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Hydrogen Cars Are Still Headed for the Highway: Advances in fuel-cell technology and a commitment from the German government to build a fueling network mean automakers haven't given up on hydrogen (Jack Ewing, 9/22/09, Business Week)

Hydrogen was much hyped early in the decade only to be upstaged by hybrids and electrics. Yet on Sept. 10, the German government, along with Daimler (DAI) and a group of energy companies including Royal Dutch Shell (RDS.A) announced plans to build 1,000 hydrogen filling stations in Germany by 2015. Two days earlier, automakers Toyota (TM), Ford (F), General Motors, and Hyundai called on energy companies to build an international network of hydrogen filling stations. By then, automakers say, there could be hundreds of thousands of vehicles on the road that use fuel cells to convert hydrogen to electrical power, with no emissions except steam.

Electric cars will probably be commercially available sooner than hydrogen cars, and they certainly enjoy higher public awareness. But little-noticed advances have helped hydrogen regain credibility with carmakers. Daimler and other companies like Honda Motor (HMC) have reduced the size of hydrogen fuel-cell systems to the point that they fit into a standard midsize car. Honda has 35 test versions of its FCX Clarity fuel-cell cars on Japanese and U.S. roads. Daimler's prototype, a hydrogen-powered Mercedes B-Class compact, can travel 240 miles before taking three minutes to refuel.