There are many benefits for using alternative fuels. Besides helping with obvious environmental concerns associated with fossil fuels, alternative fuels also bring an economic edge to the table. In macroeconomic terms, alternative fuels increase the number of options available to drivers, by this increasing competition, and reducing price volatility. Alternative fuels are categorized as Biodiesel, Ethanol, Natural Gas, Propane, and Hydrogen.
Energy.gov reported that The Vehicle Technologies Office (VTO) supports research and development (R&D) to improve how vehicles can use these fuels in the future, as well as activities to increase their availability today.
According to a report by Reportbuyer, the natural gas segment accounted for more than 15% of the overall consumption in the automotive internal combustion engine market in 2014. This number is expected to grow the next few years, as natural gas is part of the strategy in reducing the use of petroleum. The VTO is planning to reduce petroleum use in transportation in the United States by 2.5 billion gallons a year in 2025, and natural gas, as well as propane fuels are playing a major role in achieving this goal. This in turn is expected to cause a surge in demand for commercial as well as passenger vehicles built especially or converted to alternative fuel systems.