Sunday, January 20, 2008

Fuel Wars: E85 vs. Clean Diesel

Believe it or not, at this stage E85 fuel (85% Ethanol) adoption for vehicles in the United States is a bit less promising than one may expect, whereas clean diesel is showing some serious promise. Not that the goal of complete energy independence isn't noble (at present the United States is importing around 70%), it may take a bit longer than we expect. One way to help, is to purchase vehicles that run on energy-efficient technologies - including the energy used in downstream growing and processing of the fuel (complete value chain).

Some of the challenges to E85 adoption include:
1.) Lower Fuel Efficiency - 20-25% less efficient on a per mile basis than gasoline
2.) Price Volatility - price would need to be below the price of gas and stable
3.) Infrastructure - less than 1% of gas stations carry E85
4.) Customer Concern - do you really want to fill up your vehicle with more fuel?
5.) Technology - investment in R&D for cellulosic ethanol is needed to ensure effective supply

Some of the advantages of Clean Diesel include:
1.) Higher Fuel Efficiency - 25-30% more efficient than gasoline
2.) Refines Easier - Requires less energy to process than gasoline
3.) Engine - Higher Compression Ratio, Unthrottled Lean-Burn Operation, Torque
4.) Emissions - 20-25% Less CO2 emissions than gasoline
5.) Infrastructure - Although the network is not as robust gas, 42% of the stations carry diesel

So before you make your next vehicle purchase, don't forget to consider clean diesel - the vehicle may be more expensive at the outset, but should pay off in four to five years. Until cellulosic ethanol technology matures, clean diesel may be the better choice. Just remember that it needs to be "clean" - many of the current diesels don't have after-treatment systems to also reduce Nitrogen Oxides (NOx) and Particulate Matter (PM).

0 comments: