Currently, the increasing price of oil and the possibility of global energy crisis demand for substitutive energy to replace fossil energy. Many kinds of renewable energy have been considered, such as hydrogen, solar energy, and wind energy. Many countries including China have their own plan to support the research of hydrogen, because of its premier features. But, at present, the cost of hydrogen energy production, storage and transportation process is higher than that of fossil energy and its commercialization progress is slow. Life cycle cost analysis (LCCA) was used in this paper to evaluate the cost of hydrogen energy throughout the life cycle focused on the stratagem selection, to demonstrate the costs of every step and to discuss their relationship. Finally, the minimum cost program is as follows: natural gas steam reforming - high-pressure hydrogen bottles transported by car to hydrogen filling stations - hydrogen internal-combustion engines. (C) 2009 Professor T. Nejat Veziroglu. Published by Elsevier Ltd. All rights reserved.