Monday's Success Story: Honda FCX Clarity

In Summer 2008, Honda will be releasing a limited number of new cars in Southern California. What's different about that? The Honda FCX Clarity is the first commercially available automobile powered by Hydrogen Fuel Cells. The fuel cell powers it's electric motor by converting hydrogen and oxygen into electricity and emitting only water vapor as a waste product. According to Honda, "the FCX Clarity is twice as energy efficient as a hybrid-electric vehicle and three times more efficient than a conventional gasoline vehicle." And this isn't some weird experimental vehicle. It has the standard host of features, including seating for four, six airbags, anti-lock braking system (ABS), climate-controlled seats, XM Satellite Radio, etc...


Now while Honda is only introducing a limited number of these vehicles in Southern California (due to the lack of hydrogen refueling stations elsewhere), this does represent a major step forward in the evolution of the automobile and energy industries. And, why is this happening? Because the rising price of gasoline and a greater consciousness of the long term effects of fossil fuels have created a public demand for energy alternatives. And where there is demand in a free market, individuals and corporations will find a way to make products that meet those demands in order to turn a profit.

If Honda profits from this innovation (which they probably will), then more hydrogen refueling station will be constructed and other car companies will release other fuel cell cars. This will make it easier to own a fuel cell car and encourage further demand. Further invention will be encouraged by this new demand, including ways to convert old gasoline cars into hydrogen cars. Slowly, the fossil fuel economy will by replaced by a hydrogen fuel economy. There will not be a giant energy crisis, as many would have you believe. High government fuel taxes and increased federal regulation will not be necessary. As always, public demand and not government policy will be the thing that creates a new hydrogen fuel based infrastructure. At that point, we will all look back and applaud yet another capitalism success story.