This paper describes work undertaken in the MATISSE project to explore the potential for a sustainable hydrogen transition within Europe and the implications for infrastructure investment. Results from the ASTRA model show that a transition to hydrogen transport fuels would have an increase in GDP, employment and investment; and growth in a number of sectors (electronic, chemical, mechanical, automotive) associated with FCV technology. A hydrogen diffusion model shows that in a few years after 2040 all cars in Germany could be hydrogen driven cars. Fast build up of a network of at least 500 filling stations (in urban areas and at highways) is very important for the market acceptance of hydrogen vehicles and compared with subsidies for vehicles and fuel the necessary investments are very small. For fuel infrastructure: · Only a total amount of approx. 200 million Euros are necessary for infrastructure build up in urban areas · Additional support is needed for installation of hydrogen filing stations at highways (approx. 100 million Euros).