As part of the Plug-in Hybrid Electric Vehicle Technology Acceleration and Deployment Activity Program, the US Dept of Energy announced it has selected Navistar’s Fort Wayne plant for a cost shared award of up to $10 million to develop 60 plug-in electric hybrid buses for use across the nation during a multi year test program.  Navistar’s IC Bus is the only bus manufacturer currently offering the electric bus and will use the grant to improve efficiency of the buses.  The funding will not come from stimulus but normal DOE budgeting with Navistar picking up the remaining cost.  Goals for the bus include a 40 mile electric range, advanced energy storage devices and a diesel engine capable running on renewable fuels.

“These projects will help move technologies from the laboratory to the marketplace by improving their durability, reducing their costs, and validating their performance in real-world settings,” Energy Secretary Steven Chu said in a statement released on Friday.