[talleyman]

I thought the hydrogen was going to be extracted from water?

[chaosagent]

You can do it that way. But it takes electricity and the cost of the electricity is more than the power that the hydrogen would produce.

[Still Thinking]

Remember that the article said that when the hydrogen is burned (oxidized) it combines with oxygen, while at the same time releasing heat energy. This means that the lowest energy state for the hydrogen and oxygen atoms is when combined in water molecules (otherwise energy would not have been released when they combined from the separate gas form). So if water is the feedstock for the production of hydrogen, then the hydrogen is not a SOURCE of energy, just the VEHICLE for transporting it, and the actual energy released came from the power plant producing the electricity (nuclear, coal, gas, hydro, etc.).