Since the Industrial Revolution, the world's economies have been hydrocarbon economies-powered by oil and other fossil fuels. In the future, the United States may become a Hydrogen Economy, in which hydrogen becomes the fuel of choice used throughout the transportation, industrial, and electric power sectors.

Just as gasoline, electricity, and natural gas are commonly available today, in the Hydrogen Economy, hydrogen would be available to everyone to power vehicles, homes, offices, and industrial facilities. For example, hydrogen-powered fuel cell cars would become as commonplace as gasoline and diesel-powered vehicles are today.

Users would tap centralized hydrogen power generating facilities, hydrogen-based power parks and fueling stations in communities, and even from systems at user premises. Hydrogen fuel would be produced cleanly and cost-effectively from a range of sources such as biomass, water, nuclear energy, and fossil fuels. The Hydrogen Economy is envisioned to develop over the next several decades.

Widespread use of hydrogen power in the United States could help address concerns we citizens have about energy security, economic security, and pollution in our environment.

Hydrogen and fuel cell technology have the potential to strengthen our national energy security by reducing our dependence on foreign oil. We consumers are highly dependent on foreign sources of oil because half of the oil used to produce the gasoline for our cars is imported. To reduce this dependency, hydrogen for use in vehicles can be produced from water using renewable sources of energy that are here in the United States–wind, solar, biomass, and nuclear. This is an opportunity for a more secure, diverse, and sustainable U.S. energy supply. This could also reduce the cost to taxpayers of protecting Middle East oil sources.

Hydrogen has the potential to reduce pollution significantly. Hydrogen-powered fuel cell vehicles have no polluting exhaust, and could completely remove cars as a source of pollution. The air will be cleaner and less likely to contribute to respiratory problems, improving the quality of life for those citizens who now live in pollution-affected metropolitan areas.

Hydrogen fuel cell vehicles will be much more energy efficient than today's cars. For example, the internal combustion engines in today's cars convert less than 30 percent of the energy in gasoline into power that moves the vehicle. Vehicles using electric motors powered by hydrogen fuel cells utilize 40-60 percent of the fuel's energy. So even if you pay a bit more for hydrogen fuel, you will get more mileage out of it than from an equivalent volume of gasoline.

Hydrogen is the lightest, most basic and abundant element in the universe. Its chemical symbol is H. Since it combines easily with other elements, hydrogen is rarely found by itself in nature, but rather as part of other compounds. For example, when hydrogen (H) is combined with oxygen (O), water (H2O) is produced. On earth, hydrogen is mostly found in water, and can be separated out using electricity or high temperature. Hydrogen is an "energy carrier" not an energy source, meaning that it stores and delivers energy in a usable form.

Hydrogen could power many things. Hydrogen fuel cells could provide electricity and heat for single homes, or supply the energy needed to run a large commercial office building or factory. Such fuel cells could provide a small amount of electricity needed for a community electrical grid, or a large amount of electricity to power a large grid network. Hydrogen fuel or hydrogen fuel cells could power cars, trucks, buses, and even ocean fleets. Hydrogen could provide longer-lasting power for portable devices such as cell phones and laptop computers.

Hydrogen can be produced using a variety of energy sources–fossil fuels, coal, natural gas, biomass, solar, wind, geothermal, hydropower, and nuclear power.

The hydrogen can be captured using several methods including: thermo chemical processes that involve heat, electrolytic processes that involve using electricity to separate water into hydrogen and oxygen, and photolytic processes that use sunlight to extract the hydrogen from water. Since it can be produced from several energy sources using these various methods, hydrogen can be produced at large production plants and transported to users, or it can be produced locally using small generators onsite at refueling stations.

Hydrogen could be delivered to customers from centralized hydrogen power generating facilities, community-based power parks and fueling stations, distributed facilities in rural areas, and even at user premises from small electrolyzer systems that use electricity to make hydrogen from water.

Hydrogen's main use as a fuel today is in the space program, where it fuels both the main engine of the Space Shuttle and the onboard fuel cells that provide the Shuttle's electric power.

The biggest impediment to using hydrogen as a practical, everyday source of power is cost. For example, today the cost of hydrogen is greater than the cost of gasoline. However, new technologies and advancements will continue to cause the cost of hydrogen to decline, making it more cost competitive. Or, it may become more cost competitive if there are steep increases in the cost of gasoline. However, even if hydrogen is more expensive by weight or volume than gasoline, hydrogen cars will be more efficient than gasoline cars.

Other advancements are needed. Advancements in storage are needed to store enough hydrogen onboard a vehicle for a driving range of about 300 miles, within the constraints of typical auto vehicle weight, volume, efficiency, safety, and cost. Refueling time must be reduced. Also, right now, there is no large-scale infrastructure for distributing hydrogen fuels to consumers. That will be needed to make hydrogen a practical and widely used fuel.

Notable progress has been made, however, in reducing the cost of hydrogen-related technologies. For example, the cost of producing hydrogen from natural gas at a refueling station has already been reduced by more than 25 percent. And the cost of fuel cells has been reduced by a factor of ten over the past decade.

Because hydrogen technology is in development, it is hard to say how much hydrogen power will ultimately cost. Its cost effectiveness will depend on the price of conventional fuels, any fuels used to make hydrogen, the rate of technical advancements in reducing hydrogen production costs, and the efficiency of vehicles using hydrogen power.

For example, the cost of hydrogen is now greater than the cost of gasoline. But, new technologies and advancements will continue to cause the cost of hydrogen to decline, making it more cost competitive. The cost of producing hydrogen from natural gas at a refueling station has already been reduced by more than 25 percent. Even if hydrogen is more expensive by weight or volume than gasoline, hydrogen cars will be more efficient than gasoline cars, and that could make hydrogen more competitive on a cost per mile basis.

Yes. In the Hydrogen Economy, cars, trucks, buses, and other vehicles will run on hydrogen-powered fuel cells. Electric vehicles that use fuel cells and hydrogen are under development by all of the world's major auto manufacturers, and may serve as mainstream vehicles in about a decade. Several of these companies have already deployed a few of these vehicles in real world applications on a demonstration basis.

Fuel cells combine hydrogen and oxygen in an electrochemical reaction to generate electricity. They can provide energy for systems as large as a utility power station, as small as a laptop computer, and just about everything in between, including vehicles. A single fuel cell produces enough electricity for the smallest application. To provide power for most applications, such as powering a vehicle, individual fuel cells are combined into a fuel cell stack perhaps consisting of hundreds of fuel cells.

Fuel cells and batteries are similar in that they both use a chemical reaction to generate electric power. In the battery, the chemical agents that react are stored within the battery. They are used up during the chemical reaction and the battery must be recharged or discarded. In a fuel cell, the hydrogen is stored externally and combined with oxygen (from air), so the fuel cell will continue producing electricity as long as the fuel is supplied.

When fueled by hydrogen, fuel cells produce no carbon or other toxic emissions, only power and water vapor.

Fuel cells are not a new technology. Sir William Robert Grove invented them in 1839. However, it is only now that their widespread commercial use is becoming economically feasible, thanks to technical advancements that are improving their performance and reducing their cost.

We don't need to end all imports of foreign oil. We just need to end our dependency on foreign oil. Presently, the United States consumes 25 percent of the world's total oil production, yet possesses only 2 percent of the world's proven oil reserves. Petroleum imports supply more than 55 percent of U.S. domestic needs and these imports are projected to increase to more than 68 percent by 2025. Most of the 20 million barrels of oil we use each day is used to power highway vehicles. And half of the oil used to produce the gas for these cars is imported.

As a Nation, we must reduce our dependency on foreign supplies of energy. Our Nation can achieve this goal by shifting to a Hydrogen Economy. Since hydrogen can be derived from a variety of non-petroleum based energy sources available here in the United States–coal, natural gas, wind, biomass, solar energy, and nuclear power–this flexibility would make us less dependent upon oil from foreign countries.

The Federal government has set forth a timetable for transitioning the United States to a Hydrogen Economy. Between now and about 2015, the government and the private sector will research, develop, and demonstrate hydrogen energy technologies. From about 2010 to 2025, hydrogen technologies such as portable power and stationary transport systems would begin to reach the market place, and investments in building a hydrogen energy infrastructure would begin. From about 2015 to 2035, hydrogen fuel cell manufacturing, and the infrastructure for hydrogen production and delivery would scale-up. Finally, from about 2025 to 2045, the Hydrogen Economy will emerge and come to full flower.

The U.S. Department of Energy is developing technologies needed to make hydrogen fuel cell vehicles practical and cost effective for large numbers of Americans to choose to use such vehicles by 2020, though some predict that fuel cell vehicles will reach mainstream transportation even earlier, in the 2013-2018 timeframe. All major auto manufacturers have hydrogen vehicle research and development projects underway. And several of these car companies have demonstrated hydrogen cars or will do so in the next few years.

Although the potential benefits of hydrogen and fuel cells are significant, many challenges must be overcome before hydrogen and fuel cells reach the mass commercial market.

• Cost is the biggest impediment to using hydrogen more widely as a fuel. Right now, hydrogen is more expensive to produce than conventional fuels–about three to four times as expensive as gasoline–and the current system for delivering conventional fuels to consumers cannot be used for hydrogen. Many expensive changes must be made in our nation's energy infrastructure to accommodate hydrogen.
  
  
• The cost of fuel cell power systems must be reduced before they can be competitive with gasoline internal combustion engines. Some fuel cell designs require expensive, precious metal catalysts, and others require costly materials that are resistant to extremely high temperatures. Another key technical challenge is making fuel cells as durable, dependable, and operationally capable as current automotive engines.
  
  
• Because hydrogen is less dense than conventional fuels, it is difficult to store in amounts sufficient for most applications in a reasonable-sized space. This is a problem for hydrogen-powered fuel cell vehicles, which must store hydrogen in compact tanks. On-board hydrogen storage systems must enable a driving range of greater than 300 miles while meeting vehicle cost and performance requirements without intruding on vehicle cargo and passenger space.
  
  
• Hydrogen, like gasoline or any other fuel, has safety risks and must be handled with caution. While we are quite familiar with gasoline, handling hydrogen will be new to most of us. Therefore, developers must design hydrogen fuel storage and delivery systems for safe everyday use, and consumers must become familiar with hydrogen's properties and risks.
  
  
• We have no widespread distribution channel for getting hydrogen to the masses. A new cost effective and energy efficient hydrogen delivery infrastructure is needed.
  
  
• Finally, consumers must embrace hydrogen and fuel cell technology before their benefits can be realized. This is especially true for transportation, residential, and portable applications, where consumers will interact with hydrogen fuel cell technology directly. Consumers may have concerns about the dependability and safety of fuel cell-powered equipment, just as they have had concerns about other modern devices when they were introduced.

Ensuring the safe use of hydrogen as a common fuel is of paramount importance for a successful transition to the Hydrogen Economy. Fortunately, there appear to be no technical or safety barriers that prevent the use of hydrogen for fuel.

Any fuel we use is flammable and inherently dangerous. But, when hydrogen is handled with care, handled and stored appropriately like other gaseous fuels, it is safer than the fuels in standard use today. It is so light that, with proper ventilation, it dissipates rapidly into the air, greatly reducing the chance of fire. And, unlike other gaseous fuels, hydrogen is non-toxic, so it is neither harmful to breath nor harmful to the environment.

Hydrogen has been handled safely in large quantities for many years. It is used in spacecraft, in the foods and electronics industries, and in industrial applications such as petrochemical production. Hydrogen's safety, like that of gasoline and diesel fuel, will be ensured through appropriate engineering, safe handling practices, and adherence to proper regulations, codes, standards, and best practices.

Hydrogen was not the big player in the burning of the Hindenburg. The coating of the airship was treated with two components of rocket fuel. When the Hindenburg was docking on that fateful day, an electrical discharge ignited the skin and fire raced over the surface of the airship. Most of the people who perished that day, died from jumping or falling to the ground. Only two people died from burns, and their burns have been traced to the burning coating and on-board diesel fuel. The Hindenburg's hydrogen burned quickly, and upward and away from the people.

Hydrogen is the key to a cleaner energy future. When hydrogen is used to power fuel cells, they emit no pollution and no greenhouse gases. That's good for our health and the environment.

Greenhouse gases are thought to be responsible for changes in global climate. They trap excess heat from the sun's infrared radiation that would otherwise escape into space, much like a greenhouse is used to trap heat. When we drive our cars, and light, heat, and cool our homes, we generate greenhouse gases. But if we used hydrogen in very high efficiency fuel cells for transportation and power generation, we could significantly reduce greenhouse gas emissions–especially if the hydrogen is produced using renewable resources, nuclear power, or clean fossil technologies.

The combustion of fossil fuels by electric power plants, vehicles, and other sources is responsible for most of the smog and harmful particulates in the air. Fuel cells powered by pure hydrogen emit no harmful pollutants. The cleaner the air, the fewer breathing problems people will have.

Our economy is heavily dependent on reliable energy supplies. Hydrogen can diversify our fuel supply, helping insulate our economy from shocks caused by instability in the supply of foreign oil and fluctuating oil prices.

The economic stakes for the Hydrogen Economy are high. A recent report by PriceWaterhouseCoopers projects global demand for all fuel cell products (portable, stationary, and transportation power applications) will reach $46 billion annually by 2011 and grow to more than $2.5 trillion annually by 2021. If the United States is a leader in hydrogen and fuel cell technology development and commercialization, it can better secure a competitive market position in future energy technologies, products, and services. That will create new jobs in fuel cell manufacturing, sales, and service, as well as in hydrogen production and storage. Fuel cell technology will appeal to utilities in developing countries, creating markets for our exports and reducing our foreign trade deficit.

The Federal government is involved in activities related to regulations that will help ensure safe development and deployment of hydrogen technologies. These activities focus on: protocols for the production, handling, transportation, and use of hydrogen during research, development, testing, and demonstration; and creation and adoption of codes and standards for the use of hydrogen and fuel cells in commercial, residential, and transportation applications.

Two principal areas of regulation affecting hydrogen transportation safety are overseen by the U.S. Department of Transportation. These include the regulation of pipelines and hazardous materials shipments, and the safety of vehicle fuel systems and hydrogen-powered vehicles.

The Federal Railroad Administration enforces hazardous materials regulations within their operating environment. The Federal Aviation Administration may set additional regulations and restrictions governing the quantities and packaging of hazardous materials transported by air. In addition, other Federal agencies, such as the Environmental Protection Agency (EPA), have statutory authority related to the use or disposal of hydrogen.

The dynamic nature of fuel cell development and variations in existing technology make it difficult to generalize about how hazardous waste regulations apply to fuel cells. Based on an EPA review, it appears that some hydrogen fuel cells would likely be considered hazardous waste. However, design changes to reduce the metals content and weight of fuel cells may result in vehicle fuel cells that are less hazardous as waste.

In addition to Federal standards and regulations, state and local governments may have more stringent regulations that are applicable to fuel cell waste.

There is worldwide interest in hydrogen and fuel cell technology, as reflected in the dramatic increase in public and private sector spending since the mid-1990s. Governments in Europe, Asia, and Canada are investing heavily in hydrogen and fuel cell research, development, and demonstration. Many countries realize that fuel cells and hydrogen are the most likely replacement for our current energy system, so they are laying the groundwork today, for the industries and power sources of tomorrow.

In his 2003 State of the Union address, President Bush committed to invest $1.2 billion over five years in a Hydrogen Fuel Initiative to develop technology for hydrogen fuel cells that would power cars, trucks, homes, and businesses with no pollution or greenhouse gases. The Hydrogen Fuel Initiative–along with the related FreedomCAR program–is designed to make it practical and cost effective for Americans to use hydrogen fuel cell vehicles by 2020. The President proposes spending $289 million on the Hydrogen Fuel Initiative during fiscal year 2007. The U.S. Department of Energy is leading this initiative with investments in research, technology development, and the demonstration of hydrogen and fuel cell technologies.

Even more Federal funds may be invested in the future. On August 8, 2005, President Bush signed the Energy Policy Act of 2005, the first comprehensive national energy policy in a decade. The legislation authorizes more than $4 billion during fiscal years 06-10 for hydrogen and fuel cell research, development, demonstration, and government procurement programs.