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Fuel cells are widely discussed as the alternative powertrain with the highest potential to compete with the internal combustion engine. They offer low emissions, high efficiency and the the possibility of a gradual but serious shift away from today's major source of energy for transportation, petroleum. Four factors are decisive if the fuel cell is to become the power source of the future: Environmental compatibility, performance, cost, and the availability of suitable fuel. This paper outlines the prospects and the technical challenges of fuel cell vehicle development and commercialization.