Ford goes green, yet again. As part of the automaker’s restructuring plan called “Way Forward”, Ford promised more fuel-efficient vehicles in its line up. This week, Ford unveils a new hybrid prototype that will be the first vehicle to utilize two of the increasingly popular gas-saving technologies today: hybrid electric technology and E85 ethanol fuel. Ford has sold E85-capable vehicles in recent years but this vehicle is the first to use a hybrid motor.

What is ethanol, you may ask. Ethanol is an alcohol-based alternative fuel produced from corn and other starch crops. It is commonly used to increase octane and improve the emissions quality of gasoline.

E85 ethanol fuel is 85% ethanol and 15 percent gasoline. E85 qualifies as alternative fuel under the Energy Policy Act of 1992. Vehicles which run on E85 and other alternative fuels are called flexible-fuel vehicles (FFVs). Ford’s prototype Escape hybrid is a flexible-fuel vehicle.

The prototype was unveiled at the Washington auto show. Ford says that that the FFV is nothing more than a research vehicle at the moment. There are still a number of technical obstacles to overcome before it goes into production. One of the bigger obstacles is controlling evaporative emissions. Apparently, flexible fuel vehicles don’t meet the same emission standards when running on ethanol as an alternative to gasoline. Also, the Escape hybrid prototype’s fuel economy was not exactly impressive.

Nevertheless, the Ford Escape Hybrid E85 is a step in the right direction. Ford plans to build 250,000 hybrids annually by 2010 including 250,000 vehicles this year that are E85-capable. Ethanol could prove to be a promising technology that can reduce harmful exhaust emissions and eventually cut oil imports. However, it also must overcome two obstacles: worse fuel economy and evaporative emissions.

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