So far they've done the recipe only on a small scale in an Idaho laboratory.
The ingredients are water, electricity and extreme heat.
When hot steam is zapped by electricity, it separates H2O into hydrogen and oxygen.
The Ceramtec Company in Salt Lake provides a crucial part of the technology, a paper-thin ceramic membrane.
Joseph Hartvigsen, Ceramatec, Inc.: "And the oxygen moves through the membrane and it is discharged on the other side of the membrane."
At a news conference, private and government scientists said the new method shows promise of providing hydrogen efficiently to help wean us from foreign oil.
Dept. of Energy said, "It proves the function and effectiveness of the technology at the smaller scale.
Abundant affordable energy is the key to economic prosperity."
In order to demonstrate it on a big scale, they want to build the first nuclear power plant in a generation.
Dr. Steve Herring, Idaho National Engineering Lab said, "It addresses our need to cut down on the emissions of greenhouse gases.
Since the primary source, since the only source of energy is a nuclear reactor, which does not emit any greenhouse gases."
The public-private partnership hopes to build the reactor in Idaho, an entirely new kind, capable of reaching extreme temperatures.
The scientists say public skepticism over safety and waste issues can be overcome with research and education.
"As energy costs climb, people's sentiment will change to educate themselves on what other options there are."
The target date for the nuclear plant is the year 2017.
The scientists see some early uses for hydrogen, but they admit it would be decades before hydrogen becomes a primary ingredient in our energy mix.