While electrolysis, the process which creates hydrogen from water and electricity, is nothing new, General Electric has developed a material which is making the process significantly more cost effective. To produce hydrogen through electrolysis, water has to be combined with an electrolyte, which often includes metals that can cost thousands of dollars per kilowatt. GE developed a proprietary material called Noryl which lowers the cost of hydrogen production to hundreds of dollars per kilowatt. Demonstrations of the system can be expected at the end of next year, with commercialization following that. The goal of the project is to bring the cost of hydrogen to $3 per kilogram, which is comparable in energy and price to a gallon of gasoline.
[Source: Fuel Cell Works]

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