The integration of hydrogen-fueled last-mile delivery vehicles into smart city ecosystems represents a promising pathway to decarbonizing urban logistics. These vehicles, including vans and drones, leverage hydrogen fuel cell technology to achieve zero tailpipe emissions while offering operational advantages over conventional battery-electric alternatives. The following analysis explores the emission reductions, route optimization, and refueling logistics of hydrogen-powered last-mile delivery systems, alongside a comparative assessment of total cost of ownership.

Emission Reductions
Hydrogen-fueled delivery vehicles produce no carbon dioxide or particulate emissions during operation, with water vapor as the sole byproduct. When hydrogen is generated via electrolysis using renewable electricity, the entire lifecycle emissions approach near-zero levels. This contrasts with diesel-powered vans, which emit approximately 2.6 kg of CO2 per liter of fuel consumed. Even battery-electric vehicles (BEVs) exhibit indirect emissions tied to grid electricity generation, though these are typically lower than diesel. In smart cities with high renewable energy penetration, hydrogen vehicles achieve parity with BEVs in terms of emissions, but with added benefits in energy density and refueling speed.

Route Optimization
Smart cities employ data-driven logistics platforms to optimize delivery routes, reducing energy consumption and improving fleet efficiency. Hydrogen vans benefit from longer ranges compared to BEVs, enabling fewer refueling stops and more flexible routing. For example, a hydrogen fuel cell van can achieve a range of 400-500 km on a single tank, whereas a comparable BEV may require mid-shift recharging after 200-300 km. Drones powered by hydrogen fuel cells exhibit similar advantages, with flight durations exceeding those of battery-powered counterparts by 50-100%, enabling broader coverage per mission.
Dynamic routing algorithms in smart cities can prioritize hydrogen refueling stations along high-demand corridors, minimizing detours. Real-time traffic and demand data further enhance efficiency, reducing idle times and energy waste. Hydrogen vehicles integrate seamlessly with these systems due to their predictable refueling patterns and consistent performance across temperature variations, unlike BEVs, which may experience range degradation in extreme weather.

Refueling Logistics
Hydrogen refueling for last-mile fleets requires strategically located stations with high throughput. Smart cities can deploy modular refueling hubs near distribution centers or urban peripheries, leveraging existing gas infrastructure for hydrogen blending or dedicated pipelines. Refueling a hydrogen van takes 3-5 minutes, comparable to diesel, while BEVs often require 30-60 minutes for fast charging or several hours for standard charging. This minimizes downtime for delivery fleets operating on tight schedules.
For drones, micro-refueling stations atop warehouses or dedicated landing pads can enable rapid hydrogen swaps. Lightweight hydrogen storage solutions, such as chemical hydrides or compressed gas cylinders, simplify ground handling. The scalability of hydrogen refueling networks allows incremental expansion aligned with fleet growth, avoiding the grid capacity constraints faced by high-power EV charging hubs.

Comparison with Electric Alternatives
Hydrogen fuel cell vehicles (FCEVs) and BEVs each present trade-offs in last-mile delivery applications. FCEVs excel in use cases demanding long daily ranges, rapid refueling, and high payload capacity. For instance, a hydrogen van can maintain full payload capacity regardless of range, whereas BEVs may sacrifice cargo space for additional batteries to extend range. Drones powered by hydrogen achieve higher payload-to-weight ratios, enabling larger or heavier deliveries per flight.
BEVs benefit from lower energy costs per kilometer where electricity prices are stable and charging infrastructure is widespread. However, hydrogen vehicles reduce indirect costs associated with prolonged charging downtime and battery replacement cycles. Cold weather performance further favors FCEVs, as fuel cells are less susceptible to range loss than lithium-ion batteries in sub-zero temperatures.

Total Cost of Ownership Analysis
The total cost of ownership (TCO) for hydrogen last-mile vehicles depends on fuel prices, infrastructure availability, and vehicle depreciation. Current hydrogen production costs range from $3-$6 per kilogram, with refueling costs per kilometer roughly 2-3 times higher than BEVs in regions with low electricity prices. However, TCO parity is achievable where hydrogen is produced locally from low-cost renewables or subsidized as part of decarbonization initiatives.
Vehicle acquisition costs for FCEVs remain higher than BEVs due to smaller production scales, though this gap is narrowing. Maintenance costs for fuel cells are competitive, with fewer moving parts than internal combustion engines and no battery degradation over time. For drones, hydrogen systems may offer lower lifetime costs due to extended operational lifespans and reduced battery replacement frequency.
Smart city investments in shared hydrogen infrastructure can further reduce TCO by amortizing refueling station costs across multiple fleets. Public-private partnerships and subsidies for green hydrogen production also play a critical role in accelerating cost competitiveness.

Operational Integration in Smart Cities
Deploying hydrogen last-mile delivery vehicles aligns with smart city goals of reducing congestion and pollution. Fleet telematics and IoT-enabled hydrogen storage systems allow real-time monitoring of fuel levels, enabling just-in-time refueling and load balancing across stations. Hydrogen vans and drones can be prioritized for low-emission zones, where their zero-exhaust emissions provide unrestricted access.
Energy resilience is another advantage, as hydrogen storage can buffer intermittent renewable generation. Excess solar or wind power can produce hydrogen during off-peak hours, which is then utilized during high-demand periods for vehicle refueling. This creates a synergistic relationship between smart grids and hydrogen logistics networks.

Challenges and Future Outlook
Key challenges include the upfront cost of hydrogen infrastructure and the need for standardized safety protocols for urban refueling and storage. Advances in electrolyzer efficiency and distributed hydrogen production could mitigate these barriers. Regulatory support, such as streamlined permitting for refueling stations and incentives for green hydrogen adoption, will be critical to scaling deployment.
The future of hydrogen in last-mile delivery hinges on continued innovation in fuel cell durability, lightweight storage, and smart logistics integration. As smart cities expand, hydrogen-powered vans and drones are poised to play a pivotal role in achieving sustainable urban freight mobility.