The hydrogen supply chain is costly.
Production is Capital intensive
Over 90% of global hydrogen production is from steam methane reforming (SMR) at large centralized production sites. Small-scale onsite SMR is capital intensive, has issues with cyclic thermal stresses that impact reliability, and emits carbon dioxide.
electrolysis is costly
Electrolyzers have high variable and capital costs, and for most onsite applications use non-renewable grid electricity.