Cummins has reported that its Accelera segment for electrolysers and other energy transition technologies had seen $240m in “non-cash charges”, such as inventory writedowns and goodwill impairment, over the third quarter of this year.

The company’s CEO and chair Jennifer Rumsey cited “policy-driven shifts in hydrogen adoption expectations” for these writedowns in a statement accompanying the results.

“Due to the significantly weaker prospects for demand, we are undertaking a strategic review of the electrolyser business,” she said.
Cummins reported that Accelera had seen $336m of losses, ie, negative earnings before interest, taxes, depreciation and amortization (EBITDA, the company’s preferred profit measure).

The firm had kicked off electrolyser manufacturing at an existing factory in Fridley, Minnesota, back in 2023, when the US seemed poised to leverage strong support for clean H2 production from the Biden administration to become the biggest market.

However, the current Trump government has accelerated the deadline for hydrogen producers to claim the 45V production tax credit of up to $3/kg by five years and pulled funding from multiple H2 hubs.

As such, a number of electrolyser manufacturers have started to pivot towards expanding their footprint in Europe, where support from the EU and member states is more forthcoming.

However, even here, the market has seen multiple cancellations or delays amid regulatory uncertainty.

Cummins had last year opened a 500MW factory in Guadalajara, Spain. At the time, the company had suggested that it could further scale capacity to more than 1GW a year.