The US is making progress towards a hydrogen economy, but has some way to go, according to a a Bush administration official.

David Garman, energy undersecretary within the US government, told a panel of senators that partnerships to develop fuel cells were "on track", Associated Press reported, with hydrogen cars expected to be in showrooms within 15 years.

Mr Garman said that although researchers had reduced the cost of fuel cells from $275 to $110 per kilowatt over three years, more research was required to reach $30 per kilowatt and reduce the cost of producing hydrogen.

"We need time. More money doesn't necessarily help. There is a learning process that has to happen," said Mr Garman.

J Byron McCormick, executive director of General Motors' fuel cells subsidiary, said that the car industry faces the "valley of death" for new technologies without long-term incentives from the government, before the market has matured.

"Since low volume equals high cost in the automotive business, early vehicles even at moderate volumes will still be expensive," he said.

Fuel cells, using hydrogen, are set to be a growth area for platinum and pgm demand as the metals are used as catalysts in the technology, which is finding increasing an increasing number of applications.



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