Solving Hydrogen’s Last Mile with Ammonia Networks

The Overlooked Challenge in the Hydrogen Economy

Much of today’s conversation around hydrogen infrastructure focuses on large-scale transport. Discussions often center on cross-border pipelines, liquefied hydrogen shipping, and global hydrogen trade routes. These developments are essential for building a future hydrogen economy.

However, for many companies that actually use hydrogen, the challenge is often much closer to home.

A manufacturing facility may require only a few hundred kilograms or a few tons of hydrogen per day. Even if a production site is located relatively nearby, delivering hydrogen reliably and economically can still be difficult.

This is what could be described as the “last mile” of hydrogen distribution—the step between regional hydrogen supply and smaller end users.

While large infrastructure projects capture headlines, solving this last mile may be equally important for enabling practical hydrogen adoption.

Why the Last Mile Is So Expensive

Hydrogen logistics are inherently challenging. Unlike many traditional fuels, hydrogen has a very low volumetric energy density, meaning it occupies a large volume relative to the amount of energy it contains. This characteristic creates practical challenges for transportation and storage. (https://www.sciencedirect.com/science/article/abs/pii/S136403212500588X)

To move hydrogen efficiently, it must typically be:

• compressed to high pressures
• liquefied at extremely low temperatures
• or converted into another chemical carrier

Each of these steps requires specialized equipment and additional energy.

For small hydrogen users—such as distributed industrial plants or pilot hydrogen projects—these logistics can become a major cost component. Deliveries often rely on compressed hydrogen trailers, which carry limited volumes and require frequent transport cycles.

As a result, even when hydrogen production costs decline, transport and delivery can remain a significant barrier for smaller consumers.

A Gap in Today’s Hydrogen Infrastructure

Another reason the last-mile challenge persists is the limited development of hydrogen infrastructure.

Dedicated hydrogen pipelines exist in a few industrial regions, but they remain relatively rare compared with natural gas networks. In many locations, hydrogen supply chains are still fragmented and project-based.

This means that many users must rely on truck delivery, which works for early deployment but becomes inefficient as demand grows across multiple smaller sites.

As hydrogen adoption expands, the industry will need more flexible and scalable ways to connect supply hubs with distributed users.

Green Ammonia as a Hydrogen Carrier

One promising approach involves using green ammonia as a hydrogen carrier.

Ammonia (NH₃) has long been produced and transported globally for fertilizer and industrial use. Today, it is gaining attention as a potential energy carrier for hydrogen.

Compared with pure hydrogen, ammonia offers several advantages for storage and transport.

For example, liquid ammonia can store significantly more hydrogen per unit volume than liquid hydrogen, with volumetric hydrogen densities of around 121 kg H₂ per cubic meter compared with about 71 kg for liquid hydrogen.

Ammonia is also easier to liquefy, requiring temperatures around –33°C at atmospheric pressure, far less extreme than hydrogen’s liquefaction temperature of about –253°C. (https://www.mdpi.com/2071-1050/16/2/827)

These physical properties can make ammonia easier and potentially more economical to transport and store.

Building Practical Hydrogen Distribution Networks

Beyond its physical advantages, ammonia benefits from something equally important: existing infrastructure.

Ammonia has been traded globally for decades, supported by established:

• storage terminals
• shipping routes
• handling standards
• transport logistics

This existing network could help accelerate the development of hydrogen supply chains.

In practice, ammonia-based distribution could work in several ways:

• ammonia transported from production hubs to regional terminals
• delivery to industrial parks or local distribution points
• hydrogen released through ammonia cracking where needed

For smaller hydrogen users, this model may provide access to hydrogen without requiring dedicated hydrogen pipelines or large-scale liquefaction facilities.

In other words, ammonia could act as a bridge between centralized hydrogen production and distributed demand.

A Complementary Pathway for Hydrogen Logistics

Ammonia is unlikely to replace hydrogen in every application. In many cases—such as fuel cells or direct hydrogen use—hydrogen will still be the final energy carrier.

However, when it comes to hydrogen logistics, ammonia could play a complementary role.

By leveraging existing ammonia transport networks and its favorable storage properties, green ammonia may help address one of the most practical challenges in the hydrogen economy: delivering hydrogen efficiently to smaller users.

Industry Example: Ammonia Cracking Near Hydrogen Demand

Several industrial projects are already exploring how ammonia can support practical hydrogen distribution.

For example, Air Liquide has launched an industrial-scale ammonia-to-hydrogen pilot facility at the Port of Antwerp-Bruges in Belgium. The unit can convert around 30 tons of ammonia per day into hydrogen, demonstrating how ammonia can be transported through existing logistics networks and then converted back into hydrogen near end users. 

The concept is simple but powerful. Instead of transporting hydrogen directly to every customer, ammonia can be delivered to regional hubs or industrial clusters where it is “cracked” back into hydrogen. This allows hydrogen to be supplied closer to where it is actually consumed, reducing the need for dedicated hydrogen transport infrastructure.

Similar efforts are also underway in Japan, where companies such as Mitsubishi Heavy Industries are developing decentralized ammonia cracking systems designed specifically for medium-scale hydrogen demand sites. 

These projects illustrate how ammonia-based supply chains could support more flexible hydrogen logistics—particularly for distributed or smaller hydrogen users.

Looking Ahead

The global hydrogen economy will depend on more than large export projects or long-distance pipelines. It will also depend on practical solutions for connecting hydrogen supply with real-world users.

Solving the last mile of hydrogen distribution—especially for distributed and small-scale demand—will be a key part of that journey.

In this context, green ammonia may offer an important piece of the puzzle, helping build flexible and scalable hydrogen logistics networks for the future.