The only way you are going to extract hydrogen from tap water is electrolysis, and the energy input is gonna be higher than the output UNLESS you have very dramatic improvements in combustion.

The latter I don't know about, but the "hydrogen economy" is a load of bunk. All commercial hydrogen comes from coal fired electrolysis plants or processing of natural gas with the release of all the carbon as CO2. Sure, it will only produce water and electricity in a fuel cell (that does not currently fit inside a car and costs $30,000 or so), but you have to MAKE the hydrogen from somewhere -- it is never free in nature.

Peter


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