Scientists from University of Aberdeen have made a breakthrough by producing hydrogen from the fermentation of crops.
They believe that the process could significantly reduce future dependency on fossil fuels and hydrogen can be used to provide clean electricity.
It has long been thought that hydrogen could be used as a fuel, particularly for transport.
If the hydrogen is produced from biofuels, its use results in very low carbon dioxide emissions.
The research team led by Professor Hicham Idriss from the University of Aberdeen they have successfully converted ethanol fermented from biofuels into hydrogen, with the help of a catalyst.
It took more than ten years for the research team to perfect the technique.
Although this has been done before, Idriss said it had never been effective, as it produces waste products, such as carbon monoxide, which is poisonous.
The hydrogen could be used to power fuel cells, which can provide clean electricity for vehicles, homes and even large buildings.
"It's quite feasible that we could see the use of this new type of catalysts to generate the hydrogen used in the UK in the future if the necessary changes to public policy were implemented," the Scotsman quoted Prof Idriss as saying.
During the research, crops were fermented using yeast that produced ethanol and water.
The catalyst made from rare metals rhodium and palladium used at temperatures of about 500C converted ethanol and water into hydrogen and carbon dioxide.