Hydrogen distribution falling behind other clean technologies

Hydrogen transport infrastructure is developing at half the pace of other clean technologies, which could put billions in clean energy investment at risk, new research suggests.

The study from Edinburgh Business School at Heriot-Watt University shows that while other hydrogen technologies improve and costs fall, distribution expenses could take up a large share of hydrogen system budgets, significantly limiting overall efficiency and growth of the hydrogen sector.

The research team analysed 777,000 patents and 1.3 million citations spanning 182 years of hydrogen technology development, revealing clear differences in progress across the system.

The findings reveal where the hydrogen system is most vulnerable, showing that the pipes, terminals and liquefaction plants needed to move hydrogen safely and affordably are lagging behind. This matters because distribution links the entire hydrogen system together. Without it, production remains concentrated near manufacturing sites, meaning the wider economy cannot make use of hydrogen and the climate benefits never materialise.

Dr David Dekker, Research Fellow at Edinburgh Business School, Heriot-Watt University, and lead author of the study, said: “Distribution will become the dominant cost in any hydrogen system.

"Even as we get better at producing and using hydrogen, getting it where it is needed stays expensive.

“The problem is structural. Distribution requires massive pipeline networks and liquefaction plants that need billions in capital investment. Safety regulations and permitting processes are complex, so progress is slow.

“Most distribution infrastructure sits with a handful of major companies. They tend to share less knowledge than innovators in other hydrogen fields. In capital-intensive sectors where competitive advantage matters, companies are far less likely to publish innovations openly. This slows progress across the entire sector.”

Professor Dimitris Christopoulos, Director of Research at Edinburgh Business School and Heriot-Watt University’s School of Social Sciences, who co-authored the findings, said: “We cannot have a hydrogen economy without the infrastructure to move it around. Right now, that is the fundamental missing piece.

“The Paris Agreement, adopted in 2015, requires rapid scaling of clean energy technologies, but infrastructure bottlenecks could undermine major investment programmes.

"The question now is whether policymakers and industry will act before distribution costs make hydrogen uncompetitive.”

Professor Mercedes Maroto-Valer, who leads the UK Industrial Decarbonisation Research and Innovation Centre (IDRIC), said: "Without targeted action to de-risk infrastructure, distribution costs and uncertainty will continue to hold the market back.”

Targeted policies, incentives for greater knowledge sharing, the creation of open technical standards and publicly backed demonstration projects would all reduce risk for industry and speed up the development of viable distribution solutions.

This work was supported by UKRI ISCF Industrial Challenge through the UK Industrial Decarbonisation Research and Innovation Centre (IDRIC).