Can Hydrogen Go the Distance? America’s Delivery Dilemma

Hydrogen output is surging, but weak transport networks could slow the clean energy transition

28 Jan 2026

America’s hydrogen industry is picking up speed, especially in cleaner ways to make the fuel. Yet a quieter problem is coming into focus. Getting hydrogen from the plant to the user is often harder than producing it in the first place.

As new projects come online, distribution is emerging as a serious bottleneck. Researchers and industry analysts point to a widening gap between rapid gains in production and slower progress in pipelines, transport fleets, and delivery systems. If that gap persists, scaling up hydrogen could prove far more expensive than planned.

Hydrogen is a tricky fuel to move. It takes up more space than oil or gas and usually must be compressed or chilled to extreme levels. It can also weaken certain metals, raising concerns about leaks and long-term durability in existing pipelines. Over long distances, these challenges add cost and complexity. Faced with that reality, many companies have chosen to focus first on making more hydrogen, not moving it.

Those tradeoffs are starting to show up on balance sheets. For many uses, especially liquid hydrogen for vehicles or remote industrial sites, transport and delivery make up a large share of the final price. Even if production costs fall, distribution can keep hydrogen from competing with conventional fuels.

Washington is taking notice. The U.S. Department of Energy has flagged delivery infrastructure as a key risk to the success of regional hydrogen hubs now in development. Federal programs are backing pilot pipelines and storage projects, but industry leaders say slow permitting and unclear rules remain major hurdles.

Some companies are trying to get ahead of the problem. Plug Power is working to better sync production with customer logistics, while Cummins is teaming up with partners to align new plants with downstream infrastructure. These efforts signal a shift in thinking across the sector.

The takeaway is simple. Hydrogen’s promise does not rest on production alone. Its future hinges on whether it can be moved safely, reliably, and at a reasonable cost. Without real progress on transport and delivery, the clean hydrogen boom may never reach full stride.