Hydrogen is being made with wind-generated electricity at this small building in North Cape. (CBC)

The P.E.I. government is looking for Ottawa to extend its assistance with a project to use wind power to generate hydrogen to run transit buses in Charlottetown.

The buses are part of an ambitious project announced in 2005 to develop a community that was self-sufficient in wind power. As part of the plan, electricity from wind turbines at North Cape would be used to create hydrogen to fuel vehicles.

The original plan for the hydrogen village has been drastically scaled back, but the province hopes to continue with the plan to develop technology to operate the buses, which began running in 2007, more cost effectively. But funding from Ottawa for the buses runs out March 31. The province is looking for another $400,000 to $500,000 to extend the project for another two years.

Energy Minister Richard Brown told CBC News Wednesday the province needs the money to buy hydrogen from Quebec for the next two years.

"It's very expensive right now, I'll admit to that," said Brown.

The goal of the project is to bring down that cost, and then sell the technology.

Without further funding, Charlottetown's hydrogen buses will likely be parked. (CBC)

"It's like computers, 20 years ago a computer would've cost you two to three million dollars," said Brown.

"Nowadays you can get one for two, three, four hundred dollars. So the cost of producing hydrogen will go down with the improvement in technology."

P.E.I. has already started to look for customers for its wind-hydrogen production system. Brown said the province has already had talks with the city of Iqualuit.

Bobby Dunn, general manager of Trius Transit, the company that runs the bus system in Charlottetown, said there is still quite a bit of work to do to have the buses be self sufficient.

"It's still futuristic," said Dunn.

"You know everything gets down to is it efficient? Is it cost effective?"

Without further assistance from Ottawa, it is likely Charlottetown's two 12-passenger hydrogen buses will cease operation.