Members of the Orrick team attended the Paris Airshow in June 2025. This event showcased all aspects of the aviation supply chain. One of the most talked about elements was the potential for hydrogen fuel cells as part of a push towards sustainable aviation – but what are the opportunities and risks within this area?
Various players across both the aviation and wider energy industries are actively pursuing projects to develop hydrogen fuel cells. In this article, we explore the potential application of hydrogen fuel cells, summarise how the technology works and briefly analyse the types of potential disputes which may arise as the market develops further.
The Potential Application of Hydrogen Fuel Cells
As hydrogen fuel cells offer significant potential to generate clean energy, there are a wide range of potential uses. As was displayed at the Paris Airshow, there is a strong push to develop use-cases within the aviation industry. Within the wider transport sector, there are various examples of hydrogen fuel cells already being deployed. The Toyota Mirai and Hyundai Nexo are two models of car which are available and use hydrogen fuel cells. Likewise, there are 20 buses within the Transport for London fleet which are powered by hydrogen fuel cells, and various vessels around the globe are similarly powered.
Beyond transport, there is an opportunity for hydrogen fuel cells to be utilised as part of stationary power generation. For example, on paper, hydrogen fuel cells could be used as the primary power supply for electricity to buildings, remote locations, or off-grid communities. Equally, hydrogen fuel cells could offer a backup power for key infrastructure such as hospitals, data centres, and telecom towers.
Transport and power generation are two fundamental aspects of our society. As the technology is further refined and developed, it is likely to become more widely adopted, with the potential to permeate throughout our everyday lives.
How Does the Technology Work?
While the technical details are best left for those developing and manufacturing the fuel cells, a high-level overview is helpful. A hydrogen fuel cell contains various components including (amongst other things): an anode; a cathode and a Proton Exchange Membrane. Oxygen from the air enters on the cathode side, whilst hydrogen fuel enters on the anode side.
In simple terms, hydrogen fuel cells generate electricity through a chemical reaction between hydrogen (a positively charged ion) and oxygen (a negatively charged ion), producing electricity, heat and water.
One key benefit is that as long as hydrogen is supplied, the fuel cells will continue to produce electricity.
Where Might Disputes Arise?
As a developing technology, there is a myriad of potential disputes that could arise in respect of hydrogen fuel cells. The method for resolving the disputes will depend on the dispute resolution mechanisms in the particular contracts, including whether litigation or arbitration is specified, where those proceedings will take place and under which law.
A dispute which seems likely to appear relatively early in the roll out of hydrogen fuel cells relates to defects and questions of component quality. Given the developing technology and the number of components involved, there is a realistic risk of component failure. Relatedly, the race to innovate may also lead to intellectual property disputes.
Many cutting-edge projects in this space involve joint ventures or partnerships, affording parties the chance to both share expertise and spread the risk. However, as with any corporate relationship, disagreements can follow.
Currently there are various jurisdictions with subsidies in place to encourage the development of hydrogen fuel cells. However, subsidy regimes can be subject to change, and shifts in legislative or regulatory frameworks can expose companies to new risks. This can impact both the economics of the development of such projects, as well as any supply agreements in place.
Conclusion
Hydrogen fuel cells offer significant promise for clean energy. However, as the market grows, so too does the potential for disputes. Understanding both the technology and the evolving legal landscape will be essential for parties seeking to navigate this emerging field successfully.
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