One other possibility for alternative fuel is ammonia. Gallon for gallon you get the same energy as gasoline assuming you have an effective way of cracking it, like this:
http://phys.org/news/2014-06-hydroge...uture-car.html
Making ammonia in large quantities is a 1920's technology. Could fairly easily take place on an old coal mine or other significant source of methane. Plus you can use it as fertilizer, so there is a reason for communities to make it happen.