Royal Dutch Shell PLC will build seven fueling stations for hydrogen cars in California through a partnership with Toyota Motor Corp., laying down their latest bet on the demise of the internal combustion engine.

The stations will nudge the state closer to its goal of having 100 retail sites by 2024 where hydrogen fuel cell vehicles can fill up. The California Energy Commission is considering $16.4 million in grants toward the stations, with Shell and Toyota contributing $11.4 million.

The Shell-Toyota partnership "shows there's a lot of interest and that the hydrogen market is poised to move forward rapidly," said Janea Scott, a member of the commission.