Some carmakers are looking towards electric vehicles and hybrids to end the reliance on fossil fuels while other manufacturers are backing biofuel vehicles that run on ethanol or other renewable fuels. GM is sitting on both sides of the fence, developing both plug-in hybrid technology and a range of flex-fuel vehicles.

GM is so confident of ethanol based fuels taking over that it’s expecting half of its fleet in the U.S. to be running on the clean fuel by as early as 2012, according to a report by the Associated Press. The report claimed that GM North America President Troy Clarke confirmed there would be 11 ethanol-capable vehicles on the market by the end of the year and 15 by the end of 2009.

The number of fuel stations stocking ethanol and ethanol blended fuels is set to rise in coming years. Last month, biofuel company Coskata, which incidentally is part owned by GM, said it will be opening a commercial plant to mass produce cellulose-based ethanol by late 2010. Coskata actually sources its ethanol from garbage, which you can read about in our earlier story by clicking here.