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The Advanced Clean Energy Vehicle Project (ACE Project) has been initiated to develop the vehicles which can utilize oil-alternative and clean fuels and achieve twice the energy efficiency of conventional vehicles. To achieve the project objectives, Japanese automobile manufactures are developing six types of hybrid vehicles. Technologies of the developing vehicles include many kinds of hybrid elements, such as series and series/parallel types, alternative fuels (natural gas, DME, methanol) internal combustion engines and a fuel cell, as well as flywheels, ultra-capacitors and Li-ion batteries. This paper introduces the outline of ACE project.