Azure Dynamics (TSX-V:AZD) announced yesterday that Collins Bus Corporation will now offer Azure's Balance Hybrid Electric Drivetrain as an option on Type A school buses that are built on Ford's E-450 chassis.

The Balance system delivers regenerative braking and an all-electric mode at low speeds. Offering up to a 40 percent increase in fuel economy, 30 percent reduction in greenhouse gas emissions and a 30 percent reduction in maintenance costs, Collins can now offer an option for consumers looking for an alternative to the conventional, diesel buses.

Also taking advantage of hybrid alternatives is FedEx (NYSE:FDX). The company recently announced that its road test of ten hybrid vans in Italy has shown a 26.5 percent drop in fuel consumption and a reduction of 7.5 tons in CO2 emissions.

The vehicles have already traveled nearly 5,000 miles, and will continue until May, 2010.

Known as the Iveco Daily, the van offers a stop-and-start feature that allows the van to start in electric mode. Iveco is a Fiat Group company.

Last year, FedEx announced that its hybrid delivery vehicles had saved about 83,000 gallons of fuel and eliminated 950 tons of greenhouse gas emissions. Today, FedEx operates more than 170 hybrids worldwide. A drop in the bucket compared to the 80,000 trucks and vehicles currently in operation. However, FedEx founder, Fred Smith noted last year in an interview that when diesel fuel reaches $5 to $6 a gallon, the company will likely convert a substantial portion of its fleet to new plug-in hybrid technology.

Jeff