A hydrogen car runs on the most abundant element on earth and can produce nothing more than water vapor as exhaust.
The only problem is cost. Hydrogen is primarily found bonded with other elements, and must be isolated for use as a transport fuel. Hydrogen contains less energy by volume than gasoline, so a full engine won't take you as far (200 miles at most). Hydrogen vehicles themselves are extremely expensive to build, and most commercially available models can only be leased.
A hydrogen vehicle generates power in one of two ways: combustion or with a fuel cell. The combustion method is fundamentally the same as a gasoline powered internal combustion engine (and produces the pollutant nitrous oxide as a byproduct).
A fuel cell combines hydrogen with oxygen to produce electricity that powers a motor, with only water vapor as a byproduct. Hydrogen can be used to power all types of motorized vehicles, everything from wheelchairs to NASA shuttles.
It is likely to be several decades before technology evolves to the point where hydrogen powered vehicles are a commercially viable transport option, if that day ever comes at all.
Hydrogen cars seem set to slowly build market share until the time when they challenge gasoline and ethanol. They will be expensive for the time being, though, and their fuel will be hard to find in most areas.
Click here to learn more about hydrogen fuel technology.
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