# Hydrogen and hydrogen carriers: Unit economics

Pipes are cheap, ships are dear: the cost of a kilogram moved

Source page: https://www.materialinsights.org/energy/e_h2_transport/economics/

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 H2^[11](https://www.ehb.eu/files/downloads/European-Hydrogen-Backbone-April-2021-V3.pdf) | 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) EUR^[11](https://www.ehb.eu/files/downloads/European-Hydrogen-Backbone-April-2021-V3.pdf) | 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) EUR^[9](https://www.bundesnetzagentur.de/SharedDocs/Pressemitteilungen/EN/2024/20241022_H2.html?nn=666514) | 60% repurposed, 2024 approval |
| **Northern China trunk line** | 1.9 billion for over 1,000 km (under 1.9 million per km, calculated) USD^[10](https://www.hydrogeninsight.com/transport/worlds-longest-construction-begins-on-1-9bn-1-000km-plus-pipeline-network-in-northern-china/2-1-1894130) | 2025 |
| **Tube trailer delivery plus dispensing** | 8.17 to 9.46 USD/kg H2^[20](https://www.hydrogen.energy.gov/pdfs/20007-hydrogen-delivery-dispensing-cost.pdf) | US urban stations of 1,000 and 450 kg per day, 2016 dollars (DOE record 2020) |
| **Shipping pure hydrogen** | At least 2 USD/kg H2^[1](https://www.iea.org/reports/global-hydrogen-review-2026/trade-and-infrastructure) | 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 H2^[3](https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Apr/IRENA_Global_Trade_Hydrogen_2022.pdf) | Excludes production |

#### Where the money goes

| Item | Share or amount |
|---|---|
| **Repurposing versus new pipe** | Repurposing cuts investment by 65 to 94%^[3](https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Apr/IRENA_Global_Trade_Hydrogen_2022.pdf) |
| **Conversion and reconversion in shipping chains** | Largest energy cost: over 10 kWh per kg H2^[1](https://www.iea.org/reports/global-hydrogen-review-2026/trade-and-infrastructure) |

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

1. [Global Hydrogen Review 2026: Trade and infrastructure](https://www.iea.org/reports/global-hydrogen-review-2026/trade-and-infrastructure) IEA, 2026
2. [Global hydrogen trade to meet the 1.5C climate goal: Part II, Technology review of hydrogen carriers](https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Apr/IRENA_Global_Trade_Hydrogen_2022.pdf) IRENA, 2022
3. [Bundesnetzagentur approves hydrogen core network](https://www.bundesnetzagentur.de/SharedDocs/Pressemitteilungen/EN/2024/20241022_H2.html?nn=666514) Bundesnetzagentur, 2024
4. [World's longest: construction begins on USD 1.9bn, 1,000km-plus hydrogen pipeline network in northern China](https://www.hydrogeninsight.com/transport/worlds-longest-construction-begins-on-1-9bn-1-000km-plus-pipeline-network-in-northern-china/2-1-1894130) Hydrogen Insight, 2025
5. [Extending the European Hydrogen Backbone (Jens, Wang, van der Leun, Peters and Buseman, with Guidehouse)](https://www.ehb.eu/files/downloads/European-Hydrogen-Backbone-April-2021-V3.pdf) European Hydrogen Backbone initiative, 2021
6. [Hydrogen Delivery and Dispensing Cost (DOE Hydrogen Program Record 20007)](https://www.hydrogen.energy.gov/pdfs/20007-hydrogen-delivery-dispensing-cost.pdf) US Department of Energy Hydrogen Program, 2020

## Other sections

- [Summary](https://www.materialinsights.org/energy/e_h2_transport/index.md)
- [Overview](https://www.materialinsights.org/energy/e_h2_transport/overview/index.md)
- [Correlation](https://www.materialinsights.org/energy/e_h2_transport/correlation/index.md)
- [How it works](https://www.materialinsights.org/energy/e_h2_transport/explain/index.md)
- [Efficiency and losses](https://www.materialinsights.org/energy/e_h2_transport/efficiency/index.md)
- [Technology advances](https://www.materialinsights.org/energy/e_h2_transport/advances/index.md)
- [Value chain](https://www.materialinsights.org/energy/e_h2_transport/valuechain/index.md)
- [Geopolitics and regulation](https://www.materialinsights.org/energy/e_h2_transport/geopolitics/index.md)
- [Impact on the biosphere](https://www.materialinsights.org/energy/e_h2_transport/biosphere/index.md)
- [Relationships](https://www.materialinsights.org/energy/e_h2_transport/links/index.md)