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Currently, the only group working on a water-based fuel source is the U.S. Navy. They have been testing a method of converting seawater to CO2 and Hydrogen, which then can be mixed together and burned. Another method of using water as a fuel source is the more conventional method of creating hydrogen fuel cells. Hydrogen and Oxygen are run though a chemical reaction that produces, heat, electricity, and H2O (water). The electricity can power an engine that turns a propeller that in theory could lift an airplane off the ground.