A California-based startup company says it has developed an improved version of the internal combustion engine that boosts gas mileage by more than 50 percent and enabled a prototype vehicle to get 64 miles per gallon on the highway in recent test drives.

Transonic Combustion, backed by Vinod Khosla and other venture capitalists, says it has invented a new fuel injection system that heats and pressurizes gasoline before injecting it into the combustion chamber, placing the fuel in a “supercritical” state that allows for clean and fast combustion. (more…)

GreenRoad, which is developing technologies to encourage safe and fuel-efficient driving behavior, announced today that it has raised $10 million in financing from Generation Investment Management, the investment firm co-founded in 2004 by Al Gore.

GreenRoad will use the proceeds of this financing to accelerate the deployment of its GreenRoad 360 service among existing and new customers.

GreenRoad 360, the Company’s proprietary technology-based service, provides drivers and fleet managers with real-time, comprehensive and preventative feedback, analysis, reporting and coaching on drivers’ abilities, maneuvers and patterns.

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Ford’s goal of electrifying its fleet appears to be running on all cylinders. The company is creating battery electric versions of both of its award winners –2009 Car (Focus) and Truck (Transit Connect Van).

Because energy storage will make or break the arrival of electric vehicles, Ford has joined GM in bringing the battery pack assembly and management under its tent.

Ford is investing nearly $1 billion in manufacturing facilities in Michigan that will include hybrid, battery-electric and plug-in vehicles as well as the lithium ion battery packs. Ford manager of global electrified fleets Greg Frenette explained that “there’s a strong tie-in marrying battery control…. to the rest of propulsion, and we’re in the best position to manage that.”

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Does that headline grab you? If not, these numbers should:

If that has not grabbed your attention yet, consider that in January of this year, Continental Airlines completed a test flight using a biofuel mixture, which included fuel derived from algae. The test flight yielded a 1.1 percent increase in fuel efficiency compared to a jet engine using traditional jet fuel.

That isn’t exactly a great leap forward, but achieving incremental increases in fuel efficiency coupled with the latest engine technology, as well as use of new materials in aircraft production, such as the Boeing 787, could signal a dynamic shift for the airline industry. (more…)

The Smiths have a Ford, and the Johnsons have a Nissan… but how long will it take the Jones to have a Tesla in your neighborhood?

Tesla Motors, along with Ford and Nissan, were recently awarded loans from the US Energy Department, totaling about $8 billion, to help automakers transition to making more fuel-efficient vehicles. Tesla Motors, which produces high performance, consumer-oriented battery electric vehicles, received $465 million to finance the manufacturing plant for their Model S, as well building a powertrain plant. The Model S, an electric sedan, expected to start production in 2011, will cost roughly $49,900, after a $7,500 tax credit.

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