The utilization of large-scale grid-connected consumption of renewable energy faces many difficulties due to its volatility, randomness and instability, which seriously threatens the safety of the grid system. With the advantages of high combustion caloric value, easy large-scale storage, diverse conversion forms, and environmental friendliness, hydrogen has become an ideal energy storage medium to solve the problem of renewable energy grid connection and attracted the attention of academia and industry in the past decades. However, the application of hydrogen is limited, and coal hydrogen production is still the main approach to gain hydrogen, while water electrolysis is not widely used, and in China, it accounts for only 1%. In this paper, a model of hydrogen production, transportation and utilization is constructed to conduct economic analysis. The results show that the alkaline water electrolysis, pipeline and hydrogen refueling station mode has the lowest cost at 49.83 RMB/kg, while the proton exchange membrane electrolysis, gas trailer and hydrogen refueling station mode has the highest cost at 84.98 RMB/kg. In addition, oxygen as a by-product is also considered in this paper. Results indicate that oxygen cannot bring benefits due to its high transport and storage cost.