I think hydrogen is a very bad idea. Hydrogen is not free, its very energy intensive. Its only a energy transport and the most inefficient one you can get. Its not an energy source.
This article by zubrin is a very good one and explains why this is so.
The Hydrogen Hoax
I think biofuels and ethanol is the way to go. If anyone knows a different point of view on hydrogen i would like to hear it.