Hydrogen fuel cells come into their own with advancing technology and falling prices

Once relegated to the realm of science projects, hydrogen fuel cells are starting to displace fossil fuels as a means of powering cars, homes and businesses.

This week, in the latest addition to mainstream fuel-cell use, Hyundai will begin deliveries of a consumer SUV in California. The technology is already producing electricity for the grid in the US state of Connecticut. AT&T is using fuel cells to power server farms and Wal-Mart uses hydrogen-powered fork lifts. And this summer FedEx will begin using hydrogen-powered cargo tractors at its Memphis air hub.

"This is the most exciting time for fuel cells in my career," said Daniel Dedrick, head of hydrogen and combustion technologies at Sandia National Laboratories in Livermore, California. The hydrogen market "is starting to accelerate".

Fuel cells produce electricity from hydrogen in a process that dates back to the 1830s, yet high costs have historically made the technology better suited for Apollo space missions and Soviet submarines.

In recent years, the technology has made big strides and prices are falling. And because the process produces little or no greenhouse gases, hydrogen power stands to get a boost in the wake of President Barack Obama's recent call for tighter controls on US carbon emissions.

It's still early days for hydrogen power and prominent sceptics, including former US energy secretary Steven Chu and Tesla Motors chief executive officer Elon Musk, have questioned whether the technology will catch on. Hydrogen currently provides less than 1 per cent of power worldwide, while coal and gas produced 67 per cent of US electricity in 2012, according to the Energy Information Administration. Chu, who was appointed by Obama, called for a 44 per cent reduction in funding for hydrogen research.