MIT researchers are working on a smaller gasoline engine that could get better fuel economy by injecting ethanol when a performance boost is needed.

According to MIT, these small engines could be on the market within five years, and consumers should find them appealing: By spending about an extra $1,000 and adding a couple of gallons of ethanol every few months, they will have an engine that can go as much as 30 percent farther on a gallon of fuel than an ordinary engine. Moreover, the little engine provides high performance without the use of high-octane gasoline.

Basically, the researchers say this technology would be similar to a hybrid, but less expensive, and would help reduce the amount of gasoline used. The ethanol injection system with the turbocharger would give a driver more power than a conventional engine of the same size.

Reuters did a good story on this development, so did CNET news.