The warming of the earth due to green house gas emission is mainly produced by CO2. In Mexico City, 71% of the total harmful emissions is from internal combustion engines of car and buses. Benefits from the use of fuel cells (FCs) in transportation and stationary power generating sectors will achieve satisfactory air quality standards not only in Mexico City but also throughout the country. This paper suggests a scenario for FC technology penetration in Mexico. There are two potential markets for FCs: (i) FC transportation; and (ii) stationary power plant for electrical production. In Mexico City, 3.2 million vehicles are in circulation and represent 19.5% (16.3 million) of the country's total vehicles, and 9.02 million of natural gas users are a potential market for acquiring stationary power generation by FC systems. (C) 2003 Elsevier Science B.V. All rights reserved.