The transportation agency serving the University of Illinois Urbana-Champaign is using fuel cell-powered buses and planning to produce and store its own hydrogen supply.

The cost of acquiring the two new buses, a fueling station and fuel storage equipment will be about $3.5 million, of which $1.5 million will be covered by federal grants…

MTD plans to produce the hydrogen for its fuel-cell buses itself. It could use solar power, wind turbines or, if need be, gas from the local landfill to separate the hydrogen from oxygen in water molecules for the buses.
The transit agency will soon be accepting bids for the equipment it will use for that conversion. It plans to add a total of 12 hydrogen fuel-cell buses by 2023, or about one-tenth of its fleet. By that time, the rest of its buses will be diesel-electric hybrids.

I’ve always thought that nuclear power, fuel cells, and membranes for water treatment would go together pretty well for a coastal city. You could size the nuclear reactor for peak demand, then use the excess energy to desalinate and electrolyze sea water whenever you are not at peak demand, storing the hydrogen to use in transportation vehicles and any other applications where you need decentralized or off-the-grid energy. You can use the membrane technology to produce drinking water and water for industry, either from seawater or treated sewage. I think you could substitute LNG for the hydrogen in this system if you need to for some reason, for example if the nuclear reactor were down for maintenance. You would have that occasional pesky problem of nuclear waste to deal with, but I am gradually coming around to the idea that managing the risks of nuclear reactors and nuclear waste may be preferable to the certainty of destroying the planet’s ecosystems and oceans. Inventing fusion power would be nice.