The Hope for Hydrogen

There has been significant debate on whether hydrogen offers real promise as an alternative fuel strategy. This paper argues that hydrogen must be pursued as part of a long-term strategy, and that hydrogen policy must complement and build on near-term policies aimed at energy efficiency, greenhouse gas reduction, and enhanced renewable energy investments. The hydrogen strategy should be considered largely because of the lack of a more compelling long-term option. Although there are significant challenges to overcome (such as the high cost of fuel cells and the supply of hydrogen), there are several advantages that make hydrogen worth pursuing. First, hydrogen fuel cell vehicles appear to be a superior consumer product desired by the automotive industry. Second, the potential exists for dramatic reductions in the cost of hydrogen production, distribution and use. Third, hydrogen provides the potential for zero tailpipe pollution, near-zero well-to-wheels emissions of greenhouse gases, and the elimination of oil imports. Hydrogen accesses a broad array of energy sources, potentially provides broader and deeper societal benefits than alternatives, potentially provides large private benefits, has no natural political or economic enemies, and has strong industrial support in the automotive industry. In order for hydrogen to succeed, near-term and long-term policies should encourage both public and private investment in hydrogen science and technology efforts.