As an energy carrier, hydrogen is to be compared to electricity, the only widespread and viable alternative. When hydrogen is used to transmit renewable electricity, only 51% can reach the end user due to losses in electrolysis, hydrogen compression, and the fuel cell. In contrast, conventional electric storage technologies allow between 75% and 85% of the original electricity to be delivered. Even when hydrogen is extracted from gasified coal (with carbon sequestration) or from water cracked in high-temperature nuclear reactors, more of the primary energy reaches the end user if a conventional electric process is used instead. Hydrogen performs no better in mobile applications, where electric vehicles that are far closer to commercialization exceed fuel cell vehicles in efficiency, cost and performance. New, carbon-neutral energy can prevent twice the quantity of GHG's by displacing, fossil electricity than it can by powering fuel cell vehicles. The same is true for new, natural gas energy. New energy resources should be used to displace high-GHG electric generation, not to manufacture hydrogen. (c) 2004 Elsevier Ltd. All rights reserved.