The core objective of this work is to analyse the possible future relevance of hydrogen from renewable energy sources in the transport sector from an economic point-of-view with special focus on Austria. The analysis is conducted in a dynamic framework until 2050. The major conclusion of this analysis is that in the transport sector a significant share of hydrogen can be expected - under very favourable conditions with respect to the development of the key parameters - at the earliest by about 2030. The major reason for this is that the costs of hydrogen and fuel cell vehicles are still very high. Only after further technological developments linked to a significant cost reduction of fuel cell vehicles and corresponding favourable political support, hydrogen from renewable energy sources could become a competitive energy carrier for transport. (C) 2008 International Association for Hydrogen Energy. Published by Elsevier Ltd. All rights reserved.