Because of production and transport costs, these fuels may require higher fuel oil prices or tighter environmental regulations to become economic. Fuels from Crops. Currently ethanol supplies about 0.4 percent of U.S. transportation fuel. Ethanol is produced from corn and is much more expensive than fuel from petroleum. In the future, new processes for cellulose conversion will allow the use of crops such as switch grass and significantly reduce costs.
Substantial acreage is available to grow energy crops.
EIA believes that ethanol is one of the most likely beneficiaries if strict limits on carbon emissions are imposed. Electric and Electric-Hybrid Vehicles. Electric-hybrid cars that obtain power from batteries and small internal combustion engines are beginning to come onto the market. Unlike all-electric cars, currently configured hybrids don't need external recharging and have ranges between fueling that far exceed those of average cars. They can reduce fuel use and provide a high level of performance.