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Frost & Sullivan's latest analysis of Alternative Fuel Technologies

   Efficient Infrastructure Necessary for Large-Scale Implementation of
                       Alternative Fuel Technologies

London,  08th  November  2004  ?  Although  regulatory  pressures to reduce
greenhouse gas emissions are calling for increased use of alternative fuels
such   as  natural  gas,  hydrogen  and  methanol,  the  lack  of  adequate
infrastructure limits their implementation on a wide scale.

The  infrastructure  to  support alternative fuel technologies is currently
restricted  to  a few countries such as Germany, Italy, Spain and Portugal.
However,  in order to replace gasoline completely, a much larger network is
required.

"Discovery  of the ideal replacement for gasoline brings with it additional
responsibility  in  terms  of  overcoming  logistical  barriers and finding
efficient  means  to  produce, store and distribute these alternative fuels
over  long  distances,"  reiterates Frost & Sullivan Research Analyst Vijay
Shankar Murthy.

Transporting hydrogen over long distances through pipelines is likely to be
a  cost effective option. In fact, a majority of the existing pipelines can
be used to transport mixtures of hydrogen and natural gas.

Gas  pipelines,  in  addition  to  transportation,  can  also  store  great
quantities  of  hydrogen.  By  regulating  the  pressure, it is possible to
exploit  the  benefits  of  large  volume that a pipeline offers as storage
during situations of peak demand.

While  pipelines  provide  a  low  cost  option  for  high  volume hydrogen
delivery,  liquefaction  is  often  cost-effective  for  transporting lower
volumes.

Ultimately,  the cost of delivery is dependent on the method of production.
For  example, greater transport distances required for centralized hydrogen
production can significantly increase the delivery costs.

"In  contrast,  distributed  production  at the point of use eliminates the
transportation  costs  but  results  in higher production costs because the
economies of large scale production are lost," says Murthy.

In  terms  of cost, electrolysis offers economical and environment friendly
method  to  producing  hydrogen. However, currently this technique provides
only  a small percentage of the world's hydrogen, most of which is supplied
to applications requiring small volumes of high purity hydrogen.

Fortunately,  the  increased installation of refuelling stations around the
world  has renewed interest in the use of electrolysers to produce hydrogen
as a fuel for automotive applications.

With  huge  financial  backing, hydrogen is being touted as the fuel of the
future.  The  launch of the Clean Urban Transport for Europe (CUTE) project
in  nine European cities will test hydrogen fuel cell powered buses as part
of the existing public transport fleet.

"However,  a  shift  toward  a  hydrogen  economy  is  not likely to happen
overnight  and  requires  more concerted efforts from researchers to reduce
the  cost  of  operating  hydrogen fuel cells and to bring them on par with
that of gasoline," concludes Murthy.

Advances  in  Alternative  Fuel  Technologies in Europe surveys the leading
alternative  fuel  technologies in Europe. In addition to analysing the key
drivers  and  challenges  facing  hydrogen, bio fuels, methanol and natural
gas,  it  also  provides major methods of production, applications analysis
and emerging technologies for each of these fuel types. Executive summaries
and interviews are available to the press.

If you are interested in a summary of this research service providing an
introduction to Advances in Alternative Fuel Technologies in Europe, please
send an email to Magdalena Oberland, Corporate Communications at
magdalena.oberland@frost.com with the following information: full name,
company name, title, contact telephone number, email. Upon receipt of the
above information, the summary will be emailed to you.

Technical  Insights  is  an international technology analysis business that
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growth consulting companies in the world.

            Advances in Alternative Fuel Technologies in Europe
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Contact:

Magdalena Oberland
Corporate Communications
P: +44 (0) 20 7915 7876
F: +44 (0) 20 7730 3343
E: magdalena.oberland@frost.com

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