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2 weeks a go, I posted on alternative investment opportunities that dealt primarily with alternative energy. In a related note, earlier today VeraSun, who happens to be the U.S.'s 2^nd largest producer of ethanol, announced they would be boosting their annual ethanol production capacity by 330 million gallons through the acquisition of 3 plants in Nebraska, Ohio, and Indiana. To fund the transaction, they'll be giving the purchasee, ASAlliances BioFuels LLC, a $200 million equity stake, and chipping in $250 million in cash to go with $275 million in project financing.

The 3 ethanol plants are yet to be on-line, but by the time all three are producing at full capacity, projected to be early in Q1, 2008, VeraSun's total ethanol production should be about 1 billion gallons per year. The news of the acquisition comes soon after VeraSun's (VSE) 52 week low, reached on Friday, July 20^th . The news rallied the stock from the low of $13.01 at Friday's close, to the upper $13's at the time of this post. Time will tell if the rally continues. After peaking at almost $27 in November, VeraSun has been on a downward slide. Will this deal arrest the plunge?

In other interesting alternative energy related investing news, Quantum Fuel Systems Technologies Worldwide Inc. (NASDAQ:QTWW) indicated this morning they would be supplying GM with 3 liquid hydrogen refueling stations to facilitate the auto giant in the demonstration of new hydrogen fuel cell vehicles. Quantum also produces the fuel cells used by GM in the technology demo vehicles.

In a press release this morning from Quantum's Irvine, CA offices, Alan P. Niedzwiecki, President and CEO said the following: "Our transportable hydrogen refueling stations are designed to support our customers as they advance their hydrogen fuel cell vehicle initiatives and are helping to establish the foundation of a hydrogen refueling network. The high pressure storage systems developed by Quantum, which these new refueling stations support, translate directly into a greater vehicle driving range for hydrogen fueled vehicles, a critical factor for the commercialization of fuel cell vehicles." Since a close of $3.29 a year ago, Quantum has been slowly regaining ground, with a nice 40% spike last month that's mostly been given back. At the market's close on Friday, it's stock sat at $1.42, up from a $1.06 close in late April.

GM has also recently demonstrated a hydrogen fuel cell vehicle that has a 300 mile range. With the clamoring to free the U.S. and other countries from foreign oil dependence, this technology is just another promising development. For years, hydrogen fuel cell technology has held promise, but only recently has it shown the capability to offer both the range and power demanded by consumers in an actual vehicle. We'll see if the new developments in this field continue. GM plans on introducing production fuel cell vehicles in the future. Earlier this month at the Berlin Auto Show, the General showed its new HydroGen4 concept vehicle. In 2008 they will test 10 of the cars in Europe.

Last month at an event in Canada, Nick Zielinski, Chief Engineer of Advanced Vehicle Development for General Motors, showed several advanced fuel vehicles, including a version of GM's Volt electric hybrid concept that uses GMs 5^th generation fuel cell instead of a conventional, internal combustion power plant. In a heads up, GM has also announced the award of battery development contracts for it's next generation of hybrid vehicles. The two competing teams are from Compact Power Inc. and LG Chem, and a team from tire manufacturer Continental and A123. In addition, GM moved 500 engineers from advanced vehicle R&D to advanced vehicle production and engineering. Design targets include an advanced power train with a life cycle of greater than 150,000 miles in real world use.