Experts have said Wales has the potential to lead in generating clean energy through hydrogen technology.
A new trade association to represent and advance the Welsh hydrogen economy launched in Cardiff on Wednesday, with Assembly members also debating how the sector can be helped to grow in the United Kingdom.
Hydrogen is seen as a promising, clean alternative to using fossil fuels for heating and transport in particular. Industry representatives say Wales has the necessary natural resources, plus a range of companies and universities already involved in research and development.
Dr Jennifer Baxter, chief engineer at the Institution of Mechanical Engineers, says there are opportunities across Wales.
"For south Wales, the production and use of hydrogen provides us with an opportunity to evolve and transform our industry while leading on decarbonisation".
"There are potential connections between everything from production using by-products of industry, anaerobic digestion and gas using CCS - perhaps with storage offered in Haverfordwest - to end uses in our heating systems, Transport for Wales, and even a chance to work with our engine expertise to look into how we could create a fuel cell centre of excellence".
Baxter added that for north Wales there were other options particularly for production, co-generation from offshore wind and nuclear, which could mean that Wales takes a lead in moving towards a low carbon hydrogen economy.
She added: "Our main challenge, like all new low carbon solutions, is building the new infrastructure we need".
Guto Owen, director of renewable energy firm Ynni Glan has set up the Wales Hydrogen Trade Association. He said there was the opportunity to join a growing number of pioneering countries advancing the technology.
"Hydrogen can support the Welsh Government's net-zero ambitions in the difficult-to-treat sectors of heat, transport and industry.
"Wales has a strong resource, infrastructure, industrial and research base which can provide a platform for accelerating significant hydrogen projects through the 2020s and beyond".
