A car powered by fuel cells would create almost no pollution, and have nearly 80% efficiency. The only problem with hydrogen is that it is very hard to store, and store safely. One can imagine the effects an accident could have on a car with a full tank of hydrogen in the back. There are other options for creating hydrogen though...
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There are other options for creating hydrogen though. A reformer takes other fuels such a methanol, and turns them into hydrogen. The problems with reformers come from the emissions. Changing methanol into hydrogen creates impure hydrogen, as well as heat and other gases, changing the overall efficiency from 80% to around 35%...
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