CH2P · Project

Produce Hydrogen and Electricity from Natural Gas at 90% Efficiency for Refuelling Stations

energyPilotedTRL 6

Imagine a machine that takes regular natural gas — the stuff already piped into buildings everywhere — and splits it into ultra-pure hydrogen for cars plus electricity you can sell back to the grid. It works like a high-efficiency furnace that captures its own waste heat to crack out hydrogen, reaching up to 90% efficiency instead of the 30-40% you get from traditional methods. The team built two working units: a smaller one producing 20 kg of hydrogen per day for lab testing, and a bigger 40 kg/day unit for real-world field trials. The goal is to make hydrogen refuelling stations economically viable right now, using existing gas infrastructure, while the world transitions to fully green hydrogen.

By the numbers

90%

Combined hydrogen and electricity generation efficiency

4.5 €/kg

Target hydrogen production cost (below)

99.999%

Hydrogen purity level

40 kg/day

Hydrogen generation capacity of field-tested unit

20 kg/day

Hydrogen generation capacity of validation unit

200 ppb

CO contamination level (below)

50%

Minimum share of energy output as hydrogen (more than)

€4M

EU contribution to development

Consortium partners across 5 countries

80%

EU greenhouse gas reduction target by 2050

The business problem

What needed solving

Building hydrogen refuelling stations today is a losing proposition — demand is too low to justify the massive upfront investment in dedicated hydrogen production and delivery infrastructure. Station operators face a brutal chicken-and-egg problem: drivers will not buy fuel cell vehicles without stations, and stations cannot survive without enough drivers. The industry needs a way to produce hydrogen locally, cheaply, and at a scale that can grow with demand — using infrastructure that already exists.

The solution

What was built

The team built two integrated solid oxide fuel cell systems that co-generate hydrogen and electricity from natural gas. A 20 kg/day unit was used for component validation, and a larger 40 kg/day unit underwent infield testing. Stacks were manufactured and integrated into complete systems, with demonstrated 99.999% hydrogen purity and target production costs below 4.5 €/kg.

Audience

Who needs this

Hydrogen refuelling station developers and operatorsNatural gas utilities diversifying into hydrogen distributionFleet operators transitioning to fuel cell vehiclesIndustrial gas companies seeking distributed hydrogen productionMunicipal governments planning hydrogen mobility corridors

Business applications

Who can put this to work

Hydrogen refuelling infrastructure

mid-size

Target: Companies building or operating hydrogen refuelling stations (HRS)

If you are a hydrogen station operator struggling with the chicken-and-egg problem of low demand and high infrastructure cost — this project developed a modular system that produces hydrogen at below 4.5 €/kg from existing natural gas lines. The 40 kg/day unit was field-tested and designed for staged deployment, so you can start small and scale up as demand grows. With 99.999% purity output, the hydrogen meets fuel cell vehicle requirements without additional purification.

Gas utilities and energy distribution

enterprise

Target: Natural gas distribution companies looking to diversify into hydrogen

If you are a gas utility watching your core business face decarbonization pressure — this project proved that your existing natural gas network can become a hydrogen production asset. The solid oxide fuel cell technology converts methane to hydrogen and electricity at up to 90% combined efficiency. The modular design means you can install units at existing gas distribution points, turning them into local hydrogen hubs without massive new infrastructure.

Fleet transport and logistics

mid-size

Target: Logistics companies operating fuel cell vehicle fleets

If you are a fleet operator considering fuel cell trucks but worried about hydrogen availability — this project built a system that can produce 40 kg of hydrogen per day on-site from natural gas. That is enough to refuel several fuel cell vehicles daily at a target cost below 4.5 €/kg. The technology was designed for modularity, so capacity can grow alongside your fleet without requiring connection to centralized hydrogen supply chains.

Frequently asked

Quick answers

What does the hydrogen cost compared to alternatives?

The project targeted hydrogen production cost below 4.5 €/kg. This is competitive with delivered hydrogen from centralized production (typically 5-9 €/kg at the pump) and significantly cheaper than on-site electrolysis in most European markets. The cost advantage comes from the 90% combined efficiency of co-producing hydrogen and electricity.

Can this scale beyond 40 kg per day?

The technology was explicitly designed around modularity to enable staged deployment. The project built and tested units at 20 kg/day and 40 kg/day capacities. Multiple modules can be combined to match growing demand, meaning you scale by adding units rather than replacing the whole system.

Who owns the intellectual property and can I license this?

The consortium of 11 partners across 5 countries developed the technology, coordinated by Fondazione Bruno Kessler in Italy. With 7 SMEs and 8 industry partners in the consortium, industrial partners stated commitment to enter the market after the project ended. Licensing or partnership inquiries would need to go through the coordinator or the specific industrial partners involved.

Does this meet hydrogen purity standards for fuel cell vehicles?

Yes. The system produces hydrogen at 99.999% purity with CO levels below 200 ppb. This meets the ISO 14687 standard required for PEM fuel cell vehicles, meaning no additional purification step is needed before dispensing to cars or trucks.

How long did it take to develop and validate?

The project ran from February 2017 to April 2022, roughly five years. During that time the team progressed from component development through stack manufacturing to field testing of a 40 kg/day integrated system. Based on available project data, industrial partners committed to market entry after the project concluded.

Does this require special infrastructure or can it use existing gas connections?

The system feeds on widely available natural gas or bio-methane, meaning it connects to existing gas infrastructure. This is a key advantage — you do not need to build hydrogen pipelines or depend on hydrogen truck deliveries. The electricity co-produced can feed into the local grid, creating an additional revenue stream.

What about carbon emissions — is this actually green?

The project positioned this as a transition technology with reduced environmental impact compared to conventional hydrogen production methods like steam methane reforming. When fed with bio-methane instead of natural gas, the carbon footprint drops further. The high 90% efficiency means significantly less fuel input per kilogram of hydrogen compared to standard methods.

Consortium

Who built it

This is a heavily industry-driven consortium with 8 out of 11 partners from industry and 7 of those being SMEs — a 73% industry ratio that signals strong commercial intent rather than purely academic research. The consortium spans 5 countries (Switzerland, Germany, France, Italy, Netherlands), all key European hydrogen markets. Fondazione Bruno Kessler, the Italian research foundation coordinating the project, brings deep materials science expertise in solid oxide technology. The high proportion of industrial SME partners and their stated commitment to market entry after the project suggest that this technology was developed with clear commercialization pathways in mind, backed by nearly €4 million in EU funding over five years.

FONDAZIONE BRUNO KESSLERCoordinator · IT
SOLYDERA SPAparticipant · IT
HYGEAR FUEL CELL SYSTEMS BVthirdparty · NL
HYGEAR BVthirdparty · NL
ECOLE POLYTECHNIQUE FEDERALE DE LAUSANNEparticipant · CH
HYGEAR OPERATIONS BVthirdparty · NL
DEUTSCHES ZENTRUM FUR LUFT - UND RAUMFAHRT EVparticipant · DE
VERTECH GROUPparticipant · FR
HYGEAR TECHNOLOGY AND SERVICES BVparticipant · NL
SHELL GLOBAL SOLUTIONS INTERNATIONAL BVparticipant · NL
SOLYDERA SAparticipant · CH

How to reach the team

Fondazione Bruno Kessler (Italy) — coordinator. Industrial SME partners may be more relevant for licensing or deployment conversations.

Order a report on this consortium See FONDAZIONE BRUNO KESSLER profile →

Next steps

Talk to the team behind this work.

Want to connect with the CH2P team or explore how this hydrogen co-generation technology fits your infrastructure plans? SciTransfer can arrange a direct introduction to the right consortium partner for your specific use case.

Order a report on this topic More in Energy & Climate