Many are looking to hydrogen as the next great energy source to fuel the world's increasing demand. Theoretically, hydrogen is a great fuel source. Fuel cells strip electrons off hydrogen atoms to generate electricity (since electricity is just a stream of electrons). Heat and water are produced as byproducts.

In his book, A Thousand Barrels A Second, Peter Tertzakian discusses the main problem with hydrogen - where do we get it? Sure, hydrogen is the most abundant element in the universe, but virtually all of the hydrogen in the universe is contained in stars. On Earth, most of the hydrogen is combined with oxygen as water.

So what's the problem? Getting into chemistry, a water molecule is comprised of 2 hydrogen atoms and 1 oxygen atom. The bond between them is extremely stable and requires a decent amount of energy to break. As Tertzakian says

In order to liberate it, energy that we're trying to avoid using must be expended before hydrogen can generate electricity. In other words, hydrogen is not a new energy source at all, but actually an intermediary energy carrier that slots nicely into our existing supply chains.

In 2005, President Bush pushed for new nuclear power plants to be built. Producing hydrogen for fuel cell vehicles was one of the reasons why. Still, with over 230 million gasoline powered cars in the US, it would take about 350 new nuclear power plants to produce that much hydrogen. And how many people really feel safe with a nuclear power plant sitting in their backyard?

Perception and cost are also factors. As we're seeing with hybrid cars, people have to be sold on the idea that the costs justify the means. Talking on a national level is one thing, but when it starts to affect your lifestyle, it's a bit different.

People will want assurances that a fuel cell vehicle is just as safe, just as easy to start up, just as reliable, just as easy and convenient to fill up, and has the same range and convenience as the gasoline powered car or SUV. But having the same utility as a regular vehicle today still won't be good enough. If a DVD player was only as good as a VCR, what would be the incentive to switch? As it turns out a DVD player has compelling utility over a VCR - no need to rewind, direct access to segments, far superior clarity, and so on

With the passing of the bill to authorize prizes for fuel cell research, Congress likely thinks they will attract more researchers - like the $10 million Ansari X prize did for space travel. There will be 4 prizes of $1 million awarded every 2 years up to 2016 and additional prizes of $4 million for complete prototype vehicles.