News > March

UPS Adds to ‘Green’ Fleet
UPS has deployed 167 new compressed natural gas (CNG) delivery vehicles in Texas, Georgia and California, helping to further reduce the company's carbon footprint. These new vehicles join more than 800 CNG vehicles already in use by UPS in the United States. “This CNG deployment is one more step towards the 'greening' of the UPS fleet. Continuing to add CNG delivery trucks to our fleet is a sustainable choice because natural gas is a cost effective, clean-burning and readily available fuel,” said Robert Hall, director of vehicle engineering at UPS. The trucks are expected to reduce emissions by 20% and improve fuel economy by 10% compared to the cleanest diesel engines available today. UPS operates the transportation industry's largest private fleet of alternative fuel vehicles. This deployment brings the UPS ‘green fleet’ total to 1,629.
Source: UPS Deploys 167 ''Green'' Trucks, Fox Business
 
Lagging Technology Causes California to Cut Zero-Emission Vehicle Quotas
In a strong signal that technology has lagged hopes in the largest U.S. auto market, California's Air Resources Board has cut by 70% the number of electric cars and other zero-emission vehicles (ZEVs) that automakers will be required to sell in coming years. The board voted to reduce the number of pure ZEVs—cars powered entirely by batteries or hydrogen fuel cells—to 7,500 for the three years from 2012 to 2014, down from a 2003 requirement that called for 25,000 such vehicles during that period. Nearly 60,000 advanced technology vehicles, including plug-in hybrids and compressed natural gas vehicles, will make up for the cutback in the pure ZEV requirement. CARB Chair Mary Nichols said the new requirements were realistic and would keep the pressure on automakers to produce fuel cell and electric vehicles while giving them the flexibility to meet the state's requirements with technologies that are now available on a wider scale.
Source: California cuts future quotas for clean-air cars, Reuters
 
Toyota to Boost Japanese Output of Prius Hybrid by 60%
Toyota, Japan's largest automaker, plans to boost domestic output of its Prius hybrid car by 60% to 450,000 units a year by 2009, the Nikkei reports. The move comes in response to rising global demand for fuel-efficient vehicles amid soaring crude oil prices and heightened environmental awareness. The company aims to make and sell more than 500,000 hybrids globally next year and intends to boost this to 1 million early in the next decade. As soaring fuel prices depress demand for large vehicles in North America, Toyota seeks to raise exports of the Prius to bolster its operations there, the report said. Meanwhile, Honda plans to roll out a low-priced small hybrid early next year, targeting annual sales of 200,000 units within a year or two.
Source: Toyota Motor to boost Japanese output of Prius hybrid by 60 percent – report, CNN Money
 
To Tackle Rising Pollution Problem, India Tests Hydrogen Blends
Five of India’s major automobile manufacturers have come together to develop hydrogen blended compressed natural gas (HCNG) vehicles for the domestic market. The joint initiative of the Ministry of New and Renewable Energy along with Indian Oil Corporation and the Society of Indian Automobile Manufacturers will see the first time use of hydrogen as an auto fuel in India. The pilot project will study the emissions and performance of various vehicles running on CNG with different hydrogen fuel blends ranging from 12% to 30%. The goal of the project is to tackle the problem of rising pollution, which is becoming the biggest health hazard in urban India.
Source: Cleaner fuel poised to take over as oil crises looming large, The Economic Times
 
As Diesel Prices Spike, LNG Trucks Offer Cost Benefit to Fresno Fleet
The decision to use liquefied natural gas (LNG) refuse trucks is paying off in a big way for the City of Fresno in California.  With the price of diesel fuel skyrocketing so far this year, the city has been forced to pay out $400,000 more to fuel its diesel fleet than budgeted, but  "we would have been $1.2 million over had we not switched to liquid natural gas (LNG)," said Joseph Oldham, Fresno Fleet Supervisor. "Now we've seen not only emissions benefits but cost savings by running alternative fuels."  Compared to the typical diesel refuse truck, the city's 80 natural gas powered ones are not only cheaper to run, they're quieter and don't pollute the air as much—the original reason Fresno decided to begin the switch to natural gas five years ago. Fresno plans to replace its entire fleet of refuse trucks with natural gas trucks by 2010.
Source: Fresno's saving Money using Natural Gas, ABC 30

California Awards $394 Million in Funding for Clean Transit Projects
California has announced $394 million in funding for transit projects around the state, including cash for compressed natural gas buses, fuel cell and hybrid buses, and infrastructure. These are the first transit projects to be funded by Proposition 1B, a 2006 voter-approved $19.9 billion transportation bond encouraged by Gov. Arnold Schwarzenegger.  A large chunk of the state's funding went to compressed natural gas (CNG) vehicle projects. $25.2 million will go toward building a CNG fueling infrastructure in Orange County. $2.5 million was awarded to the city of Fresno to purchase CNG buses to replace older vehicles that emit more air pollutants. In Los Angeles, $171 million will go toward a number of improvements, which include the expansion of a light rail line and the purchase of 95 new CNG buses. Funding will also go towards hybrid bus purchases for the city of Santa Rosa and the county of Napa.
Source: California hands out cash for clean transit projects, Cleantech
 
GM's Lutz: 80% of Vehicles Must be Hybrid by 2020 to Meet Goals
In order to meet the federal fuel economy rule of 35 miles per gallon by 2020, four out of five of General Motors’ vehicles sold in the U.S. will have to be hybrids by then, says GM Vice Chairman Bob Lutz. “Ultimately by 2020 we figure that 80% of vehicles will require some sort of hybridization. We cannot get to 35 miles per gallon with anything resembling the current product portfolio with anything resembling current technology,” Lutz said. He estimated that about 15% of GM's lineup would include hybrids by 2015, with the rate ramping up as the rules phase in before 2020. Lutz said even with hybrid technology, GM would still have a struggle bringing some vehicles in compliance, noting that the two-mode hybrid system in its full-size SUVs boosted fuel economy to 22 m.p.g. “How do you get those from 22 to 35? We don't know — we're open to ideas,” Lutz said.
Source: GM's Lutz: 80% of vehicles must be hybrid by 2020 to reach go, Detroit Free Press
 
California Utilities Plan to Reduce Fleet Emissions By 15%
Two California utilities plan to reduce the greenhouse gas emissions from their fleet vehicles by approximately 15% by 2012, by replacing company passenger vehicles with new clean-burning vehicles and by implementing a program to improve fleet efficiency. Currently, the two utilities, Southern California Gas Co. and San Diego Gas & Electric, operate 450 passenger vehicles. As these vehicles reach the end of their useful lives, they will be replaced with compressed natural gas and hybrid-electric vehicles. The alternative-fueled vehicles should reduce greenhouse gas emissions from 20% to 50% compared with conventional gasoline-fueled vehicles. In 2008 alone, the two companies will put into service 40 new Honda CNG Civics and 60 new Toyota Priuses. When compared to 2005 levels, a 15% reduction in greenhouse-gas emissions from the utilities’ vehicles equates to removing about 2,400 gasoline-fueled vehicles from the road. 
Source: Southern California Gas Co., SDG&E To Reduce Fleet GHG Emissions By 15%, Green Car Congress

New Zealand's Government Seeks Carbon Neutrality: Biomass Could Be Answer
Biomass could be the answer to New Zealand's future energy needs, according to a report from a government research group, Scion. The institute found that purpose-grown energy forests, if planted today, could meet all of the country's future transport, fuel and heat energy needs, without threatening the country's important agricultural industry. New Zealand's Government seeks carbon neutrality in the electricity sector by 2025, in the stationary energy sector by 2030, and in the transport sector by 2040. The purpose-grown energy forests could be established using only 37% of the potentially available grazing land in New Zealand, said Tom Richardson, CEO of Scion. But establishing the required forest resource will take around 25 years, at an estimated cost of around $2 billion to $3 billion a year, according to the study. Richardson said some of the establishment costs and early cash flows could be offset by the country's proposed Emissions Trading Scheme.
Source: New Zealand report touts biomass for energy needs, Cleantech

Subaru’s New Electric Car to Be Evaluated by New York Power Authority
Subaru of America unveiled its Subaru R1e electric vehicle at the New York International Auto Show this week. The Subaru R1e employs fast-charge lithium ion battery technology that eliminates typical lithium ion battery issues of charge memory loss, allowing partial charges and quick charges that do not decrease battery life. The all-electric car can be ‘quick-charged’ to 80% capacity in only 15 minutes using quick-charge technology. A typical charge cost less than $2 dollars. The vehicle can be fully charged overnight (eight hours) while connected to a standard household electrical outlet. The two-seater vehicle is capable of driving at speeds up to 65 mph with a range of up to 50 miles. Subaru will provide two R1e cars to the New York Power Authority for an evaluation that will begin this summer.
Source: Subaru to Provide Electric Cars to the New York Power Authority (NYPA) for Evaluation, Green Energy News

Lack of Infrastructure Remains Roadblock on Hydrogen Highway
Automotive and air quality experts from around the country recently convened at the California Fuel Cell Partnership headquarters to brainstorm how to foster a national hydrogen-fueling network. As an auto fuel, hydrogen promises both the pump-and-go convenience of gasoline and no emissions. "The performance of hydrogen fuel cell cars is not that much of a concern," said Len Brewster, a Detroit-based auto industry analyst. "The problem is going to be setting up the infrastructure to keep these cars fueled and running." Federal energy officials and auto industry analysts have estimated that it would cost $10 to $15 billion to establish a refueling infrastructure in the nation's top 100 major metropolitan areas. Other estimates are much higher. Most participants called for increased federal funding for research, fuel-cell fleets and filling stations—and patience. "People need to understand that this is a matter of decades. Several decades," said Joan Ogden, co-director of the Hydrogen Pathways Program at UC Davis.
Source: Hydrogen fuel cell vehicle development still in the slow lane, Sacramento Bee

Mercedes Puts New Natural Gas Van Into Production
Mercedes-Benz is putting its new Sprinter 316 /516 NGT natural gas van into production, with market launch targeted for May 2008. This is the first time the company has built a compressed natural gas version of the Sprinter from first principles. The environmentally friendly Sprinter NGT, which can be used as a panel van, crew bus or pickup, meets the Euro 4 emissions standard. Compared with a diesel engine, emissions of nitrogen oxides, hydrocarbons and carbon dioxide are reduced substantively. Furthermore, the Sprinter NGT is virtually CO2-neutral when powered by biogas. In Germany—where the vehicle was trialed by DHL, Deutsche Post and UPS—operating costs with natural gas are up to 30% lower compared to an equivalent diesel version.
Source: Mercedes Putting New Natural Gas Sprinter Van Into Series Production, Green Car Congress

Brazil Embraces Flex-Fuel Vehicles—90% of New Car Sales are Flex-Fuel
In Brazil, flex-fuel vehicles, which can use any mixture of ethanol and gasoline, account  for 20% of the nation’s cars and nearly 90% of all new car sales. Brazilian state oil company Petrobras says that the country’s embrace of flex-fuel cars has helped prevent the company from charging more for gasoline despite record world oil prices. Paulo Roberto Costa of Petrobras said consumers in Latin America's largest country would stop buying gasoline and switch to cheaper ethanol if the price of the fossil fuel was raised to match world levels after being frozen since late 2005. "It's possible that this year we'll sell more ethanol than gasoline in Brazil," said Costa, adding that the number of single-fuel cars on the road in Brazil was falling gradually.
Source: Brazil flex-fuel cars help tame gasoline prices, Reuters

Carmakers Say Search for Alternative Fuels is a Priority
The need to find alternative fuel sources has been identified as the number one trend in a survey of global automotive industry executives conducted by financial services group KPMG. Those surveyed—senior executives at vehicle manufacturers and suppliers worldwide—stated that quality (86%) and fuel efficiency (84%) were the two key factors that would drive consumers when making a purchasing decision in the next five years.  But participants in the survey also indicated that another key factor for car buyers is the availability of vehicles that use alternative fuel sources—this criterion has increased in importance from last year's 53% to 65%. The industry … needs to invest heavily in developing alternative sources of power," said Gavin Maile, national automotive industry leader for KPMG. Asked to rate the importance of automotive product innovations over the next five years, 79% cited hybrid systems and 78% fuel-cell technology, with safety innovations trailing at 67%.
Source: Carmakers say search for alternative fuels is a priority, Engineering News

Diversion of Corn to Ethanol Continues to Impact U.S. Meat Industry
The largest chicken producer in the U.S., Pilgrim's Pride Corp, plans to close nearly half of its U.S. chicken distribution centers and a processing complex as it copes with soaring feed costs, largely due to the increased use of corn for ethanol. "With feed ingredient prices escalating as much as they have over the past year and half, it is causing us to look hard at some operations where we feel we have excess product or don't have our best cost structure," said Pilgrim's President and CEO, Clint Rivers. Based on current commodity prices, Pilgrim's Pride estimated it would cost at least an additional $1.3 billion to feed its flocks in fiscal year 2008 than it would have cost two years ago. "Part of the issue is the government continues to raise the mandate on ethanol so that we will pull another billion bushels of corn out of the system to make fuel," said Rivers, echoing the concerns of many livestock and meat producers who blame the U.S. government's ethanol policies for higher corn prices.
Source: Pilgrim's Pride cuts chicken output, Reuters

VW Introduces Dual-Fuel CNG Passat at Geneva
Volkswagen has unveiled its dual-fuel CNG Passat concept—a car that can be powered by either natural gas or conventional gasoline—at the Geneva International Motor Show. The Passat Estate TSI EcoFuel is powered by a 1.4-liter engine capable of running on either natural gas or gasoline and provides relatively high power outputs from a small capacity engine. A new engine management computer controls the switch between the conventional fuel and natural gas tanks. Between the two fuel tanks, the vehicle offers a theoretical range of more than 490 miles. The new dual-fuel vehicle, which has a top speed of 130 mph, meets the Euro 5 standards and provides greater fuel economy and lower emissions.
Source: VW Introduces Dual-Fuel CNG Passat at Geneva, Green Car Congress

Universities Look at Viability of E20 Ethanol Mix
E10 (10% ethanol blended into gasoline) can be safely used by virtually all gasoline vehicles, and studies conducted by universities in Minnesota now suggest that vehicles could also safely burn E20 (a mix of 20% ethanol). A separate study, commissioned by the Renewable Fuels Association and not yet finished, will assess the environmental impact of doubling the alcohol. Minnesota law requires 20% of fuel used be ethanol within a few years, making the switch to E20 an urgent issue for the state. However for E20 to become a legal fuel, it would need U.S. Environmental Protection Agency approval. Automakers also have doubts that E20 is as benign as E10. They are running trials, but they say they do not have enough data on how risky E20 is to components and whether it would change emissions in unwanted ways.
Source: Gasoline could go from 10% ethanol up to 20%, USA Today

Report: Few are Willing to Pay Price Premium for a Hybrid Vehicle
According to J.D. Power & Associates' ‘Spring Offline Media Report,’ only 11% of consumers seem willing to pay more to get a hybrid versus a traditionally powered vehicle. The study, based on responses from 44,931 drivers of new vehicles, found that, even among environmentally conscious consumers, only about one in 10 actually purchased a new hybrid vehicle. “While most consumers immediately think of hybrids when considering an environmentally friendly vehicle, the price premium of hybrids may be prohibitive,” said Jon Osborn, research director at J.D. Power and Associates, adding that  “… the hybrid market is still in its infancy, and currently comprises only about 2.2% of the new vehicle market. However, this segment will continue to grow as more hybrid models are offered in the marketplace.”
Source: Despite Gas Hikes, Hybrid Sales Aren't Booming, Study Shows, Marketing Daily

Indonesia Scraps $5.9bn Biodiesel Plans
Indonesia’s palm oil growers are amending their plans to make biodiesel after the commodity's record surge make the projects unviable. One of Indonesia’s largest conglomerates, Sinar Mas Group, has halted a $5.9 billion biofuels plan with China National Offshore Oil, China's third-largest oil company. Palm oil prices have more than doubled in the past year, undermining the economic rationale for turning the vegetable oil into diesel even as governments worldwide mandate greater use of alternative fuels. “Crude palm oil is very expensive now, it's impossible for companies to make profit if it's used as biodiesel,” said Alhilal Hamdi, head of Indonesia's National Team on Biofuel. “We are postponing it indefinitely as it's economically not feasible,'' said Rafael Concepcion, the director of Sinar Mas. “The price of the raw material alone is already higher than the price of biodiesel.'”
Source: Indonesia scraps $5.9bn biodiesel plans, the Age

Nation’s First CNG Port Drayage Trucks to Join LNG Trucks at San Pedro Bay Ports
To help improve regional air quality, Southern California Gas Co. has announced a collaborative demonstration effort to put into service the nation's first clean-burning compressed natural gas (CNG) trucks to be used to transport containers off-loaded from ships. Five CNG trucks will be delivered to the ports of Los Angeles and Long Beach in June 2008 and used to move containers between the ports to nearby freight-consolidation yards. The new truck engines are certified to meet the U.S. Environmental Protection Agency's stringent 2010 on-road emission standards. The heavy-duty trucks, the nation’s first CNG-powered trucks in commercial port drayage service, will join the emissions-reducing liquefied natural gas (LNG) trucks already in operation at the San Pedro Bay ports. "This project demonstrates the important role natural gas can have in reducing air emissions and greenhouse gases, while improving the quality of life for residents living near Southern California ports," said Hal Snyder, vice president of customer programs at The Gas Company.
Source: Southern California Gas Co. to Demonstrate Nation's First Clean-Fuel Drayage Trucks at Southern California Ports, CNN Money

Central Florida Bus Company to Switch to its Own Biodiesel Blend by 2010
Central Florida's public bus system, Lynx, will become the first transit agency in the United States to own, operate and produce a biodiesel blend for its own fleet of buses. The agency was awarded a $2.5 million grant from the Florida Renewable Energy Grants Program to aid the biodiesel transition, which aims to replace 20% of the diesel used to power 290 public buses with biodiesel by 2010. The grant will finance the construction of a biodiesel blending station at the Lynx operations center. The station is scheduled to commence operations in 2009 and will replace 1.2 million gallons of diesel fuel by blending 20% biodiesel with 80% fossil diesel. The bus operator will also be able to distribute custom blended biodiesel to local government agencies including Orange County government and the Orlando Utilities Commission.
Source: Lynx gets $2.5M grant for biodiesel project, Orlando Business Journal

EU Project Aims to Speed Up Introduction of Hydrogen for Transportation
An EU-funded research project has found that introducing hydrogen into the energy system could reduce the total oil consumption of the road transport sector by 40% between now and 2050. The project, known as the HyWays project, is co-funded by research institutes, industry partners and government agencies in 10 European countries. The group, tasked with providing a roadmap for the development of hydrogen in the European Union, published its 'European Hydrogen Energy Roadmap' in February. Over the next six years, the industry-led public-private partnership will receive the equivalent of $713 million in EU funding, to be matched by investment from industrial partners. The aim is to speed up the development of fuel cell and hydrogen technologies, so that their time-to-market is reduced by two to five years, making them commercially available between 2010 and 2020.
Source: EU project calls for swift introduction of hydrogen energy into transport sector, Cordis News

Zimbabwe Set to Revive Ethanol Production
The government of Zimbabwe is set to revive the production of sugar-based ethanol, with a projected annual output of 25 million litres, in a bid to mitigate a national fuel crisis. The country had suspended production of ethanol at the height of the 1991/92 droughts, which led to a drastic cut in the production of sugar cane in the country. Zimbabwe is grappling with a nine-year fuel crisis, which has affected key sectors of the economy such as manufacturing, tourism and mining. The crisis has prompted the government to look for alternative ways of producing fuel. In addition to reviving ethanol production, the government recently commissioned a biodiesel plant likely to start operating within the next four years, pending available feedstock such as jatropha seeds. The government hopes it could save $80 million annually on fuel imports once this plant becomes operational.
Source: Zimbabwe: Govt Set to Revive Ethanol Production, AllAfrica.Com

Spain Offers Compressed Natural Gas Refueling to the Public
Following an agreement between Spain’s major natural gas supplier, Gas Natural, and Valencia's taxi cooperative, TAXCO, Spain's first public compressed natural gas station has opened in Valencia. The CNG refueling station is available for any vehicle that uses natural gas as fuel. Initially the facility will serve local municipal waste trucks, and will then proceed to serve 3,000 taxis and 150 light vehicles. In Spain, there are 1,400 government vehicles operating on CNG, and the country’s use of natural gas for transportation prevents the emission of 7,000 tons of CO2, 23 tons of CO, 300 tons of NOx and 17 tons of particulate matter into the atmosphere each year.
Source: Spain's First Public Compressed Natural Gas Station Opens in Valencia, NGV Global