Hydrogen and hydrogen carriers: Unit economics
Pipes are cheap, ships are dear: the cost of a kilogram moved
What this tab covers What it costs to move a unit of energy this way: capital and operating costs, tariffs, utilisation and how it compares with the alternatives.Pipelines are by far the cheapest way to move large volumes of hydrogen over land; trucking it to filling stations and shipping it by sea each cost several dollars per kg, which can rival the cost of making it.
Key costs
| Measure | Value | Note |
|---|---|---|
| Pipeline transport, 1,000 km | 0.11 to 0.21 EUR/kg H211 | European backbone average estimate, 2021 basis |
| European backbone investment | 43 to 81 billion for about 39,700 km (about 1.1 to 2.0 million per km, calculated) EUR11 | 69% repurposed, 2040 vision, 2021 estimate |
| German core network capital cost | 18.9 billion for 9,040 km (about 2.1 million per km, calculated) EUR9 | 60% repurposed, 2024 approval |
| Northern China trunk line | 1.9 billion for over 1,000 km (under 1.9 million per km, calculated) USD10 | 2025 |
| Tube trailer delivery plus dispensing | 8.17 to 9.46 USD/kg H220 | US urban stations of 1,000 and 450 kg per day, 2016 dollars (DOE record 2020) |
| Shipping pure hydrogen | At least 2 USD/kg H21 | Including liquefaction or reconversion, 2026 |
| Ammonia or LOHC chain, 10,000 km | 2.5 to 4.5 in 2030; 0.7 to 1.6 by 2050 USD/kg H23 | Excludes production |
Where the money goes
| Item | Share or amount |
|---|---|
| Repurposing versus new pipe | Repurposing cuts investment by 65 to 94%3 |
| Conversion and reconversion in shipping chains | Largest energy cost: over 10 kWh per kg H21 |
For comparison, the 45V credit is worth up to USD 3.185 per kg, so a USD 2 per kg shipping cost would absorb nearly two thirds of a generous subsidy (calculated). This is why many export projects plan to ship ammonia or ammonia products and use them without cracking.
Pipeline economics depend on utilisation: a half-empty pipe still has to repay its capital. The German network uses regulated tariffs to spread early costs over later users.
Sources
- Global Hydrogen Review 2026: Trade and infrastructure IEA, 2026
- Global hydrogen trade to meet the 1.5C climate goal: Part II, Technology review of hydrogen carriers IRENA, 2022
- Bundesnetzagentur approves hydrogen core network Bundesnetzagentur, 2024
- World's longest: construction begins on USD 1.9bn, 1,000km-plus hydrogen pipeline network in northern China Hydrogen Insight, 2025
- Extending the European Hydrogen Backbone (Jens, Wang, van der Leun, Peters and Buseman, with Guidehouse) European Hydrogen Backbone initiative, 2021
- Hydrogen Delivery and Dispensing Cost (DOE Hydrogen Program Record 20007) US Department of Energy Hydrogen Program, 2020