Hydrogen powers automotive fuel cells. Hydrogen can be generated through the processing, or "reforming," of natural gas or liquid fuels. Given the limited pipeline network for hydrogen, on-site generation of hydrogen at the refueling station is the most likely solution for supplying fuel cell vehicles. Two technologies have been proposed to date for "distributed hydrogen production": methane (natural gas) reforming and electrolysis. While hydrogen generation by electrolysis is competitive for small refueling applications, a number of studies have shown that reforming is the most cost-competitive method for providing hydrogen at larger refueling stations.

A number of hydrogen refueling demonstration projects are currently
operational or planned for the coming year. These include hydrogen
refueling stations for the CUTE fuel cell bus project in Europe (10 sites),
the WE-NET hydrogen refueling project in Japan (six sites) and the HYEDI
project coordinated by the U.S. DOE. Parties involved in the development
and integration of refueling systems include energy companies, industrial
gas firms and various industrial players.

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  WE-NET hydrogen refueling station, Japan