This paper analyses the transportation and delivery features of hydrogen as energy market evolves and approaches a fully functional Hydrogen economy. Initially physical aspects have been assessed that affect the flow of hydrogen through the existing pipeline infrastructure. Line pack and compressors are the only identified problems that need to be addressed. This is followed by an investigation into the mixing of hydrogen with natural gas gradually. It was revealed that a mix of up to 17% by volume does not have any significant effect, however higher concentration of hydrogen leads to a changeover of high-pressure grid pipelines as well as the end-user applications. It is suggested that initially hydrogen can be introduced in the distribution system, while emphasizing towards developing means for high-pressure transportation of hydrogen fuel gas. Government policies towards encouraging use of hydrogen in an evolving market is important for widespread and early assimilation in energy mix. Renewable sources of energy are recommended for distributed generation of hydrogen along the pipeline network. Copyright (c) 2011 John Wiley & Sons, Ltd.