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<duggg writes an excellent discussion of on-site power generation versus grid losses, including this line:>

How is its pollution disposed of?

... to which I (metallurge) respond,

With most of the currently feasible fuels being converted on-site into the hydrogen needed to feed the fuel cell, there are essentially four things the fuel cell process produces:

1) electricity
2) heat
3) nearly pure water
4) CO2

Now, the CO2 produced is substantially less (like 1/4 to 1/2, depending on whether you can use that heat or not) than would have been produced through traditional electrical generation methods.

Other pollutants like CO, NOx, NO, SOx are in the <1 ppm range from the data I've seen.

FWIW, the number I've seen for electrical transmission line losses in the US is 3-7%.
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