Cummins and Alstom Navigate Different Challenges from Hydrogen Market Downturn

Cummins and Alstom have experienced different outcomes from hydrogen market challenges, reflecting their distinct business exposures.

Cummins, which recorded $458 million in charges tied to its electrolyzer business in late 2025, has announced plans to stop new commercial activity in electrolyzers while continuing to fulfill existing commitments. The company cited rapidly deteriorating market conditions and reduced government incentives. However, Cummins' zero-emissions segment (Accelera) represents only 1.4% of the company's $33.7 billion in annual revenue, allowing it to absorb the strategic loss while relying on legacy engine, components, and power systems businesses.

Alstom faces a more constrained situation. The company acquired Cummins' rail-dedicated hydrogen fuel-cell activities in April 2026, describing the move as necessary to support reliability and maintenance for its installed hydrogen train fleet rather than as a growth opportunity. Alstom has deployed hydrogen trains across multiple European regions, including 14 trains in Lower Saxony, 27 in the Frankfurt area, and additional fleets in France and Italy. Since passenger trains operate for 20-30 years, Alstom must continue supporting these assets regardless of market conditions.

Both German states that operated hydrogen trains—Lower Saxony and Baden-Württemberg—concluded that battery-electric and overhead-wire alternatives were significantly more cost-effective, with studies showing hydrogen trains could be 35-80% more expensive than electric alternatives. Lower Saxony indicated it would not pursue hydrogen trains for future deployments.

Originally reported by CleanTechnica. Read the full article →