Interest in hydrogen as a transportation fuel is growing in Shanghai. Shell Hydrogen, Tongji University, and the City of Shanghai plan to construct a network of refueling stations throughout the city to stimulate fuel cell vehicle and bus deployment. The purpose of this paper is to (1) examine the near-term costs of building hydrogen stations of various types and sizes in Shanghai and (2) present a flexible cost analysis methodology that can be applied to other metropolitan regions. The costs for four different station types are analyzed with respect to size and hydrogen production method. These costs are compared with cost estimates of similar stations built in California. Based on the hydrogen station cost analysis conducted here, we have found that hydrogen costs ($/kg) vary considerably based on station type and size. On-site hydrogen production from methane or methanol results in the lowest cost per kg. The higher cost of truck-delivered hydrogen from industrial sites in Shanghai vs. California is mainly due to feedstock costs differences. Electrolyzer stations yield the highest hydrogen cost. (c) 2007 International Association for Hydrogen Energy. Published by Elsevier Ltd. All rights reserved.