Islands, by definition, are remote when it comes to access to fuel. Prices reflect this. "World" pricing parity does not apply for the smaller island nations. So, in order to reduce the exposure to ever increasing fuel prices (and future shortages of fuel), it makes sense to look at the options for producing fuel locally. Ethanol is one option, if there is the space and right environment. Another option is hydrogen. The use of hydrogen in PEM fuel cells is one of the most efficient methods of electricity production. The production of the hydrogen via electrolysis of water requires power which can be produced from renewable energy sources such as photovoltaic panels or wind turbines. Hydrogen has the benefit that it can act as an energy store. Batteries have been used worldwide for this purpose but they have their problems: they require regular maintenance; they wear out quickly; disposal of batteries create landfill problems because of their acidity and high heavy metal concentrations (even more so of a problem on islands). Hydrogen can be turned to electricity with fuel cells, thus ensuring continuity of supply. We have been investigating suitable energy sources to run a proposed sewerage treatment plant on Fraser Island, a World Heritage listed site off the coast of Queensland. Potential generation options included: solar, wind, wave, micro hydro, diesel-powered internal combustion engines, a possible subterranean or sub marine cable to connect to the mainland grid and different varieties of fuel cells.