July 14, 2008
Automakers, Utilities Seek Alternatives
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.
Advertisers
Pew Center Conference: Corporate Energy Efficiency
Reduce energy consumption, lower emissions and save money. >>
Join the Discussion
Recent Daily News [ see all ]
- 02/09/2010
- 02/08/2010
- 02/05/2010
- Caterpillar Puts Weight Behind $1.5B FutureGen CCS Project
- WR Grace Targets 20% Energy Intensity Cuts
- As UK Cap and Trade Falters, Government May Prop Up Carbon Prices
- Federal Government Proposes Climate Change Office
- University of Florida Football Complex Uses 25% Less Energy Than Similar Buildings
- 34% of Execs Cite Economy As Impediment to Adopting Sustainability
- Energy Storage Project Aims to Extend Utility of Solar Power
- Ford to Debut Electric Commercial Van
- SF OKs $150M in Property Tax Financing for Energy Efficiency, Renewables
- BNSF Signs Deal for Measuring Energy Efficiency
- Roundup: GE, IBM, Audi ‘Green Police,’ EU Carbon
- Accidental to Purposeful Sustainability: Using What You Already Have to Grow Sustainability
- Holiday Inn Express, Bardessono Boast Energy Efficiency, Renewables
- Massachusetts Adds $20M in Solar to 12 Wastewater Plants
- Novo Nordisk Cuts CO2 Emissions by 32%, Water Use by 20%
- Roundup: Dr. Suess Cease-and-Desist, Philips, EPA, Melting Drywall
- Canadian Environment Minister Denounces Quebec Vehicle Emissions Regs
- Energy-Efficient Lighting Saves Canadian Tire $6M in 2009
- Pixar Data Center Saves Money Via Cold Aisle Containment
- HVAC Software Helps University of Texas Save $500K a Year
- Data Centers Can Apply for Energy Star Rating in June
- Rytec’s Fast Cold Storage Door Helps Save Energy
- Burt’s Bees Decreases Waste to Landfill by 51.5% in 2009
- National RES Would Benefit Southeastern, Manufacturing States
- TBR Evaluates Sustainability Strategies at Dell, CSC, Cisco
- CEO Report Envisions $6 Trillion in Sustainable New Business Opportunities
- IBM ‘Cloud Computing’ Data Center Saves 15% in Energy Costs
- Bipartisan Senatorial Effort Seeks Cap and Trade for non-CO2 Emissions
- Collapsible Ocean Shipping Container May Help Reduce Emissions
- To Ensure Future Compliance, Utility Asks for CO2 Limits
- Analyzing Energy-Efficiency Metrics Can Reduce Energy Use in Data Centers
- Goose Island Touts Low-Carbon Brew
Charts [ see all ]
Popular Topics
Energy Efficiency
Data Center
Emissions
Facilities
Electricity
Sustainability
Water
Supply Chain
Efficiency
Green Marketing
Strategy & Leadership
Research
Fleets & Transportation
Carbon Finance
Conventional Energy
Clean Energy
Waste & Recycling
Paper & Packaging
Policy & Law
Utilities
Construction
Comments and Discussions
John Bergdoll on Accidental to Purposeful Sustainability: Using What You Already Have to Grow Sustainability
"I was following the logic your article..."
Liz Amason on Clorox Comes Clean With Chemical Content on Web Site
"But look at their ingredients listings. For example, their regular liquid bleach..."
Rigidflexibility on Companies Going Green Should Ignore Green Consumer
"I was about to market a metal working fluid that is 98>% Soybean oil and..."
Stuart on Canadian Environment Minister Denounces Quebec Vehicle Emissions Regs
"Canadians have been waiting for the feds to act on climate change for..."
Steve Wolford on Sports Teams Embrace Sustainability
"Hello Environmental Leader, We just returned from the National Sport Forum in Baltimore. Team and..."
Mauibrad on Bipartisan Senatorial Effort Seeks Cap and Trade for non-CO2 Emissions
"Finally some enlightened ideas out of Congress!"
Cameron Green on Data Centers Can Apply for Energy Star Rating in June
"I did a blog post about this. Essentially PUE doesn’t give you very much..."




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