Since Iceland is so geographically remote and lacking in a lot of natural resources they have been looking for ways to harness the power they do have. Two things that Iceland does have in abundance are ice and geothermal energy. Iceland has been making a major push into using hydrogen
as a fuel and producing it locally with the heat energy from within the earth.
will be providing hydrogen-fueled hybrid Priuses
for Iceland's SMART-H2 project. The hydrogen powered vehicles will be used by local energy companies and the local Hertz agency. If things work out, the program will be expanded in 2008-9.
[Source: Talk About Cars]