For John Cockerill, the situation is different. The industrial group has state & infrastructure backing and focuses on industrial projects, not the automotive hype, but execution risk remains high.
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Cummins axes Belgian hydrogen electrolyzer unit, 100 jobs lost, source
