ROME, July 16 (Reuters) - Carmaker Stellantis

said on Wednesday it would discontinue its hydrogen fuel cell

technology programme and no longer launch a range of

hydrogen-powered vehicles this year, as it sees no development

of the market in the mid-term.

The group said the decision was due to the limited

availability of hydrogen refuelling infrastructure, high capital

requirements and the need for stronger purchase incentives for

customers.

"The hydrogen market remains a niche segment, with no

prospects of mid-term economic sustainability," Jean-Philippe

Imparato, chief operating officer for enlarged Europe, said in a

statement.

Imparato said the automaker had to "make clear and

responsible choices to ensure our competitiveness and meet the

expectations of our customers with our electric and hybrid

passenger and light commercial vehicles offensive".

The group said it did not anticipate the adoption of

hydrogen cell vans before the end of the decade.

Serial production of Stellantis' ( STLA ) new Pro One range was

scheduled to start in the summer in Hordain, in France, and

Gliwice, in Poland.

The decision will not impact staffing at Stellantis ( STLA )

production sites, the group said. It said all research and

development activities focused on the hydrogen technology would

be redirected to other projects.