The increasing price of oil could give emerging technologies such as hydrogen and fuel cells a chance to increase their market share.

According to reports in the Times, money is being spent throughout the automotive industry on new technologies that could replace oil.

Johnson Matthey estimates that at least GBP1 billion is being spent on hydrogen energy by firms such as Shell, Rolls Royce, Ford, BMW and Honda.

Martin Green, Development Director at Johnson Matthey Fuel Cells, told the newspaper that hydrogen production is possible on a large scale.

He said that the US makes nine million tonnes a year, which would be enough to power about 40 million cars.

It can be produced by extraction from water using electrolysis as well as nuclear, solar or wind power but there are storage problems compared to other fuels.

"The real challenge is building the infrastructure to support an economy based on hydrogen," Mr Green explained.



Source:

Energy adviser puts forward powerful case for hydrogen. 24/05/08
http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article3994594.ece