rgarbacz writes "The US will stop funding research on automotive fuel cells and redirect the work towards stationary plants, because of slow progress on the research. Developing those cells and coming up with a way to transport the hydrogen is a big challenge, Energy Secretary Steven Chu said in releasing energy-related details of the administration's budget for the year beginning Oct. 1. Dr. Chu said the government preferred to focus on projects that would bear fruit more quickly. The industry and the National Hydrogen Association criticized the decision and declared their intention to fight for funding. Dr. Chu also announced that funding for a coal gasification pilot project, cut by the Bush administration, will be reinstated. The Obama administration will also drop spending for research on the exploration of oil and gas deposits because the industry itself has ample resources for that, Dr. Chu said."