While the dominant role of hydrogen in a sustainable energy future is widely accepted, the strategies for the transition from fossil-based to hydrogen economy are still actively debated. This paper emphasizes the role of carbon-neutral technologies and fuels during the transition period. To satisfy the world's growing appetite for energy and keep our planet healthy, at least 10 TW (or terawatt) of carbon-free power has to be produced by mid-century. Three prominent options discussed in the literature include: decarbonization of fossil energy, nuclear energy and renewable energy sources. These options are analyzed in this paper with a special emphasis on the role of hydrogen as a carbon-free energy carrier. in particular, the authors compare various fossil decarbonization strategies and evaluate the potential of nuclear and renewable energy resources to meet the 10 TW target. An overview of state-of-the-art technologies for production of carbon-free energy carriers and transportation fuels, and the assessment of their commercial potential is provided. it is shown that neither of these three options alone could provide 10 TW of carbon-neutral power without major changes in the existing infrastructure, and/or technological breakthroughs in many areas, and/or a considerable environmental risk. The authors propose a scenario for the transition from current fossil-based to hydrogen economy that includes two key elements: (i) changing the fossil decarbonization strategy from one based on CO(2) sequestration to one that involves sequestration and/or utilization of solid carbon, and (ii) producing carbon-neutral synthetic fuels from bio-carbon and hydrogen generated from water using carbon-free sources (nuclear, solar, wind, geothermal). This strategy would allow taking advantage of the existing fuel infrastructure without an adverse environmental impact, and it would secure a smooth carbon-neutral transition from fossil-based to future hydrogen economy. (C) 2008 International Association for Hydrogen Energy. Published by Elsevier Ltd. All rights reserved.