Clean Energy Fuels Corp (CLNE): The Most Common Alternative Fuel May Surprise You

Charging up for a bright future
Electric vehicles have yet to go mainstream, accounting for just 7.6 million gasoline-equivalent gallons of fuel use in 2011. However, that represented growth of 36% over 2010. The EIA admits that electricity use in transportation is dominated by “low speed category vehicles” (whatever that means). That won’t last very long if Tesla Motors Inc (NASDAQ:TSLA) has its way. And right now, the company can do no wrong.

Luckily for the electric-car pioneer, the trend was being established well before it went public. Despite the domination by, presumably, golf carts, the EIA also states that electric-automobile inventory increased by 10,245 in 2011. In 2010 there were only 11,654 electric vehicles in the United States, which means the industry grew 88% in 2011.

That is astonishing, but it’s just the beginning. Tesla Motors Inc (NASDAQ:TSLA) cranked out more than 4,750 Model S vehicles in the first quarter. Say what you want, but the idea of plugging in your car is certainly catching on.

Foolish bottom line
Ethanol may have lost on a technicality, but it still dominates the alternative-fuel discussion. It’s easy to find flaws with the Renewable Fuel Standard, which mandates the use of ethanol and biodiesel in transportation fuels, but there’s no debating that it has thrust the renewable fuel into the energy mix virtually overnight. Can you imagine how quickly natural gas or electric vehicles would grow if the government mandated their use? No such bill is on the table, but it would certainly make sense to get one drafted.

The article The Most Common Alternative Fuel May Surprise You originally appeared on Fool.com and is written by Maxx Chatsko.

Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio or his CAPS page, or follow him on Twitter, @BlacknGoldFool, to keep up with his writing on energy, bioprocessing, and emerging technologies.The Motley Fool recommends Clean Energy Fuels, Halliburton, Tesla Motors, and Waste Management and owns shares of Tesla Motors and Waste Management.

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