One of Schwarzenegger's mandates was to have enough Hydrogen stations available in California to allow anybody to fill up in any major city; and allow travel anywhere in the state. IIRC they met that mandate earlier this year.
But yeah, the kicker is the production of the Hydrogen, and the recipe for it is water + electricity gives you hydrogen and oxygen. If it can be produced with solar, wind, or hydro then it is a really good thing. But if nobody makes a Hydrogen car, then the demand for electricty keeps getting met with coal and gas firing plants.
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