Katerina Swanson
Hydrogen fuel is measured in kilograms instead of gallons, litres, or cubic feet. As of 2024, hydrogen costs around $16 per kilogram in the USA, with prices varying depending on region and production method. In the UK, hydrogen fuel costs motorists between £10 and £15 per kilogram. While hydrogen fuel cell vehicles (FCVs) are zero-emission vehicles, the high cost of hydrogen fuel is a challenge for FCVs. However, the superior efficiency of hydrogen fuel cells means that hydrogen vehicles can travel further on the same amount of energy. With hydrogen expected to play a significant role in reducing emissions, governments are investing in technology and infrastructure to reduce hydrogen fuel costs.
| Characteristics | Values |
|---|---|
| Hydrogen fuel cell vehicles (FCVs) | Zero emission vehicles (ZEVs) |
| FCVs fuel cost | Two times higher than that of a conventional gasoline vehicle |
| FCVs fuel economy | 60 miles per kg (mpk) |
| Average fuel economy of gasoline cars | 30 mpg |
| Average fuel economy of midsize gasoline hybrids | 42 mpg |
| Hydrogen retail price in 2021 | $8.50/kg to $16.50/kg |
| Hydrogen retail price in California since 2014 | $14.00/kg |
| Hydrogen retail price in Germany as of early 2023 | €7-€8 per kg |
| Hydrogen retail price in France as of early 2023 | €7-€8 per kg |
| Hydrogen retail price in the UK | £10-£15 per kg |
| Hydrogen retail price in the USA | $16 per kg |
| Hydrogen retail price in Australia by 2030 | AU$2-2.8 per kg |
| Hydrogen retail price in Spain, Germany, and France | Diverse but generally high |
| Hydrogen retail price in China | Influenced by the method of production |
| Hydrogen retail price in Europe by 2030 | €4 per kg |
| Hydrogen retail price in India | Not mentioned |
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What You'll Learn
Hydrogen fuel cell vehicles (FCVs) are zero-emission vehicles
Despite the environmental benefits of FCVs, one challenge they face is the high fuel cost of hydrogen. In California, for instance, hydrogen has retailed for approximately $14 per kilogram (kg), equivalent to $14 per gallon of gasoline. At this price, FCV fueling costs are three times higher per mile than a gasoline hybrid and two times higher than a conventional gasoline vehicle. However, advocates of hydrogen fuel argue that the high fuel economy of FCVs helps keep fueling costs competitive with gasoline-fueled vehicles. They also predict that future hydrogen fuel costs will decrease due to higher volumes or greater economies of scale.
The cost of hydrogen fuel varies significantly across different regions due to factors such as production methods, infrastructure, and local market conditions. For example, in Europe, the cost of hydrogen is generally high due to the extensive use of renewable energies for hydrogen production. In Germany and France, as of early 2023, the cost of hydrogen for FCEV heavy transportation trucks is around €7-€8 per kg. On the other hand, in China, the cost of hydrogen is influenced by the method of production, with electrolysis-based sources (renewable energy) costing more than traditional methods like coal gasification.
Looking towards the future, there are efforts to reduce hydrogen fuel prices to make them more competitive with diesel and gasoline. By 2030, the production cost of hydrogen in Australia is projected to drop to around AU$2-2.8 per kg, and there is a broader goal in Europe to achieve a price of €4 per kg. These reductions in hydrogen fuel prices are expected to make it a more viable alternative for heavy transportation, aligning with environmental goals and the push for renewable energy sources.
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Hydrogen fuel costs vary by region
Hydrogen fuel is a promising alternative to traditional fuels such as diesel and gasoline, especially for the heavy transportation sector. However, the cost of hydrogen fuel can vary significantly across different regions due to several factors.
In North America, for instance, the price of hydrogen varies widely, typically ranging from $8/kg to $11/kg. In California, hydrogen has retailed for approximately $14/kg, which is equivalent to $14 per gallon of gasoline. On the other hand, in 2021, hydrogen retailed at a much higher rate of $16.50/kg, making it three times more expensive per mile than gasoline hybrids and twice as expensive as conventional gasoline vehicles.
In Europe, hydrogen prices are generally high due to the extensive use of renewable energies for production. In Germany and France, the cost of hydrogen for FCEV heavy transportation trucks is around €7-€8 per kg as of early 2023. Spain is in a similar range, with prices expected to decrease to €4 per kg by 2030, making hydrogen a competitive alternative for long-haul trucks.
In China, the cost of hydrogen is influenced by the production method, with electrolysis-based sources (renewable energy) being more expensive than traditional methods like coal gasification. Prices range from less than $6 to more than $11 per kg, with expectations of a decrease to around $4.69 by 2025, making it more competitively priced.
Australia is also aiming to become a leader in green hydrogen by increasing its use and production. By 2030, the production cost in Australia is projected to drop to around $2-$2.80 per kg, making it more affordable.
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Hydrogen is measured in kilograms, not gallons
When comparing the cost of hydrogen to traditional fuels like diesel and gasoline, it is important to consider factors beyond the cost per unit. Hydrogen fuel cells have a higher energy conversion efficiency, at around 60%, compared to internal combustion engines, which operate at 20-30%. This means that hydrogen vehicles can travel further on the same amount of energy, which is advantageous for heavy transportation.
The cost of hydrogen fuel varies depending on the region due to differences in production methods, infrastructure, and local market conditions. For example, in California, hydrogen has retailed for approximately $14.00 per kilogram (kg), which is equivalent to $14 per gallon of gasoline. In 2021, the retail price of hydrogen was $8.50/kg to $10.80/kg, higher than gasoline prices for the same fuel cost per mile.
Hydrogen is typically sold by weight, with 1 kg containing 408 cubic feet of H2. This is in contrast to CNG, which is sold by volume on a therm (100 cubic feet) basis. The measurement of hydrogen in kilograms reflects the fact that it is a gas at standard temperature and pressure, and its volume can vary greatly depending on factors such as temperature and pressure.
While hydrogen fuel has a higher upfront cost per kilogram compared to traditional fuels, its superior energy conversion efficiency can make it competitive in terms of cost per mile. Additionally, the cost of hydrogen fuel is expected to decrease in the future due to advancements in technology and the increased use of renewable energy sources. For example, in Europe, there is a target to reduce hydrogen fuel prices to about €4 per kilogram by 2030, making it a more sustainable alternative for heavy transportation.
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Hydrogen fuel costs are expected to reduce
Hydrogen fuel is a well-developed technology that has been used commercially for over 80 years. However, its high fuel cost has been a challenge for hydrogen fuel cell vehicles (FCVs) to compete with gasoline-fueled vehicles. In 2025, hydrogen fuel retailed for $27.11/kg, which is significantly higher than gasoline prices. This high cost is mainly due to compression and delivery, which make up most of the retail price, while hydrogen production costs account for less than 20% of the total retail cost.
However, hydrogen fuel costs are expected to reduce in the future due to various factors and efforts. Firstly, increased investment and innovation in hydrogen production technologies are aimed at lowering production costs. For example, the Inflation Reduction Act in the United States offers a tax credit of up to $3 per kilogram of zero-emission hydrogen to encourage the construction of new hydrogen production facilities. Additionally, startups like Electric Hydrogen and EvolOH are working to reduce the cost of green hydrogen production through scientific breakthroughs.
Secondly, advancements in electrolyzer technologies and the reduction in renewable energy costs are projected to lower hydrogen production costs. By 2030, the production cost is expected to drop to around $2-2.80 per kilogram in Australia and €4 per kilogram in Europe. This pricing strategy is part of a broader push for renewable energy sources and making hydrogen a competitive alternative for heavy transportation.
Thirdly, coordination between infrastructure developers, OEMs, governments, research laboratories, and startups is crucial to standardize and commercialize the most cost-effective equipment and methods. Standardization and innovation in refuelling nozzles can also contribute to cost reductions and ease of use. Additionally, the California Energy Commission has provided grants that cover the cost of building and maintaining hydrogen retail stations, which has kept California's retail hydrogen prices relatively low.
Lastly, hydrogen advocates argue that FCVs' high fuel economy and greater economies of scale will help reduce future hydrogen fuel costs. While FCVs currently have higher per-mile fueling costs, their high energy conversion efficiency of around 60% allows them to travel further on the same amount of energy. This advantage is significant for heavy transportation, and with increased adoption, economies of scale can drive down hydrogen fuel prices.
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Hydrogen fuel is more expensive than gasoline
The high cost of hydrogen fuel is due to its unique physical properties, and the cost of compression and delivery, which make up most of the retail cost. Hydrogen fuel cell vehicles (FCVs) are zero-emission vehicles that offer higher energy conversion efficiency than internal combustion engines. However, the high fuel cost of FCVs is a challenge that needs to be addressed.
While hydrogen fuel prices are expected to decrease in the future due to increased production and technological advancements, they currently remain significantly higher than traditional fuel prices. In 2022, the average US gas price per gallon rose from $3.41 in January to $5.03 in June, while a kilogram of hydrogen gas for a passenger vehicle costs about $16.51.
The cost of hydrogen fuel varies across different regions due to factors such as production methods, infrastructure, and local market conditions. For example, in Germany and France, the cost of hydrogen for FCEV heavy transportation trucks is around €7-€8 per kilogram as of early 2023. There are targets to reduce hydrogen fuel prices to about €4 per kilogram by 2030 to make it a competitive alternative for heavy transportation.
The production cost of hydrogen is projected to decrease in the future with advancements in technology and the increased use of renewable energy sources. For instance, by 2030, Australia aims to reduce the production cost to around AU$2-2.8 per kilogram. Similarly, the UK is working on a project to produce hydrogen at a cost of around £1.50/kg by 2040.
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Frequently asked questions
Hydrogen fuel in the USA costs around $14 per gallon.
Hydrogen fuel in the UK costs motorists between £10 and £15 per kilogram.
Hydrogen fuel costs three times more per mile than gasoline hybrids and two times more than conventional gasoline vehicles.
The cost of hydrogen fuel varies in other countries due to factors such as production methods and local market conditions. In China, for example, the cost of hydrogen is influenced by the method of production, with electrolysis-based sources (renewable energy) costing more than traditional methods like coal gasification. In Europe, hydrogen prices are generally high, reflecting the extensive use of renewable energies for production.
