GOVERNMENT tax incentives are the only way to guarantee the success of hydrogen power as a fuel of the future, according to the head of Shell UK. Dr Chris Fay, chairman and chief executive of Shell UK, said more had to be done to close the gap between technological developments and consumer preference.

'We must do more to provide clear and relevant information and to inform and educate where necessary. Changes in habits and preferences will take time. They may well require further tax incentives and concerted Government action at local and national level,' he said. 'We should never forget that there will be limits to the amount consumers are willing to pay for cleaner alternatives. If the Government is committed to the promises made in its recent transport white paper, it will back hydrogen power.'

Shell has already taken the lead on liquefied petroleum gas development with a £10 million investment in a network of 200 liquefied petroleum gas sites on UK forecourts by 2001. Now the company has set up a special team to concentrate on the development of fuel cell technology and its introduction to the market place.