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The car industry has taken a good step forward in the development of alternative fuel drive systems while at the same time toning down past estimates of a hydrogen future.

At the recent Challenge Bibendum on sustainable mobility, held in Paris, about 100 vehicles proved the point that cars fitted with liquid petroleum gas (LPG), natural gas, hybrid and electric motor and fuel cell technology are just about as good as conventional petrol cars.

The event did feature several cars running on fuel cells using hydrogen power for an electric motor like the Mercedes A-Class, Ford Focus, Opel Zafira and Nissan X-Trail.

"But the classic combustion engine still plays the major role," says Hans Folkesson, who is responsible for environmental activities at Ford Europe.

However, Folkesson is convinced that the classic combustion engine running on petrol or diesel will take a back seat to alternative fuels.

Michelin, one of the organisers of the Challenge Bibendum, said bio-fuels were a short to medium-term solution to rising oil prices and the need to reduce emissions.

A Mercedes researcher said in Paris that manufacturers were looking less at alternative engines and more to alternative fuels because these were already available.

Several cars are already available at dealers such as the new Smart fitted with natural gas tanks. A Saab 9-5 and a Ford Focus running on a mixture of petrol and alcohol (E85) is also available to buyers. The alcohol is manufactured from maize and wooded chips in a complicated refining process.

An Audi Q7 diesel version running on fuel that Shell processed from natural gas was also on show at the event.

Volvo has taken the biggest step forward with its V70 prototype that can drive with five different fuels.

"Instead of concentrating on one or two fuel systems we have foreseen five systems," said developer Mats Moren.

Ford's expert Hans Folkesson says little engine modification is needed for the new fuels.

"Most modern engines are quite capable of running with a five to ten percent ethanol additive to petrol and five percent bio-fuel to diesel," he says.

"Currently two litres of alternative fuels are mixed with 98 litres of conventional petrol," according to Folkesson.

With the next generation of engines the ethanol additive could be increased. Volkswagen research chief Matthias Rabe said current VW engines are capable of using a 10 percent ethanol additive.

Most experts agree that the life expectancy of the combustion engine is far from over. But increasingly it will be aided by an electric hybrid motor.

So far only Honda and Toyota offer hybrid vehicles in Europe. But the European carmakers are catching up. Smart, Peugeot and Citroen are working on diesel cars with electric hybrid engines.

Several research institutes are also working on cars with a combination of combustion engine with electric motor driven by natural gas or LPG.

Car part supplier Valeo is working on a micro hybrid that could be seen in a Ford Fiesta. The small hybrid works more like an assistant helping to start the engine and switching it off at a traffic light. The developers estimate that up to 15 percent of fuel saving can be achieved this way in city traffic conditions.

But Siemens VDO says just as much savings potential lies with the driver himself with electronic assistance helping the motorist in adopting a more frugal driving style. Such a navigation system for instance gives the driver advice for the ideal gear change so that petrol consumption falls by up to 15 percent.