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How is hydrogen an energy source?

You do electrolysis to produce hydrogen, then combust it, driven into water.
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ArishMell · 70-79, M
It is used either as direct fuel by combustion, or to produce electricity in a fuell cell.

The simplest way to produce hydrogen is by electrolysis of water but it takes a lot of electricity to produce useful amounts. On suggest I think being investigated if not yet operating is to use "surplus" electricity from wind-turbines and solar-panels, when those are producing more than is being used normally.