California's hydrogen market does not suffer from a lack of production potential or end-user demand. The challenge is connecting the two.
Across the state, hydrogen producers are bringing new supply online while transit agencies, trucking fleets, and industrial users pursue decarbonization goals. Yet many projects struggle to move beyond planning because the commercial infrastructure needed to connect supply with demand remains underdeveloped.
Producers need reliable offtake. Customers need dependable supply. Bridging that gap requires more than technology, it requires commercial execution.
That is the role PACC Services was created to fill.
PACC works with hydrogen producers to develop markets for their product, supporting customer origination, commercial agreements, logistics planning, and long-term account management. By helping align production with real customer demand, producers can focus on operating their facilities while customers gain confidence in long-term supply availability.
As the hydrogen market evolves, creating confidence across the value chain may be just as important as building new production assets.
“Hydrogen doesn't have a demand problem or a production problem,” said Andrew Carman, Co-Founder and CEO, PACC Services. “It has a connectivity problem. The winners in this industry will be the organizations that can reliably connect supply with customers and build confidence across the entire value chain.”
One example is K2 Pure Solutions in Pittsburg, California.
K2's existing chlor-alkali facility has been producing hydrogen as a byproduct for over 15 years. Historically, since hydrogen was not utilized fuel, most of the time, it was vented. Today, K2 is preparing to bring that supply into the California hydrogen market, creating a new source of locally produced, low-carbon hydrogen for transportation and industrial customers.
For Northern California, the significance extends beyond additional supply. Local production helps reduce transportation distances, improve supply reliability, and support the development of a more resilient regional hydrogen network. With more than twenty hydrogen fueling stations located within approximately 100 miles of the facility, K2 is uniquely positioned to support growing demand across the region.
PACC is supporting the project's commercialization efforts by working with transit agencies, mobility providers, infrastructure operators, and other hydrogen market participants to establish demand as supply comes online.
“The market doesn't slow down because of technology,” said Pat Charette, Co-Founder and Chief Commercial Officer of PACC Services. “It slows down when producers, customers, and logistics providers struggle to align. Our role is to help remove that complexity so projects can move forward.”
This work extends beyond a single facility. PACC is actively supporting the development of hydrogen markets across California and the Pacific Northwest, helping connect producers with demand across transportation, transit, and industrial sectors.
Recent efforts have included working alongside transit agencies, hydrogen infrastructure providers, and commercial fleet operators to improve access to reliable, low-carbon hydrogen supply. These collaborations help establish the foundation for a more durable and scalable hydrogen economy.
As California's hydrogen economy continues to mature, collaboration across the value chain will be critical. Organizations such as the Hydrogen Fuel Cell Partnership play an important role by bringing together producers, infrastructure providers, policymakers, and end users to help accelerate market development.
The next phase of the hydrogen economy will not be defined solely by production capacity or vehicle deployments. It will be defined by the industry's ability to connect supply with demand, create confidence in the marketplace, and build the commercial foundations necessary for long-term growth.
PACC Services joined the Hydrogen Fuel Cell Partnership because we believe those connections matter. By working alongside producers, infrastructure operators, policymakers, and end users, we can help accelerate the transition from hydrogen demonstrations to hydrogen deployment.
Learn more about H2FCP membership at h2fcp.org/join-us.
