Sources from power plants to home and businesses. We also use electricity to move the energy in flowing water from hydropower dams to consumer. For many energy needs, it is much easier to use electricity than the energy sources themselves. Like electricity, hydrogen is an energy carrier and must be produced from another substance. Hydrogen is not currently widely used, but it has potential as an energy carrier in the future. Hydrogen can be produced from a variety of resources (water, fossil fuels, or biomass) and is a byproduct of other chemical processes.