High fossil fuel prices and concerns about carbon dioxide emissions have motivated the development of alternative energy sources, especially for transportation. We recently covered solar technology in a separate newsletter (#6, 2007). In this newsletter we focus on alternative energy for transportation from a materials technology perspective, but also on some other interesting developments such as microbial fuel cells. The newsletter looks at recent Li-ion technology development for HEVs and EVs; hydrogen storage and generation for fuel cells and hydrogen internal combustion engines; biofuel technology; and fuel cell technology developments including microbial fuel cells. We also uncover some interesting new developments in "water-powered" mobile telephones, organic thin film batteries, and nanotube infused "paper" batteries.