Alternative Fuels, Vehicle Efficiency Spur Weak U.S. Demand for Gasoline
American gasoline demand may keep falling due to ambitious U.S. policy pushing alternative fuels and efficiency, even as the economy recovers. U.S. gasoline use fell last year for the first time since 1991 under the weight of the financial crisis. But experts are predicting that consumption of the key motor fuel has peaked—as rising production of ethanol and future prospects for improved auto efficiency displace the need for gasoline. Analysts say growing production of renewable fuel for cars that drive more miles per gallon will cut U.S. gasoline produced from crude oil by 710,000 barrels per day (bpd) by 2023. Ethanol supply is forecast to rise by 970,000 bpd to comply with the goals set in the 2007 Energy Act. “It's more than just a business cycle,” said Joanne Shore, lead analyst for the U.S. Energy Information Administration. “We know that this is a long-term change for gasoline demand.”
Source: Weak U.S. demand for gasoline may close refineries, Reuters

India to Invest $250 Million in 2,000 Natural Gas Fueling Stations
India’s state-owned gas utility, GAIL India Ltd., has announced plans to invest approximately $250 million over a three-year period to set up 2,000 compressed natural gas (CNG) fueling stations throughout the country. These stations, to be located on major national highways, will require 14 million standard cubic meters of natural gas per day. To meet that demand, GAIL will increase its gas transportation target by 16% in anticipation of new production from offshore fields. The first five CNG stations will be set up along the Delhi-Mathura-Agra highway within the next 3-4 months. CNG fuel can be purchased in India at 53% less than gasoline and 38% less than diesel.
Source: GAIL plans to invest Rs 1,000 cr in CNG stations, The Economic Times

New Alternative Fuel Vehicles Coming Soon

• Tesla’s Model S Electric Sedan •
Tesla has unveiled its second model, the four-door Model S battery-electric sedan. The Model S, which will carry an initial price of $57,400, has a top speed of 130 mph and will feature a Li-ion battery pack supporting a 160-mile range. Tesla says that rapid charging will recharge the battery pack in 45 minutes. The company plans to produce 20,000 models a year—production is slated to begin in 2011.

• Fiat’s Ducato 140 Natural Gas Vehicle •
Fueled by compressed natural gas (CNG), the Ducato 140 Natural Power model extends the Fiat Professional Natural Power range. The Maxi-Van, which boasts reduced fuel consumption and lower CO2 emissions, is likely to appeal to a broad market segment, according to Fiat. In developing the engine, Fiat Powertrain Technologies targeted a natural gas engineering solution right from the start, seeking to ensure reliability, efficiency and performance.

• Mazda’s Premacy Hydrogen RE Hybrid •
Mazda has commenced commercial leasing of the Mazda Premacy Hydrogen RE Hybrid. Mazda is the first automaker to begin commercial leasing of a hydrogen hybrid vehicle; the first units will be delivered during 2009. The Premacy Hybrid features a series-hybrid drivetrain which combines Mazda’s hydrogen rotary engine with an electric motor. This hybrid system boosts the vehicle’s hydrogen fuel range to 124 miles.

• Opel’s CNG Hybrid Astra Caravan Concept •
GM's European brand Opel and the University of Stuttgart's Institute for Combustion Engines and Motor Vehicles have developed a CNG-hybrid version of the popular Opel Astra Caravan. The car uses an all-new 1-liter 3-cylinder turbocharged engine. The vehicle’s Bosch electric motor is used to boost the natural gas-powered engine during acceleration.

Obama Announces $2.4B for Plug-in Hybrid EVs and Batteries
President Barack Obama has announced the availability of $2.4 billion in funding for next generation Plug-in Hybrid Electric Vehicles and battery components—paid for by the American Recovery and Reinvestment Act of 2009. “This investment will not only reduce our dependence on foreign oil, it will put Americans back to work,” President Obama said. The Department of Energy (DOE) funding includes: up to $1.5 billion in grants to U.S. based manufacturers to produce batteries and their components; up to $500 million in grants to U.S. based manufacturers to produce other components for electric vehicles, such as electric motors; up to $400 million to demonstrate and evaluate Plug-In Hybrids and other electric infrastructure concepts. DOE will also support demonstration, evaluation and education projects to help develop the market for advanced electric drive vehicles.
Source: Obama Announces $2.4B for EVs During CA Trip, Sustainable Business News

Tulsa School District to Convert 140 Diesel Buses to Natural Gas
The Tulsa Public School District has announced that it will convert 140 diesel buses—about half of its fleet—to run on compressed natural gas (CNG) over the next year. The conversion is expected to pay for itself in five years in the form of fuel cost savings. By working with Oklahoma-based firm NGV Fleet Partners LLC and utilizing federal tax credits, the District will be able to convert its school buses for almost $2.5 million less than it would have cost to pay for the conversion outright. "The bottom line is we will be paying for the conversion with the savings from the fuel costs," explained Jim Spear, chief operations officer. The conversion arrangement between the District and NGV Fleet Partners could be used as a model by other agencies, says Spear. "Other districts and entities will probably be watching this deal with great interest to see how it works. Right now, NGV is working on a deal with a trash-hauling company in Arkansas and a school district in California," he said.
Source: 140 TPS buses to run on CNG, Tulsa World

Toyota & EDF: Large-scale Demonstration of Plug-in Hybrids in France
Toyota Motors and European energy company EDF have announced a major step forward in their joint road-trials in France, involving Plug-In Hybrid Vehicles (PHVs) and an innovative charging infrastructure. About 100 next-generation PHVs equipped with lithium-ion batteries will be leased to select companies in the Strasbourg area from the end of 2009 for a period of three years. The vehicles will use an EDF charging system that enables safe charging, communication between the plug and the vehicle, identification of the vehicle and invoicing of energy. The project has received financial support from the French Environment and Energy Management Agency. The EDF-Toyota partnership began PHV road trials in France in the Fall of 2007 and then expanded to the U.K. last year. Toyota also plans to deploy the program in Japan and the U.S. from the end of 2009. Toyota's main objective is to investigate further the technology and performance of Plug-in Hybrid Vehicles. EDF's objective is to evaluate different operational options for the charging infrastructure.
Source: Toyota large-scale demonstration of Plug-in Hybrid Vehicles in France, GizMag

Danisco, DuPont to Start Commercial Cellulosic Ethanol Production Next Year Danish group Danisco and U.S. chemicals maker DuPont Co. expect to start commercial-scale production of cellulosic ethanol next year. The companies teamed up in May 2008 in an effort to be first to commercialize the technology, which will free ethanol production from its dependency on products that also can be used as food. The U.S-Danish joint venture says its cellulosic ethanol demonstration plant in Tennessee has the design and size to demonstrate economic sustainability at commercial-scale by 2010. "It is not the World's largest factory—it will only produce 250,000 gallons (950,000 liters) annually—but it is large enough to prove that cellulosic ethanol can be produced commercially with the current subsidies, and that you can make money on it," said Danisco Chief Executive Tom Knutzen.
Source: Danisco, DuPont to produce bioethanol in 2010, Reuters

Natural Gas Vehicles Shine On Switzerland's ‘EcoMobiListe'
Natural gas-fueled vehicles stand out as overall winners in Switzerland’s annual vehicle environmental impact survey known as the EcoMobiListe. The nation’s Transport and Environment Association (ATE) conducts the survey and publishes the list of winners each year prior to the Geneva Motor Show. A third of the 80 best models selected for the ten categories are fueled by natural gas/biogas, with models made by manufacturers such as Volvo, Mercedes-Benz and Fiat taking four of the first 10 spots in the overall category. The ATE applies an objective system based on recognized different criteria to a range of several hundred models available on the Swiss market. Some 7,200 vehicles now run on natural gas and biogas in Switzerland and Liechtenstein, fueled through a network of 112 filling stations.
Source: Natural Gas Vehicles Shine On Switzerland's "EcoMobiListe"

AT&T to Invest $565M in 15,000 Alternative Fuel Vehicles
AT&T plans to invest up to $565M as part of a long-term strategy to deploy more than 15,000 alternative fuel vehicles to its corporate fleet over the next decade. The initial phase of the deployment will occur over the next five years, as AT&T invests $350M to replace about 8,000 gasoline-powered vehicles with compressed natural gas (CNG) vehicles. Additionally, the company will spend approximately $215 million to replace 7,100 passenger vehicles with alternative fuel models, such as hybrids, by 2019. AT&T’s investment represents the largest U.S. corporate commitment to CNG vehicles to date. The Center for Automotive Research estimates the new vehicles will save 49 million gallons of gasoline and reduce carbon emissions by 211,000 metric tons over the next 10 years. “Even during an economic downturn, it’s important to invest in the future, and we believe alternative fuel vehicles are part of that future,” said Charlene Lake, AT&T’s vice president of public affairs and chief sustainability executive. Click here to see a short video: AT&T Expands Green Fleet
Source: AT&T to Add 15,000 Alt-fuel Vehicles, Environmental Leader

Nissan and ECOtality to Trial Fast-Charge Electric Car Network
The prospect of electric cars that can be recharged within 10 to 15 minutes moved a step closer with the announcement of a new pilot project in Arizona. Nissan Motors announced that it has signed a partnership with electric vehicle charging technology firm ECOtality and Pima Association of Governments, which represents the Tucson, Arizona region. The agreement will see the three parties work together to roll out a high-speed electric vehicle charging network. ECOtality said that it aims to have parts of the public recharging infrastructure rolled out by 2010, in readiness for the U.S. launch of Nissan's zero emission electric vehicle. Nissan added that under the agreement it would then make a supply of electric vehicles available to the region’s public and private fleets.
Source: Nissan to trial fast charge electric car network, BusinessGreen

City of Fresno on Track for All-Natural Gas Fleet by 2010
The City of Fresno, California continues to make progress towards its goal of converting to an all-natural gas fleet by 2010. The City recently took delivery of the first half of its order for 45 liquefied natural gas (LNG)-fueled Condor refuse trucks from American LaFrance. The City, the second largest in California's Central Valley, already operates 79 LNG refuse trucks, as well as one that runs on compressed natural gas. Also on order are eight LNG front-loaders from Autocar. “Our goal is to be all-natural gas by 2010 and we’re on target,” says fleet manager Joseph Oldham.
Source: Methane March Continues in Fresno, NGV Global

British-built Electric Car to Boast 300-Mile Range
A British-built electric car with a range of 300 miles could dramatically boost the popularity of electric cars in Britain. The affordable £20,000 ($28,000) Vauxhall Ampera, built by British automobile company Vauxhall Motors, could be on sale in three years. The Ampera can be charged from a domestic electricity supply and can travel 40 miles on battery power alone, but what makes the car unique is that its range can be boosted to 300 miles, because the battery can be topped up on the move by a small gasoline-driven generator which runs constantly and at peak efficiency when called upon. There is currently no mass-produced electric car on sale in Britain with a range that would allow a 100-mile trip without a lengthy stop to recharge its batteries, making them unsuitable for most one-car families. A spokesperson for Britain’s Environmental Transport Association said, “Most drivers cover no more than 30 miles each day, but they want the option to drive further—the Ampera will make an electric vehicle an option for millions of motorists.”
Source: British-built electric car to rival Tesla S, ETA News

Norwegian Electric Car Maker to Open Plant, Technical Center in U.S.
Norway’s pioneering electric car maker, Think, plans to open a new manufacturing plant and technical center in the United States. The Norwegian company—which already sells electric vehicles in Europe—is talking with eight states, including Michigan, about a location for the facilities. Think said the manufacturing site would initially have the capacity to build 16,000 vehicles per year and would employ 300 people, with another 70 people working in the technical center. The company hopes to expand production capacity to 60,000 annually and ultimately employ up to 900 people. “The U.S. is quickly overtaking Europe as an attractive market for EVs and is an ideal location to engineer and build EVs,” said Think CEO Richard Canny. Production is expected to begin next year on the company’s all-electric vehicle that can travel up to 112 miles on one charge. The vehicle will have recyclable plastic body panels and a fully recyclable interior.
Source: Electric car maker to open plant, technical center in U.S, Waste & Recycling News

In Europe, Race for Green Cars Heats Up as CO2 Targets Loom
The conspicuous trend among carmakers at this year's Geneva Motor Show is touting a vehicle’s performance in terms of carbon dioxide emissions per kilometer, reports Reuters. The European Union recently struck a deal to cut greenhouse gas emissions from cars, setting a 130 g/km target in a phased approach starting in 2012, with full compliance by 2015. [The current EU-wide average is 158 grams.] Carmakers who cannot comply may be subject to a fine on every gram of excess. “The CO2 interest from customers and bureaucrats is not going to go away even though gas prices have eased considerably,” said Jeffrey Guyton, an executive at Mazda Motor's European arm. As the exhibits at the Geneva Motor Show demonstrate, the industry’s approach to reaching the emissions targets is varied, with hybrids, electrics, flex-fuels and “clean” diesels on display. Other manufacturers are replying on cheaper, simpler vehicle enhancements such as reducing vehicle weight and improving aerodynamics.
Source: Autoshow - Race for green cars heats up as CO2 targets loom, Reuters

Clinton, Gore and Others Tackle National Energy Policy and Transportation Fuels
The Center for American Progress Action Fund recently brought together an important group of leaders to tackle national energy policy at a forum in Washington, DC entitled "National Clean Energy Project: Building the New Economy." President Bill Clinton, Vice President Al Gore, Energy Secretary Steven Chu, Senate Majority Leader Harry Reid, and energy executive T. Boone Pickens were among those contributing to the forum, which focused on developing key guiding principles to lead the transformation of U.S. energy policy and to reduce the nation's dependence on foreign oil. During the roundtable, the group discussed transportation fuels. Boone Pickens emphasized that there were very few alternatives to diesel for large heavy-duty trucks, and that natural gas was the best option for these and other fleet vehicles. Al Gore concurrred, stating, “Electrifying the auto fleet, using natural gas for the 18-wheelers and the heavy vehicles as a transition—then we can get off of all those imported liquid fuels that come from foreign oil and foreign products and solve the security and economic problem and put people to work in the process. Click here to view a video of the National Clean Energy Project forum.
Source: Clean Energy Summit Held in Washington, NGVAmerica

Toyota Unveils Third Generation Prius Hybrid
Toyota has unveiled the third generation Prius hybrid car at the Geneva Motor Show. A 90% redesign of the hybrid system gives the updated Prius 22% more power and 7% more fuel efficiency—up to 74mpg compared to 69mpg on the previous model. Carbon dioxide emissions have been cut to just 89g/km. The manufacturing process uses environmentally responsible methods and materials, including low-consumption LED headlights and plant-derived carbon neutral plastics. Since the first generation Prius was launched in 1997, Toyota has sold more than 1.2 million models. Bob Carter, Toyota vice president and general manager said, “The Prius has evolved with our customers over the past 10 years … When it goes on sale a few months from now, we believe that its new features will appeal to returning owners, while at the same time attract buyers who are looking for innovative technology with a hybrid powertrain.” Prius 3 will launch next year in 80 countries, with Toyota aiming for annual sales of 80,000 in Europe.
Source: Toyota unveils 2010 Prius, Fair Home

Volkswagen Brings Caddy EcoFuel Natural Gas Van to U.K.
Volkswagen has announced that a compressed natural gas (CNG) version of the Caddy commercial vehicle called the Caddy EcoFuel will be offered in the United Kingdom this summer. Developed as part of Volkswagen’s broad environmental research program, the CNG-powered compact panel van has been sold in other European countries since 2006, where 7,500 units were sold last year. VW will also offer the Caddy Maxi EcoFuel, which features extra carrying capacity, alongside the Caddy EcoFuel. The two key benefits of operating these CNG-powered vehicles are lower emissions and reduced fuel costs. As well as CNG, the vehicle’s engine can operate on biomethane — a sustainable fuel that is now becoming commercially available from renewable sources in the U.K. It also has a 13-litre petrol tank as a reserve, which is automatically engaged should the natural gas supply run out.
Source: Volkswagen Caddy Ecofuel: Gas Power and Cleaner Emissions, Motors Today

BP Unveils Plans for Record-Breaking Cellulosic Biofuel Plant
Oil giant BP plans to build what it claims will be the world’s largest facility to produce advanced biofuels from non-food feedstock, and has invested $112.5M for a 50% stake in biofuels firm Verenium in the process. Through an existing partnership announced last August, the two companies have already built a pilot cellulosic ethanol plant in Louisiana. But the new refinery will be 25 times larger than the pilot plant, capable of producing 36 million gallons per year once operational. The Florida facility will cost between $250M and $300M to build, with biofuel production scheduled to begin in 2012. Carlos Riva, chief executive of Verenium, hailed the deal as “a critical next step” in the two companies' plans to commercialize cellulosic biofuels. The joint venture company also intends to develop a second site in the Gulf Coast region.
Source: BP unveils plans for record-breaking grass biofuel plant, Business Green

UPS Deploys 300 More CNG Trucks, Now Totals 800 in Service
UPS has announced the deployment of 300 new delivery trucks powered by compressed natural gas (CNG) to seven cities in Colorado, Georgia, Oklahoma and California. The CNG vehicles, part of an order placed last May, will allow UPS to further reduce its dependence on gasoline and diesel and lower its carbon footprint. UPS already operates the largest private fleet of alternative fuel vehicles in its industry - 1,819 in total with these additions. Robert Hall, UPS's director of vehicle engineering said, "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." Hall added, "The Company plans to continue to expand its 'green fleet' and to focus deployments in areas with air quality challenges." The 300 trucks deployed over the past month join more than 800 CNG vehicles already in use by UPS worldwide.
Source: UPS Deploys 300 CNG Trucks, Now Totals 800 in Service, NGV Global

USDA Predicts Grim Prospects for U.S. Ethanol Sector
Hard times have hit the once-robust U.S. ethanol sector amid the economic recession, with as much as 15% of production capacity likely standing idle, said USDA chief economist Joseph Glauber last week at the annual USDA Agricultural Outlook Forum in Virginia. Blaming slowing gasoline consumption and lower prices, Glauber explained that, “the U.S. ethanol industry remains under significant financial pressure as the result of current economic conditions." The Energy Information Administration, the U.S. government's top energy forecasting agency, earlier this month cut its estimate for world oil demand in 2009 by 400,000 barrels per day, citing the slower global economy. “Current indications suggest that 2.0 billion gallons or more of plant capacity has been idled," Glauber said, adding that that as much as 15% of ethanol production capacity will be idle during the 2009/10 marketing year. However, he said, rising mandates for ethanol use are expected to support corn demand and prices in the 2009/10 marketing year that begins Sept. 1.
Source: US ethanol sector faces grim prospects-USDA, Reuters

Italian Compact Electric Vehicle Ready for European Markets This Year
The Tazzari Group of Italy is planning a production version of the Tazzari Zero electric vehicle for all major European markets by the end of 2009. The car, which the company is marketing as a ‘sport ecology’ brand, features a lightweight and fully recyclable aluminum frame enabling acceleration from zero to 31 mph in five seconds. One full six-hour charge of the Li-ion Fe battery unit gives it a range of up to 88 miles. The two-seater Zero has four driving modes: Race supports a sporty performance drive; Rain is for wet roads; Standard is for daily use; and the Economy is adjusted to give the maximum range.
Source: Italian Zero electric vehicle to hit the road this year, EarthTimes

Iowa Power Fund Approves $14.75 million for Cellulosic Ethanol Project
The Iowa Power Fund Board has approved a $14.75 million contract to assist POET LLC in developing a commercial-sized cellulosic ethanol plant. The Sioux Falls, S.D.-based ethanol producer plans to use the first $5 million of those funds for further research and development to convert an existing ethanol plant in Emmetsburg to include production of ethanol from corncobs and corn fiber. The state’s Office of Energy Independence and Power Fund Board will receive quarterly reports to track POET's activities in relation to collection, storage, and transportation of the fuel to measure cost-effectiveness. POET announced last month that its research center in Scotland, S.D., is now producing cellulosic ethanol on a pilot scale of 20,000 gallons per year. POET expects to begin production at the expanded Emmetsburg plant in 2011.
Source: Iowa Power Fund approves $14.75 million for cellulosic ethanol project, Des Moines Business Record