The definition of alternative fuel varies according to the meaning implied. When talking about petroleum substitutes, the term alternative fuel can mean any available fuel or energy source, and not necessarily renewable energy (which often comes to mind, i.e. solar energy). When talking about environmental sustainability, alternative fuel generally implies an ecologically benign renewable fuel.
Alternative fuel, also known as non-conventional fuel, is defined as any substance that can be used for fuel, excluding conventional fuels. Typical conventional fuels: fossil fuels (petroleum (oil), coal, propane, and natural gas), and in some cases nuclear material (uranium).
Some common alternative fuels: biodiesel, ethanol, butanol, chemically stored electricity (batteries and fuel cells), hydrogen, methane, natural gas, vegetable oil, biomass, and peanut oil.
In 2000, about eight million vehicles world-wide were powered with alternative fuel, indicating an increase in popularity. This increase in social interest is part of a changing mind-set toward environmental protection, and a realization that conventional fuels will eventually run out, and not before potentially intensifying problems in the Middle East.
The production of alternative fuel can have widespread effects. For example, the production of corn-based ethanol has generated an increased demand for the feed stock, causing prices to rise in nearly everything made from corn. Conversely, in a competitive free market, an increased supply of ethanol lowers the demand for conventional fuels, and as a result lowers fuel prices.
Many people believe, however, that renewable energy is the best solution to the alternative fuel problem. The construction of an adequately large renewable energy infrastructure might avoid the economic consequences of a drawn-out loss of fossil fuels.
Most alternative fuels use renewable energy or at least sustainable energy, e.g. nuclear power, as a fuel source. There are a few options for alternative fuel (like hydrogen) that can be made by sustainable or non-sustainable methods. If non-sustainable, these fuels are considered alternative fuel generally because they cause less pollution at the point of use, and potentially less pollution overall.