Executive Summary

Advocates of renewable energy technologies must develop market entry strategies to move the world more rapidly toward a sustainable energy economy. This paper examines an exciting market opportunity that will help achieve that goal: renewables-based hydrogen vehicles. Hydrogen-powered fuel cells used in place of conventional gasoline- and diesel-fueled internal combustion engines would significantly reduce automotive air pollution. Shifting from oil to hydrogen to power U.S. cars also would bolster national energy security. The policy environment for this shift is favorable as public programs to promote alternative fuels are increasing. Further, much of the infrastructure is in place since technologies for natural gas vehicles are similar to the technologies that will be needed in a hydrogen-based transportation system. While hydrogen cars are in the early stages of development, the economics of renewable transportation are improving steadily. Economically competitive hydrogen vehicles, once they reach the market, should find a receptive audience among green consumers.

James Cannon is President of Energy Futures, an energy and environmental consulting firm based in Colorado. He is also Senior Energy Fellow for INFORM, an educational organization specializing in transportation issues. From 1991 to 1994, he served as New Mexico's Energy Policy Project Director. He may be contacted at PO Box 4367, Boulder, CO 80306; (303) 541-0185; jscannon@msn.com.

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