Cummins' comprehensive strategy to own fuel cells

September 22, 2021 | Case Study

In a bid to reduce Scope 3 absolute lifetime GHG emissions from newly sold products by 25% by 2030, the multinational engine and generator manufacturer has been bolstering its presence in the space of fuel cells in recent years. In September 2019, Cummins acquired PEM fuel cell and electrolyzer developer Hydrogenics for $290 million. Also in September 2019, Cummins made the first investment in Loop Energy, a Canadian developer of PEM fuel cell range extenders for medium- and heavy-duty vehicles. In March 2020, Cummins decided to double down on Loop Energy upon a due diligence process. In 2020, the company received two grants from the U.S. Department of Energy. One is a $2.6 million project to develop a 20 kW solid oxide fuel cell (SOFC) power system to demonstrate its durability. The other is a $2 million project to develop thermal spray technology to reduce the manufacturing costs of solid oxide electrolysis cells (SOECs). The investment activities have given Cummins a diverse portfolio of technologies across the hydrogen value chain.