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While from a technical point of view it would allow for the continuation of combustion engines, and is thus an attractive alternative for car makers, it doesn't make sense to use hydrogen on such small scales. Making hydrogen cleanly requires a lot of energy, so the idea generally is to use renewable energy to generate hydrogen from water. This works for industrial applications like steel making, but on a small scale it just doesn't make economic sense because it needs to be cooled down so much.
The main reason why hydrogen is pushed is because it is also a byproduct of natural gas exploitation, so called blue or grey hydrogen.