He called the development of alternative energy "one of the most critical and exciting challenges of our time. . . . Our national dependence on foreign oil and vulnerable gasoline refining capacity has reached a point where we must take immediate action to accelerate the introduction of alternative fuels."

Thompson said his new Gilbert-based company, called Thompson Industries, will hire "world-class scientists and engineers and surround them with the creative environment and speed of action that will make it happen."

Initially, the company will focus on developing and improving technologies to extract hydrogen fuel from natural gas and water and improve ways to store the hydrogen on board vehicles.

Also he said he wants to explore ways to use cleanburning hydrogen in existing internal combustion engines "without waiting for fuel cells to be ready in 2020."

Finally, he said the company will work on utility-scale solar energy projects, he hopes in partnership with local utilities.

"We will do whatever type of development is required to bring these products quickly to fruition," he said.

"We’re not going to be doing university theoretical research."

Thompson is enthusiastic about the potential for hydrogen, saying that years of research have already produced much technology.

But there is a shortage of investment capital to bring it to the marketplace.

"These hydrogen guys are technology rich and dollar poor," he said. "Our intention is to put the dollars into it."

Thompson started Spectrum Astro in 1988 with just a credit card and plans that he drew up on his kitchen table. Specializing in low-cost space satellites for federal government agencies, Spectrum Astro was twice included on Inc. magazine’s list of America’s fastest growing companies.

He sold the company to General Dynamics in June 2004.

He also served as chairman of an unsuccessful campaign to block Proposition 400, the Valleywide transportation proposal, in 2004. He believed the proposition took too much money away from freeways to pay for light rail and other projects.

"Americans are wedded to their automobiles. That is not going to change," he said.

Thompson said he is launching his new company with his own funds raised from the sale of Spectrum Astro and will work full time as chairman and chief executive of the new venture.