A requirement for widespread adoption of fuel cell vehicles in the transportation sector will be ready availability of pure hydrogen at prices that result in operating costs comparable to, or less than, that of gasoline internal combustion engine vehicles. The existing electrical power grid could be used as the backbone of the hydrogen infrastructure system in combination with water electrolyzers. A water electrolyzer can contribute to the load leveling by changing operational current density in accordance with the change of electricity demand. The optimum hydrogen generation capacity and current density of the polymer electrolyte membrane (PEM)-type water electrolyzer operated only during the off-peak period of electricity demand in respect of both the shortest time required for start and the higher efficiency of water electrolysis are obtained as 500 Nm(3) h(-1) and 30 kA m(-2), respectively. This PEM-type water electrolyzer could be used in the hydrogen refueling stations and energy storage systems constructed around hydrogen. (C) 2003 Elsevier B.V. All rights reserved.