It's great to see some alternatives to oil, but unfortunately there are some real problems with both hydrogen and ethanol technologies.
Hydrogen is difficult to produce - it's production requires either vast amounts of electricity, or substantial amounts of natural gas. Either way produces substantial carbon dioxide, and serves only to exchange demand for oil, for demand for alternative fossil fuels; in the case of natural gas, this is a poor trade as natural gas is in far shorter supply than oil. In the case of electrolysis of water, the process is desperately inefficient so that you need about 4 times as much energy in the form electricity as you get as hydrogen.
Hydrogen is difficult to handle - if you want to store a reasonable amount, it has to be cryogenic liquid hydrogen. In addition to its extreme flammability it is extremely cold. It is a very poor energy store in terms of volume - a car with a 15 gallon fuel tank, will if converted to hydrogen need a 50 gallon tank to acheive the same range. Hydrogen also evaporates very quickly - typical tanks as used today lose about 5% of capacity per day - if you go on holiday and take your car to the airport - when you come back 3 weeks later you'd better hope that there is a fuel station in the car park, because you won't be going much further.
A lot of hype regarding hydrogen suggests that burning it produces only pure water - this is not quite true. Due to the presence of nitrogen in the air, nitric oxides are produced in combustion; these are highly toxic acidic chemicals which can in turn lead to the production of low-level ozone. Catalytic converters can go a long way to reducing these emissions but, of course, they aren't perfect.
This can be avoided by the use of fuel cell technology - clean and efficient - but with the disadvantage of cost. In todays small production quantities, a fuel cell powerful enough to power a car can cost in excess of $1 million. Even with massive scale manufacturing techniques it is not anticipated that the cost could be reduced to below $10,000.
Ethanol is, from a practical point of view, a better solution. It too has its disadvantages, especially if 'green' production methods are employed.
Producing ethanol by the fermentation of grain has been a long established technique - however, if you want to use the ethanol as a fuel, it is worth considering just how much energy it costs to produce it.
When you factor in the costs involved with modern intensive farming methods, as well as the costs involved in fermenting and distilling the resultant ethanol - you find that for every gallon of ethanol you produce, you will have needed 2 gallons equivalent of energy during its production.