Volkswagen’s radical 238mpg concept car may actually reach production; another blow to first generation biofuel; and a low-energy, strikingly green city takes root in the heart of Big Oil. The weekend is in sight — welcome to the Friday edition of The Daily Five.

VW to Sell 238mpg, 650lb Carbon Fiber “1L” Diesel in 2010 : Volkswagen — the original People’s Car — figures people would like to keep driving, despite dire predictions of runaway energy prices. The German auto manufacturer says it intends to bring a 238mpg, ultra-lightweight, ultra-aerodynamic diesel two-seater to market. Even more remarkably, VW hopes to do this in just two years. The 8.5 hp coupe would be designed from bottom to top for fuel efficiency. (Next Energy News)

Stillborn: French gas stations chain stops selling E85: The wheels are coming off for ethanol. French gas station chain Système U is suspending sale of E85 ethanol-added fuel. Why? Nobody will buy it. (Autoblog Green)

Under Water: Insiders Question Offshore Wind Power: Speculation continues regardinging the sudden withdrawal of Royal Dutch Shell from the UK’s massive “London Array” wind farm. The prevailing opinion: with energy prices high, it’s more profitable to invest in fossil fuel production. The WSJ discusses another theory: offshore wind just isn’t ready for prime time. Only two European manufacturers are capable of building the turbines, and they’re already backlogged far beyond production capacity. (WSJ.com)

Tidal Energy Makes a Splash: More reliable than wind or solar, but more difficult to harvest. That’s the challenge of harnessing the energy of our restless tides. But it’s the Deportment of Energy to the rescue. The U.S. agency will provide $7.5 million for research funds on undersea turbines. (CleanBeta)

Building the Zero-Emissions City: You’d hardly expect the oil-rich United Arab Emirates to be interested in low-energy, low-emissions technology. But construction began last week on an entirely new city for 50,000 people based on renewable energy and radical green design. The $22 billion project will feature thin-film solar energy; shared, battery powered electric transportation; and air conditioning provided by heat-driven absorption chillers. (Technology Review)

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