Greening the Transport Sector
Location: New York
Author: Ken Silverstein, EnergyBiz Insider, Editor-in-Chief
Date: Thursday, May 8, 2008
Green cars come in many varieties. Natural gas is one of them, considered to
be a much cleaner and cheaper alternative than conventional oil. In fact,
Honda's Civic GX, a natural gas car that cost about $25,000 and is sold only
in New York and California, is the "greenest" of them all.
The primary market is large fleets. Such vehicles drive substantial
distances and are therefore able to recoup their higher initial costs
through reduced fuel charges. They also have access to centrally located
fueling and repair stations.
"Increased use of natural gas vehicles will reduce global warming emissions
of carbon dioxide, methane and nitrous oxides by 20 percent to 25 percent
over present best-available (petroleum engineered) cars and light duty
vehicles," says Jeffrey Seisler, executive director of the European Natural
Gas Vehicle Association.
But where is the natural gas going to come from, given that power generation
can't get enough of it? T. Boone Pickens says that such gas ought to be
redirected into vehicles. Generators could then get their juice from other
sources including wind and nuclear.
Natural gas at the pump is less costly than gasoline and even the added
demands won't drive up prices that much. The transport sector consumes only
a fraction of all natural gas. According to the U.S. Department of Energy,
the national average for compressed natural gas at the pump is about a third
less than gas or diesel.
At present, more than 5 million natural-gas vehicles are operating worldwide
with 150,000 being run in the United States. There are more than 1,500
fueling stations to serve those in this country, although only half are for
public use and the rest is used to serve private fleets. While Honda is
winning the most acclaim for its Civic -- awarded by the American Council
for an Energy Efficient Economy -- there are more than 150 models of light,
medium and heavy duty vehicles and engines.
Roughly 22 percent of all new transit bus orders are for natural gas. Take
the Coachella Valley's SunLine Transit Agency in Palm Springs, which made
the switch from diesel to natural gas in the early 1990s: It applied for
federal grants that covered 80 percent of the replacement costs. The
taxpayers there contributed the remaining 20 percent. That did not include
the $500,000 needed to build fueling stations to service the new buses and
the money to retrain the agency's existing mechanics, which came from
private sources.
"Natural gas vehicles are an immediate solution to the nation's energy
security needs," says the National Energy Renewable Lab in Golden, Colo.
"Most of the natural gas consumed in the United States is produced
domestically and by politically stable countries, and an extensive natural
gas infrastructure exists."
Market Pressures
Oil, in this country, now comprises 2 percent of total electric generation.
But it still provides 96 percent of the fuel in the transportation sector.
Natural gas is trying to crack those markets. Thousands of delivery trucks
and public buses could make the conversion from oil to natural gas. The
technology exist now to do so, which is why the federal government provides
some financial incentives. Toward that end, Westport Innovations in
Vancouver, B.C. is supplying hundreds of new natural gas-enabled engines to
the San Diego Metropolitan Transit System.
The Energy Policy Act of 1995, meanwhile, is a mandate that covers federal,
state and certain "fuel provider" fleet vehicles. Under that law, "fuel
provider fleets," such as those operated by utilities, are required to use
alternatively fueled vehicles in 90 percent of their covered vehicles. The
European Commission also has enacted a transport policy that aims to replace
20 percent of the petroleum used in its transport sector by 2020. The hope
is to have 23 million alternatively fueled vehicles in Europe by that time.
To be sure, political and practical considerations stand in the way. The
petroleum industry argues that government has no business telling industry
when to shift to a different form of energy. Oil is more abundant than
natural gas, it says, noting that it is also easier to transport. The big
oil companies emphasize that they could supply the fuel to motor natural gas
vehicles, but that the demand is not there.
Oil companies also have a huge financial stake in their existing refineries
that transform oil into gasoline. Those refineries will eventually have dual
uses. But converting them requires a capital investment. If the demand for
alternatively fueled vehicles is sparse, then such investments would be
unwise. They add that natural gas vehicles are not only more costly to buy
and operate but they are also difficult to refuel and service.
All that could change. High gas prices along with new clean air standards
will eventually have an effect. Natural gas vehicles, however, will be just
one solution. Hybrids that run on both gasoline and electricity are here
now. Plug-in hybrids are coming. Bio-fuels are now used to help power cars
and more promising technologies are in the offing. Hydrogen fuel cells for
cars, meanwhile, may one day be a reality.
For their part, utilities are using a variety of measures like deploying
sedans, vans and pick-ups "capable" of running on natural gas, propane,
methanol or E85, a mix of 15 percent gasoline and 85 percent ethanol. If
vehicle manufacturers spot an opening, they will deliver. Government, too,
must be there to facilitate the growth not just through tax-favored
legislation but also to help build the fueling and serving infrastructure.
The greening of the transport sector will take time. Natural gas proponents
understand that and say they are in it for the long haul. So are others,
which will encourage more participation and force the market for
alternatively-fueled vehicles to widen.
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