This is a good question, here is your answer, I hope it helps. I am copying and pasting it from an article I read recently:
The most abundant element in the universe, hydrogen, also has the highest energy content per unit weight of any known fuel. The bad news is that it rarely occurs by itself in nature, mostly found combined with other elements such as oxygen (for water) and carbon (for fossil fuels) from which it must be harvested. The good news is that once separated, hydrogen is the ultimate clean and highly compacted energy carrier.
Non-polluting, hydrogen is as safe to store as gasoline and can be produced anywhere. Anywhere, that is, that NanoLogix, Inc. (OTCPK: NNLX) can install one of its bioreactor hydrogen generation systems.
A bioreactor being essentially a high-tech fermentation vessel in which microorganisms carry out a biological reaction. In this case production of a hydrogen-rich biogas.
NanoLogix, formerly Infectech, Inc., is a biotechnology company founded in 1989 for the development of diagnostic kits for infectious human diseases, microbial remediation of toxic materials, and now the development and commercialization of biological-based technologies for the production of alternative sources of fuel, namely hydrogen.
And hydrogen is where the money is. Or more accurately, where the money will be, because experts tell us that we are in the beginning stages of a monumental shift in the way the world organizes and distributes its energy.
In the beginning there was wood.
The Industrial Age, which began with the carrying of coal from ever deepening mines several hundred years ago, is now winding down in the oil fields of the Middle East where petro-geologists tell us that global production is likely to 'peak' within a decade, at which point half of the world's known oil reserves are used up.
Once that inevitable line of demarcation is crossed, oil prices will hyper-accelerate upwards dramatically and continually.
Meanwhile, a whole new energy paradigm is being readied. Hydrogen - the lightest and most common element in the universe - is the next great energy revolution. Scientists call it the "forever fuel" because it never runs out. And when hydrogen is used to produce power, the only byproducts are pure water and heat.
"The hydrogen economy will make possible a vast redistribution of power, with far-reaching consequences for society. Today's centralized, top-down flow of energy, controlled by global oil companies and utilities, could become obsolete," says environmental economist Jeremy Rifkin,
According to Rifkin, hydrogen has the potential to end the world's reliance on oil. It will dramatically cut down on carbon dioxide emissions and mitigate the effects of global warming. And because hydrogen is so abundant, people who have previously been denied access to sufficient electricity will find it plentiful.
Saying goodbye to fossil fuels.
But traditional methods of extracting hydrogen from water require electricity, which usually means torching fossil fuels. Alternatives exist, but solar cells are pricey, and windmills are limited to windy areas. Industrial hydrogen producers get their supply by blasting natural gas with super hot steam, and fuel cells use a similar method to strip hydrogen from gasoline, wood alcohol, or methane.
In other words, hydrogen production may be a big improvement over internal combustion, but it still unleashes plenty of greenhouse gases and waste. So what to do?
Bio-microbes, says NanoLogix President David McClelland, Bio-icrobial-based hydrogen generation is efficient, clean, and will ultimately prove to be the cheapest and most eco-friendly method.?
The NanoLogix breakthrough came about when the Company's researchers were tinkering with its proprietary biological-based diagnostic and remediation technologies, noting that one of its patented bacterial culturing methods could produce byproduct gas surprisingly rich in hydrogen.
The implications are staggering - the world's sustainability must increasingly rely upon biomass-based technologies because these processes use renewable resources. Unfortunately, biomass-based systems increase production of organic-matter wastewater. If treated by conventional waste treatment plants, this organic waste represents a costly economic and environmental liability.
However, this same wastewater can also be viewed as an important potential resource for next-generation energy production, says NanoLogix's McClelland.
NanoLogix methodology for hydrogen generation is being developed for the limitless production of hydrogen from organic waste and wastewaters. Once fully proven, this has the potentiality for solving the world energy crisis through the limitless production of hydrogen from any waste organic byproduct, including sewage, and agricultural and food manufacturing waste.?
The bioreactor approach is scaling up.
Last year NanoLogix announced the results of a study that confirmed laboratory proof that its bioreactor system generates hydrogen in high yields via the use and adaptation of its intellectual property. In this study, the bioreactor produced biogas consisting of 50% hydrogen by volume, without any trace of methane.
The breakthrough was the absence of methane, which eliminates an additional costly step. If methane were present it would have required additional separation and hydrogen harvestation, says McClelland.
McClelland believes that NanoLogix has discovered the most likely method for low cost production of massive quantities of hydrogen.
After last year's study results were revealed the Company signed a feasibility study with the Department of Environmental Science and Engineering of Gannon University in Erie, PA to develop a bioreactor that utilizes NanoLogix's intellectual assets. The project team compromises a distinguished cohort of scientists and university professors who share a common vision.
In July of last year NanoLogix signed an agreement to generate hydrogen from a scale-up bioreactor system installed at Mobilia Fruit Farms in rural Pennsylvania utilizing waste organic matter from the farm Arrowhead Wines unit.
An even bigger scale-up agreement, to install a hydrogen generation system using Welch Food's waste organic matter, followed shortly. Welch, of course, is the world's leading producer of grape and other fruit-based food products, giving NanoLogix virtually unlimited scale-up access to the waste-organics that McClelland believes will ultimately become the unlimited energy source of tomorrow.
McClelland is hopeful that these first scale-up installations will provide valuable data for engineering future systems. "We are clearly excited with the opportunity to demonstrate conclusively that the microbial production of hydrogen is efficient, inexpensive and can meet the increasing demand of both the industrial and commercial marketplaces," states McClelland.