Bio-Hydrogen production is a lot more advanced than you can imagine but of course while fossil fuels are relativly cheap there is little incentive to replace them Bio-Hydrogen. I would say that the oil companies find comfort in the fact that setting up the infastucture for transport, storage and distibution of Bio-hydrogen will be a major undertaking.
However there will come a time when fossil fuels will start to run out and as we get closer to that we wil have little choice but to look to alternatives.
Note Honda and BMW have aready produced cars with Hydrogen combustion engines
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