Fuel cell vehicles can be powered directly by hydrogen or, with an onboard chemical processor, other liquid fuels such as gasoline or methanol. Most analysts agree that hydrogen is the preferred fuel in terms of reducing vehicle complexity, but one common perception is that the cost of a hydrogen infrastructure would be excessive. According to this conventional wisdom, the automobile industry must therefore develop complex onboard fuel processors to convert methanol, ethanol or gasoline to hydrogen. We show here, however, that the total fuel infrastructure cost to society including onboard fuel processors may be less for hydrogen than for either gasoline or methanol, the primary initial candidates currently under consideration for fuel cell vehicles. We also present the local air pollution and greenhouse gas advantages of hydrogen fuel cell vehicles compared to those powered by gasoline or methanol. (C) 2000 International Association for Hydrogen Energy.