Recently, the Consultative Committee for Space Data System (CCSDS) has released its CCSDS 123.0-B-1 standard officially. This standard is a general international standard for lossless and near lossless compression of hyperspectral images. To reduce the storage capacity of image data, decrease the data transmission bandwidth, increase the data transmission rate and implement the data transmission in real time, the newest CCSDS algorithm standard is presented in brief and is used to solve the large capacity problem of hyperspectral images. The FPGA-based logic implementation of this algorithm includes the logic description of both a predictor and a encoder. Finally, the lossless compression simulation of hyperspectral images based on FPGA is given. Its compression property is compared with that of the JPEG-LS algorithm. The result shows that the CCSDS compression algorithm can meet the requirement of compression ratio of 2:1 for hyperspectral images.