The smiling chief executive got out of the hydrogen-powered vehicle, which was emblazoned with the words "California Hydrogen Highway" on the driver's side, and addressed a group of dignitaries and members of the media. "We will not just dream about `the hydrogen highway,"' he said. "We will not just dream about the hydrogen fueling stations. We will not just dream about the hydrogen cars. We will build (them)."

Schwarzenegger was joined by Mayor Jim Hahn and California EPA Secretary Terry Tamminen, who noting the high price of gasoline and crude oil suggested that hydrogen may one day give fossil fuels a run for their money in the marketplace.

The BP, developed in partnership with Praxair, the South Coast Air Quality Management District and Los Angeles World Airports, will provide hydrogen for five DaimlerChrysler fuel cell cars.

"The opening of this hydrogen demonstration site is an important step to meeting the future energy needs of California," said BP America President Ross Pillari. "It, along with other development projects, will bring the day when hydrogen can be made widely available to customers a step closer."

Hydrogen is considered to be the world's cleanest transport fuel. When used in a fuel cell, the only emission produced is water. The problem is that a the equivalent of a gallon of it now goes for about $10. But that price would be expected to come down as the industry matures.

One of the biggest challenges is to produce hydrogen from water using electricity provided from renewable sources, such as solar or wind power, which would make hydrogen a wholly sustainable fuel.

"Today's celebration reflects our belief in the potential hydrogen offers for wide-scale emission-free transport," said Carol Battershell, BP's director of alternative fuels. "And while the day when that may be possible is still sometime away, projects such as this demonstrate what we can do today to provide the fuels of tomorrow."

The LAX project is BP's 12th hydrogen site. It will be run like a regular gas station to help BP figure out how to supply hydrogen to existing retail outlets in the future.

The former British Petroleum, which markets gasoline in California under the ARCO brand, is also working in partnership with the U.S. Department of Energy, DaimlerChrysler and Ford to develop hydrogen refueling stations in several other states.

In addition, the company is participating in a pan-European, nine-city fuel cell bus project and has signed an agreement with the Chinese government to develop hydrogen demonstration fueling facilities to support fuel cell buses in Beijing, in time for the 2008 Olympic Games.

Earlier this week in Detroit, at the DTE Energy Hydrogen Technology Park, the company unveiled the first hydrogen refueling facility to be built under the DOE's fuel cell and infrastructure validation program.