Part of the problem is speculation: individual and institutional investors betting on higher future oil prices. Another big factor is the very weak U.S. dollar. But the bulk of the reason oil and gas prices have climbed so high is that age-old Economics 101 supply/demand equation. Global demand, especially by developing countries, continues to grow, while supply does not.

Most agree that conservation is the critically important first step in altering that equation. Next comes development of alternatives, some that can propel our vehicles, others that cannot but can displace oil and natural gas now being used for energy production.

As difficult as it may be to believe, interest in alternative fuel vehicles actually pre-dates the launch of AutoblogGreen a little more than two years ago. Another fact that may be tough to swallow is that the BBC's Top Gear was not always the hour of silliness we see today with Clarkson, Hammond and May. In fact Top Gear's current format only began in 2002. Going back in time it had a more staid magazine style format with hosts such as William Woollard. Way back in 1990, Woollard did a pair of segments on alternative fuels and the threat of Global Warming from increased greenhouse gas emissions.

Watching these 18 year old segments, it seems not a lot has changed. Woollard looked at hydrogen with an early prototype of the BMW Hydrogen 7, methanol, CNG, solar powered EVs and even hybrids. The GM Impact, the precursor to the EV1, even makes a brief appearance while discussing battery electric vehicles. In that pre-lithium ion era, sodium sulfur batteries seemed to be one possible solution to range and weight problem of storing electrons. Although such batteries were tested by automakers, the high operating temperatures (up to 350 °C) limited their usefulness. Nonetheless, the similar Zebra batteries are still being evaluated today and used in some applications. Check out the videos after the jump. Thanks to Joseph for the tip!

[Source: YouTube]

The mostly reconstituted AT&T operates a huge fleet of vehicles nationwide in order to keep its communications infrastructure in working order. As such, it has a very strong financial incentive to cut petroleum use as fuel prices keep rising. To help address that, starting in June, Ma Bell add 105 alternative fuel vehicles to its fleets in thirty cities nationwide. The new additions will consist of 25 vans fueled by compressed natural gas, 65 Ford Escape and Toyota Prius hybrids and 15 work trucks with hybrid conversions. AT&T deployed its first four Escape hybrids late last year. The phone company estimates that 124 metric tonnes of carbon dioxide emissions and over 34,000 gallons of fuel use will be eliminated annually with these vehicles. The converted work trucks could cut fuel use by 38 percent and greenhouse gas emissions by 28 percent compared to conventional equivalents.

[Source: AT&T]

We're in Detroit now, but Sebastian and Sam took some time to chat about a few things before leaving for the show. Rick Wagoner's CES keynote was historic, as was the appearance of the Cadillac Provoq at that show. Coming up at Detroit we'll bring you details on all of the alternative and fuel-efficient vehicles like the Hummer HX that signals a wholesale move to E85 capability and the first ever unibody Ford Explorer. Sebastian brings us an interview with Bill Roe of Coskata Energy about their exciting work on biofuels and we wrap up by touching on the Tata Nano. We'll be back again soon, see you then!

UPDATE: transcript of the interview with Bill Roe available here.

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As yet another country clamoring for the lofty goal of being the alternative/renewable fuel leader, India is making some advances. And the goal seems achievable: one million plus hydrogen-powered vehicles on their roads in the next thirteen years. The hardest part is obviously getting a hydrogen infrastructure in place, but the difficulty of the task doesn't seem to faze them.

Vilas Muttenvar, the New and Renewable Energy Union Minister, says he looks forward to working with the European Union to meet their bio-fuel targets. Those targets involve the use of waste and crop-grown cellulosic materials. While not much emphasis was put on the point, it was at least a little gladdening to see that one of their focuses will be "reducing the environmental impact of bio-fuel usage." After all, if we're just changing the way we ruin the Earth, we haven't really made any progress, have we?

[Source: Daily India]

Yes, I know there's going to be a lot of skeptics of "water powered cars" out there - and I'm partially one of them - but they are people out there who are going to attempt to remedy that in the next few months with a more controlled experiment. Mark Joyner is one of them.

The ten-minute video above is pretty self-explanatory, except for exactly who Mark Joyner is. He is apparently a well-accomplished marketer who has written at least one best-seller on the subject, and according to his website, is the personal savior of a good handful of people out there who have used his advice and made 'a whole heap.' According to his blog, he seems to be pretty interested in the environment and in saving it, with an emphasis on alternative fuels for transportation. He seems a little naive comparing the hydrogen-powered toy car experiment kit to reality, but his heart seems to be in the right place.

As for the fuel tested in the video, it seems as though it legitimately works. However, I hope in the controlled test here in the States, they measure emissions and efficiency. Whatever the metals are that are being mixed, I doubt are good for the environment, even if they're in the minority of the mixture. And how much cheaper can these metals be than regular fuel, especially since you have to mix real oil of some sort with it? I suppose we'll find out soon.

[Source: Mark Joyner via YouTube - Thanks for the tip, Linton!]

A reader of the site, Keith, let us know about this 1992 Corvette which had it's 300 horsepower LT1 smallblock V8 yanked out and replaced with a 350 horsepower 4 cylinder engine. I don't have any good details on the engine currently sitting under the Vette's hood, other than the facts stated in the headling, namely it being a 4 cylinder engine making 350 horses on E85.

The vehicle was created by students from North Carolina State University, with collaboration from the Advanced Vehicle Research Center. Grants from FreedomCAR and NetLogic Microsystems Inc. helped finance the vehicle. Richard Dell, executive director of the Advanced Vehicle Research Center, said, "If you are going to go green, you might as well look good doing it".

Thanks for the tip, Keith!

[Source: Technician Online via Corvetteblogger]

Today, Toyota and Isuzu announced a collaboration which will be made possible by the former purchasing a 5.9 percent stake (100 million shares) in the latter. The two companies said in a public statement that the deal will allow them to work together in the research and development in three areas of green car technology. According to Automotive News (subscription required), Isuzu will take the lead in the development of small diesel engines and diesel emissions control while Toyota spearheads alternative-fuel drivetrains and environmental technologies for gas engines.

It seems as though most of the industry can't help but see an impending omen in the announcement. Just seven months ago, GM sold off the entirety of its stake (7.9 percent) in Isuzu in an effort to focus on falling profits in North America. And now, as Toyota makes one of GM's old alliances its own, the Japanese giant also gears up in an attempt to overtake GM as the world's number one automaker.

There's currently no word on the price of the deal, but it should hover somewhere around $354 million. "You have my word on it."

[Source: Associated Press via International Herald Tribune]

Michigan Governor Jennifer Granholm recently announced that the state will spend $250,000 by 2008 to boost its alternative fuel infrastructure. The program involves the conversion of 1,000 gas pumps to either ethanol or biodiesel across the state. The money is intended to assist gas station owners in paying for up to 75 percent of the cost of converting an existing pump to alternative fuel or 50 percent of the cost of adding a new pump. It roughly costs $2,000 to convert an existing pump while it can cost up to $15,000 to add a new one.

The program was sparked by state representative Neal Nitz who believes that renewable fuels are already making a significant impact on the state's economic recovery. Governor Granholm said that by 2008, once they reach their 1,000 pump goal, Michigan will likely pass Minnesota as the nation's leading distributor of alternative fuels.

Related:

• Minnesota sets monthly record for E85 sales

[Source: Detroit News]

Reaction to Ford Motor Company's lessened focus on hybrid technology and switch to ethanol has been strong. Treehugger, the websource for the environmentally-conscious buyer, points to the Alternative Fueled Vehicles Rule of 1998 and 2004 as one reason for Ford's change of heart.

The federal rule, which simultaneously encourages automakers to develop alternative-fuel vehicles while avoiding penalties, would be easier to comply with with more flex-fuel vehicles than hybrids. Ut would be a simple matter for Ford or any other automaker to update its vehicles to accept the ethanol and retool its factories to build them. Hybrid systems, with their complex gasoline-electric systems, are considerably more expensive to produce.

Toyota, the premium manufacturer of hybrid vehicles, has stated it will also pursue ethanol-powered engines as well as research into plug-in hybrids. 

[Source: New York Times via treehugger]

The GM Desert Proving Ground in Mesa, Arizona, is welcoming 17 university teams from across North America as part of the three-year Challenge X competition, sponsored by GM and the U.S. Department of Energy. GM sees the competition as an ideal pool from which to recruit the future hybrid vehicle engineers. Each of the 17 teams was given a Chevrolet Equinox in the second year of the competition, after all the design was completed in the first year. The Equinox cars were all modified, in order to improve fuel economy and emissions, but retain as much of the original performance as possible. All the vehicles incorporate a form of hybrid technologies, and the fuels used include diesel, hydrogen, E85, and one exotic blend of E85 and hydrogen.

[Source: EastValley Tribune]