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Guide

Path to Product: Sustainable Hydrogen Fuel Cell Supply Chains

Path to Product: Sustainable Hydrogen Fuel Cell Supply Chains

A decision-maker's guide to the sustainability of hydrogen fuel cells, covering both PEMFCs and SOFCs. The materials, the manufacturing hotspots, why hydrogen sourcing dominates the footprint, and how to navigate tightening EU and UK low-carbon hydrogen rules, all through the lens of LCA.

A decision-maker's guide to the sustainability of hydrogen fuel cells, covering both PEMFCs and SOFCs. The materials, the manufacturing hotspots, why hydrogen sourcing dominates the footprint, and how to navigate tightening EU and UK low-carbon hydrogen rules, all through the lens of LCA.

Robert Pell

Robert Pell

Jordan Lindsay

Jordan Lindsay

IN SUMMARY

Navigating the sustainable hydrogen fuel cell supply chain

Navigating the sustainable hydrogen fuel cell supply chain

Hydrogen fuel cells convert hydrogen into electricity, producing only water and heat at the point of use, which makes them a promising technology for decarbonising transport, industry and stationary power. But hydrogen is an energy carrier, not a source, so a fuel cell's true environmental performance depends overwhelmingly on how its hydrogen is produced, alongside the impacts of the specialised materials in the cell itself. This guide, part of Minviro's "Path to Product" series, examines both proton exchange membrane fuel cells (PEMFCs) and solid oxide fuel cells (SOFCs), walking through their materials, manufacturing hotspots, the decisive role of hydrogen sourcing, and the tightening regulatory landscape, all through the lens of life cycle assessment.

  • Hydrogen sourcing dominates the footprint. Life cycle emissions vary by more than an order of magnitude depending on production pathway: grey hydrogen from steam methane reforming can exceed 90 g CO₂e/MJ, while renewable-powered electrolysis can fall below 20.

  • The two main fuel cell types suit different uses. PEMFCs run at 60–80°C and suit mobility like fuel cell vehicles; SOFCs run at 600–1000°C and suit stationary power, with higher efficiency but higher manufacturing impacts.

  • Materials concentrate the risk. PEMFCs depend on platinum (over 80% from South Africa and Russia) and PFSA membranes; SOFCs depend on yttrium, zirconium and lanthanum refined mainly in China, creating single-point-of-failure vulnerabilities.

How fuel cells work, and the two main types

A hydrogen fuel cell is an electrochemical device that converts hydrogen into electricity, producing only water and heat at the point of use. Hydrogen is split into protons and electrons at the anode; the protons cross a membrane or electrolyte while the electrons travel through an external circuit to generate electricity, recombining with oxygen at the cathode to form water. That zero-tailpipe-emission quality makes fuel cells promising for transport and stationary power, but because hydrogen is an energy carrier rather than a source, the technology carries thermodynamic inefficiencies across production, compression, storage, distribution and conversion. The two most commercially significant types differ sharply: PEMFCs operate at low temperatures (60–80°C) and suit mobility applications like fuel cell electric vehicles, forklifts and backup power, while SOFCs operate at high temperatures (600–1000°C) and suit stationary generation, industrial cogeneration and auxiliary power. Their different temperatures and requirements give them distinct material needs and life cycle profiles.

The materials behind each fuel cell type

PEMFCs and SOFCs rely on quite different materials. In a PEMFC, the heart is a proton-conducting membrane, typically a PFSA polymer like Nafion; platinum catalysts drive the reactions at both electrodes, making the technology reliant on platinum group metals even at reduced loadings; carbon-fibre gas diffusion layers manage reactant and water flow; and bipolar plates of graphite or coated stainless steel separate the cells. In an SOFC, yttria-stabilised zirconia (YSZ) is the dominant electrolyte, prized for oxygen-ion conductivity and stability at high temperature; nickel-based cermets (Ni-YSZ) typically form the anode, with lanthanum strontium manganite (LSM) or lanthanum strontium cobalt ferrite (LSCF) cathodes; and interconnects are ferritic stainless steels coated to limit chromium evaporation. These material differences are the root of each technology's distinct environmental and supply chain profile.

Why hydrogen sourcing decides the footprint

The single most influential factor in a fuel cell system's climate impact is how its hydrogen is produced. Grey hydrogen, made from fossil fuels via steam methane reforming without capturing emissions, has a very high global warming potential, exceeding 90 g CO₂e per MJ. Blue hydrogen uses fossil fuels but adds carbon capture and storage to reduce emissions. Green hydrogen, produced by electrolysis powered by renewable electricity, has the lowest impact, potentially below 20 g CO₂e per MJ, a more than tenfold difference across pathways. As hydrogen production decarbonises, the relative importance of fuel cell stack manufacturing rises, but hydrogen production often remains the largest single contributor even then. The manufacturing hotspots that matter most are platinum group metal mining (high CO₂ and concentrated supply), PFSA membrane production (persistent fluorinated chemicals with poor end-of-life profiles), and ceramic processing for SOFCs (high-temperature sintering above 1300°C, often fossil-fuelled). A crucial caveat runs throughout: many hydrogen applications assume abundant, low-cost green hydrogen that does not yet exist at scale, so climate claims must rest on actual green hydrogen use, not assumed availability.

The single most influential factor in a fuel cell system's climate impact is how its hydrogen is produced. Grey hydrogen, made from fossil fuels via steam methane reforming without capturing emissions, has a very high global warming potential, exceeding 90 g CO₂e per MJ. Blue hydrogen uses fossil fuels but adds carbon capture and storage to reduce emissions. Green hydrogen, produced by electrolysis powered by renewable electricity, has the lowest impact, potentially below 20 g CO₂e per MJ, a more than tenfold difference across pathways. As hydrogen production decarbonises, the relative importance of fuel cell stack manufacturing rises, but hydrogen production often remains the largest single contributor even then. The manufacturing hotspots that matter most are platinum group metal mining (high CO₂ and concentrated supply), PFSA membrane production (persistent fluorinated chemicals with poor end-of-life profiles), and ceramic processing for SOFCs (high-temperature sintering above 1300°C, often fossil-fuelled). A crucial caveat runs throughout: many hydrogen applications assume abundant, low-cost green hydrogen that does not yet exist at scale, so climate claims must rest on actual green hydrogen use, not assumed availability.

Supply chains, regulation and what it means for you

Fuel cell supply chains are deeply regionalised and geopolitically exposed. PEMFCs depend on platinum, over 80% of which comes from South Africa (around 70%) and Russia (around 10%), plus PFSA membranes from a handful of US and Japanese suppliers; SOFCs depend on yttrium, zirconium and lanthanum refined mainly in China, whose dominance in rare earth processing and cathode precursors creates single-point-of-failure risk. Stack assembly concentrates in Japan, South Korea, Germany and the US, with China emerging as a new hub, but components are made in regionally siloed ways that add transport emissions and quality-control challenges. Regulation is tightening fast: EU Directive 2024/1788 brings hydrogen into internal market rules, Commission Delegated Regulation (EU) 2025/4674 sets life cycle GHG rules for low-carbon fuels, and the UK Low Carbon Hydrogen Standard certifies hydrogen on full life cycle emissions, while CBAM, the Critical Raw Materials Act and the Digital Product Passport add further sourcing and recyclability obligations. The practical message: with greenwashing risk rising, traceability is becoming non-optional, and developers who embed granular, geographically and temporally specific LCA early will be best placed for both compliance and competitive advantage.

Fuel cell supply chains are deeply regionalised and geopolitically exposed. PEMFCs depend on platinum, over 80% of which comes from South Africa (around 70%) and Russia (around 10%), plus PFSA membranes from a handful of US and Japanese suppliers; SOFCs depend on yttrium, zirconium and lanthanum refined mainly in China, whose dominance in rare earth processing and cathode precursors creates single-point-of-failure risk. Stack assembly concentrates in Japan, South Korea, Germany and the US, with China emerging as a new hub, but components are made in regionally siloed ways that add transport emissions and quality-control challenges. Regulation is tightening fast: EU Directive 2024/1788 brings hydrogen into internal market rules, Commission Delegated Regulation (EU) 2025/4674 sets life cycle GHG rules for low-carbon fuels, and the UK Low Carbon Hydrogen Standard certifies hydrogen on full life cycle emissions, while CBAM, the Critical Raw Materials Act and the Digital Product Passport add further sourcing and recyclability obligations. The practical message: with greenwashing risk rising, traceability is becoming non-optional, and developers who embed granular, geographically and temporally specific LCA early will be best placed for both compliance and competitive advantage.

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Robert Pell

Robert Pell

Founder & CEO

Robert Pell is the Founder and CEO of Minviro. His doctoral research at the University of Exeter's Camborne School of Mines focused on responsible sourcing of rare earth elements, pioneering novel Life Cycle Assessment approaches and developing methodology for integrating LCA into mine planning. A published scientist and experienced speaker, Robert holds roles as Chair of the Rare Earth Industry Association (REIA) and the Critical Minerals Association (CMA).

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Jordan Lindsay

Jordan Lindsay

Head of Research & Development

Jordan is Head of Research & Development at Minviro, responsible for all academic and industrial research projects including UK and EU grants and commercial collaborations. He leads projects integrating raw material and battery production LCA databases with Minviro's technology solutions, and investigates decarbonisation technology applications including photovoltaics, hydrogen, and electric motors. Jordan completed his PhD in Geology at the University of Exeter, Camborne School of Mines, where he studied platinum-group metal prospectivity using machine learning approaches.

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Robert Pell

Robert Pell

Founder & CEO

Robert Pell is the Founder and CEO of Minviro. His doctoral research at the University of Exeter's Camborne School of Mines focused on responsible sourcing of rare earth elements, pioneering novel Life Cycle Assessment approaches and developing methodology for integrating LCA into mine planning. A published scientist and experienced speaker, Robert holds roles as Chair of the Rare Earth Industry Association (REIA) and the Critical Minerals Association (CMA).

Connect

Jordan Lindsay

Jordan Lindsay

Head of Research & Development

Jordan is Head of Research & Development at Minviro, responsible for all academic and industrial research projects including UK and EU grants and commercial collaborations. He leads projects integrating raw material and battery production LCA databases with Minviro's technology solutions, and investigates decarbonisation technology applications including photovoltaics, hydrogen, and electric motors. Jordan completed his PhD in Geology at the University of Exeter, Camborne School of Mines, where he studied platinum-group metal prospectivity using machine learning approaches.

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