Transcript Alternative Fuel Sources & their Economic and

Alternative Fuel
Sources & their
Economic and
Environmental Impact
Presented By:
Eric Miller, Megan Monaco, John
Morgan, Bill Nickley
Current Economy
 Rising Fuel Prices
 Poor US auto manufacturer performance
 Bleak Environmental Outlook
Hybrid Technology
 What is a hybrid?
 Vehicle that runs on two motors
 Electric and gasoline-powered
 Combines the best qualities of each type
 On board battery
 Captures energy from braking
Electric Motor
 Consumes no energy when idle
 Uses less energy at low speeds
 No pollution
Gas-Powered Motor
 Kicks in at higher speeds
 More power
 Allows car battery to charge
Benefits of Hybrids
 Better gas mileage
 Environmentally friendly
 Less dependency on foreign oil imports
 Possibly cheaper in the long run
Hybrid Disadvantages
 Battery Concerns
 Lifetime
 Expense
 Environmental Factors
 Accident Safety
 Initial Cost vs. Long Term Benefit
Foreign Automakers
 Advantage in Hybrid Technology
 Greater market share
 U.S. automakers lagging behind
Overall Economic Benefit
 Fuel Efficiency
 Savings in gas money
 Less U.S. dependence on foreign oil
 Lower oil and gas prices
Ethanol
Background
Ethanol
Derived from crops (corn fuel)
Basic form of Ethanol is pure
alcohol
Ethanol is mixed with gasoline
to create different blends
Used in most gasoline – E10
Used in Flex Fuel Vehicles –
E85
Major Supports of E85
General Motors & Ford are strong
proponents of E85
Both produce FFV’s
President Bush / Members of Congress
Bill to increase Ethanol production from 5 to
7.5 Billion barrels by 2012
Proposal to reduce gasoline consumption by
20% in 10 years
Benefits
 Reduce U.S. dependence on foreign oil
 Reduces imports
 Shrinks U.S. trade deficit
 Benefits farmers
 Price of corn to farmers increases due to increased
demand
 Reduces vehicle emissions
 Renewable resource
 Ethanol plant stimulates local economy
 Provides Jobs
 Provide tax incentives for city
Drawbacks
Ethanol cannot travel in
pipelines
Will pick up moisture/impurities
 Increases logistics costs – must
be transported by trucks, trains,
barges
Increases prices at the pump
Ethanol contains 15% less
energy than gasoline
Drawbacks
Increased demand for
Ethanol has increased prices
Opportunity Cost of Ethanol is
higher than traditional gasoline
Increases prices of food
Worldwide prices of food have
increased causing food shortages
Fuel Cell
 What is a fuel cell?
 Invented in 1838
 Efficiency
 Serves as own energy source
Benefits
Investment
Opportunities
 New facilities –
hydrogen
 New cars
Economic Stimulus
 No longer reliance on
gasoline
 New cars would be
purchased
 New found savings
International Benefits
 An excellent energy source for developing
countries
 Cut dependence on oil producing countries
 New resources could be used to stimulate
economic and revitalize economy
 Excellent source of energy for remote
locations
Environmental Benefits
 Help efficiency move
from 20% to 40-60%
 Use water and heat
byproduct to heat
homes
 Only emissions
would be small
amounts of CO
Disadvantages
Large investment costs
 Current costs $225
to produce an engine
 Hesitation
Storage and Safety
 Currently can only
drive 200 mi
 Pressurized tank
goal is to be around
400 mi
 Safety Concerns
Fuel Cells
 Supposed to occur by 2010
 Blocked by Oil Companies??
Biodiesel
 World diesel consumption: 181 billion
gallons.
 Alternative: Biodiesel
 Derived from vegetable oils and animal fats
 Glycerin produced as a byproduct
 Used in a mixture 20B/80D
 Can power diesel engines and heat
homes
Advantages
 Renewable
 Very low net greenhouse gas emissions
 78% lower than petroleum diesel
 Cleaner burning, less toxic emissions
 Non-toxic and biodegradable
 Reduces dependence on foreign oil
 Creates domestic jobs
 Requires little to no modification
Disadvantages
 Difficult to produce meaningful quantities
 Diesel consumption far in excess
 Additional capacity from soybean oil
 Uses arable land, reducing food supply
 Could lead to higher food prices
 “Food for fuel”
Conclusion
Best solution??
Fuel Cell
 Most efficient
 Cuts dependence
 Stimulus
??Any Questions ??