The problem with an alternative fuel is directly tied to energy storage ability. Hydrogen, which our Commander and Chief has declaired is the path to take, is present in all fossil fuels and provides all the fuel energy! Hydrogen in petrolium is bonded in a stable form making it lightweight, portable, and easily converted to another form (heat).
Pure hydrogen, however, is extremely dangerous. The hydrogen has to be bonded to another material (nature uses carbon and nitrogen) to make it stable. As to date, I don't believe there are any 'quick' conversion processes that use very little energy.
Ethanol, methanol, natural gas, petrolium oil, and other hydrocarbon fuels all share the same benefits of high energy to weight, quick conversion, and stability. Solar cells, which someone mentioned operate just like batteries (but don't) are a new technology based on Einsteins photo electric effect. That's where electrons are moved from light energy absorption in atoms due to a photovoltaic process. Nuclear energy works with splitting the nucleus of the atom (hence the name) but does not have a high energy to weight (considering auxillary equipment), quick energy conversion, and some worry about it's stability. Fusion, where atoms are fused together (hence the name) is how our sun works but has the advantage of gravity to keep the hydrogen fuel in place.
Fusion research has basically been abandonded by the US Government. Research for high efficency electrical batteries is not a priority. Conversion processes for stabilizing hydrogen into another compound is not a priority. So, unless Japan, China, Europe, or some other country researches and develops these technologies we won't have them anytime soon.
It would help if people in the US would conserve fuel, but that won't happen until gas prices hit about $6.00/gal. So, for the near future, oil and ethanol type fuels are all we have for vehicles. Even if fusion became operational (or many more nuclear plants were built), converting the energy into something useable to replace gas is another big problem.
Personally, I like the idea of a high tech electric battery and solar cells. That would lead to more options (including electric cars) and possibly eliminate some of our electricity grid requirements because buildings could make instead of only consume energy. I would expect plenty of opposition to this however, since it's not easy to centralize, control, and tax energy produced that way.
Regards,
Malta