The United States may be one step closer to using hydrogen fuel cells to power the nation, following an announcement that Dow Chemical Company and General Motors are teaming up to test the technology.

The companies plan to test hydrogen fuel cell technology in Dow’s largest manufacturing facility, in Freeport, Texas. Sources close to the project say the initial investment is about $50 million.

The two-year project is set to begin late this year.

The fuel cells are expected to generate as much as 35 megawatts of power, which is enough electricity to run 25,000 homes for about a year. If all goes according to plan, sources said, the companies plan to take hydrogen fuel cell power commercial by 2006.

More here.