Tesla Motors Club

Just a thought, but have been reading over the years about a Hydrogen economy, and producing hydrogen by electrolysis ... what's the point?.... we all know that this introduces ineffeficiences... and also hydrogen is very difficult to manage... however there are some niche area where hydrogen gas may be desirable... aircraft and furnaces might be examples.. if so why bother transporting it?. Just produce it from water and electrons at point of use. My question really is are there efficiencies of scale in hydrogen production that needs large plant or is there room for innovation of small scale electrolysis at end point such as a furnace or depot with just water and electricity (and likely catalysts or salts).