This thing pops up now and then, always "ready for mass production next year", year after year. Much like the vaunted
'Sky Car'.
http://en.wikipedia.org/wiki/Compressed_air_car#Disadvantages (references for below can be found at the link)
# Refueling the compressed air container using a home or low-end conventional air compressor may take as long as 4 hours, though specialized equipment at service stations may fill the tanks in only 3 minutes.<3> To store 14.3 kWh @300 bar in 300 l (90 m3 @ 1 bar) reservoirs, you need at least 93 kWh on the compressor side (with an optimum single stage compressor working on the ideal adiabatic limit), or rather less with a multistage unit. That means, a compressor power of over 1 Megawatt (1000 kW) is needed to fill the reservoirs in 5 minutes from a single stage unit, or several hundred horsepower for a multistage one.<5>
# The overall efficiency of a vehicle using compressed air energy storage, using the above refueling figures, cannot exceed 14%, even with a 100% efficient engine—and practical engines are closer to 10-20%.<6> For comparison, well to wheel efficiency using a modern internal-combustion drivetrain is about 20%,<7> Therefore, if powered air compressed using a compressor driven by an engine using fossil fuels technology, a compressed air car would have a larger carbon footprint than a car powered directly by an engine using fossil fuels technology.
# Early tests have demonstrated the limited storage capacity of the tanks; the only published test of a vehicle running on compressed air alone was limited to a range of 7.22 km.<8>
# A 2005 study demonstrated that cars running on lithium-ion batteries out-perform both compressed air and fuel cell vehicles more than threefold at the same speeds.<9> MDI has recently claimed that an air car will be able to travel 140 km in urban driving, and have a range of 80 km with a top speed of 110 km/h (68 mph) on highways,<10> when operating on compressed air alone, but in as late as mid 2009, MDI has still not produced any proof to that effect.
# A 2009 University of Berkeley Research Letter found that "Even under highly optimistic assumptions the compressed-air car is significantly less efficient than a battery electric vehicle and produces more greenhouse gas emissions than a conventional gas-powered car with a coal intensive power mix." <11>