Escalating apprehension about the harmful effects of widespread use of conventional fossil fuels in the marine field and in internal combustion engines in general, has led to a vast amount of efforts and the directing of large capital investment towards research and development of sustainable alternative energy sources. One of the most promising and abundant of these sources is hydrogen. Firstly, the use of current fossil fuels is discussed focusing on the emissions and economic sides to emphasize the need for a new, cleaner and renewable fuel with particular reference to hydrogen as a suitable possible alternative. Hydrogen properties, production and storage methods are then reviewed along with its suitability from the economical point of view. Finally, a cost analysis for the use of hydrogen in internal combustion engines is carried out to illustrate the benefits of its use as a replacement for diesel. The outcome of this cost analysis shows that 98% of the capital expenditure is consumed by the equipment, and 68.3% of the total cost of the equipment is spent on the solar photovoltaic cells. The hydrogen plant is classified as a large investment project because of its high initial cost which is about 1 billion US$;but this is justified because hydrogen is produced in a totally green way. When hydrogen is used as a fuel, no harmful emissions are obtained.