A Better Strategy for Detroit: Electric Drive not Flexfuel

Tags: flexfuel, detroit, clean fleet, GM, F, EV, cleantech
9 Dec 11:50am
Read original blog entry
In 2006, Detroit held high hopes of being profitable by selling millions of flexfuel vehicles. The vehicles are named flexfuel because they can be fueled with either E85 ethanol or with gasoline. It cost little extra to make these flexfuel vehicles. The flexfuel modifications were not made to all engines. They were made in bigger engines for SUVs, trucks, and big cars with better profit margins, but subpar fuel economy. Millions of flexfuel vehicles were sold.

Thousands of E85 stations appeared, primarily in corn growing states. A federal law was passed requiring production of 36 billion gallons of biofuel to be produced by 2022. Executive orders gave preference to buying flexfuel vehicles for the fleet of 4 million federal, state, and local vehicles. As food prices soared, one billion people struggled to afford food. The law was modified to requiring 16 billion of the 36 billion gallons to be from cellulosic sources. Biofuel 2.0

Recently at the Los Angeles Auto Show, I saw flexfuel vehicles extensively displayed in GM and Ford booths. They are also pilling-up in at auto dealers throughout the nation. These flexfuel vehicles fail to delivery the fuel economy that people are now demanding.

Although Detroit automakers sell flexfuel vehicles with good mileage in Brazil, in the United States, the best EPA mileage rating for a vehicle using E85 is 19 miles per gallon.

As we approach 2009, transportation is beginning a major shift away from the internal combustion engine to electric drive systems. Just as downloadable music disrupted CD sales, just as mainframe computing gave way to distributed computing, transportation is shifting to a new electric-drive paradigm.

At the Auto Show crowds were excited by new electric vehicles, including plug-in hybrids and fuel cell vehicles. Crowds surrounded BMW’s Mini E, the freeway-speed battery electric version of the Mini Cooper with a 150 mile range. Nissan was showing off its Cube and talking about making 100 mile range battery electric vehicles in volume, with fleet quantities in 2010. Mitsubishi’s iMiEV was shown as is being put into trail at the electric utility SCE.

Big automakers were also displaying fuel cell vehicles that extend the range and speed the fueling time for electric vehicles. Chevrolet, Daimler, Honda, and Toyota are each putting over 100 of their hydrogen vehicles into daily fleet and personal use. Toyota also has big plans for plug-in hybrids. Look for new announcements in Chicago this coming February.

GM continued to generate excitement with its Chevy Volt, a beautiful sporty sedan with a range of 40 miles in electric mode and hundreds of added miles using a small gasoline engine to extend range.

Chrysler was demonstrating four different electric vehicles at the L.A. Auto Show. The popular low-cost battery electric Chrysler GEM has now passed 38,000 in use in the United States, with sales continuing to do well. Although it is limited to 25 mph and a 40 mile max range, the bigger new Chyrsler ENVI electric vehicles get from 0 to 60 in as little as 5 seconds with EVs and plug-in hybrids that include Jeeps, mini-vans, and sports cars. Chrysler Details

The full transition to electric transportation may take 40 years, but it is unstoppable. The fuel of choice is shifting from foreign oil to our own renewable energy resources. Over 40,000 people now drive electric vehicles in the United States. Most are the 25 mph types, not the $100,000 Teslas, but in 2010 several affordable freeway speed choices will be offered by Nissan, Chrysler, GM, Toyota, and dozens of exciting smaller companies.

Although millions of electric vehicles will displace cars with gasoline engines, the internal combustion engine will be with us for decades in hybrids, plug-in hybrids, and heavy-duty trucks. Using new biofuel blends in these engines will help us achieve energy security. Biofuels from cellulosic sources will help moderate damaging greenhouse gas emissions. Biofuels are not a panacea; rather, they are an important transitional solution for the next decades.

Currently, 142 billion gallons of gasoline are consumed annually in the United States. In ten years, consumption could moderate to 120 billion gallons annually, even with population growth, due to these factors: CAFÉ fuel efficiency standards, replacement of some gasoline engines with more efficient turbo diesel, growth of electric vehicles, growing use of commute programs, growing use of trains and transit, and reduced vehicle miles traveled.

Fuel refiners and engine manufacturers could agree on standards so that 20 percent of gasoline could be from ethanol and other approved next generation biofuel. This 20 percent would be 24 billion gallons annually of fuel from biomass, not from petroleum. Flexfuel vehicles that deliver under 30 mpg are not needed. A new E85 infrastructure is not needed.

The United States can regain its world leadership in transportation by investing in future solutions, not the failed strategies of the past. Millions of jobs can be created in public transportation, high-speed rail, electric cars, hybrid electric heavy vehicles, renewable energy, and next generation biofuels that can be blended with existing gasoline and diesel.

John Addison publishes the Clean Fleet Report and speaks at conferences. His new book, Save Gas, Save the Planet, goes on sale March 25.

Comments

Back to top

Post comment

Back to top

Post a comment

Please login to post a comment

About

CleantechBlog

Cleantech Blog was founded by Neal Dikeman, and all our columnists are experts in their fields. Some of them are available for media interviews and quotes, speaking engagements and consulting. You can find biographies, areas of expertise and contact information for the columnists who have agreed to be available for comments below. Contributing Columnists: * Neal Dikeman, Founder Cleantech Blog, Partner at Jane Capital Partners * Richard Stuebi, BP Fellow for Energy and Environmental Advancement, Cleveland Foundation * Heather Rae, President, Brae Consulting – Sustainability marketing expert * John Addison, Author of Clean Fleet Report, Director, California Hydrogen Business Council * Dr. Peter Beadle, CEO GreenJobs.com, former BP Solar exec Guest Contributors: * Joel Makower, World Leading Sustainability Advocate, Founder Clean Edge * Felix Kramer, Founder, CalCars.org * Nick Bruse, General Manager Clean Technology AustralAsia * Anne-Marie Fleming, President, Investor Ideas, and publisher of leading renewable energy stock web site * Mark Bitterman, Editor, Superconductor Week * Gerry Woolf, Editor, BEST Magazine We also welcome contact from PR firms looking to connect with green, sustainable, and cleantech bloggers. Neal Dikeman: I founded Cleantech Blog in 2005. I am a merchant banker and co-founder of Jane Capital Partners LLC, where I head the energy and environmental practice, and prior to that worked in venture capital, private equity and investment banking in the tech and energy sectors. We have co-founded four emrging startups in cleantech and IT (in superconductors, fuel cells, RF, and carbon credits) since the tech wreck, and advise the technology and venture investment arms of three multi-nationals. In all of it, I have been lucky enough to work with some amazing colleagues, bosses, and partners. Besides Cleantech Blog, I am a contributing editor of AltEnergyStocks.com, and contributing author to Inside Greentech. Along with our own, the blogs I regularly read include Jim Fraser's The Energy Blog, Rob Day's CleantechVC, Tyler Hamilton's Clean Break, Joel Makower's Two Steps Forward, and Inside Greentech. My areas of expertise are always a work in process, but I have been quoted, cited, or interviewed on energy, alternative energy, and cleantech issues by numerous online and print publications including Red Herring, Energy Intelligence, Time.com, Bloomberg, San Francisco Chronicle, Forbes.com, Ethical Investor, Wall Street Reporter, and FT.com among others, on topics ranging from: cleantech, solar, ethanol, blogging, technology commercialization, corporate venture investment, energy prices and policy, technology transfer, carbon trading, and renewable and alternative energy. Feel free to contact me at dikeman@janecapital.com. Mr. Richard T. Stuebi Richard Stuebi has nearly 20 years of experience as an executive, entrepreneur and consultant in the energy industry, with most of the past decade focused on advanced energy technologies. He is currently serving as the BP Fellow for Energy and Environmental Advancement at the Cleveland Foundation, one of the largest community foundations in the US with over $1.6 Billion in assets. He works with various public and private sector stakeholders to promote commercial activity in advanced energy in the Cleveland area. Mr. Stuebi has authored numerous articles that have appeared in such leading industry periodicals as The Electricity Journal and Public Utilities Fortnightly, and has presented at numerous major energy conferences. He is a contributing columnist to Cleantech Blog, writing on alternative energy issues, news and events. Prior to joining the Foundation, Richard founded NextWave Energy, a professional firm focused on capitalizing upon new business opportunities stemming from innovative energy technologies. As President of NextWave Energy, he assisted several emerging and established private-sector clients in various aspects of business development, including strategy and capital formation. Previously, Richard was a senior vice president at Louis Dreyfus, the global commodity trading firm and was a management consultant in the energy practice of McKinsey & Co. Richard earned degrees in economics from the Massachusetts Institute of Technology and Stanford University. His areas of expertise include: Economics in alternative and renewable energy, energy policy, trade, and development. Cleantech finance and technology strategy. You can contact him at rts@nextwave-energy.com. Ms. Heather Rae Heather is a green marketing expert and a long-time advocate of green technology and sustainable business. Through her consultancy Brae Consulting, Heather has worked for energy companies, cleantech startups, and nonprofits (she is currently working with a home energy efficiency program of the Maine Governor's office). Her previous corporate marketing experience includes Xcel Energy (demand-side management and green power) and Qwest Communications. A hands on expert - Heather has practiced what she preached. She is certified in high performance residential building (Green Advantage®) and has served as co-director of Colorado's Interfaith Power & Light. Readers of Cleantech Blog will know that Heather converted a retired school bus into the Brae Bio Bus, a recreational vehicle running on biodiesel (B100) with solar panels for auxiliary power, and recently drove it across the country blogging the experiences in finding biodiesel in different parts of the US. Having reached her destination at Maine Home Performance, a program of the Maine Governor's Office where Heather is helping design programs to certify and link Maine contractors with homeowners who want to "go green", Heather is now tackling the conversion of an 1880s Maine farmhouse into an energy efficiency and green showcase. Heather graduated from Wesleyan University and is a contributing columnist to Cleantech Blog writing on green and sustainable products and marketing from the consumer's point of view. Her areas of expertise include: Green marketing programs and strategies, grass roots green and sustainable programs for consumers, using green technologies in the home. You can contact her at heather.rae@braeconsulting.com Mr. John Addison John is an accomplished writer, speaker, and expert in technology marketing and strategy. He is one of the IT converts that are driving the cleantech industry. Since 1992, his marketing consultancy OPTIMARK, Inc. has provided educational programs, market intelligence, market development and partner development for technology and government leaders. A believer in cleantech's potential to change the world for the better, John is the Publisher of the Clean Fleet Report and serves on the Board of the California Hydrogen Business Council. He is a contributing columnist to Cleantech Blog. He is the author of the book Revenue Rocket on channel marketing in technology, and the upcoming book Save Gas, Save the Planet on what we as individuals can do to help save the planet. Earlier in his career John was an area channel manager for Sun Microsystems. For three years, he led a sales team to 300% annual growth in 15 states, increasing revenue from $4 to $110 million. He has taught courses about marketing and innovation at U.C. Davis and U.C. Santa Cruz Extension. He is a popular speaker in the Americas, Europe and Asia. You can find more of his speeches and articles on his websites Clean Fleet Report and Revenue Rocket. His areas of expertise include: Technology marketing and marketing strategy, channel marketing, fuel cells and the hydrogen economy, alternative fueled fleets, and California's energy tech corridor. You can contact him at johnaddison1@gmail.com. Dr. Peter Beadle Peter is the owner and CEO of GreenJobs.com. He is an is an experienced technology executive and an expert on a wide range of green and energy technologies, including photovoltaics, fuel processing, fuel cells, and oil & gas technologies. Green Jobs is one of the few dedicated job sites for the renewables and cleantech industry. They put out the online Green Directory, as well as a weekly newsletter on People News in cleantech. Peter is a contributing columnist to Cleantech Blog writing on renewable energy news and events. Peter holds a PhD in Physical Chemistry, and previously served President of BP Solar's North American division. Prior to that he held a number of positions in R&D and technology management within British Petroleum. His areas of expertise include: Solar, fuel cells, oil & gas, renewable energy job market You can contact him at Peter@greenjobs.com.