Toyota Tundra offers an E85 version

Toyota offers an E85 Tundra pickup

A story about Toyota’s new plug-in hybrid also shows that E85 will remain a viable alternative to gasoline as Americans look for ways to cope with the reality that cheap and easy oil has been relegated to the history books.

While Toyota gears up to produce millions of hybrids, the Japanese automaker is also pushing cellulosic ethanol and is offering E85 compatible vehicles in North America as part of its business strategy and effort to produce lower carbon emissions vehicles.

Toyota plans to build 1 million hybrids per year to meet consumer demand for the fuel saving vehicles and to position itself to survive in a tough automotive marketplace that has been reeling because of the daily increases in gasoline prices. Part of Toyota’s plan is a committment to build engines that will operative on alternative fuels — such as the E85-compatible flexible-fuel Tundra and Sequoia models that are sold in North America.

Writes Wired’s Chuck Squatriglia in Plug-in Hybrid Leads Toyota’s Drive Beyond Oil:

The company’s ambitious “low-carbon” agenda includes cranking out 1 million hybrids a year and eventually offering hybrid versions of every model it sells. In the short-term, Toyota says it will produce more fuel efficient gasoline and diesel engines and push alternative fuels like cellulosic ethanol and biodiesel. It’s also pumping big money into lithium-ion batteries. With fuel prices going through the roof and auto sales going through the floor because of it, Toyota president Katsuaki Watanabe says the auto industry has no choice but to move beyond petroleum.

“Without focusing on measures to address global warming and energy issues, there can be no future for our auto business,” he told reporters in Tokyo, adding, “Our view is that oil production will peak in the near future. We need to develop power train(s) for alternative energy sources.”

Watanabe’s reference to peak oil echoes that of GM CEO Rick Wagoner, who in explaining the company’s decision to shut down four truck factories said rising fuel prices and mounting demand for efficient cars are “structural, not cyclical.” In other words, the two biggest automakers in the world realize petroleum’s days are numbered.

More: Toyota to launch E85 versions for Tundra pickup and Sequoia SUV models

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Ford Escape E85 plug-in hybrid

Ford’s Escape E85 / plug-in hybrid

Combining the best of all worlds — gasoline / E85 flex-fuel / plug-in — Ford Motor Company’s new Escape Plug-in Hybrid is being tested in California, reports Gear Diary.

The Ford Escape Plug-in Hybrid is being developed by Ford, Southern California Edison and the Electric Power Research Institute. The Department of Energy also plans to place the Ford Escape Plug-in Hybrid into its fleet.

James R. Healy wrote about his test drive of the Ford Escape Plug-in E85 hybrid:

The Escape plug-in hybrid, on display at the auto show in Washington, D.C., this week, is rolling into service at Southern California Edison, where some will go to individuals to measure results in ordinary driving.

Before delivering it to the show, Ford engineers gave USA TODAY wheel time in the front-drive prototype.

Short take: excellent mileage, extraordinarily smooth integration of gasoline and electric powerplants. Escape’s aging design hobbles the package overall, but it’s likely to be redesigned by the time a plug-in hybrid version would be available.

Related: An Argument for E85 Hybrids

More: Ford develops first E85 powered hybrid

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