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The major problem of Hydrogen fuel lies in the production of the hydrogen gas. At present, it has the same problem of taking more units of energy to produce than you get back out of it.
For what it's worth, I'm doing undergraduate research at the University of South Carolina (chemical engineering) in fuel cells, my current project (groundbreaking, actually, in that it hasn't been done before) focusing on how pollutants in the air (Chloride in my case) affect the membrane that allows the fuel cell to produce electricity and how well it recovers from the (usually) detrimental effects. It's interesting stuff, and some of the graduate students are now looking at stacks of fuel cells. To give some idea of the power of the fuel cells, a 25cm^2 membrane will produce anywhere from 20-30A at 0.6V.
Anyway, my two cents as a researching chemical engineering student. Oh, and if you're a graduating chem engr. looking for a good graduate school to do research, definitely look at U of SC. The chemical engineering professors here are topnotch in their research and interactions with students.
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