Or we could use bio-methane / bio-cng to run stationary generators to feed the grid rather than coal. Then use electric vehicles charged from that grid as transport.
Much easier to distribute electricity than bottled gas.
The bio fuel could be used where it is created, in bulk, for any economy of scale advantages.
Farmers could have digesters on their property running in a grid interactive mode.
Land fill sites could have bio fuel burning generators on site feeding into the grid.
If all our transport was fuelled by the electricity grid then any technology capable of feeding into the grid could be used to supply energy for transport. Wind, solar, hydro, wave, tidal, geothermal, bio-fuel could all be used. Cars would be as dirty or as clean as the electricity grid.
Then when the next innovation in electricity generation comes along it could simply be plugged into the grid.
I would much rather have the fuel for my car delivered right to where it was garaged and be loaded into the car while i sleep.
Rather than have to travel to a distribution centre (petrol station).
Queue up for ages waiting for my turn at the bowser.
Then stand around in the cold/rain/summer heat waiting for the tank to fill because it can't be left unattended while filling.
Then go in to pay for the petrol and hope i picked a time of the day that the store wasn't being robbed.