Hydrogen Electrolyser Pioneer McPhy Liquidates Amid Market Stagnation

McPhy, a French company known for its work in PEM and alkaline electrolysis, is closing its doors after 16 years. Despite its promising start and a solid reputation in the hydrogen production world, it couldn’t secure a buyer and has now entered judicial liquidation. The news hit hard—its stock nosedived by 77% on the company’s final day of trading.

From hydrogen frontrunner to liquidation

Not too long ago, McPhy was a poster child for France’s hydrogen strategy. It played a central role in the country’s ambitious 2030 targets for green hydrogen—aiming for 6.5 GW of capacity. The company even managed to secure €14 million in support from the EU under the IPCEI program. But promise alone wasn’t enough to weather the storm.

Scaling up in a shaky landscape

Like many cleantech startups, McPhy ran into the harsh realities of trying to grow in an unpredictable market. Demand grew slower than expected. Energy policies weren’t always aligned with industry needs. It’s the kind of business environment where even innovative technologies like PEM electrolysers struggle to move from prototype to profit. At the end of the day, innovation needs more than just funding—it needs a market ready to scale with it.

Competitors circling and lessons learned

Now, as McPhy’s assets head to auction, bigger players like Nel ASA are stepping in, possibly eyeing a bargain and a chance to strengthen their own hand in the evolving green hydrogen and electrolysis space. The story serves as a wake-up call: building a future around industrial decarbonization and hydrogen tech will take more than bold startups—it’s going to require stable, coordinated market and policy support. Without it, even the most promising companies can’t make it to the finish line.