Tag: hybrid vehicles

Oil Companies Serve Up Bio-Diesel

  • Tom Torre (pictured) is Chief Operating Officer at Metro Fuel Oil. (Photo by Brad Linder)

For years, environmental activists have been demonstrating that you don’t need gasoline to fuel a
car. Some people have been retrofitting cars with diesel engines that can be powered by
restaurant grease. But with the price of oil soaring in recent years bio-diesel’s been getting more
popular. Brad Linder reports that it’s moving from a fuel for hobbyists to an energy alternative
that’s even getting the attention of oil companies:

Transcript

For years, environmental activists have been demonstrating that you don’t need gasoline to fuel a
car. Some people have been retrofitting cars with diesel engines that can be powered by
restaurant grease. But with the price of oil soaring in recent years bio-diesel’s been getting more
popular. Brad Linder reports that it’s moving from a fuel for hobbyists to an energy alternative
that’s even getting the attention of oil companies:


From a distance, Metro Fuel Oil in Brooklyn, New York looks like an over-sized gas station. And
in a way, that’s what it is. Truckers pull up to a series of pumps, grab a hose and load their tanks
with oil. It’ll be distributed to heating oil and diesel customers throughout the area.


Tom Torre is Metro’s chief operating officer. He says starting next year, some of those trucks
will be topping off with a blend of oil and vegetable-based bio-diesel:


“Kind of like if you’ve ever seen a Sunoco gas station where they had the different octanes you
can buy, same thing with the bio. It’d be B5, B10, B20, B15s, whatever they might utilize.”


In other words, you can get a blend… For example, B20 is 80% diesel and 20% bio-diesel.


For more than six decades, Metro has provided oil to residential and commercial customers. A
few years ago, Metro began importing processed bio-diesel from nearby states to fuel its own
fleet of 40 trucks.


But next year, the oil company plans start taking in raw vegetable oil and processing it on-site.
Metro’s planned 110 million gallon bio-diesel processing facility will be one of the largest in the
country.


Torre says Metro doesn’t expect to get out of the oil business anytime soon. But the company
does see a future for domestically-produced fuels like corn-based ethanol and vegetable-based
bio-diesel:


“And it’s good for the economy as well. I mean, you know, the numbers are astounding as to
how much we spend a day, billions of dollars a day, that are being spent on foreign imported oils that are going back to the Arabs where… and
nothing against the Arabs, don’t get me wrong, but it’s money flowing out of the United States.”


When the processing plant opens, Metro will be able convert large quantities of soybean, palm,
and rapeseed oil into fuel. With a few modifications, the facility could also process restaurant
grease:


“I’ve been here, with the company, for 25, 26 years. Most exciting thing that’s happened in at
least the last 20, 25 years. We’re looking to push this thing going forward. And with our
association as well, the New York Oil Heat Association, to say, listen guys. We’d better start
thinking about this. We’d better be forward thinkers. Otherwise we’re going to be left behind.”


But as more and more facilities like Metro’s pop up around the country, what happens to the
nation’s food supply? Bill Holmberg heads the biomass division of the American Council on
Renewable Energy. As the demand for vegetable-based fuels rises, he says so could the price of
foods based on corn and soybeans.


“I think there will be an increase in price in those. But I think they’re beginning to level off now,
I think people are beginning to realize that you can find other resources to make those diesel- type
fuels.”


Holmberg says if you make bio-diesel out of soybean oil, there’ll be less soybeans available for
food processing. But that’s not the case if you use restaurant grease. And researchers are looking
at ways to cultivate algae as a fast-growing source of vegetable oil for bio-diesel.


If the economic impact of bio-diesel remains unclear, Holmberg says there’s no question it’s
more environmentally friendly than petroleum. Bio-diesel emits far less carbon monoxide, sulfur,
and particulate matter than petroleum-based diesel.


The U.S. bio-diesel industry is still young. Last year, it processed less than 300 million gallons
of fuel, which is just a drop in the 40 billion gallon transportation diesel market. Holmberg says
even large facilities like Metro’s aren’t going to change that overnight:


“We, in the world of bio-fuels, ethanol, and bio-diesel and other forms of bio-fuels, will be
making a major contribution if we just do not increase the amount of fuels used in the
transportation sector, which we’re doing now. If we can just keep that number steady for a few
more years, we’re providing a real service to the United States.”


Holmberg hopes that ten years from now, facilities will be in place to actually reduce the amount
of petroleum used. He says that could be from a combination of ethanol, bio-diesel, gas electric
hybrid vehicles, and other technologies that are just in their infancy.


Metro’s Tom Torre doesn’t think the oil industry is going away anytime soon. But he says the
company’s willing to invest 15 million dollars in its new processing plant to help the
environment and to get in on a growing industry.


It doesn’t hurt that Metro can sell bio-diesel for almost the same price as oil. The federal
government provides a tax incentive for bio-diesel producers like Metro, and the state of New
York offers a tax credit to residents who purchase bio-diesel. Currently, that means it’s cheaper
to heat your house with a bio-diesel blend than with 100% petroleum-based heating oil.


Without those incentives, Torre says Metro would still be opening a processing facility — just a
much smaller one:


“It would definitely not have been a 110 million gallon plant. You know, we could have started it
off with 5 million gallons, let’s say, and just utilize it for people that really wanted to be green.
But when we took a hard look at it and saw that it could be competitive, especially last year as
the price of petroleum just soared, is when we really started to say you know what? Instead of
doing the 5 million, let’s just go right to the 110 million.”


Metro’s new bio-diesel processing plant – one of the biggest in the country – is scheduled to open
next fall.


For the Environment Report, I’m Brad Linder.

Related Links

A Better Battery for Hybrids

A US company has a new contract to work on batteries that many people hope will power the next generation of hybrid vehicles. The GLRC’s Chuck Quirmbach reports:

Transcript

A US company has a new contract to work on batteries that many people hope will power
the next generation of hybrid vehicles. The GLRC’s Chuck Quirmbach reports:


Lithium-ion batteries are used in some cell phones, laptop computers and other products.
US automakers and the Energy Department have just given Johnson Controls and a
French firm a two year contract.


They want to work on getting lithium-ion batteries in hybrid vehicles. Johnson controls
will try to improve battery power in low temperatures, reduce manufacturing
costs, and boost safety. Project director Karen Bauer says the batteries hold promise:


“Lithium is gonna be overall a lighter weight solution, so improved fuel economy. And
in addition, lithium is really an enabler to the plug-in hybrid electric vehicles that are
getting a lot of press today.”


But Bauer says it might may take five years before the batteries are ready to use in cars.


For the GLRC, I’m Chuck Quirmbach.

Related Links

Revving Up Sales of Cleaner Diesel Cars

When you think of diesel engines, you might think of big, noisy, stinky trucks. But that’s changing. And a domestic automaker has plans to bring a cleaner, higher performing diesel engine to passenger cars. The company insists: it’s not your father’s diesel. The GLRC’s Julie Halpert has the story:

Transcript

When you think diesel engines, you might think of big, noisy, stinky
trucks, but that’s changing and a domestic automaker has plans to bring a
cleaner, higher performing diesel engine to passenger cars. The
company insists: it’s not your father’s diesel. The GLRC’s Julie Halpert
has the story:


In Europe… people have been hearing this catchy little tune on a
television commercial…


(Sound of commercial)


If you hate something, improve it. That’s the message of this Honda UK
commercial that highlights the historically loud, smelly diesel engines.
It’s intended to promote Honda’s new, cleaner diesel, something it’s
launching in Europe.


Diesels have always been more popular in Europe than the U.S. That’s
because there diesel fuel is roughly 20 to 30 percent cheaper than
gasoline there, and diesels get great fuel economy… 30 percent better
than in gasoline engines.


Here in the U.S., diesels haven’t sold well. In the 1970s, when diesel
fuel was cheaper than gas, diesels gained in popularity briefly, but people
didn’t like the stench of the smoky fumes and the clunky sounds of diesel
engines. Those lingering attitudes have scared Honda off from bringing
its new diesels here.


But Daimler/Chrysler is trying to change all that. The company is
drawing on its European expertise to bring advanced technology diesels
to more U.S. passenger cars, and now, they think Americans will buy
them.


Jim Widenbak is a manager of small diesel systems for Daimler/Chrysler.


“We think that there’s a niche for diesels in the North American market,
and We’re not sure exactly how big, but I would characterize us as kind
of bullish on diesels. We really think there’s a place for them and
that customers will ultimately be very happy with diesel products.”


Daimler/Chrysler currently offers a diesel engine on its newer models of
the Jeep Liberty and the Mercedes E-320. Sales of these vehicles were
more than double what the company expected – 10,000 for the diesel
Jeep Liberty and 5,000 for the E-320.


Widenback says that electronic controls have improved over the past 30
years, making diesels better performing, more fuel efficient and cleaner
burning.


The company is in negotiations with the Environmental Protection
Agency to use a new technology, currently in use in Europe, that cuts
pollution further – just in time for tough new federal emission controls
that take effect by 2008. The process uses a material called urea that’s
injected into the exhaust before the exhaust hits the pollution control
device. This ultimately removes troublesome emissions of nitrogen
oxides.


There is one problem with the pollution control system, though.
Anthony Pratt directs power train forecasting for J.D. Power Automotive
Systems. He says the car periodically will run out of its supply of urea.


“So, in other words, you’re not getting the injection of urea in the
exhaust, the vehicles will continue to perform normally as if the urea
tanks were full but they will not meet the more strict emission
standards.”


If the company finds a way to ensure the tanks stay full, Pratt thinks it
will work. Pratt projects diesel engine sales will grow from 3 percent of
the market in 2005 to seven and a half percent in 2012, overtaking sales
of hybrid vehicles, which are only projected to be 4% of the market.


“I think the vehicle manufacturers will be successful in ultimately
educating the consumer in that the new diesel technology is not the dirty,
clanky, loud and sluggish technology they may be familiar with from the
late 70s and early 80s.”


(Sound of car dealership)


That message – that diesels are worth buying – is falling on deaf ears for
the customers of Schultz Motors. Tyler Shultz, the general manager, doesn’t
think it will fly, based on what he’s seen.


“As diesel prices went up in the last six months to a year, we virtually
have lost interest. Again, it’s not that the consumer doesn’t want it, but
when they see fuel prices go above gasoline prices, it was almost like
somebody flipped a switch.”


Shultz says it’s too expensive to buy and maintain a diesel and customers
won’t recoup the cost savings from better fuel economy unless they own
their car for several years. He, and some other dealers in the area don’t
think diesels will ever become popular.


Daimler/Chrysler’s Widenbak disagrees. He expects those fuel prices to come
down, and as they do, he says people will start buying diesel vehicles.


“We’re confident that our vehicles, diesel vehicles in general and our vehicles
specifically, can appeal to people.”


Daimler/Chrysler is so confident, it expects to roll out diesel engines in
more of its passenger cars over the next few years.


For the GLRC, I’m Julie Halpert.

Related Links

Suv Hybrids on the Horizon

The world’s largest automaker says it will offer hybrid engines on pickup trucks beginning this fall. The new type of engine is a combination of gasoline and electric motors. General Motors says it will expand its hybrid offerings to several types of vehicles during the next four years. Other automakers are also adding hybrids to their product lines. But as the Great Lakes Radio Consortium’s Michael Leland reports, GM says it will need help making the hybrid program a success:

Transcript

The world’s largest automaker says it will offer hybrid engines on pickup trucks beginning this
fall. The new type of engine is a combination of gasoline and electric motors. General Motors
says it will expand its hybrid offerings to several types of vehicles during the next four years. Other
automakers are also adding hybrids to their product lines. But as the Great Lakes Radio Consortium’s
Michael Leland reports, GM says it will need help making the hybrid program a success:


(ambient sound up)


General Motors says it believes there is a strong market for hybrid vehicles, if those vehicles are
the larger models popular with most consumers. At the North American International Auto Show
in Detroit, GM C.E.O., Rick Wagoner said that’s why his company is putting the engines in
pickup trucks, SUVs and midsize cars.


“We play in the whole market. We sell the biggest trucks, we sell the smallest cars, we are going
to offer the full range of technologies, and you know what? The customer is going to buy what
they want to buy. What we are trying to do is, very importantly, offer products that people want
to buy.”


(fade ambient sound)


There are several types of hybrid engines, but most are a combination of a traditional gasoline,
internal combustion engine, and a small electric motor. The result is higher gas mileage and
lower emissions. Existing hybrid cars get as much as 68 miles to the gallon.


Later this year, GM will offer hybrid engines in its Chevy Silverado and GMC Sierra pickup
trucks. During the next few years, the company will offer them in other SUVs and midsize cars.


GM is not alone in planning larger hybrid vehicles. In a few months, Ford begins selling a hybrid
version of its Escape SUV, and within a couple of years, Toyota will offer a hybrid Lexus SUV.


David Friedman is with the Union of Concerned Scientists, an advocacy group that promotes a
cleaner environment. He says this is a good trend.


“This allows consumers to own their SUV, own their minivan, own their pickup truck and able to
afford paying gas every month.”


But while hybrids can save their owners money at the gas pump, they also cost more than
traditional gasoline-powered vehicles – as much as four-thousand dollars more. GM’s Rick
Wagoner says that’s why the federal government needs to help promote the new technology.


“Whether that is in the mandatory use of hybrid vehicles in government fleets or extensive
consumer tax credits to encourage retail sales. In our view, both of these will be required and
maybe more.”


People who buy hybrid-engine cars now can qualify for a two-thousand dollar tax deduction. The
Union of Concerned Scientists and automakers say a tax credit would be better. They say a credit
would save car owners more money in the long run.


Analyst David Cole at the Center for Automotive Research says incentives could help persuade
more people to give hybrid technology a try.


“I think today that the consumer is extremely confused by all of the technology that’s out there.
Ultimately what really counts is whether it is going to deliver value at an affordable price, and that
question has not been answered yet.”


GM says it considers hybrid engine vehicles a way to help reduce emissions. The vehicles can
also help reduce U.S. dependence on imported oil now, while carmakers develop hydrogen-based
fuel cell engines. That technology is still considered a long way off for most drivers. David
Friedman of the Union of Concerned Scientists looks forward to a day when several types of
engines are available.


“When a consumer walks into a showroom, they should be able to choose conventional vehicles,
hybrid vehicles, fuel cell vehicles, and then the market will really shake out a lot of good options
for consumers who want to save money on fuel.”


Only about 40-thousand hybrid vehicles were sold last year. But, General Motors says it hopes to
sell as many as a million by 2007 if the demand is there. The automaker believes the way to
create that demand is through tax incentives.


For the Great Lakes Radio Consortium, I’m Michael Leland.

New Hybrid Car on Horizon

Automotive analysts say a new arrangement between Ford and the EPA may signal a significant change in the car company’s relationship with the government. Ford and the EPA are teaming up to create a new hybrid engine that is expected to be more efficient than current hybrids. The Great Lakes Radio Consortium’s Matt Shafer Powell has more:

Transcript

Automotive analysts say a new arrangement between Ford and the EPA may signal a significant change in the car companies’ relationship with the government. Ford and the EPA are teaming up to create a new hybrid engine that is expected to be more efficient than current hybrids. The Great Lakes Radio Consortium’s Matt Shafer Powell reports.


One of the drawbacks to current hybrid vehicles is the electric batteries—they’re heavy and they’re expensive. But Ford and the EPA are working on a new model that uses pressurized liquid to store energy instead of batteries. Michael Flynn of the University of Michigan’s Transportation Research Institute says this arrangement shows a departure from the contentious relationship the government and car companies have had in the past.

“There are problems and rather than hollering at each other, pointing fingers, trying to figure out who’s to blame and therefore, who gets hung out to dry, it makes much more sense to try to jointly resolve the problems.”


The EPA actually holds the patent for the pressurized liquid technology. Both Ford and the EPA say it should be available to the public in about ten years—possibly in an SUV. For the Great Lakes Radio Consortium, I’m Matt Shafer Powell.