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It had to in order to win the contest: http://www.progressiveautoxprize.org/prize-details

Just to point out, part of the XPrize qualifications is that the mainstream class (which the Edison2 was a part of) requires 0-60 mph in under 15 seconds.

(Yeah, I had to dig it up. http://www.progressiveautoxprize.org/files/downloads/auto/PIAXP_Guidelines_V_1.3.pdf page 20-21.)

"I'm sceptical of anything which proposes to simply double the amount of energy extracted from that gasoline, because, well, physics is physics."

Agreed, but the real question is how are they testing? Downhill with a tailwind? Anyone can achieve 98mpg given the right conditions (downhill in neutral), and since they don't come out and say "we achieved 98mpg using the same technique as fueleconomy.gov" it sounds like BS.

Another reason this sounds like BS: billions of dollars are being invested to meet the 35mpg CAFE standard by 2020. When Congress was talking about requiring 32mpg by 2015 it was estimated it would cost $47 billion dollars to reach that goal: "For the auto industry, it will be costly; the Transportation Department last year estimated that requiring the industry to meet 31.6 mpg by 2015 would cost nearly $47 billion."

So a magic fuel injector that achieves 98 mpg would literally be worth billions of dollars, not to mention win the xprize and $10 million dollars. Any engineer that designed this could join any auto manufacture and write his own ticket. The idea that a startup in California just happened across this technology outdoing the greatest minds in GM, Toyota, Honda, and the academic community just sounds like snake oil, just like the car that runs on water, 130mpg car, 110mpg 0-60 in 3 seconds Mustang. If any of these technologies were real GM or Honda would be announcing it or at the very least they'd be xprize competitors.

Have we forgotten the Perpetual Motion DeLorean scammers already?

there is just such a competition: http://www.progressiveautoxprize.org/

Introduction

The O-Prize is designed to realize the great potential of oil from algae with the lowest risk over the shortest time.

The potential of algae oil is to, in stages:

1) Enhance neurological development via nutritional supplementation with omega-3 fatty acids and,
2) Provide an abundant renewable source of green or environmentally friendly fuel oil.

A fixed dollar amount is withdrawn from the prize fund each month to purchase algae oil from the lowest price source(s) certified for the target market. That quantity of algae oil is then resold to the target market and the funds are added to the prize fund. When the lowest price certified sources can compete with the target market, that stage of the O-Prize has finished.

The O-Prize is designed to let algae cultivation techniques mature in two stages, building both technology and popular support for both environmentally friendly and humanitarian purposes.

Tesla got screwed over by Henry Fisker, and now they are trying to get some compensation (presumably after Fisker refused to settle outside of court). I wrote that this negativity would happen on the day the lawsuit went public, and I truly hope it doesn't hurt the nacient EV industry.

I am especially hopeful that the Automotive X Prize will drive this industry forward - and on that count, don't you think it's interesting that Tesla is an official contestant, but Fisker is NOT? See X Prize Cars for more information.

you've probably noticed already, but these are not practical vehicles. We're talking about single-person, prone-position, ground-hugging, 10-20 MPH vehicles. Of course you can get 2000+ MPG with those conditions! The Progressive Automotive X Prize is about practical vehicles getting 100 MPG (or equivalent). Now that's a race whose outcome is interesting! Check out some of the X Prize Cars which have already been designed.

How about a contest where the results can actually benefit a normal car?

http://www.progressiveautoxprize.org/

I wonder, must the winner meet recognized safety standards to win the prize? It's considerably easier to design a vehicle that won't ever come close to government crash standards and thus couldn't possibly be licensed as a car... If the winner builds a glorified ultralight autorickshaw that would probably kill all occupants in case of a low-speed collision with a Pinto, some kind of 3-wheel motorcycle with a full fairing or some other contraption that is "unsafe at any speed", then I see little point to this contest.

The news article didn't even mention safety, so I went looking on the X-Prize site for additional information, which I found here http://www.progressiveautoxprize.org/auto/prize-details/draft-guidelines . "Vehicles must be designed to meet safety regulations in the U.S. and other markets."

Well, looks like I answered my own question. The car does have to meet safety standards. Great contest then... Go X-Prize!

Fuel economy (energy efficiency): at least 100 Miles per gallon of gasoline energy equivalent (Mpge)

Vehicles must use AXP-supplied fuel during performance tests and races. A limited number of representative fuels will be provided. This will neutralize fuel gaming, and allow us to focus on viable fuels that are available in the marketplace to a level of our satisfaction. At this point, we expect to provide gasoline, diesel, electricity, natural gas, bio-diesel, and E85

Draft Guidelines can be found here: http://www.progressiveautoxprize.org/auto/prize-details/draft-guidelines [PDF Warning]