Frost & Sullivan: Auto Makers Face Challenges as Alternative Fuels and Engines Spark Market Interest
19 January 1998
Frost & Sullivan: Auto Makers Face Challenges as Alternative Fuels and Engines Spark Market InterestMOUNTAIN VIEW, Calif., Jan. 19 -- One of the major challenges facing electric cars is short driving range before batteries need to be recharged. Fuel cells are a likely solution to this limitation. Producing electricity from hydrogen or another fuel, fuel cells may give electric cars a range similar to today's cars. The major challenges for fuel cell developers are reducing cost and size. "In the end, what we may see is fuel-cell powered electric cars with a small battery pack for surge power and to capture energy from regenerative braking," says Frost & Sullivan Automotive Analyst Joerg Dittmer. "Such vehicles would be energy efficient, virtually emission-free, and have low maintenance needs." According to strategic research by Frost & Sullivan (http://www.frost.com), Alternative Automotive Fuels and Engines Technologies, the demand for environment-friendly technologies has resulted in pressure on auto makers to provide alternative fuels and engines to the public. The main challenge for this market is to reduce the cost of alternative technologies and position them to gain consumer acceptance. In addition to alternative engine technologies such as electric cars, Frost & Sullivan's study discusses the advantages and the challenges for alternative fuels, including ethanol, methanol, biodiesel, natural gas and liquefied petroleum gas. Most alternative fuels require only minimal vehicle modification, so these fuels may have a short-term advantage in gaining market acceptance. Alternative fuels like ethanol have already been introduced to the public. In its pure form or blended with gasoline, ethanol reduces tailpipe emissions of carbon monoxide and hydrocarbons. However, in the U. S., only an estimated 9 percent of gasoline is oxygenated with an E10 (10 percent ethanol, 90 percent gasoline) blend. Methanol is used for its safety and performance advantages and has been more popular in applications like racing cars. Methanol-powered vehicles create less ozone, fewer nitrogen oxides, fewer particulates, and fewer toxic compounds than either gasoline or diesel. However, this alternative fuel has many barriers to break through to achieve mainstream success. High cost and lack of a refueling infrastructure are factors contributing to its slow market acceptance. "Natural gas is one of the cheapest fuels on the market, retailing for almost less than a dollar a gallon," says Automotive Analyst Inge Matthey. This gas is one of the cleanest burning fuels and many car manufacturers offer dedicated and bi-fuel natural gas vehicles. The main drawback to this is that a special refueling infrastructure is needed. For all their benefits, each type of alternative fuel also has specific disadvantages to both the infrastructure and the environment. These products can reduce emissions of current undesired combustion byproducts, but can produce other harmful emissions. Combustion of methanol, for example, produces formaldehyde. It is possible that several technologies with different drawbacks will coexist, thereby splitting the burden of pollutants on the environment. The companies participating in this market include: A-55 Limited Partnership, AC Propulsion, Inc., Acme Electric Corporation, Active Propane Co. Inc., Ag Environmental Products, Alternative Fuels Equipment, American Electric Automobile Co., Inc., American Honda Motor Company, Amoco Petroleum Products, Archer Daniels Midland, Aura Systems, Inc., Ballard Power Systems, Inc., B.A.T. International, Beall/Lanik Motors, Ltd., Brick Propane, Inc., California Electric Cars, Capstone Turbine Corp., Chadwell & Son Gas Co., Chevron Corporation, Chicago Propane Co., Chrysler Corporation, Conoco, Inc., Corbin-Pacific, Inc., Daimler-Benz AG, Electric Auto Corporation, Electric Fuel Corporation, Engelhard Corp., Enron Petrochemicals Company, Exxon Corporation, FINA Oil & Chemical Company, Ford Motor Company, Freightliner Corporation, General Motors Corporation, GM Ovonic L.L.C., High Plains Corporation, International Fuel Cells Corporation, Kaylor Energy Products, Kenworth Truck Company, Litter Quality Propane, Mercedes-Benz U.S. International, Inc., Methanex Corporation, Mobil Corporation, Navistar International Transportation Corp., Nissan North America, Inc., NOPEC Corporation, Ovonic Battery Company, Peterbilt Motors, Philips Automotive Electronics, Phillips 66, Pininfarina North America, PIVCO, Plainfield Propane, L.L.C., Powercell Corporation, Rosen Motors, SAFT America, Inc., SatCon Technology Corporation, Sewalt Butane Company, Shell Chemical Co., Solectria Corporation, Sony Corporation, Suntera, Texaco Natural Gas, Inc., Toyota Technical Center, Trinity Flywheel Power, Trojan Battery Company, Twin Rivers Technologies, Inc., U.S. Electricar, Inc., Ultra Force Battery Company/Acme Electric, Unique Mobility, Inc., Unocal Corp., Van Doorne Transmissie b.v., Volvo Cars of North America, Williams Companies/ Williams Energy Ventures, Zebra Motors, Inc., ZF Friedrichshafen AG, Related Companies, Advantage Battery Corporation, AeroVironment Inc., Arizona Public Service (APS), Battelle Transportation Division, BMW, Bus Services Corporation, Caterpillar, Inc., Consolidated Natural Gas Company, Delphi Energy & Engine Management Systems, Dennis K. Burke, Inc., Eaton Corporation, Edison E, Ekstrom Industries, Inc., Electric Transportation Engineering Corp.(ETEC), Electric Vehicle Infrastructure, Inc. (EVI), Electric Vehicles, Inc., ElectroChem, Inc., Electrosource, Energy Conversion Devices, Inc., Exide Corp., FuelCell Corporation of America, Green Motorworks, Hawker Energy Products, Inc., Hanwa America Corporation, Jefferson Programmed Power, LLC, Johnson Controls Battery Group, Legend Electric Vehicles, Metalcrafters, Inc., Mike's Auto Care, Neocon Technologies, Inc., National Alternative Energy Company, NGV/Ecotrans Group, North American Power Products, Inc. (NAPP), Norvik Group, Optima Batteries, Inc., Quin-T Corporation-NH, Robert Bosch Corporation, Sanoh Industrial Co., Ltd., Specialty Vehicle Manufacturing Corporation, Subaru of America, Inc., Synergy Electric Vehicles, Wavedriver Limited, Wyle Laboratories, ZAP Power Systems, Industry Organizations, Advanced Lead Acid Battery Consortium, Advanced Research Projects Agency (ARPA), American Automobile Manufacturers' Association, American Gas Association, American Hydrogen Association, American Methanol Institute, American Public Transit Association (APTA), American Trucking Association Foundation, Battery Council International (BTI), BC Gas, NGV Department, California Electric Transportation Coalition, California Energy Commission, Transportation Technology & Fuels Office, California Renewable Fuels Council, CALSTART, Consortium for Biotechnology Research, Electric Auto Association, Electric Transit Vehicle Institute, Electric Transportation Coalition, Electric Vehicle Association of Canada (EVAC), Electric Vehicle Association of the Americas (EVAA), Electric Vehicle Technology Competitions (EVTC), Environmental Defense Fund, Ethanol Producers and Consumers, EV America, Fuel Cell Institute, Gas Research Institute, Global Electric Auto Association, Governor's Ethanol Coalition, International Cadmium Association (ICdA), LPG Clean Fuels Coalition, National Alternative Fuels Data Center, National Association of Fleet Administrators, National Biodiesel Board, National Corn Growers Association, National Ethanol Vehicle Coalition, National Hydrogen Association, National Propane Gas Association, National Reformulated Gasoline Hotline, Natural Gas Vehicle Coalition, Northeast Alternative Vehicle Consortium (NAVC), Northeast Sustainable Energy Association, Ontario Propane Association, Oxygenated Fuels Association, Partnership for a New Generation of Vehicles, Propane Vehicle Council, Renewable Fuels Association, Society of Automotive Engineers, Southern Coalition for Advanced Transportation (SCAT), Union of Concerned Scientists, United States Council for Automotive Research (USCAR), Research Institutions, Argonne National Laboratory, Agricultural Utilization Research Institute (AURI), Center for Electromechanics, Electric Power Research Institute, Green Design Initiative, Idaho National Engineering Laboratory, Institute for Transportation Studies, National Renewable Energy Laboratory, National Vehicle and Fuels Emissions Laboratory, Transportation Research Center, Industry Publications: American Gas, Alternative Fuels in Trucking, Automotive News, EAA Electric Vehicles Buyer's Guide, Electric Vehicle News (EVNews), Electric Vehicle Progress, Electrifying Times, EV California, Greentie, Home Power Magazine, Natural Gas Fuels Magazine, Norris Electronic Publications, Northeast Sun, Transportation Energy Research, Government Agencies: California Energy Commission, California Environmental Protection Agency, California Natural Gas Vehicle Coalition, Federal Highway Administration (FHA), Ozone Transport Commission, Department of Commerce, Department of Energy (DOE), Environmental Protection Agency (EPA). Frost & Sullivan is an international marketing consulting company that monitors the automotive industry for market trends, market measurements, and strategies. This ongoing research is utilized to update a series of research publications such as #5361-18 North American OEM Engine and Engine-Related Component Markets and to support industry participants with customized consulting needs. Report: 5560-18 Publish Date: 1997 Price: $2450 SOURCE Frost & Sullivan