Energy Department to Fund 11 Fuel-Efficiency R&D Projects
BENTON HARBOR, Mich. --- U.S. Department of Energy (DOE) Secretary Samuel W. Bodman announced the department will award a total of up to $21.5 million for 11 research and development projects that aim to improve the fuel efficiency of light-duty vehicle engines.
BENTON HARBOR, Mich. --- U.S. Department of Energy (DOE) Secretary Samuel W. Bodman announced the department will award a total of up to $21.5 million for 11 research and development projects that aim to improve the fuel efficiency of light-duty vehicle engines. These projects will focus on three areas: improving fuel utilization in ethanol-powered engines (engine optimization), developing advanced lubrication systems, and exploring high efficiency, clean combustion engines. "We expect this research to make significant strides toward maximizing an engine's performance in a cleaner, more economical manner," Bodman said. "Increasing the use of clean, renewable fuels will not only help reduce our reliance on imported oil, but will also help reduce greenhouse gas emissions for a more secure energy future." Combined with industry investment, the 11 projects will total nearly $43 million to support improvement of engine and combustion systems. Improving the engine of an FFV can increase performance and fuel economy, and decrease emissions. Funding is expected to begin this year (Fiscal Year 2007, $3.1 million) and continue through FY2010 (FY’08 - $8.6 million; FY’09 - $7.4 million; FY’10 - $2.6 million), subject to appropriations from Congress. Seven of the 11 projects selected total up to $15.3 million in DOE funding and will focus specifically on improving flexible-fuel engines and light-duty vehicles that operate on ethanol-gasoline blends up to 85 percent ethanol by volume (E-85). Research will seek to take advantage of favorable properties of ethanol blends without diminishing gasoline fuel efficiency. Projects selected for negotiation of awards include: Delphi Automotive Systems LLC in Troy, Mich., has been selected for negotiation of an award of up to $2.2 million for a project to demonstrate a vehicle with an E-85 optimized engine, yielding up to 30 percent fuel efficiency improvement. Wayne State University will partner with Delphi. Ford Motor Co. in Dearborn, Mich., has been selected for negotiation of an award of up to $3.2 million for a project to explore the use of knock-suppression properties of ethanol with increased compression ratios to allow use of smaller, more fuel efficient engines. General Motors Corp. in Pontiac, Mich., has been selected for negotiation of an award of up to $1.9 million for a project to develop a cooled exhaust gas recirculation (EGR) combustion prototype, allowing for smaller engines without loss of engine power. This could result in as much as a 15 percent fuel economy improvement. General Motors will partner with Ricardo Inc. for this effort. Robert Bosch LLC in Farmington Hills, Mich., has been selected for negotiation of an award of up to $1.5 million for a project to implement an integrated hardware-software system, yielding gasoline-like fuel economy when operating on E-85. Robert Bosch will partner with Ricardo and University of Michigan for this effort. Siemens Government Services Inc. in Reston, Va., has been selected for negotiation of an award of up to $3 million for a project to investigate the potential of a turbocharged, direct-injection engine operating on E-85 to improve combustion and fuel economy as well as lower exhaust emissions. Siemens will partner with AVL Engineering and Rousch Engineering for this effort. TIAX LLC in Cambridge, Mass., has been selected for negotiation of an award of up to $1.2 million for a project to develop a novel, high-efficiency engine system for an FFV that not only operates on any blend of ethanol up to E-85, but is projected to exceed the efficiency of a conventional gasoline engine when operated with the highest blends of ethanol (e.g., E85 or higher). TIAX will partner with Monsanto and John Deere for this effort. Visteon Corp. in Van Buren Township, Mich., has been selected for negotiation of an award of up to $2.3 million for a project to achieve gasoline-like fuel economy when using E-85 by minimizing thermal, dynamic, volumetric and other system efficiency losses. Visteon will partner with DOE's Argonne National Laboratory, Mahle Powertrain and Michigan State University for this effort. Caterpillar Inc. in Mossville, Ill., has been selected for negotiation of an award for up to $491,000 to develop an environmentally friendly lubricant additive for enhancing an engine's fuel efficiency. Caterpillar will partner with DOE's Argonne National Laboratory, NanoMech LLC and the University of Arkansas for this effort. Three projects have been selected for negotiation of awards up to $5.7 million to develop advanced combustion engines for light-duty vehicles. Selected projects will take advantage of complementary properties among combustion, fuels, and emission control technologies to develop clean, high-efficiency engines. Projects selected for negotiation of awards include: Cummins Engine Company in Columbus, Ind., has been selected for negotiation of an award of up to $2.4 million for a project to improve fuel efficiency of a state-of-the-art light-duty diesel engine by 10.5 percent, while maintaining Tier 2, Bin 5 emission levels. Cummins will partner with Daimler-Chrysler and BP for this effort. Ford has been selected for negotiation of an award of up to $1.3 million for a project to use diesel-boosting technologies to improve efficiency and performance of advanced, low-temperature combustion engines. Ford will partner with ConceptsNREC, Wayne State University and FEV Global for this effort. Michigan State University in East Lansing, Mich., has been selected for negotiation of an award of up to $2 million for a project to develop advanced, low-temperature combustion designs for diesel engines using biofuel blends optimized for engine performance. Michigan State will partner with Ford Motor Co. for this effort.
More Operations

Reading the Global Signals: What AI and the Energy Transition Mean for Fleets Now
How can fleet managers navigate a never-ending, changing industry landscape?
Read More →
90% Use Telematics. Are Fleets Getting Safer? | AF News Recap
This week, we're breaking down which industries have the highest rates, how Jamie McKay manages 2,400 vehicles, what's happening with the 2027 fleet awards, and why software-defined vehicles could introduce new costs.
Read More →
What's Best Handled by an FMC, and What's Better Done Directly?
Fleet managers continue to rely on FMCs for essential services but are taking a closer look at where working directly with suppliers can improve efficiency and responsiveness.
Read More →
Fleet Meets: Erin Gilchrist
Meet Erin Gilchrist, the inaugural Mike Antich Spirit of Fleet Award winner, as she shares insights on leadership, mentorship, the power of industry connections, and why people remain at the heart of fleet's future.
Read More →
How 2026 Fleet Visionary Jamie McKay Manages 2,400 Vehicles Across 37 States
How do you keep 2,400 vehicles running across 37 states? Fleet Visionary Award winner Jamie McKay shares how collaboration, flexibility, and a few simple strategies help her tackle fleet management challenges at Aptive Pest Control.
Read More →
Managing Fleet Costs in an Era of Permanent Volatility
Fleet operating costs have risen more than 20% since 2020, raising a key question: When does extending a vehicle's service life stop making financial sense?
Read More →
The Next Evolution of Fleet Management: Autonomous Operations
This opening keynote session at the Fleet Forward Conference highlights the future of autonomous driving for fleets.
Read More →
How to Reduce the Total Cost of Risk From Catalytic Converter Theft
A stolen catalytic converter can cost fleets far more in downtime and lost productivity than in repairs. A total-cost-of-risk approach can help fleet managers quantify their exposure and prioritize theft prevention.
Read More →
Personal-Use Charges Rise as Vehicle Values Fall | AF News Recap
Personal-use charges are climbing, wholesale used-vehicle values are declining, and commercial fleet sales growth is slowing. This week, we're breaking down the latest fleet data, plus how Element Fleet Management is helping Waymo prepare for its first Canadian robotaxi market.
Read More →
Here's When You Should Make an Exception to Fleet Policy
Fleet policies are designed to create consistency, but not every driver or situation fits neatly within standard rules.
Read More →
