The hydrogen generator does work, and you can run an engine on it.
The problem is, to costs more in energy to produce the hydrogen, than what the engine will make for you.
The mechanical stuff does work, yes.
The thing is, you _lose_ energy by doing it. Your gas milage will go down, _if_ you do a correct energy calculation & account for all the energy used to create the hydrogen.
If we had a source of surplus electricity that was nearly free, and used that to make hydrogen, it is possible to use that hydrogen as a fuel. But one would have to ask, where did the electricity come from, as we will be using much more electricty than what energy we get out of it from the hydrogen.
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