Hydrogen that is manufactured from renewable resources and used in fuel cells can provide sustainable energy to power electric vehicles. The total system, including distribution, refueling and on-board storage of hydrogen may prove superior to batteries recharged with grid power. A hydrogen-powered electric vehicle may offer a market entry for hydrogen and renewable resources in transportation. Attractive transitional applications of hydrogen include use in combustion engine vehicles and production from natural gas. In either case, the environmental and energy policy consequences are significantly less than continued use of oil-derived fuels in conventional combustion engine vehicles.
The logic of pursuing a market entry opportunity for renewables-based hydrogen in transportation is based on the six considerations discussed below. To provide a context for the sustainable hydrogen transportation strategy, comparisons are offered to market entry opportunities in centralized power generation that have received considerable support from renewable energy advocates to date.16