World-wide energy consumption in the transportation sector accounts for about one quarter of the total energy consumption. This implies that thousands of tons of pollutants are emitted each year. The total pollutants include CO, CO2, HC, NOx, SO2 and soot particles. In Libya, the transportation sector counts for a big share of the total energy demand. So if this sector would be changed to dean fuel,the pollution will be reduced dramatically. Hydrogen is proposed (hypothetically) to be used for the transportation sector in Libya. This paper will review the advancement of this technology world wide, in a sense of hydrogen production, storage, transportation and refueling systems. The possibilities of using hydrogen in the transportation sector in Libya and the expected advantages, obstacles and constraints associated with its application and public acceptance.