Hydrogen transportation | The key to unlocking

the clean hydrogen economy

MANAGEMENT SUMMARY

Hydrogen transportation / The key to unlocking

the clean hydrogen economy

Money is pouring into clean hydrogen as policymakers and private investors increasingly
realize that the fuel and feedstock will soon become a cornerstone of the energy transition
and decarbonization efforts. But to date, a key component of the clean hydrogen economy
has been overlooked – large-scale transportation to get clean hydrogen from production
sites to points of use. This is a crucial puzzle to solve, as the most favorable production
locations are found in often remote, renewable-rich areas, whereas demand will likely be
highest in heavily industrialized and densely populated areas.

We believe this oversight must be urgently addressed. Global supply and demand centers
will soon need to be connected to serve the growing demand for clean hydrogen, for
example in steel production, yet cost-efficient hydrogen transportation methods remain
elusive. High transportation costs significantly increase overall hydrogen costs, posing a
challenge for the commercial viability of this emerging sector. The question is how to provide
reliable large-scale hydrogen transportation that keeps costs in check and ensures the
economic competitiveness of clean hydrogen.

This report provides answers. We assess three hydrogen carrier technologies – liquefied
hydrogen, ammonia and liquid organic hydrogen carriers (LOHC) – and analyze their costs
and feasibility, with a focus on Europe. We find that there is, as yet, no one-size-fits-all
solution in terms of ease of use and cost. Choice is dependent on concrete use cases,
transportation modes, distances and potential partner synergies. In addition, all the
technologies still require substantial development work. We therefore believe that they
will likely coexist in the short term, with ultimate success depending on cost-cutting
potential, speed of market uptake and ease of use.

As we outline in our recommendations, the public and private sector in Europe must act to
meet the challenges of large-scale hydrogen transportation. Public support will be needed
to develop and test them until a dominant technology emerges. At the same time, industry
needs to properly prepare for the ramp-up of carrier technologies, and providers must work
on improving efficiencies and clean options. Those businesses that move fast stand to gain
most in terms of positioning and cost reductions.
 PAGE CONTENTS

4 Introduction
Clean hydrogen offers a path to decarbonization –
provided it can be transported

8 1 The technologies
Large-scale hydrogen transportation options
explained and assessed

13 2 The costs
A comparison of hydrogen transportation technologies
in 2025 and beyond

23 3 The challenges
Viable hydrogen transportation requires huge
infrastructure investment

25 4 Recommendations
What government and industry must do to enable
low-cost hydrogen transportation
Cover photo audioundwerbung/Getty Images

Hydrogen transportation |3
Introduction
CLEAN HYDROGEN OFFERS A PATH TO DECARBONIZATION –
PROVIDED IT CAN BE TRANSPORTED

T
he idea of powering our way to a carbon-free manufactured hydrogen, usually produced from natural
world using green electricity is highly appealing. gas in a CO2-intensive steam methane reformer (SMR).
Electricity is generated from renewable energy The potential of clean hydrogen is huge. In Europe,
sources and used to power everything from domestic total hydrogen demand is expected to grow to more than
televisions to high-speed trains. In the process, climate 45 m tons by 2050. Many sectors – from transportation
targets are met, and fossil fuels become a thing of the to heating to heavy industry – are likely to turn to it as
past. Unfortunately, it's not that simple. they seek to decarbonize over the next few decades,
While green energy is now a vital part of the electricity with investments in the technology already soaring.
mix, the share of electricity used in overall energy Indeed, clean hydrogen will become a cornerstone of the
consumption is still meager. For example, renewable energy transition and decarbonization efforts around
energy sources contributed 38% to the overall European the globe. A
electricity mix in 2020, overtaking fossil fuels. But the
share of electricity in global final energy consumption INTRODUCING HYDROGEN TRANSPORTATION
was only 19% in 2018, and stagnating. Sectors such as Getting hydrogen from global production sites to end
heavy industry, with huge energy needs to process heat users at the lowest possible cost will be key to the success
from burning fossil fuels, for example, making them of the green economy. The potential for onsite green
difficult to electrify, and a lack of grid infrastructure to hydrogen production in European demand centers is
transport green power from areas of production to areas limited. First, huge amounts of green electricity will be
of demand, are largely to blame. needed to power the hydrogen-producing electrolyzers.
This is where green hydrogen (H2) comes into play. The conversion of the European steel industry to a more
It can be used as a renewable fuel or feedstock in all emission-friendly process by using hydrogen for the direct
major CO2-emitting sectors, including those where reduction of iron alone would require up to 10 m tons of
direct electrification is not possible. By producing the hydrogen per year. Depending on the system efficiency,
gas using electrolysis powered by renewable sources, the production of green hydrogen for the steel industry
green power becomes easier to store and transport as would require roughly 60 GW of electrolysis capacity
an energy carrier, enabling sector coupling. Besides and 120-180 GW of renewable energy capacity. To put
green hydrogen that is produced from renewable energy those numbers in perspective, Germany's total installed
sources, alternative technologies exist to produce capacity of onshore and offshore wind power stands at
hydrogen with low carbon content (so-called clean 63 GW today. Second, the physical space required to
hydrogen). Those include e.g. blue hydrogen that is achieve such capacities is substantial, especially in
produced from fossil sources but with carbon capture, regions with less favorable conditions for renewables.
and pink hydrogen that is produced from nuclear Such space is rarely available. And third, the expansion
power using electrolysis. Clean hydrogen can then be of the electricity grid to transport such huge amounts
used as a combustion fuel in industrial or mobility of renewable energy is a difficult undertaking. Many
applications, or be reconverted to electricity in a fuel ongoing high voltage grid projects face delays and those
cell. On the feedstock side, clean hydrogen can replace delays in fact hinder a faster renewable energy buildout
gray hydrogen in industrial processes, such as refining. in Europe.
Gray hydrogen is currently the most common form of

4 | Focus
A: Hydrogen market
Demand in Europe will grow significantly, mainly driven by hydrogen's role in decarbonization

H2 DEMAND IN EUROPE BY SECTOR [MT H2] AND

REQUIRED ELECTROLYZER AND RES CAPACITY [GW]
H2 demand Electrolysis/RES capacity required
[m t H2] (indicative) [GW]
50 700

600
40

500

30
400

300
20

200

10
100

0 0
2020 2030 2040 2050

Mobility Heat & power Industrial feedstock Renewable energy Electrolysis

H2 is already a sizable market Gray H2 is expected to be replaced by decarbonized H2,

and is used as a feedstock in e.g. green H2 produced from renewable energy sources
various industries
Growth of H2 demand is mainly driven by new applications
Today's H2 supply pre- and the use of decarbonized H2 in the industry, heat &
dominantly consists of gray power, and mobility sectors
H2 produced from fossil
sources Significant ramp-up of electrolysis and renewable energy
capacity is required to meet the projected green H2 demand

Source: Roland Berger

Hydrogen transportation |5
Therefore, green hydrogen will to a large extent be transportation from the Middle East to Europe to small-
produced near the most cost-competitive renewable scale truck transportation up to 200 km.
electricity hubs, for example the wind farms of the North Lastly, we offer recommendations for both government
Sea or solar parks of the Middle East. The difference in and industry players to improve infrastructure, reduce
global production costs is substantial, varying by up to wider hydrogen costs and develop market rules. These
250% between renewable resource abundant regions make clear that policymakers, technology suppliers,
and less favorable regions. Even within the European project developers and energy companies need to take
Union, the cost differences are high, with a delta of more dedicated action over the next few years to enable
more than 130% between Spain and Germany, for large-scale hydrogen transportation and make the clean
example.1 B hydrogen economy a reality.
The hydrogen will then be shipped to areas of
high demand by ground and sea transportation. But
herein lies a major obstacle – large-scale conversion/
reconversion and transportation of hydrogen is currently
complex, energy intensive and expensive. While
investments have poured into clean hydrogen, these So far, investments
have tended to focus on hydrogen production and end
user applications. Transportation, as the "missing link", have tended to focus on
has been overlooked. Yet to ensure that clean hydrogen
becomes economically competitive and widely adopted, hydrogen production and
new transportation solutions must urgently be found.
This is particularly important as transportation costs can end user applications.
make up a significant part of final hydrogen costs – and
therefore company bottom lines. Transportation, as the
The key purpose of this report is to shed light on the
potential of different existing transportation technologies "missing link", has been
to act as key enablers for the clean hydrogen economy.
We focus specifically on the end-to-end transportation of overlooked.
hydrogen, rather than the transportation of hydrogen-
based derivative products such as synthetic fuels
directly to end users. As such, pipelines are considered
but we focus on three flexible hydrogen carrier
technologies: ammonia; liquefied hydrogen; and liquid
organic hydrogen carriers (LOHC). This includes a
comprehensive model comparing the cost of ownership
of the technologies, based on four typical hydrogen
transportation routes that are likely to emerge in the
future. These range from large-scale harbor-to-harbor 1
IEA: The Future of Hydrogen

6 | Focus
B: Hydrogen production locations
Cost-competitive renewable electricity and green hydrogen production hubs
are typically located distant from demand centers [EUR/kg] INDICATIVE

NORTH SEA ARABIAN GULF

4.2
3.9 2.4
2.0

2.7
2.4

SPAIN

2.3
1.9 2.8
2.5

CHILE
AUSTRALIA
2.6
2.3

MOROCCO

Indicative technical cost range Attractiveness of region for green hydrogen

of green H2 for a 250 MW production, depending on strength of wind
Offshore wind Onshore wind Solar photovoltaic (PV)
electrolysis plant by 2025 and solar radiation

Source: IEA, Roland Berger

Hydrogen transportation |7
1 / The technologies
LARGE-SCALE HYDROGEN TRANSPORTATION OPTIONS EXPLAINED
AND ASSESSED

T
o set up clean hydrogen supply chains and reap the pressure can be adapted to ensure continuous supply – a
low-cost potential of remote regions, there is an key requirement for many offtakers. Compared to power
urgent need for viable, large-scale clean hydrogen cables, hydrogen pipelines have the additional advantage
transportation solutions. Four hydrogen transportation of a lighter environmental footprint. One pipeline can
technologies have the highest potential: Pipelines that replace several cables that would need to be installed
transport gaseous hydrogen; hydrogen transported separately. The repurposing of existing pipelines is also
as ammonia; liquefied hydrogen (LH2); and hydrogen advantageous in terms of public acceptance.
stored in liquid organic hydrogen carriers (LOHC). The
three non-pipeline technologies are known as hydrogen Cons: The high initial capital costs of new pipelines
carriers. Below we look at all four in detail. constitute a major barrier to expansion, and construction
requires lead times exceeding ten years. It is also
1.1 PIPELINES (GASEOUS H 2) subject to highly complex permitting and authorization
How it works: Gaseous hydrogen can be transported processes. The construction of cross-border pipelines
in pipelines, like natural gas. Before injection, the involves additional complexity and cooperation. Large
hydrogen is mechanically compressed to the operating volumes of hydrogen are also necessary to achieve
pressure of the pipeline. This is usually higher than acceptable utilization rates. Moreover, due to the fixed
the outlet pressure of electrolyzers. Depending on the routing, the many consumers that are not located along
pipeline's characteristics and local conditions, the the pipeline cannot be supplied without additional
hydrogen must be recompressed at certain distances investment in distribution infrastructure. In addition,
along the pipeline before it reaches its destination. unresolved regulatory questions, such as around natural
In addition, storage facilities (such as salt caverns monopolies, the combination with or separation from the
or above-ground tanks) are required for buffering in natural gas grid and the allocation of cost to consumers,
case of volatile supply. As with natural gas pipelines, also create substantial uncertainty. Lastly, concerns
a mature hydrogen pipeline system with transmission remain about the viability of repurposing old natural gas
and distribution grids also requires metering stations, pipelines due to material compatibility.
control valves and gates to manage flows and ensure
onward distribution to end users. There's no doubt that pipelines are a low-cost option
Instead of building new pipelines, existing natural to deliver very large volumes of hydrogen and that they
gas pipelines can be repurposed to transport hydrogen. will play a major role in the supply of clean hydrogen
The injection of hydrogen into existing gas grids is also in the future. However, even with a dedicated hydrogen
under discussion, with blends of up to 20% hydrogen pipeline in place, large residual hydrogen demand will
currently being tested in pilot projects. go unsupplied due to its fixed routing and the high
dispersion of large-scale hydrogen demand across
Pros: Hydrogen pipelines have low operational costs, long geographies. The large consumers of today (fertilizer
lifetimes and a proven record of successful operation producers, refineries, other chemical plants, etc.) are
in Europe and the US, often over several thousand widely distributed across Europe, and will be even more
kilometers. Pipelines can also act as a storage buffer, so in the future (for example, steel producers, e-fuel
especially for off-grid green hydrogen production as their plants and mobility applications, smaller commercial

8 | Focus
users). In addition, pipelines will not be a feasible or from hydropower-generated hydrogen. Production later
the most cost-efficient option to support future import shifted to natural gas when it became cheaper.2 Due to
routes from outside the European Union. More flexible the widespread use of ammonia as a chemical feedstock,
hydrogen transportation options will be needed to fill the infrastructure for storing, transporting and handling
the gap and supply this part of the market. the substance is already mature. And because it is a global
This study therefore focuses on comparing the commodity, standards already exist. Liquid ammonia also
technologies that are best suited to flexibly supply contains more hydrogen by volume than any of the other
potential offtakers not located along a pipeline grid, and carriers discussed here.
that enable the long-distance transportation of hydrogen
– hydrogen carriers. C Cons: Ammonia is a toxic fluid and precursor to
air pollution as it forms particulate aerosols in the
1.2 AMMONIA atmosphere. It can adversely affect human health as
How it works: Ammonia (NH3) is a bulk chemical that well as soil and water quality if released and its toxicity
is normally synthesized from natural gas and mainly may ultimately limit the application for end uses outside
used as chemical feedstock, e.g. in fertilizer production. large-scale industry. Due to the safety concerns, it is
However, it can also serve as a clean hydrogen storage questionable whether authorities would permit the
medium. The medium is produced by reacting hydrogen transportation and use of ammonia in populated areas.
and nitrogen (derived from air via an air separation Major ports and seagoing vessels handling ammonia
unit) to synthesize liquid ammonia, using a process
that is very similar to the conventional production
method (Haber-Bosch process). The liquid ammonia
can then be transported in refrigerated tanks. Once it
reaches its destination, the ammonia is broken down
into its components, nitrogen and hydrogen, through Due to the safety
an endothermic cracking process. The resulting gas
mixture is then purified, and the nitrogen removed and concerns, it is
released back into the atmosphere. Ammonia is already
transported today, although most conventional ammonia questionable whether
is produced onsite at the place where it is further used.
authorities would permit
Pros: Ammonia synthesis is a well-established process and
can be adapted to clean hydrogen where gray hydrogen the transportation
is already used. This means that conventional ammonia
production plants could potentially be retrofitted to produce and use of ammonia in
clean ammonia. Even up until the 1960s, most fertilizers
in Europe were produced from ammonia synthesized populated areas.
2
IEA: Producing ammonia and fertilizers: new opportunities from renewables

Hydrogen transportation |9
C: Leading carriers
The most common routes for large-scale hydrogen transportation

Clean hydrogen
production, e.g. from Hydrogen conversion for storage and transportation Hydrogen
renewable sources as well as reconversion offtake

1 Compression Storage
Pipeline route
(gaseous H2) H2 H2

2 Ammonia synthesis Ammonia cracking

Clean
ammonia route
(NH3) H2 NH3 H2
N N

3 Hydrogen liquefaction Vaporization

Liquefied
hydrogen route
(LH2) E H2 H2 H2
at -253°C

4 Hydrogenation Dehydrogenation
Liquid organic
hydrogen
carrier route H2 H2 H2 H2
(LOHC)
H 2O O2 & heat LOHC

Source: Roland Berger

10 | Focus
must also take extensive safety precautions against radiation. Boil-off losses can also become significant
toxicity and explosion risks. In terms of production, when LH2 is stored and transported for long periods,
Haber-Bosch plants cannot easily directly integrate an resulting in lower flexibility in production and offtake
intermittent H2 supply stream from renewable sources. patterns. In addition, large-scale LH2 transportation
The process is also energy intensive as high temperatures via vessels is still in the prototyping phase, leading
and pressures are required. In addition, the ammonia to substantial investment costs. In general, the
cracking process is at a very early stage of technological infrastructure required for liquefied hydrogen is more
development. It has high energy needs and requires capital intensive along the value chain in comparison to
additional purification steps to make the hydrogen competing carriers.
usable.
1.4 LIQUID ORGANIC HYDROGEN CARRIERS
1.3 LIQUEFIED HYDROGEN (LH 2) (LOHC)
How it works: The volumetric storage density of hydrogen How it works: Liquid organic hydrogen carriers are easily
can be significantly improved through liquefaction, transported chemical compounds that can be reversibly
that is, cooling it below its boiling point of minus hydrogenated and dehydrogenated. The hydrogenation
253°C. After liquefaction, LH2 is stored in specially process involves chemically binding hydrogen to the
insulated and double-hulled tanks. This limits heat liquid compound so that it can be transported at
transfer from the environment and subsequent losses atmospheric pressure like many other oil-like substances.
due to evaporation, as built-up gas (boil-off) has to be At the destination, the hydrogen is released via an
vented. Under these conditions, LH2 is already being endothermic (heat-requiring) dehydrogenation process.
transported via specially designed trailer trucks today. The dehydrogenated LOHC can then be transported back
At the destination, LH2 is usually vaporized into its to the hydrogen source for reuse.
gaseous form before use. There are several organic carrier substances
available, among which toluene, dibenzyltoluene and
Pros: Liquefaction is a relatively well-established benzyltoluene (so-called heat transfer fluids) are the
technology at small scale, does not require complex most common. Here we focus on benzyltoluene.
reconversion and provides high purity hydrogen to the
end user. It is already used in certain special applications Pros: Benzyltoluene is easy and safe to store, transport
today, such as in the aerospace industry, and in some and handle. It has good viscosity characteristics under
refueling stations. ambient pressure and temperatures (even in cold
conditions), much like diesel. This similarity enables
Cons: The liquefaction process requires high amounts the use of existing infrastructure, such as trucks, trailers
of energy due to both pre-cooling and the liquefaction and vessels, as well as storage containers. In addition,
process itself. Moreover, storage, handling and hydrogenated LOHCs do not incur hydrogen losses,
transportation of LH2 are more complex compared to allowing long storage durations and storage of large
the other carriers. This is due to the specific storage volumes. The LOHC hydrogenation process is also better
conditions required to maintain the temperature below able to integrate fluctuating hydrogen H2 supplies from
minus 253°C and limit convection, conduction and intermittent renewables compared to ammonia and LH2.

Hydrogen transportation | 11
Cons: The dehydrogenation of LOHC requires very high creates an additional CO2 footprint, with the impact per
temperatures, pushing up energy costs. Large volumes of unit of hydrogen dependent on the number of cycles the
LOHC liquid are also required for the large-scale import LOHC can perform. The long-term viability of LOHC in
and transportation of hydrogen, adding to capital costs a real-life environment is also yet to be proven, although
and requiring the upscaling of production capacities. demonstration projects around the world point in a
Furthermore, the production process of the carrier positive direction. D

D: Carriers compared
The main characteristics of the leading hydrogen transportation technologies

Main characteristics Ammonia Liquefied hydrogen LOHC (benzyltoluene)

Storage density Volum. [kg H2/m of carrier]

3
121.2 1
70.8 55.2
Gravim. [kg H2/t of carrier] 177.51 1,000 62.7
Energy needs Conversion [MWh/t H2] 5.75 12.0 0.5
Reconversion [MWh/t H2] 11.2 0.6 15.0
Technological Conversion – Small scale
and process Conversion – Large scale
maturity Storage
Transportation – Ship
Transportation – Rail
Transportation – Truck
Reconversion
Operational Advantages • High storage capacity • No reconversion • Easy to store and trans-
value • Mature value chain, required port (diesel-like liquid)
propositions except for cracking • High purity hydrogen • Use of existing
process infrastructure

Disadvantages • Additional purification • Boil-off losses along • Number of cycles impact

step needed value chain environmental footprint
• High energy require- • High energy require- • High energy require-
ments for cracking ments for liquefaction ments for
process • Storage and transport dehydrogenation
complexity
Safety • Acute toxicity, • Highly flammable with • Low toxicity, non-
flammable, explosive no visible flame, can explosive, hazardous to
under heat, toxic to form explosive mixtures aquatic environment
aquatic life with air

1
Properties of liquid ammonia Proven & commercial Prototype demonstrated Technology validated or under development
Source: IEA, Roland Berger

12 | Focus
2 / The costs
A COMPARISON OF HYDROGEN TRANSPORTATION TECHNOLOGIES
IN 2025 AND BEYOND

OUR COST COMPARISON MODEL archetype, the TCO comprises the costs of the following
In addition to the practical pros and cons of hydrogen process: conversion – storage – transportation (via
carriers, this report also compares the total cost of different modes) – storage – reconversion. The results are
ownership (TCO) of the three technologies. We developed detailed in part A of this chapter. In part B, we consider
a model to estimate TCO in 2025, built around four the cost outlook for 2025 to 2035, focusing on areas likely
scenarios with different routes, distances, transportation to achieve significant cost reductions. E
modes and scales (see box for more details). The
3
Necessary safety installations that vary across technologies have not been
technologies were tested in each of the four archetypes considered. Costs can change once adapted to a specific use case taking specific
and compared, ensuring a level playing field.3 In each locations, customer requirements and full scope of interfaces into account

M E T H O D O LO GY

The four archetypes

amount of hydrogen is transported as in archetype 2, with
1. Large-scale harbor-to-harbor: The first archetype the same conversion capacity of 20 tpd per carrier. But the
imagines the large-scale transportation of hydrogen from offtakers are smaller and reconversion capacity is only 1.5 tpd.
large conversion plants in the Middle East, with a hydrogen
capacity per carrier of 200 tons per day (tpd). The carrier is then 4. Small-scale truck-only transportation: The final archetype
transported by sea vessel from the Arabian Gulf to Rotterdam. considers a local supply scenario via truck. Conversion
It is assumed that both ports have large-scale storage facilities. capacity and overall hydrogen production is the same as in
The offtake and reconversion of the carrier takes place in the archetypes 2 and 3, but the transportation distance is shorter
port of Rotterdam, with a capacity of 100 tpd. and no transshipment or additional storage is needed. At
the destination, the hydrogen is reconverted at a capacity of
2. Mid-scale multimodal transportation: This archetype 1.5 tpd for each carrier.
supposes the transportation of hydrogen from Romania to
Germany by inland waterway and train, via a transshipment Key assumptions
in Vienna, Austria. The added complexity of transshipment • In all cases, it is assumed that the transportation vessel (ship,
was introduced here and in archetype 3 to better model the train, truck) returns empty to the port of origin, or in the case
reality of hydrogen supply chains. Conversion capacity is of LOHC, with the dehydrogenated carrier.
20 tpd for each carrier. The reconversion capacity at the point • All vessels are assumed to be dedicated to hydrogen
of destination is 20 tpd for each carrier. transportation and are individually sized for each respective
technology (taking safety margins into account).
3. Small-scale multimodal transportation: The third archetype • In all cases, adequate storage facilities are assumed at the
involves the transportation of the carrier via rail and truck from points of departure and destination, and, where relevant, the
Italy to a 200 km radius around Innsbruck, Austria. The same point of transshipment.

Hydrogen transportation | 13
E: Every which way
An overview of the four archetypes used in our cost-comparison model

ARCHETYPE 1: ARCHETYPE 2:
Large-scale harbor-to-harbor Mid-scale multimodal transportation

Rotterdam

Burghausen Vienna
Arabian Gulf
Giurgiu

H2 p.a. 73,000 t H2 p.a. 7,300 t

Conversion 2 x 100 tpd Conversion 20 tpd

capacity1 capacity1

Storage capacity at each location, Storage capacity at each location,

size dependent on carrier size dependent on carrier

~12,000 km via vessel (one-way) ~1,428 km via vessel + ~350km via train

~46 days per round trip ~12 days per round trip (vessel) +
(incl. port days) ~0.8 days (train)

Reconversion 100 tpd Reconversion 20 tpd

capacity1 capacity1

Large-scale offtakers (e.g. refineries, Mid-scale offtakers (e.g. industry for

fertilizer, steel) gradual gray H2 replacement)

1
In tons per day (tpd)

Source: Roland Berger

14 | Focus
ARCHETYPE 3: ARCHETYPE 4:
Small-scale multimodal transportation Small-scale truck-only transportation

200 km
truck vicinity

200 km Dormagen
Innsbruck
truck vicinity

Terni

H2 p.a. 7,300 t H2 p.a. 7,300 t

Conversion 20 tpd (14x 1.5 tpd) Conversion 20 tpd (14x 1.5 tpd)
capacity1 capacity1

Storage capacity at each location, Storage capacity at each location,

size dependent on carrier size dependent on carrier

~800 km via train + ~200 km via truck ~200 km via truck

~1.1 days (train) + truck trip <1 day

Reconversion 1.5 tpd Reconversion 1.5 tpd

capacity1 capacity1

Small-scale offtakers Small-scale offtakers

(e.g. HRS, SOFC) (e.g. HRS, SOFC)

Hydrogen transportation | 15
COSTS IN 2025 a carrier also turns out to be more costly, with a TCO of
3.1 EUR/kg. A key factor here is ammonia's more
ARCHETYPE 1 expensive transportation costs compared to LOHC.
Ammonia and LOHC have a very similar TCO for hydrogen LH2 is again the most expensive option, at 4.7 EUR/kg.
transportation. Both are within a range of 2.2 to 2.3 EUR Storage and transportation alone contribute more than
per kilogram of hydrogen, making them the lowest-cost 50% to the overall cost, pushed up by the long journey
options. In the case of ammonia, reconversion (cracking duration and the need for storage along the way as well
it back into hydrogen) makes up more than one third of as when transloading the LH2 to the next transportation
its overall cost. This shows that clean ammonia could be medium.
especially attractive to decarbonize the sectors where it is
already used as a bulk chemical derived from natural gas,
instead of using it as a hydrogen carrier. With LOHC, the
large volumes of carrier required to store and transport
the hydrogen, combined with the long distance involved
in this archetype, increase its capital expenditures. Clean ammonia could
Transportation via LH2 is the most expensive
technology, with TCO for hydrogen transportation of be especially attractive to
2.8 EUR/kg. The major contributing factors are the boil-
off due to long storage times both on the vessel and onsite, decarbonize the sectors
the high amounts of energy required for liquefaction and
the relatively capital-intensive large-scale liquefaction where it is already used
plants and other infrastructure compared to the other
carriers. as a bulk chemical
The so-called landed cost of hydrogen, which
comprises the TCO for hydrogen transportation plus derived from natural gas,
production costs, gives an idea of total overall costs of
hydrogen. We assume production costs for all carriers instead of using it as
of 2.0 EUR/kg. This archetype therefore suggests that
the landed cost of hydrogen for large-scale, imported a hydrogen carrier.
clean hydrogen could reach 4.2 to 4.8 EUR/kg in 2025,
depending on the carrier method. F

ARCHETYPE 2
LOHC is the cheapest option for this archetype, benefiting
from its ease of storage and handling in multimodal
transportation. Yet its TCO for hydrogen transportation
is slightly higher than for archetype 1, at 2.4 EUR/kg,
due to smaller economies of scale. Using ammonia as

16 | Focus
F: Carrier break down
The landed cost of hydrogen, incl. production, storage and transportation for archetype 1 in 2025
[EUR/kg H2]

ARCHETYPE 1:
Large-scale harbor-to-harbor
0.4 0.04 4.8

0.9
1.0 4.3
0.9 4.2

0.4
0.3 2.8 0.5
0.3 2.3 0.9 2.2
0.3 0.1
0.4
0.5
0.1
0.2
2.0 2.0 2.0

2.0 2.0 2.0

Vessel

Vessel

Vessel
H2 production

Conversion

Storage

transportation
Storage

Reconversion

LCOH

H2 production

Conversion

Storage

transportation
Storage

Reconversion

LCOH

H2 production

Conversion

Storage

transportation
Storage

Reconversion

LOHC liquid

LCOH

AMMONIA LIQUEFIED H2 LOHC – BT

OPEX CAPEX
Source: Roland Berger

Hydrogen transportation | 17
ARCHETYPE 3 For example, although LH2 has the highest costs, it
Ammonia and LOHC again have a very similar TCO of might still be the favored solution in cases where high-
2.8 EUR/kg. While ammonia synthesis and its subsequent purity hydrogen is required and reconversion at the
transportation are more expensive than LOHC due to offtaker's site is not possible or wanted. And although
greater handling and storage complexity, ammonia ammonia is a low-cost option for small-scale multimodal
profits from a lower reconversion cost. For LOHC, transportation, there will likely be safety regulations in
dehydrogenation is the major cost driver, contributing place that limit its application or increase the overall
more than 60% to the overall TCO. Energy use and cost cost for ammonia, making LOHC the better option.
of dehydrogenation can be optimized if heat produced Heat integration of existing sources at the offtaker might
from other processes is used. also bolster the case for using ammonia and especially
LH2 costs in this archetype are higher than the other LOHC and could lead to lower required temperatures.
two carriers but lower than in archetype 2, at 3.5 EUR/kg. Ultimately, the best option for a specific supply route
The main reasons are the smaller storage requirements needs to be determined on a case-by-case basis according
and lower travel time (more than 12 days in archetype to individual circumstances.
2, less than 2 days in archetype 3), which result in lower
storage costs and lower daily boil-off losses. At the
same time, the small offtaker in archetype 3 is more
continuously supplied, so does not have the same large
storage requirements as in archetype 2.
There is no single
ARCHETYPE 4
In this scenario, LH2 is the cheapest transportation carrier that best fits all
option at 2.1 EUR/kg, followed by LOHC and ammonia at
2.2 EUR/kg. Due to the short distance and consequently of the transportation
shorter travel time, the storage and transportation costs
in this case are not the major cost drivers, as in the other archetypes. In real life
scenarios. Instead, the conversion and reconversion
costs play the significant role. As the vaporization of scenarios, the operational
LH2 is not cost intensive, it has a cost advantage in this
archetype. G value proposition of a
CONCLUSIONS: IS THERE A "WINNER"? carrier must be weighed
The model shows that there is no one single carrier that up in addition to
best fits all of the transportation archetypes analyzed. So,
in real-life scenarios, the operational value proposition comparing the costs
of a carrier must be weighed up in addition to comparing
the costs of each carrier. of each carrier.
18 | Focus
G: Costs in 2025
Comparison of total cost of ownership for hydrogen transportation by archetype and carrier
[EUR/kg H2]

ARCHETYPE 1: ARCHETYPE 2: ARCHETYPE 3: ARCHETYPE 4:

Large-scale harbor- Mid-scale multimodal Small-scale multimodal Small-scale truck-only
to-harbor transportation transportation transportation

4.7

3.5

3.1
2.8
2.8 2.8

2.4
2.3 2.2 2.2
2.2
2.1

Ammonia LH2 LOHC Ammonia LH2 LOHC Ammonia LH2 LOHC Ammonia LH2 LOHC

OPEX CAPEX

Source: Roland Berger

Hydrogen transportation | 19
H: Costs in 2035
Comparison of total cost of ownership for hydrogen transportation by archetype and carrier
[EUR/kg H2]

ARCHETYPE 1: ARCHETYPE 2: ARCHETYPE 3: ARCHETYPE 4:

Large-scale harbor- Mid-scale multimodal Small-scale multimodal Small-scale truck-only
to-harbor transportation transportation transportation

3.4

2.6 2.6
2.4

1.9 1.9 1.9

1.8
1.7
1.6
1.5
1.5

Ammonia LH2 LOHC Ammonia LH2 LOHC Ammonia LH2 LOHC Ammonia LH2 LOHC

OPEX CAPEX

Source: Roland Berger

20 | Focus
COST OUTLOOK FOR 2025-2035 carriers (storage, transportation and handling) will
become increasingly important for the overall cost
Assuming a fast scale-up of the hydrogen transportation profile. LOHC has an inherent operational advantage
market, all carriers will experience significant cost here compared to the other carriers. This becomes
reductions in the coming decades. Substantial cost particularly apparent in the 2035, full-commercialization
improvements can be expected for the relatively scenario. Here, conversion and reconversion costs will
new LOHC technology, as scale and learning effects have decreased substantially and LOHC's particular cost
materialize. A combination of increasing equipment advantages when looking at more complex and storage-
production volumes, economies of scale for bigger intensive transportation routes (archetype 2 and 3) will
plants, reductions in the cost of the carrier substance and become clearer.
technological improvements in terms of materials, plant
efficiency and standardization for both hydrogenation
and dehydrogenation plants all bode well. They could
see the landed cost of hydrogen for large-scale imports
to Rotterdam fall as low as 2.6 EUR/kg in 2035 (versus
4.2 EUR/kg in 2025), assuming production costs of The full commercialization
1.0 EUR/kg. H
A different cost development path is to be expected of all available carrier
for ammonia. Its synthesis is already a well-established
and fully commercial process, meaning cost reductions technologies will be
related to conversion, storage and transportation may be
limited. However, major cost reductions can be expected accompanied by cost
from the additional cracking and purification part of the
value chain when ammonia is used as a hydrogen carrier, reductions in their
as well as reductions in energy needs.
A decrease in investment costs as well as energy respective conversion and
needs is also expected for the liquefaction of hydrogen.
However, effects are expected to be lower than in the reconversion plants.
LOHC value chain and ammonia cracking due to the use
of the technology already being relatively widespread. In
addition, significant reductions in investment costs for LH2
storage are already factored in, including transportation
and stationary storage, and an improvement in boil-off
losses. I
The full commercialization of the carrier
technologies will be accompanied by cost reductions
in their respective conversion and reconversion plants.
This means that the direct costs of transporting the

Hydrogen transportation | 21
 I: Cutting costs
Assumed carrier cost reduction drivers along the value chain, between now and 2035

H2 CARRIERS

Ammonia LH2 LOHC

Ammonia synthesis via Decrease in Decrease in

Conversion Haber-Bosch process investment cost1 investment cost
fully commercialized
and used at large scale Decrease in energy Decrease in electric
needs energy needs

Decrease in investment
cost for large-scale
H2 VALUE CHAIN

stationary storage, LOHC can use existing

Storage and vessels and trains infrastructure from
Storage and transportation
conventional and
transportation of ammonia fully Decrease in investment
fully commercialized
commercialized and cost for small to
products
available at large scale mid-scale stationary
storage and trucks

Decrease in Well-known and simple Decrease in

investment cost process with limited investment cost
cost reduction potential
Reconversion Decrease in electric Decrease in electric
energy needs Reduction of boil-off energy needs
losses along the entire
Decrease in thermal value chain Decrease in thermal
energy needs energy needs

0% to -10% -10% to -25% -25% to -40% More than -40%

1
For large-scale liquefaction plants (200 tpd)

Source: Roland Berger

22 | Focus
3 / The challenges
VIABLE HYDROGEN TRANSPORTATION REQUIRES HUGE
INFRASTRUCTURE INVESTMENT

T
oday, only a small amount of the hydrogen produced economic viability of hydrogen transportation. In the
in Europe (conventional or from renewables) coming decades, two trends will contribute to the overall
is transported. Rather, most is produced onsite development of the transportation market. First, demand
from natural gas for cost and logistics reasons. But our for clean hydrogen from new sectors will increase, and
TCO results show that transporting hydrogen from non- second, clean hydrogen will need to replace the primarily
European renewable resource abundant regions with gray hydrogen produced onsite today. The European
low hydrogen production costs can be economically Union's Hydrogen Strategy, announced in 2020, aims to
attractive by 2025. The same applies to intra-European mobilize support and stimulate investment to build a
transportation. Indeed, if sufficient amounts of clean full-fledged hydrogen ecosystem from 2025. Presuming
hydrogen cannot be produced onsite, or production costs it is realized, the hydrogen transportation sector will
are greater than 4.0 EUR/kg, transporting hydrogen could develop and deliver clean hydrogen in growing quantities.
be the preferred option. We estimate these will reach more than 800,000 tons
It's not just the TCO results that point to the future from 2025 onwards, initially due to intra-European

J: On the up
Projected hydrogen demand in Europe by supply route [m t H2]

50

40
40%

30

20 33%

10
27%

0
2020 2030 2040 2050

Import European production (transported) European production (onsite production)

Source: Roland Berger

Hydrogen transportation | 23
transportation and then increasingly from non-EU I N F O B OX
imports. After 2030, assuming additional regulatory
pressure on CO2-emitting sectors, transported clean Not green yet: Hydrogen's CO2 footprint
hydrogen will reach a price level that is competitive
enough to enable large industrial offtakers to decarbonize Even when hydrogen is produced via electrolysis from
on a large scale by replacing onsite production with 100% renewable electricity, it is not necessarily 100% green
transported clean hydrogen. J from an end-to-end perspective. Emissions can still arise
As we saw in the cost model, no hydrogen transpor- from conventionally powered conversion and reconversion
tation technology has clear advantages over its rivals. processes, for example, as well as vehicle/ship transportation
All options still need to be proven on a large scale and and the production of transportation vectors (steel pipes, LOHC
have differing needs in terms of technological maturity, materials etc). But the CO2 footprint of hydrogen is becoming
operational performance, efficiency and costs. It increasingly important to offtakers, who want their hydrogen
seems likely that different hydrogen transportation to be as green as possible – and are prepared to pay more if it
technologies will continue to be present in the market is greener than other options.
during the ramp-up and scaling phase. Which technology
will eventually come out on top largely depends on the The CO2 footprint of hydrogen greatly depends on the specific
speed of market uptake in the coming years, the ability requirements of the project and processes for which it is being
to significantly bring down costs and whether it proves used. These include the location, transportation carrier and
a safe and easy-to-operate solution. method, energy supply and where most energy is needed in the
No matter which technologies survive, achieving value chain. This means many opportunities exist to lower the
decarbonization will require massive investment, CO2 footprint. For example, in the case of liquefied hydrogen,
especially in hydrogen production (to increase green most energy is needed upstream to liquefy the hydrogen
electrolyzer capacities) and renewable energy sources. This (which takes place where the hydrogen is produced). Additional
must be targeted at regions with the highest renewables renewable resources could therefore be used to supply the
potential both in Europe and beyond. It is therefore necessary energy for liquefaction. This could mean lower
understandable that current investment discussions emissions than using ammonia or LOHC as transportation
are largely focused on these upstream issues, as well as carriers if, for instance, they rely on natural gas or "gray" grid
enabling offtake downstream. But it must be remembered access to crack the ammonia or dehydrogenate the LOHC at
that hydrogen-driven decarbonization will not be possible the point of destination.
without midstream transportation. In the coming years,
major investments in the transportation infrastructure In the future, it will be obligatory to fully understand and
are required to enable a hydrogen economy at scale. Thus, minimize a project's CO2 footprint. Regulation will play a
the transportation and storage components of the full decisive part here, as will potential future certification
hydrogen value chain require much more attention if the schemes for clean hydrogen. However, as yet, the setup of
hydrogen economy is to be scaled up. the certification process is still ongoing (e.g. via the CertifHy
So, the question is, how can governments and project in the EU), and unless global standards are drawn up,
industry further advance transportation technologies, rules may differ from region to region.
and what actions and investments are required?

24 | Focus
4 / Recommendations
WHAT GOVERNMENT AND INDUSTRY MUST DO TO ENABLE LOW-COST
HYDROGEN TRANSPORTATION

Policymakers, technology suppliers, project developers required upstream large-scale investments in renewables
and energy merchants will all need to take dedicated and electrolyzers and midstream transportation by
action in the coming years to meet the goals of obtaining captive, long-term offtake agreements. For
cost-efficient, low-carbon hydrogen transportation example, in Europe, so-called "Important Projects of
technologies, a successful hydrogen economy and, Common European Interest" (IPCEI) will become the
through them, decarbonization. Here we make six major contributors to intra-European, clean hydrogen
recommendations for government and industry. supply. Similar captive projects are being developed in
the Middle East (with a focus on supplying Europe and
Asia), in the Asia- Pacific region and South America.
GOVERNMENT These projects will need support in the form of direct
CAPEX and OPEX subsidies to close the economic gap

1.
INTE that results from comparatively high clean hydrogen
RVIE
W production and transportation costs and today's
willingness to pay for clean products.
Governments must strongly encourage further
research and development of all hydrogen carriers In a mid- to long-perspective, policy and regulation must
to realize a cost-efficient supply for all offtakers create a level playing field for clean hydrogen. Quotas
and applications for industry and heavy duty transportation sectors can
stimulate demand for clean hydrogen, and tighter CO2
Policy decisions will play a key part in setting the course regulation must make the use of fossil-based solutions
to efficiently leverage large-scale hydrogen transportation more expensive. This will enable the development of
technologies. international merchant markets for hydrogen as a clean
commodity, as happened in the global LNG market.
Liquid H2, LOHC and ammonia reconversion are not
yet deployed at industrial scale. The envisaged cost

3.
reductions can only materialize if significant further R&D INTE
RVIE
investments take place in the short term. W

Enabling market rules must be urgently put in

2.
INTE
place to trigger necessary investment in
RVIE
W hydrogen transportation infrastructure and
carrier technologies
Public financing must be used to fund anchor projects,
helping to cut hydrogen transportation costs and The setting of global standards for hydrogen transpor-
develop hydrogen markets tation via the different carrier options will ensure a
safe, efficient and transparent level playing field for
Current market development is driven by captive projects. cross-national projects. These standards need to define
These are integrated supply chains that de-risk both the the product quality as well as safety and environmental

Hydrogen transportation | 25
requirements. First movers in the sector who establish

5.
large-scale hydrogen import/export hubs, port clusters or INTE
RVIE
industrial hubs will be able to create standards that will W
set the scene for the coming decades. These standards
will also be the enabler for the diversification of hydrogen Carrier providers need to focus on improving their
imports and resulting security of supply. efficiencies, integrating clean energy intakes and
managing the more volatile energy supplies of
renewable sources
INDUSTRY
The gaining of efficiencies is especially important around

4.
INTE
the energy-intensive carrier conversion and reconversion
RVIE
W processes, which often contributes a major part of a
carrier's overall cost. Also key are green options for energy
Industry needs to increase its engagement in intake and integrating plants with off-grid electrolyzers,
hydrogen transportation, and prepare for the which might have volatile production patterns.
industrial ramp-up of the carrier technologies

6.
Large-scale hydrogen transportation is a new field of INTE
RVIE
business for energy companies and merchants, as well as W
logistics companies, offering tremendous opportunities
with further hydrogen market uptake. But the sector is not Businesses that move fast and quickly gain
yet commercially developed, and requires considerably experience will be able to better position themselves
more investment from businesses. in the market and set market standards

Established energy and technology players should study Early movers might be able to secure advantageous
and eventually deploy the new hydrogen transportation positioning by leveraging first operational experiences,
technologies in the integrated clean hydrogen supply realizing cost reductions. In addition, the hydrogen
chain projects that are currently in the making. New transportation segment provides excellent growth
players will emerge and take a pioneering role to push perspectives for strategic investors that engage early
the deployment of the new technologies. on and secure a strategic market position. Financial
investors have shown increasing interest in this new
field of activity and are prepared to take a co-investment
role.

26 | Focus
CREDITS AND COPYRIGHT

AUTHORS CONTRIBUTORS

UWE WEICHENHAIN BRAM ALBERS (Netherlands)

Partner
+49 40 37631-4228 DIETER BILLEN (Malaysia)
[email protected]
ANTONIO BERNARDO (Brazil)

Special thanks to our alumna Anja Benz for her FRANCOIS CASTELEIN (Belgium)
fruitful ideas and support of this study.
EMMANUEL FAGES (France)

DAVID FRANS (Netherlands)

DAN GABALDON (US)

MARKUS KAUFMANN (Germany)

VATCHE KOURKEJIAN (UAE)

SIMON LANGE (Germany)

URS NEUMEIER (Germany)

WALTER PFEIFFER (Germany)

YVONNE RUF (Germany)

BOB ZABORS (US)

We welcome your questions,
comments and suggestions XIANG ZHANG (China)

WWW.ROLANDBERGER.COM

10.2021
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