Sweden has got the toughest demand in the whole of Europe recently. In 2020 minimum 49 % of the energy should be renewable energy. To achieve the goal biogas production is being optimized, utilizing organic wastes and crops, to produce methane for cars and buses. In Vasteras a 200 MW waste gasification plant will be built to replace coal in an existing 600 MW PC-boiler with biogas. The plant will start up 2011. There will be co-firing with also peat, aside of the biogas. In Sweden 120 TWh/y of biomass is consumed, which is almost 1/3 of the total 400 TWh energy utilized annually. Most of it is used in co-generation (CHP) or pulp and paper industry. Now the plan is to increase production of liquid fuels for vehicles. Energy balances for production of bio ethanol in Sweden will be discussed. This can be an interesting part of poly-generation systems. Plug-in hybrid car are foreseen to be introduced on a large scale within the next 10 years. Here liquid fuels are used in a combustor with e.g. a turbine and generator primarily to produce electricity, while electric engines fed by electricity from batteries drive the vehicle. Today 60 % of the new cars are "environmental", that is low consuming diesel, ethanol or biogas. Seven years ago it was only 5 % of the new cars! Cities, county authorities and government are working together with companies and universities to drive the transfer away from fossil fuels.