Currently, hydrogen energy is accelerating from "conceptual demonstration" to the eve of "large-scale application". But unlike the rapid popularization of the lithium battery industry, the hydrogen energy industry has always faced two major questions: where does the hydrogen we use come from? How can they be safely and efficiently delivered to users?

This article will systematically sort out the "color ring" classification of hydrogen sources and their underlying economic accounts, and deeply analyze the storage and transportation difficulties and breakthroughs that constrain industrial development, painting a relatively clear picture of the hydrogen energy industry for you.

1、 Where did it come from? ——The origin of hydrogen determines its color

Hydrogen is not a natural energy source on Earth, but an energy carrier that needs to be extracted from hydrogen containing substances. According to the different production methods and full lifecycle carbon emission intensity, hydrogen is usually classified internationally as "grey hydrogen", "blue hydrogen", and "green hydrogen". In the vast hydrogen consumption landscape in China and even globally, the proportions of these three types of hydrogen are vastly different.

1.1 "Grey" mainstream - grey hydrogen: cheap but high carbon

Grey hydrogen refers to hydrogen gas produced through the reforming or gasification of fossil fuels such as natural gas and coal, which releases a large amount of carbon dioxide during the production process. Currently, about 96% of the world's hydrogen comes from fossil fuels. The situation in China is more typical: from the global hydrogen source structure, 48% of hydrogen comes from natural gas, 30% comes from by-product hydrogen, and 18% comes from coal; At present, coal based hydrogen production is still the main method in China, accounting for over 60%. This "coal based" structure is the foundation of "grey hydrogen stability" - the cost of hydrogen production from coal is about 7-12 yuan/kg, while that from natural gas is about 11-19 yuan/kg -. The current production cost of grey hydrogen is about 1-1.5 US dollars per kilogram (approximately 7-11 RMB per kilogram). In addition, China is also the world's largest producer of industrial by-product hydrogen, with a by-product hydrogen production capacity of about 10.7 million tons per year in industries such as steel and chemical, and a production capacity of about 7.7 million tons, accounting for about 21%. Although grey hydrogen has the lowest production cost, it releases a certain amount of carbon dioxide during the hydrogen production process, which cannot fully achieve carbon free green production.

1.2 "Blue" Transition - Blue Hydrogen: A Compromise

Blue hydrogen also uses fossil fuels as raw materials (mainly natural gas reforming), and its production process itself is not fundamentally different from grey hydrogen - the key is carbon capture, utilization, and storage (CCUS). The key feature is that the carbon dioxide generated during the production process is captured and stored, significantly reducing carbon emissions and transforming from "gray" to "blue". The core contradiction lies in the economy: Blue hydrogen is in an awkward situation of "carbon reduction is uneconomical" due to CCUS pushing up costs by 30% -50%. The current cost of blue hydrogen is about 20 yuan/kg -, and only a few projects are profitable at this stage. From a technological perspective, blue hydrogen provides a bridging solution for the transition from gray hydrogen to green hydrogen, but due to its high cost, its market promotion speed is limited.

1.3 "Green" Future - Green Hydrogen: The Ultimate Goal of Zero Carbon

Green hydrogen refers to the use of renewable energy sources such as wind and solar power to generate electricity. Hydrogen is produced by electrolyzing water, and the hydrogen production process emits almost no greenhouse gases, which is the origin of "green". The technical routes for hydrogen production through electrolysis of water are divided into alkaline electrolysis cells, proton exchange membranes (PEM), anion exchange membranes (AEM), and solid oxides (SOEC), among which alkaline electrolysis cell technology is the most mature and domestically produced. But the promotion of green hydrogen faces a core obstacle: high cost. The current production cost of green hydrogen is as high as 4-12 US dollars per kilogram, which is about 2-3 times that of grey hydrogen. Although China's renewable energy electrolysis hydrogen production capacity has reached 125000 tons per year, accounting for more than half of the global total, the output is only about 320000 tons, accounting for less than 1% of the total hydrogen supply in society.

The price of green electricity is the lifeline that determines the economic viability of green hydrogen: electricity costs account for 60% -80% of the production and operation costs of green hydrogen. According to statistics from the China Hydrogen Energy Alliance Research Institute, the national production side hydrogen price index was about 27.5 yuan/kg by the end of June 2025, while the consumption side was as high as 45 yuan/kg. The price difference of nearly 18 yuan highlights the cost transmission bottleneck from production to terminal. The cost gap forms a vicious cycle of "high cost → high price → low demand → limited scale → difficult cost reduction".

In order to have a more intuitive understanding of the economics of different "color" hydrogen gases, the following table summarizes the cost ranges of various types of hydrogen gases:

2、 The storage and transportation dilemma of hydrogen: the cost and breakthrough of crossing the "last mile"

If hydrogen production determines the "starting cost" of hydrogen energy, then the storage and transportation process is the key variable that determines whether the terminal price can be affordable. At present, storage and transportation costs account for about 30% to 40% of the total cost of hydrogen terminals. Solving the problems of "not being able to reach" and "not being able to afford" essentially involves engineering optimization and balancing of hydrogen storage density, transportation mileage, and economy.

2.1 "The First Kilometer": The High Cost of Dispersing Gas Sources

The high mismatch between production areas (grey hydrogen is usually located near refining or chemical parks; green hydrogen is mostly concentrated in western wind and solar resource rich areas) and consumption areas (eastern industrial parks, hydrogen refueling station clusters) determines that transportation distances can easily reach hundreds or even thousands of kilometers. Hydrogen production plants are relatively scattered, with departure points located more than ten kilometers apart, and terminal hydrogen refueling stations spaced up to 100 kilometers apart. There are about 15 routes per day, including fixed long-distance lines from hydrogen production plants to refueling stations, as well as some point-to-point emergency lines or peak shaving lines. A single station has a small traffic volume, and the routes are long and scattered, resulting in the need for controlled vehicles to be on the road for a long time.

2.2 Technical and Economic Comparison of Various Hydrogen Transport Methods

Common modes of hydrogen transportation include high-pressure gaseous long tube trailers, low-temperature liquid transportation, pipeline transportation, and emerging chemical carrier transportation, including organic liquid hydrogen storage (LOHC). The combination of different transportation modes and scales has given rise to dozens of cost scenarios.

High pressure gaseous long tube trailer (most commonly used): Currently, the most common transportation method for logistics terminals is the use of 20MPa steel large volume gas cylinder sets. One trailer can carry about 250-400 kilograms of hydrogen gas. Mature technology, easy operation, no need to build complex liquefaction or conversion equipment on the customer's site. But its fatal weakness is its short economic radius - when the transportation distance exceeds 200 kilometers, the transportation cost will account for more than 50% of the total cost of hydrogen. Under the annual hydrogen transportation scale of 8000 tons, the transportation cost of bundle trailers within 100km is the lowest, about 33.43-34.77 yuan/kg -. If the transportation cost within a 100 kilometer range is added to the cost of hydrogen production, the ex factory price of dry grams of hydrogen is pushed up to tens of yuan per kilogram, which is the direct reason why the terminal hydrogen price has remained above 45 yuan/kilogram.

Low temperature liquid transportation: Hydrogen is liquefied at -253 ℃, reducing its volume to 1/800 of its gaseous form and significantly increasing its energy density. One liquid hydrogen tanker can transport 20-40 tons of hydrogen. Liquid hydrogen is suitable for long-distance and large-scale transportation, but when the huge energy consumption of the liquefaction process cannot be compensated for by transportation efficiency, the economy will be greatly reduced. The high energy consumption of hydrogen liquefaction itself (accounting for 30-40% of energy consumption), if the distance between the gas source and the hydrogen refueling station is less than 300 kilometers, the comprehensive cost of liquid hydrogen is not lower than that of tube bundle vehicles.

Pipeline transportation (the most efficient long-distance solution): Hydrogen is continuously transported at low pressure in pipelines, making it a "high-speed railway" for hydrogen. Once the network is established, it has the ultimate economies of scale and low marginal costs. When the transportation distance is 100 kilometers, the cost of transporting hydrogen is only 1.43 yuan/kg -. A 500 kilometer DN900 hydrogen long-distance pipeline has a levelized hydrogen transportation cost of only 2.44 yuan/kg, far lower than any vehicle transportation method. The initial capital expenditure for pipeline hydrogen transportation is huge, and after the pipeline is built, the cost of hydrogen transportation per hundred kilometers can be controlled within a few yuan, demonstrating strong cost competitiveness.

Emerging carrier transportation (liquid organic hydrogen storage/LOHC): By reversible chemical reaction between unsaturated liquid (such as benzyl toluene) and hydrogen gas, hydrogen gas is "stored" in a stable liquid similar to petroleum, transported at room temperature and pressure, and can be directly transported by existing oil tankers for long-distance and low-cost transportation. In terms of cost, the traditional high-pressure gas storage and transportation cost for 500 kilometers is about 23.3 yuan/kg, while the transportation cost for liquid organic hydrogen storage is only 7.75 yuan/kg. The carrier can be recycled after dehydrogenation at the destination, significantly reducing long-term material costs.

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Due to varying distances from hydrogen sources, transportation scales, and development stages in different regions, there is no one size fits all optimal solution. During the industrial cultivation period, the northern wind and solar resource rich areas should prioritize the expansion of local pure hydrogen pipelines and establish a mixed storage and transportation mode of "high-pressure trailer+hydrogen pipeline"; In the hydrogen core areas of East and South China, due to the need to import green hydrogen from the north or overseas, terminal stations for receiving liquid hydrogen or cracking ammonia and methanol need to be laid out in advance.

2.3 Low cost storage and transportation combination of green hydrogen

The sources of green electricity (wind power, photovoltaics) and geographical location determine that a single storage and transportation method is difficult to balance cost and efficiency. Combining multiple methods is an inevitable way out. Combination one is a "pipeline+bundle vehicle", where pure hydrogen pipelines extend from the hydrogen production plant to the comprehensive energy station at the edge of the industrial zone. After pressure reduction, hydrogen is distributed at the end of the pipeline through small bundle vehicles in areas that cannot be covered by the pipeline. Combination two is "alcohol/ammonia+vehicle mounted cracking", which electrolyzes water on-site at a wind and solar power plant to produce hydrogen, and then converts it into green methanol or liquid ammonia at room temperature and pressure through a mature synthetic ammonia process. It is transported to the east and then on-site hydrogen production is carried out through a small reforming unit in the station.

3、 The way to break through: the trend and policy direction of hydrogen energy development

The industry generally believes that only by combining low-cost green hydrogen with efficient storage and transportation can hydrogen energy and lithium batteries run parallel or even lead the way. The future industry breakthrough revolves around four major directions.

Firstly, reduce the cost of green hydrogen and catch up with fossil fuels. The expected cost target for renewable hydrogen by 2030 is 15 yuan/kg, with storage and transportation costs reduced to 3-5 yuan/kg per 100 kilometers, and transportation hydrogen costs controlled below 25 yuan/kg. When the cost of photovoltaic power generation drops to 0.15-0.2 yuan/kWh, the cost of green hydrogen can be reduced to 10.36-13.22 yuan/kg -. If the cost of the electrolytic cell is reduced to 700 yuan/kW, the cost of green hydrogen can be reduced to below 10 yuan/kg, which can be on par with the cost of coal hydrogen production (about 10-12 yuan/kg).

Secondly, improve the construction of the hydrogen energy standard system. The country is formulating safety standards and technical specifications for the entire hydrogen energy industry chain, covering key links such as hydrogen storage materials, hydrogen pipelines, and hydrogen refueling stations. The standards and policy guidance for hydrogen pipeline transportation have made significant progress in the past year.

Thirdly, the national pipeline network will deepen reform and introduce market competition. The new policy of the national pipeline network encourages social capital to participate in the construction of non trunk pipeline facilities. Breaking the monopoly will promote large-scale investment and construction of hydrogen pipeline networks, accelerating China's entry into the era of hydrogen pipelines.

Fourthly, internationalization layout and development positioning. The demand for clean hydrogen is giving rise to a cross-border trade market, but China has competitive blue hydrogen prices and may gain an advantage in the European market. Chinese companies need to find their positioning in the global market and make a choice between exporting blue hydrogen and cultivating green hydrogen.

4. Conclusion

From the absolute dominance of grey hydrogen, to the compromise solution of blue hydrogen, and to the ultimate goal of green hydrogen, China's hydrogen energy industry is undergoing a profound "color revolution". However, 'where does it come from' is only half of the problem, 'how to cross thousands of miles to deliver to users' hands' is a more arduous test.

There is no shortcut to breaking the vicious cycle of "high cost → high price → low demand" - every link must rely on the continuous reduction of green electricity costs, the large-scale domestic substitution of electrolytic cells, the deterministic progress of hydrogen production efficiency, and the parallel complementarity of various forms of routes such as high-pressure gas long tube trailers, liquid hydrogen tank trucks, hydrogen transmission pipelines, and organic liquid hydrogen storage. The maturity of every technology is opening up new space for the commercial application of hydrogen energy. Cracking the problem of hydrogen storage and transportation is not only about breaking the physical connection of the "dead end road", but also a key step in building the energy map. In the process of drawing this map, China is moving from a hydrogen powered country to a hydrogen powered powerhouse.

This article is compiled based on industry research reports, national policy documents, and publicly available technical materials for reference. Please refer to the actual survey and real-time electricity and gas price calculation for specific costs and project planning.