A coherent energy strategy, addressing both energy supply and demand, taking account of the whole energy lifecycle including fuel production, transmission and distribution, and energy conversion, and the impact on energy equipment manufacturers and the end-users of energy systems, is required. Hydrogen represents one of the most promising ways to achieve this. Hydrogen is not a primary energy source like coal and gas. It is an energy carrier. Producing hydrogen in the large quantities necessary for the transport and stationary power markets could become a barrier to progress beyond the initial demonstration phase. In the short term, the aim of using hydrogen should be to achieve higher energy efficiency and increased supply from renewable energy sources. In the long term, a hydrogen-based economy will have an impact on all these sectors. In view of technological developments, vehicle and component manufacturers, transport providers, the energy industry, and even householders are seriously looking at alternative energy sources and fuels and more efficient and cleaner technologies - especially hydrogen and hydrogen-powered fuel cells. Hydrogen can be burned either to provide heat, or to drive turbines, or in internal combustion engines for motive and electrical power. Many of these technologies are quite mature, although improvements in materials and processes will help them work better and last longer. Fuel cells are in the early stages of commercialization and offer a more efficient hydrogen use. Hydrogen internal combustion engines in vehicles may provide an important route to enable hydrogen introduction while other technologies, such as fuel cell electric drive trains develop.
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