Hydrogen is the "Perfect" fuel as most would agree, but we still have a little way to go!
The solution to the so called hydrogen economy should not be defeatist or dismissive in our thought processes of finding a solution - that is just plain wrong.
It has been said that the hydrolysis of water is too inefficient and to that I would agree, but only in part.
It is also true and accepted that deriving hydrogen from hydrocarbons is not very 'Green' even with modern sequestration techniques. Also this method would still require the use of hydrocarbons in some form or other, albeit 'indirectly'.
The fuel cell is the way forward and the only thing required is to develop an efficient and cost effective means of producing the hydrogen. Preferably not using hydrocarbons in the process.
Storage and Distribution
Storage of hydrogen is futile and dangerous and will readily pass right through its own container (no matter what materials you use) as it is the smallest of all atoms.
Production insitu is the sensible way forward - utilised as required on-board.
The process starts with the hydrolysis of water to produce hydrogen/oxygen but continuing with this would be very inefficient.
Better to use hydrolysis as a 'kick-start' in a series of processes and using the resulting hydrogen to drive a separate process.
Is that too vague for you?
You have all the necessary ingredients right there!
WATER and ELECTRICITY
Now use your head and find the solution.
I have, or at least theoretically so!