A number of issues related more particularly to green gases emissions and fuel availability has resulted worldwide from the transport sector expansion. Stringent regulation laws, improvement in engine efficiency and alternative fuel options have been proposed to address these issues. However, the suitability of an alternative fuel depends on its performance, cost and availability. By its versatility in use and its renewability, hydrogen, as an alternative fuel, offers the best potential for reducing greenhouse gases emission, improving engine efficiency and ensuring fuel security. The aim of the present work is the study of hydrogen as an alternative fuel in the transport sector in Algeria. First, a review of the Algerian transport sector is presented. Hydrogen as a fuel in vehicles is then analyzed. The needs for hydrogen to power vehicle hydrogen vehicle are estimated. Based on the techno-economic factors, a comparative of the economic viability of a hydrogen powered vehicles with a gasoline powered vehicle is carried out. The PV-electrolysis technique for hydrogen production is considered. Results show that, advancement in technology and improvement in manufacturing are going to lead to the development of a hydrogen fuel based transport sector. Copyright (C) 2014, Hydrogen Energy Publications, LLC. Published by Elsevier Ltd. All rights reserved.