Ford Motor Company delivered its first-ever flexible fuel capable plug-in hybrid SUV to the U.S. Department of Energy on Wednesday, the company said.

The Ford Escape Plug-in Hybrid, which runs on gasoline or E85, is part of a demonstration fleet Ford is developing in a partnership with Southern California Edison and the Electric Power Research Institute. Advanced testing on the vehicles is under way in California.

The Department of Energy will include the Escape Flexible Fuel Plug-in Hybrid in its fleet to showcase the marriage of technologies and obtain real-world experience with the vehicle as it continues its support of advanced fuel technologies.

"Plug-in hybrid technology holds great promise to reduce the nation’s dependence on petroleum and reduce CO² emissions related to climate change, both significant issues for America," said Mark Fields, President of the Americas, Ford Motor Company. "As a leader in both hybrid and flexible fuel technology, Ford is well positioned to bring the two together in a plug-in vehicle."

The vehicle is equipped with a 10 kilowatt advanced lithium ion energy battery supplied by Johnson-Controls/Saft that stores enough electric energy to drive up to 30 miles at speeds of up to 40 mph. When fueled by E85 ethanol, which has a lower energy content than gasoline, fuel economy can reach up to 88 mpg in urban driving and up to 50 mpg on the highway.

Based on current estimates, the vehicle would emit 60 percent less carbon dioxide than a conventional gasoline-powered vehicle.

"There is enormous interest in the country in the electrification of vehicles," Fields said. "We recognize commercialization of plug-ins, powered by gasoline or biofuels, may represent part of a long-term energy solution, but significant challenges remain to bringing this technology to market."

The first of the Escape Plug-in Hybrid SUV was delivered to Southern California Edison in December and road testing has begun. The vehicle delivered to the Department of Energy represents the first flexible fuel Escape Plug-in Hybrid developed as part of the partnership.