Icelandic New Energy is the promoter for using hydrogen as a fuel in the transportation sector in Iceland, thereby making it possible to head for an economy which is only run on renewable, local energy sources. The company’s goal is to test an extensive fuel system in context with the local energy production and electric- and waterdistribution systems. Icelandic New Energy's vision is to prepare for a hydrogen conversion  and find out if the benefits in economic, environmental and social terms are more than the economic, environmental and social cost.

INE sees this transition take place within the year 2050 as long as technical, economic and social devopment becomes aligned  towards this goal. INE works as an international project manager in demonstrations and research involving hydrogen applications for transportation and backup-power.

In 2007 there will only be a handful of hydrogen cars  in use in Reykjavik, and operational hydrogen station. Yet, many research and promotional projects are also on the agenda.  INE considers that the ECTOS-project and the followup HyFLEET:CUTE as very important first phase in a series of demonstration projects. The next phases are the introduction of private vehicles using hydrogen, and a test with auxiliary equipment on board boats and later for their main propulsion. The fishing fleet is large in Iceland and important for the local economy. The two latter issues are the focus of the tests within the SMART-H project launched in 2007

One of INE’s major shareholders is VistOrka (EcoEnergy), a company which serves to unite business venture funds, key energy companies, academic institutes and the Icelandic government gives the hydrogen tests the chance to link up with most important sectors in the economy. Vistorka holds the majority in Icelandic New Energy but the other shareholders are  key international players in hydrogen technology; DaimlerChrysler, Norsk Hydro and Shell Hydrogen.

The first step towards investigating the potential of hydrogen as a practical sustainable energy carrier was taken on March 1, 2001, with the launch of the EU-funded ECTOS-project. Following two years of preparation, the world’s first hydrogen refueling station located on the site of a conventional filling station and open to the general public was formally opened on April 24, 2003. Six months later, three hydrogen buses arrived in Reykjavík, and were operated as part of the city’s public transport system until the end of 2006. The second step started in march 2007: boats and private cars. The goals of the ECTOS project were to gather information on the technological performance of the hydrogen-powered buses and the hydrogen infrastructure, but also to conduct research on the socio-economic and environmental implications of using hydrogen as an energy carrier. If Iceland is to become a hydrogen-based society in the foreseeable future, then according to the principles of sustainable development, decisions should be based on total benefits and costs from a life-cycle perspective.