Iceland has energy to spare, and the small country has found a cutting-edge  way to reduce its oil dependency. Volcanoes formed the island nation out of ash and lava , which heat huge underground lakes to the boiling point. The hot water is piped into cities providing heat for homes, businesses and even swimming pools. The water runs through turbines , providing all the country's electricity.    prefix = st1 /Icelandwants to make plans to improve its cars, buses and trucks to run on renewable energy. Iceland has already started by turning water into fuel ----hydrogen  fuel. Here's how it works: Electrodes   change the water into hydrogen and oxygen molecules . Hydrogen electrons pass through a conductor that creates the current to power an electric engine.    Hydrogen fuel now costs two to three times as much as gasoline, but gets up to three times the distance than gas, making the overall cost about the same. As an added benefit, there is no carbon  ----only water steam.    In the capital,Reykjavik, they are already testing three hydrogen-powered electric buses. The drivers are impressed. "I like these buses better because with hydrogen you get no pollution," said bus driver Rognvaldur Jonatanison. By the middle of this century, all Icelanders will be required to run their cars only on hydrogen fuel, meaning no more gasoline.   "If we make hydrogen and use that as a fuel for transportation then we can run the whole society on our own local renewable energy sources,"said Marie Mack. Icelanders are showing the world that by making fuel from water, it is possible to kick the oil habit. The cars with hydrogen as fuel   _  .
are environmentally friendly are cheaper run much faster will make useful steam