The fuel of the future is to be developed at a new £1.7m research centre at Baglan Energy Park.
The University of Glamorgan has lodged plans with Neath Port Talbot Council for a hydrogen fuel research centre next to the Solar Centre.
The new centre will be the first of its kind in Wales.
Hydrogen could be one of the key fuels of the future. It is made by using electricity to split the hydrogen from oxygen in water. When it burns the only emission is water, so it is seen as a clean fuel.
The Renewable Hydrogen Research and Demonstration Centre will show how hydrogen can be produced from local resources.
Professor Dennis Hawkes who is leading the project, said: 'Rather than an isolated one-off demonstration, this project is to provide the basis for a range of hydrogen energy and transport activities. Its intention is to put Wales at the forefront of European efforts to develop hydrogen communities.
'The new centre will bring together technology and expertise and will provide a platform for new business development, growth and employment in the region.'
His colleague Jon Maddy said: 'Hydrogen has a significant part to play in overcoming increased dependence on the diminishing resource of imported fossil fuels.
'Wales has an abundance of natural energy resources and this project will research and demonstrate the link between these renewables and the role of hydrogen energy.'
The centre will open up a number of opportunities for academic and industry research, and may be able to provide public demonstrations of hydrogen power.
The building will have facilities for hydrogen production, conferencing, research activities, demonstration and education and will be self-sufficient in renewable energy.
It will serve as the hub for hydrogen business development throughout Wales.