Automakers, Utilities Seek Alternatives

July 14, 2008

Email this story Print this post Add your comments

High prices for oil and natural gas are leading utilities and automakers to seek alternative energy solutions, but they are facing challenges that may take years to solve, writes Robert McNatt of BusinessWeek.

Alternative energy prices should be more viable now that traditional sources of energy are more costly, but McNatt writes that it will take years for alternative energy to generate more than its current two percent share of U.S. electricity, (excluding hydroelectricity or nuclear power) and once the technologies are in place, they must also negotiate the minefield of government and regulatory policy and approvals.

While automakers are transitioning towards producing more hybrid cars, it’s facing challenges as some plants are idle from efforts to cut down production of trucks and SUVs. Furthermore, profit margins for hybrid cars are small due to competition and high cost of production.

McNatts offers an insight into the problems alternative energy may face in the future:

1. Hydrogen fuel-cell technology-
Even if automakers perfect the technology and dramatically reduce its now-astronomical costs, someone will have to pay the massive cost of building enough hydrogen fueling stations to make widespread use practical.

2. Electric utilities-
Caught in a bind: Growing power demands at lower rates and tougher environmental mandates. States are increasingly mandating the use of renewable portfolio standards, and at an uncertain cost, this could “result in the chief credit risk for utilities,” says S&P credit analyst Anne Selting.

3. Wind power-
Many people dislike the look of big propeller turbines, and environmentalists are concerned about their effect on birds and other wildlife. What’s more, it is weather-dependent and suitable locations for generating wind energy are often far away, so transmission could be costly.

4. Solar power-
Only makes true economic sense mainly in sun-intense areas of New Mexico and Arizona.

5. Hydropower-
Opportunities in the U.S. have been tapped out. Very few places left where the water source for sizable hydropower is abundant enough to build dams to harness it.

6. Nuclear energy-
Controversial. No nuclear power plants has been built for decades and while some companies are considering this option, it’s uncertain if these efforts will come to fruition.

Email this story Print this post Add your comments

Advertisers

Enhance Sustainability. Improve Profitability.

Learn how at the SAP Sustainability Resource Center. >>

Unclear about the EPA's new GHG Rule?

Learn how it could affect your business. >>

EPA mandatory emissions reporting starts Jan 1st

CSA Standards can help your organization get ready for compliance. Find out how. >>

Survey Results: Product Environmental Compliance Best Practices

How to achieve compliance at a significantly lower cost. Download the full report. >>

Join the Discussion

Reader Comments

I think that an interesting implementation of solar energy today is the association of Akeena with EV manufacturers which offers consumers a really green solution for their auto requirements. I dont think it will take that long to for these alternatives to become mainstream

Ecolocomotion | July 16th, 2008

Recent Daily News [ see all ]

11/20/2009
11/19/2009
11/18/2009

Charts [ see all ]

European Paper Industry Cuts CO2 Emissions by 42% since 1990

S. America Takes Most Urgent View of Copenhagen Talks

Nike Tops Annual Climate Action Scores

Oceans May Trap more Carbon than Forests

Jobs

View All Jobs >> Post a Job >>

Comments and Discussions

Trade Association on Trade Group on EPA Chemical Regs: ‘If Everything is a Priority, Then Nothing is a Priority’
"Seriously… that..."

Gary Markowitz on Supermarkets Tackle Emissions Reductions, Fuel Efficiency
"Supermarkets waste over 10 percent of their energy through improper..."

peter in ireland on Ontario May Follow California’s Lead on TV Energy Efficiency
"Governor Schwarzenegger is shooting himself in the foot! 1...."

Environmental Leader on S. America Takes Most Urgent View of Copenhagen Talks
"The survey respondents (the PDF report mentions 4,000 respondents in 38..."

Jake on UPS Trying New Hydraulic Hybrid Trucks
"A point of clarification: the Reuters press release referenced herein reports that 20 UPS will purchase..."

Custom Organic Shirts on S. America Takes Most Urgent View of Copenhagen Talks
"90% of North Americans believe it is urgent to get a global climate..."

peter dublin on California City’s Green Building Ordinance Applies to Commercial Buildings
"Why energy efficiebnt regulation on buildings –..."

Environmental Leader