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Is this H2O2 similar to the (if I am remembering correctly . . an issue these days) Z-stoff/T-stoff that was used for the ME-163? The description of the corrosive nature of the pure hydrogen sounded very similar to the catalyst (I think it was the Z-stoff) from that aircraft.
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I checked Wikipedia. T-stoff is hydrogen peroxide, Z stuff is sodium permaganate / potassium permaganate
So, you're right
Upon mixation, these two substances react, giving out vast amount of oxygen and heat. So, it can act as a propellent.
http://en.wikipedia.org/wiki/List_of_Stoffs
Peroxide can be very dangerous if improperly handled, since it is very oxidizing and cause chemical burns. However, it can be safe if used carefully.
I don't think the range will be very long, since a large amount of peroxide fuel is needed to propell the submarine. Might buy it later and try it out:p