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 Interest
MOUNTAIN 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
