NEWPORT BEACH, Calif. – The Fuels Institute’s first-ever annual meeting wrapped up yesterday with lively discussions about alternative fuels technologies, and how each technology can best satisfy the diverse needs of both consumers and the environment.
On Tuesday, alternative fuels experts discussed opportunities for emerging and available vehicles and fuels.
Joe Gagliano of the California Fuel Cell Partnership talked about the benefits of hydrogen, as the new fuel source readies to expand in the state.
Environmentally hydrogen is an attractive fuel because it can be produced locally from sources such as natural gas, biogas and through the electrolysis of water. It’s 60% more efficient than a regular gas-powered vehicle, and there are zero tailpipe emissions.
The state is currently investing in a network of available fueling locations. There are just nine public stations in the state with three in commission. By the end of 2015, state funding will bring 50 stations online with another 100 stations expected to open through 2023.
Jeffrey Clarke of NGVAmerica suggested the outlook for natural gas for heavy-duty trucks is strong, along with other opportunities where the economics make sense, such as marine and rail transportation infrastructures.
Clarke noted that historically, natural gas has been a cleaner fuel with very little effort from manufacturers. However, as more new vehicles come to market, the industry is seeing pressure to become even more efficient and cleaner. But as interest in natural gas continues, he’s optimistic that diverse players will enter the market that were not present just a few years ago, such as convenience retailer Kwik Trip and Love’s.
Edward Kjaer of Southern California Edison (SCE) stressed that the rest of the United States must get behind electric vehicle technology, saying that it’s not sustainable to have a “California-only” car while the rest of the country lags in EV adoption. California is responsible for 40% of all national EV sales, with 33,000 consumers using plug-in EVs.
Kjaer commented that the “critical path” to accelerating more EV adoption boils down to the charging infrastructure and consumer education. SCE is currently seeking a five-year, $355 million program with California regulators to build a charge-ready program that would serve up to 30,000 EV charging stations at long dwell-time locations throughout SCE’s territory.
Taking a deeper dive into diesel fuel, Ezra Finkin of the Diesel Technology Forum said that his group believes it is one of the leading alternative fuels available today. He shared how growth in the light-duty trucks is ready to take off with more options coming to market for consumers in 2015. And in 2016, Volkswagen is expected to introduce the first diesel plug-in hybrid.
Finkin noted that while market growth will also depend on wider fuel availability at retail locations, U.S. diesel car registrations are trending in a positive direction, increasing by 24% since 2010.
Robert White of the Renewable Fuels Association commented that regulatory implementation of the Renewable Fuel Standard (RFS) continues to be a challenge for the ethanol and petroleum industries; 2014 numbers still have not been released and 2015 numbers are now pending.
Meanwhile infrastructure and consumer education continue to create opportunities as well as challenges. The costs involved for retail locations to bring ethanol blends to market can vary greatly — some retailers have been able to do it by changing labels while others have made six-figure investments. According to White, ethanol is the most cost effective source of octane and can help facilitate the introduction of more efficient engines that benefit from high compression and advanced engine designs.
More coverage of the Fuels Institute conference — including the keynote address by Scott Griffith, former chairman and CEO of Zipcar and executive-in-residence at General Catalyst Partners — will be featured in the January 2015 issue of NACS Magazine.
To learn more about how to get involved in the Fuels Institute, reach out to Executive Director John Eichberger at (70) 518-7971 or jeichberger@fuelsinstitute.org.