The $3 million fueling station would provide hydrogen from ethanol, a corn-based alternative fuel, for a small fleet of fuel-cell vehicles being tested by Chicago. Obama and Emanuel said the Energy Bill passed by Congress Thursday will do nothing to improve soaring fuel prices.

"High gas prices are not going to be solved by $8 billion subsidies to oil companies," said Obama. "We have to start pursuing renewable energy strategies."

Emanuel said fuel-cell technology uses an affordable renewable resource available in infinite quantities.

"We need a new strategy," he said. "This is the strategy that builds towards a better future both for the City of Chicago, for the taxpayers and most importantly for the consumers."

Hydrogen fuel cells are virtually pollution-free, producing electricity while emitting only water vapor.