Essentially, the difference is that instead of burning petrol to drive the engine, it uses compressed air to do the same thing. So, provided that the energy comes from a non-greenhouse source, the car could be carbon free.
Of course, the same thing could also be done with electric cars or hydrogen cars. It would just take companies and/or government to have the foresight to get behind one of these strategies. Not only would this enable cars to be greenhouse-free, but it would mean that the energy could be obtained through Australian renewable energy, rather than imported fuel.
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