The California-based firm, which designed the world’s first hydrogen fuel cell passenger ferry – later operated by Switch Maritime as the Sea Change – announced on LinkedIn it would cease operations after seven years.

Founded in 2018, ZEI set out to develop fuel cell systems for maritime and heavy-duty mobility, gaining prominence with the 70-foot Sea Change ferry, launched in the San Francisco Bay Area in 2021 and entering commercial service in 2024.

Alongside propulsion, ZEI created hydrogen fuelling solutions for ports and operators, and in 2021 secured $8.75m in a funding round led by Chevron New Energies.

“ZEI has consistently pushed the boundaries of what the world thought was possible with hydrogen,” the company wrote on LinkedIn. “As the market and capital environment have shifted, we’ve made the difficult decision to close ZEI’s doors.”

“The technologies we developed, the proof points we created, and the expertise we built will continue to shape the future of hydrogen for years to come.”

ZEI’s closure reflects the wider challenges facing hydrogen innovators as the sector grapples with high capital costs, slower-than-expected infrastructure rollout, and uncertain demand signals.

Despite continued backing for hydrogen in shipping, aviation, and heavy industry, many early movers have struggled to sustain operations amid tightening investment conditions and the long timelines to commercialise new technologies.