Category Automobile Fuel Efficiency

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EV Economics

So, what does this EV energy transformation mean to consumers?  Let’s look at a few key factors in evaluating EVs:  economics, driving range, charging time and charging network. For one, it is the understanding of EV economics such as the difference between MPG to miles per kilowatt hour (kWh). Essentially, how far can you drive with a gallon of gas to kWh of energy. According the EPA, the average vehicle fuel efficiency in 2020 was 25.7 MPG. The U.S. Department of Transportation’s Federal Highway Administration states the average person drives around 13,500 milesevery year suggesting an annual fuel cost of over $2,300 at $4.50 per gallon.

The average EV range is approximately 3.5 miles per kWh. One way to assess the economics between MPG and kWh efficiency is to compare the driving costs of traveling 100 miles. With the average fuel cost of $4.50 in the US and 25.7 MPG equates to $17.50.  With an EV achieving 3.5 miles per kWh, the 100-mile traveling cost will depend on whether the EV was charged at home or on a charging network station. According to the Energy Information Administration, the average at home cost is roughly $0.14 per kWh. So, the 100-mile EV travel cost equates to $3.91.

However, if the EV requires charging on a public charging network, the cost is significantly higher. The average kWh cost on public charging networks is approximately $0.42 per kWh ranging from $0.25 from Tesla to $0.33-to-$0.60 on other charging networks. At $0.42 per kWh, the 100-miles travel would cost $12.00 in an EV which is still a 30% savings over conventional vehicles.

Figure 1: 100-Mile Driving Costs

Source: EPA, EIA, Green Econometrics

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Global oil demand grew 0.6% in 2012 and over the last ten years oil consumption grew at a compounded annual growth rate (CAGR) of 1.3%. With near term oil demand at a lower level then the trend for the past ten years suggests the pace in oil consumption is slowing.

According to the Energy Information Administration (EIA), EIA the trend in oil consumption is pointing towards slower if not anemic growth. In the two largest areas, the US and Europe, demand is for oil is declining. While the increasing demand for oil in China and India is significant, the rate of growth is slower.

Figure 1 Global Oil Demand

In the US, oil demand declined 2.1% in 2012 and over the last ten years oil consumption is down 0.6%. The oil consumption trend in the US suggests the decline maybe more structural, particularly as vehicle fuel efficiency is improving and high oil prices may change consumer-driving habits.

Figure 2 Oil Consumption – Major Countries

While the economic weakness in Europe and moderating growth in China, it is not surprising to see weakness in global oil demand. The trend is lower oil consumption might just be the result of short term economic weakness.

Europe and the US account for over 37% of the global demand for oil and that demand has declined over the last ten years. While the US was down 0.6%, demand for oil in Europe was down 1.1% in the last ten years.

Figure 3 Oil Consumption Perspective

There is still strong demand for oil in China and India, but the rate of growth has slowed. China and India represent 15% of the global demand for oil. China and India have one-year oil demand growth rates below their respective ten-year rates.

Figure 4 Oil Consumption Trends

The bottom line is that is demand for oil has slowed and it maybe at a point where oil prices may soon reflect slowing demand.

After reviewing oil data from the Energy Information Administration (EIA), Global Petroleum Consumption , it may be helpful to put energy consumption into perspective. Most of us are quite familiar with alternative energy such as solar and wind, but the reality is, even if solar and wind could supply all of electric energy needs, the majority of our energy needs is still predicated on access to oil.

While industry experts and scientist debate whether more drilling will ameliorate the energy challenge we face, let’s look at a couple of data points. Figure 1 US Oil Field Oil Production and Drilling Rigs – illustrates that higher drilling activity as measured by Baker Hughes Rig Count data does not necessarily correlate to more oil production as measured by US Oil Field Production by the EIA. Higher drilling activity does not produce more oil.

Figure 1 US Oil Field Production and Drilling Rigs
Source: Energy Information Administration and Baker Hughes research

Despite the large investment in drilling rigs that more than doubled from 1,475 in 1974 to over 3,100 in 1982, US oil production remained relatively flat. Moreover, even the most recent drilling expansion activity that again more than doubled from 1,032 rigs in 2003 to over 2,300 rigs in 2009, resulted in relatively flat oil production, suggesting that on the margin unit oil production per drilling rig was declining. Perhaps even more disturbing is that the most recent drilling activity in the US was accomplished through extensive use of technology. Seismic imaging technology is being used to better locate oil deposits and horizontal drilling technologies are employed to more efficiently extract the oil, yet oil production still lags historic levels. While on the margin, newly announced offshore drilling could add to domestic oil production, extraction costs of oil will continue to rise adding to further oil price increases.

However, what is most profound is our dependence on oil for most of our energy needs similar to how wood was used for fuel construction material during the 1300’s and 1600’s. If we translate energy consumption into equivalent measuring units such as kilowatt-hours, we can compare and rank energy consumption. Although electricity is captured through consumption of several fuels most notably coal, a comparison of energy usage between oil and electric provides an interesting perspective.

Figure 2 Energy Perspective – provides a simple comparison of the consumption of oil and electricity measured in gigawatt-hours (one million kilowatt hours). A barrel of oil is equivalent to approximately 5.79 million BTUs or 1,699 KWH and the US consumed approximately 19.5 million barrels per day equating to 12 million gigawatt-hours a year. The US uses 4 million gigawatt-hours of electric energy annually. The critical point is that even if solar and wind supplied all of our electric energy needs, it would still only comprise 30% of our total energy needs. Therefore, without an energy strategy that facilitates migration towards a substitute for oil, particularly for transportation, we are missing the boat.

Figure 2 Energy Perspective
Source: Energy Information Administration and Green Econometrics research

It’s not all doom and gloom. Technologies are advancing, economies of scale are driving costs lower, and the economics for new approaches to transportation are improving. From hybrids and electric vehicles benefiting from advances lithium-ion batteries to hydrogen fuel cell vehicles getting 600 miles on a tank of fuel. These advanced technologies could mitigate our addiction to oil, however, without formulating an energy strategy directing investments towards optimizing the economics, energy efficiency, environment, and technology, we may miss the opportunity.

The bottom line is that oil is supply-constrained as there are no readily available substitutes, and therefore, without a means to rapidly expand production; supply disruptions could have a pernicious and painful impact on our economy, national security, and welfare.

The development of an energy efficiency strategy incorporates analysis of energy expenditures and energy consumption. The energy strategy must incorporate dynamics between costs, budgets and the consumption of energy including the monitoring of kilowatt-hours (KWH) of electricity and liquid hydrocarbon fuels consumed. By analyzing both the financial and the energy consumption components we are better positioned to frame the scope of the energy efficiency projects.

We start with a comprehensive energy audit analyzing energy consumption and expenditures. After determining which activities offer the fastest, cheapest, and greatest economic impact we are then able to define the scope of energy efficiency projects. The next step in the energy strategy process is to assess, rank and specify energy saving opportunities. At this phase, we have a broad understanding of the scope of energy efficiency projects within the appropriate budgetary considerations.

Conduct Energy Audit and Analyze Energy Spending

Upon analysis of the energy expenditures and the appropriate budgetary considerations, we commence with an energy audit to examine the dimensions of energy consumption. The energy audit establishes an energy efficiency baseline for buildings and vehicles. In the energy audit, energy consumption is measured by source and activity using monitors attached to branch circuits, gas pipes, and fuel lines. In this manner, energy consumption is evaluated from a financial and physical perspective and baseline usage patterns are established for electricity and other fuels.

During the energy audit, an analysis of energy intensity is measured. For buildings, energy consumption is measured in kilowatt-hours per square-foot to identify which activities consume the most energy. The energy intensity measurements are then ranked by consumption activity and compared to actual energy expenditures.

The purpose of the energy audit is to establish a baseline of energy consumption and the energy intensity associated with each building, department, vehicles, and/or activity usage category. By constructing an effective energy efficiency strategy that identifies and measures energy demand by activity, a better understanding of economic- and financial-impact is established. The critical component to the energy audit is measurement and verification were wireless Internet-based energy monitoring provide data before and after energy efficiency projects commence. The energy audit and energy monitoring systems together with financial analysis of energy consumption serve as the framework to rank and assess energy efficiency projects.

Heuristically, energy consumption in buildings is tied to lighting; and heating, cooling, and ventilation systems see Energy Intensity . The following chart, Figure 1 serves to illustrate which activities contribute most to energy consumption in buildings.

Figure 1 Kilowatt-hours (KWH) per Square Foot

According to information provided by the DOE, lighting, cooling and ventilation alone account for nearly two-thirds of all energy consumption in a building. For perspective, electric energy demand is increasing at an annualized rate of 1.6%. According to the Energy Information Administration (EIA), demand for electricity grew 21% between 1995 and 2006.

The energy consumption audit provides a means to assess which activities should be further analyzed for energy efficiency projects. The baseline energy usage measured in KWH per square foot serves as the framework to evaluate that locations and activities could benefit from lighting retrofits, equipment upgrades, structural improvements, and energy monitoring systems.

As a consequence of increasing energy consumption in buildings, electric generation relies extensively on hydrocarbon fuels that carry adverse environmental effects. Figure 2 illustrates the proportion of coal and other hydrocarbon fuels that are used to generate electricity in comparison to renewable energy sources. Coal still accounts for nearly half of all electric generation while contributing the most in terms of harmful emissions such as carbon dioxide, nitrous oxide, and sulfur dioxide.

FIGURE 2: Electric Generation Method

As part of the energy audit process for buildings, an energy consumption analysis of lighting and HVAC systems is evaluated along with the building’s insulation R-Value (resistance to heat flow where the higher the R-value, the greater the insulating effectiveness). In addition to lighting and HVAC systems, specialized equipment may also account for large energy demand. During our energy audit, we plan to identify and measure energy usage of special equipment in order to construct energy efficiency initiatives with clearly defined and measurable energy reduction targets.

Energy efficiency for transportation vehicles is one of the most significant factors to manage. The fact that there are no real substitutes for oil in the transportation industry illustrates two important points: 1) structural changes to driving patterns are required to see appreciable changes to oil consumption and 2) government authorities are vulnerable, with no readily available substitutes for oil, supply disruption could negatively impact transportation systems. Therefore, we emphasize fuel management systems for fleets and vehicles that monitor fuel consumption and efficiencies. DOE studies have indicated that changing driving habits could improve fuel efficiency by up to 30%.

Vehicle mounted devices that integrated fuel consumption feedback as the vehicle is driven promotes higher fuel efficiency. These off the shelf products are cost-effective, offering payback in months that dramatically improves fuel efficiencies. Aside from routine tune-ups, limiting weight, and checking tire pressure, augmenting driving patterns through gauges that provide feedback on fuel efficiency make the difference in saving energy.

In most situations, fuel management systems can be installed without significant mechanical aptitude. The ScanGaugeII from Linear-Logic is useable on most vehicles manufactured after 1996 including Gas, Diesel, Propane and Hybrid Vehicles and are designed to be installed by the consumer with plug-and-play instructions.

Identify and Measure Energy Demand by Activity

From the Energy Audit, the energy intensity of targeted buildings and fuel efficiencies of official vehicles are established. In buildings, it’s the lighting and heating, ventilation, and cooling that comprise the bulk of energy consumption.

Heating, ventilation, and cooling represent a significant portion of energy consumption in buildings and are a priority target for energy analysis. The Seasonal Energy Efficiency Ratio (SEER) is employed as an assessment of the equipment and analyzed in conjunction with building insulation. The efficiency of air conditioners is often rated in SEER ratio, which is defined by the Air Conditioning, Heating, and Refrigeration Institute and provides a standard unit measure of performance. The higher the SEER rating of a cooling system the more energy efficient the system is. The SEER rating is the amount of BTU (British Thermal Units) of cooling output divided by the total electric energy input in watt-hours.

For heating systems in a building, Annual Fuel Utilization Efficiency (AFUE) is used to measure and compare the performance of different systems. DOE studies have indicated that even with known AFUE efficiency ratings, heat losses defined as idle losses contribute to degradation in heating system efficiency,

To analyze energy consumption of heating and air conditioning systems (HVAC), we evaluate the building’s R-Value in comparison to the energy efficiency of the current heating and air conditioning systems. The energy demand evaluation includes a cost-benefit analysis comparing options in either HVAC system upgrade and/or improvements to the building’s insulation R-Value. By comparing the buildings R-Value in conjunction with HVAC efficiency performance, projects offering the greatest cost effectiveness are identified. The building’s R-Values can be measured using FLIR Systems infrared camera and software system. In this manner, the replacement cost of an HVAC system and costs to improve the building’s R-Value are analyzed to measure economic benefits. This information will allow the building owner to make an informed decision on whether any energy efficiency investment into HVAC upgrade or improvement to R-Value demonstrate economic benefit, i.e. positive financial return.

Consideration for heating and cooling systems upgrades are assessed by equipment SEER and AFUE ratings, installation costs, and efficiency payback. After equipment assessment is complete, proposals will be provided along with estimates for upgrade costs and payback analysis.

Benchmark and Analyze Energy Intensity

After conducting the energy audit, and compiling data on energy usage by activity category, we benchmark and analyze energy projects offering the greatest opportunities. As illustrated in Figure 3, energy efficiency for lighting systems can be substantially improved by retrofitting legacy light fixtures with higher efficiency fixtures and bulbs.

The energy audit and analysis provide the framework to evaluate energy efficiency projects. By analyzing energy consumption and the economic benefits associated with the energy savings projects, the most efficient and economically beneficial initiatives are identified and ranked.

FIGURE 3: Energy Savings in KWH per Square Foot Figure 1 Kilowatt-hours (KWH) per Square Foot

Establish Measurable Goals and Objectives

To establish relevant goals and objectives we are evaluating projects that are adhering to the SMART goal approach: specific, measurable, attainable, realistic and timely. Energy efficiency gains are most pronounced with lighting retrofits and energy monitoring in buildings in buildings and energy monitoring in vehicles.

After conducting an energy audit, analyzing energy consumption activities and the economics of energy efficiency projects, realistic and achievable energy savings goals are defined. Key performance metrics for energy savings are defined for buildings and vehicles. Key performance indicators are established for each project. For example, KWHs saved are defined for lighting retrofit projects, efficiency improvements for HVAC system upgrades, R-Value improvements for building insulation, and MPG gains for vehicles.

For each energy savings project, timelines are established with clearly defined milestones. Energy projects are presented with costs; expected energy savings measured in energy and dollar units, cost benefit analysis, and timelines.

Architect the Deployment of Energy Monitoring Systems

One of the first energy initiatives to consider in any energy savings project is the installation of an energy monitoring system for vehicles and buildings. Energy monitoring systems demonstrate the fastest and most economical pathways to achieving energy savings.

Energy monitoring systems for motor vehicles also demonstrate positive economic returns and real energy savings. The $180 energy-monitoring device with 10% fuel efficiency gain achieves breakeven at 14,500 miles with gasoline costing $2.50 a gallon.

Evaluate Feasibility of Renewable Energy Projects

Renewable energy projects such as solar and wind energy systems are often costly with long payback periods. Without tax incentives and grants, renewable energy projects are unable to demonstrate positive financial returns. However, utility rates for electric are expected to increase, improving the case for renewable energy projects. To improve the viability of alternative energy projects, energy efficiency projects such as lighting retrofit serve to lower energy consumption and therefore enhance the feasibility of solar and wind energy projects.

The precipitous drop in oil prices may not hold for long. Speculators and fears of oil flow disruptions drove oil prices to an all time high of $145.16 on July 14, 2008 and is now down to $49.50 in November 20, 2008. Now the fear has shifted to the economy where deteriorating fundamentals suggest demand for oil will abate, at least in the near term. However, if history is any guide, demand for oil should be influenced by both structural changes such as consumers driving more fuel-efficient motor vehicles and cyclical factors such as the state of the economy.

Figure 1 US Historic Oil Imports

To get an understanding of the impact that both structural and economic factors had in reducing the demand for oil is to look at oil import from 1978 to 1988. Figure 1 illustrates the US demand for oil during the last major economic recession. The Oil Shock of the 1970’s severely impacted the US economy and the term stagflation captured our attention while interest rates reached exorbitant levels. From 1979 to 1982, US oil imports decline by 46% as the oil embargo of 1973 led to structural changes in oil consumption. US oil imports, as measured by the Energy Information Administration in U.S. Crude Oil Field Production (Thousand Barrels per Day) demonstrated a significant decline as a result of changing driving habits as fuel efficient import vehicles encroached on the domestic auto makers. The US consumers opted for foreign vehicles demonstrating higher fuel efficiencies and MPG entered our lexicon. These economic and structural changes dramatically reduced the demand for oil and subsequently, oil prices fell. It was not until 1985 before oil imports began to increase.

What’s missing from this analysis is the fact that during this period the US accounted for 27% of total world oil demand. . According to the Energy Information Administration (EIA), in 1980, China and India accounted for 2.8% and 1.0%, respectively, of the global demand for oil. In 1986, China and India increased their oil demand to account for 3.2% and 1.5% of the world market, respectively, an increase in oil demand of 57% for China and 44% for India.

In 2005, China and India account for 8.0% and 2.9% of global oil demand while US dropped to 24.9% of global oil demand. While even China and India are not immune to the current blissful economic environment, when the global economy does improve, their demand for oil will more than negate any structural changes the US consumers make in their driving habits. The demand for oil should continue to grow as an economic recovery ensues thereby leading to an increase in oil prices.

Figure 2 China and India Oil Consumption

Figure 2. illustrates the rapid rise in the demand of oil from China and India. From 1980 to 2005, demand for oil increased 280% in China and 125% in India. Despite the improving fuel consumption in the US, the global oil market is more apt to be impacting from the growth in developing countries than conservation in the US.

The bottom line: don’t remain complacent, strive for energy efficiency and invest into alternative energies.

For further reading on oil prices please refer to
oil price analysis .

From the Industrial Revolution we learned that economic growth is inextricably linked to energy and as a result, our future is dependent upon equitable access to energy. When the Stourbridge Lion made entry as the first American steam locomotive in 1829 it was used to transport Anthracite coal mined in nearby Carbondale, PA to a canal in Honesdale that in turn linked to the Hudson River and onto New York City. Coal fueled the growth of New York and America’s Industrial Revolution because coal was cheap and more efficient than wood.

Advances in science and technology gave way to improvements in manufacturing, mining, and transportation. Energy became the catalyst to industrial growth. Steam power such as Thomas Newcomen’s steam powered pump in 1712 developed for coal mining and James Watt’s steam engine in 1765 were initially used to bring energy to market.

In terms of heating efficiency, coal at the time offered almost double the energy, pound for pound, in comparison to wood. Energy Units and Conversions KEEP Oil offers higher energy efficiencies over coal and wood, but as with most hydrocarbon fuels, carbon and other emissions are costly to our economy and environment.

With rapid growth in automobile production in the U.S., oil became the predominant form of fuel. According to the Energy Information Administration, in 2004 the U.S. spent over $468 billion on oil.

Figure 1 U.S. Energy Consumption by Fuel

We all need to become more conversant in understanding energy costs and efficiency and as a corollary, better understand the benefits of renewable energy such as solar, wind, and hydrogen fuel cells. A common metric we should understand is the kilowatt-hour (KWH) – the amount of electricity consumed per hour. The KWH is how we are billed by our local electric utility and can be used to compare costs and efficiency of hydrocarbon fuels and alternative energies.

One-kilowatt hour equals 3,413 British Thermal Units (BTUs). One ton of Bituminous Coal produces, on the average, 21.1 million BTUs, which equals 6,182 KWH of electric at a cost of about $48 per short ton (2,000 pounds). That means coal cost approximately $0.01 per KWH. To put that into perspective, a barrel of oil at $90/barrel distilled into $3.00 gallon gasoline is equivalent to 125,000 BTUs or 36.6 KWH of energy. Gasoline at $3.00/gallon equates to $0.08 per KWH. So gasoline at $3.00 per gallon is eight times more expensive than coal.

Is oil and gasoline significantly more efficient than coal? Let’s compare on a pound for pound basis. A pound of coal equates to about 10,500 BTUs or approximately 3.1 KWH per pound. A gallon of gasoline producing 125,000 BTUs weighs about 6 pounds equating to 6.1 KWH per pound (125,000 /3,413 /6). While gasoline is almost twice as efficient as coal, coal’s lower cost per KWH is why it is still used today to generate electric.

The Bottom Line: the economics of energy determines its use – coal still accounts for approximately half of our electric generation because it has a lower cost than other fuels. However, there are two factors to consider 1) the cost of carbon is not calculated into the full price of coal or other hydrocarbon fuels and 2) the cost of conventional fuel is calculated on a marginal basis while alternative fuel costs are calculated on a fixed cost basis. Meaning the cost of roads, trucks, and mining equipment is not factored into the price of each piece of coal, only the marginal cost of producing each ton of coal. For solar, hydrogen fuel cells, and wind energy systems, the cost to construct the system is factored into the total cost while the marginal cost of producing electric is virtually free. We need a framework to better measure the economics of alternative energy. The impact of carbon on our climate and global warming are clearly not measured in the costs of hydrocarbon fuels nor is the cost of protecting our access to oil such the cost the Iraq War.

Despite the carbon issues surrounding coal, (coal has higher carbon-to-hydrogen ratio in comparison to oil or gas) coal is more abundant and therefore is cheaper than oil. As electric utilities in 24 states embrace alternative energies through such programs as Renewable Portfolio Standards (RPS), perhaps the benefits of alternative energies will begin to combat the negative economics of hydrocarbon fuels.

Ethanol may emit less CO2 and help reduce the demand for foreign oil in the short term, but ethanol and in particular, corn-based ethanol raises food prices, is less efficient than gasoline, diesel, and biodiesel, and is not a substitute for oil.

According to research compiled by National Geographic Magazine , the energy balance of corn ethanol, (the amount hydrocarbon fuel required to produce a unit of ethanol) is 1-to-1.3 whereas for sugar cane ethanol the ratio is 1-to-8. This suggests corn-based ethanol requires significantly more energy to produce than sugar cane ethanol. Corn ethanol is only marginally positive.

A major issue with corn ethanol is its impact on corn prices and subsequently, food prices in general. It is the price of oil that is impacting the price of corn because nearly all ethanol produced in the U.S. is derived from corn. Therefore, corn prices are inextricably linked to oil prices as well as to the supply and demand of corn as food and feedstock. Corn Prices while volatile and impacted from weather and other variables appear to follow the rising price of oil as illustrated in Figure 1. In turn, corn prices are also influencing other commodity prices where corn is used for feed for livestock.

The rising motor vehicle usage in China and India is escalating the already tenuous situation in the oil markets. With ethanol tied to oil prices we are beginning to see corn prices exacerbate the inflationary pressures at the retail level. Over the last year consumers are paying more for food with large increases in the prices of eggs, cereal poultry, pork, and beef which are tied to corn.

Figure 1 Corn Prices

Senate legislation for Renewable Fuels Standard calls for ethanol production to increase to 36 billion gallons by 2022 with 21 billion derived from as cellulosic material such as plant fiber and switchgrass . Corn is expected to comprise 42% of the ethanol production in 2002 from virtually all today. The fact is that ethanol production at its current level of 6 billion gallons equates to only 4% of our gasoline usage and is already impacting food prices. Gasoline consumption in 2005 amounted to 3.3 billion barrels or 140 billion gallons. Current estimates put gasoline consumption at 144 billion gallons a year in 2007. Even if vehicles could run entirely on ethanol, there is not enough corn harvest to substitute our demand for oil. We need a cohesive and coordinated effort using multiple technologies to develop alternative energies to reduce our dependence on foreign oil.

Performance

According to Renewable Fuels Association ETHANOL FACTS:
ENGINE PERFORMANCE, ethanol offers higher engine performance with octane rating of 113 in comparison to 87 for gasoline and has a long history in the racing circuit. In 2007, the Indy Racing League, sponsors of the Indianapolis 500 started using ethanol in racecars. However, the higher engine performance may come at a cost of lower fuel efficiency.

Table 1 Specific Energy, Energy Density & CO2

Efficiency

Gasoline offers 56% higher energy efficiency (specific energy) over ethanol as measured by kilo-joules per gram (kj/g). (As a reference: 1 kilowatt-hour = 3,600 kilojoules = 3,412 British Thermal Units) Biodiesel with 35 kj/g is 33% more energy efficient than ethanol at 24.7 kj/g.

In terms of energy density, ethanol would require larger storage capacity to meet the same energy output of gasoline diesel, and biodiesel. Ethanol requires a storage tank 48% larger than gasoline and 41% larger than diesel for the same energy output.
Please see Hydrogen Properties and Energy Units

For a quick review of Specific Energy and Energy Density – (Molecular Weight Calculator) the specific energy of a fuel relates the inherent energy of the fuel relative to its weight and is measured in kilo-joules per gram.

CO2 Emission

The molecular weight of CO2 is approximately 44 with two oxygen molecules with an approximately weight of 32 and one carbon atom with a weight of 12. During the combustion process, oxygen is taken from the atmosphere producing more CO2 then the actual weight of the fuel. In the combustion process a gallon of gasoline weighing a little over six pounds produces 22 pounds of CO2.

CO2 emission is a function of the carbon concentration in the fuel and the combustion process. During combustion ethanol produces approximately 13 pounds of CO2 per gallon. Gasoline and diesel produce approximately 22 and 20 pounds per gallon, respectively. CO2 emissions per gallon appear quite favorable for ethanol. However, the results are less dramatic when CO2 emissions are compared per unit of energy produced.

Figure 2 CO2 per KWH

When measured in pounds of CO2 per kilowatt-hours (KWH) of energy, the results show ethanol producing 6% less CO2 than diesel or biodiesel and 5% less than gasoline. In the case of ethanol, the lower specific energy of the fuel negates the benefit of its lower CO2 emissions. Meaning more ethanol is consumed to travel the same distance as gasoline or diesel thereby limiting the benefit of its lower CO2 emissions.

The bottom line is ethanol does not ameliorate our dependence on foreign oil and while it demonstrates higher performance for racecars, it is still less efficient than gasoline diesel, and biodiesel, and diverts food production away from providing for people and livestock. The reality is there are special interest groups that obfuscate the facts about ethanol for their own benefit. The real solution to our imminent energy crisis is alternative energies including cellulosic ethanol, solar, hydrogen fuel cells, and wind.

After reviewing some of the details of Honda’s experimental solar-power hydrogen refueling station in Torrance, CA and its fuel cell vehicle several questions concerning efficiency and practicality come to mind. It most be noted that solar and hydrogen don’t emit harmful byproducts such as carbon dioxide or carbon monoxide so both technologies are important to our energy security. First let’s look at the efficiency of hydrogen and second the efficiency of generating hydrogen from solar.

As we learned from science class, hydrogen is the most abundant element in the universe. Hydrogen has approximately 3 times the energy per unit mass as gasoline and requires about 4 times the storage volume for a given amount of energy according to a Hydrogen Energy report from Stanford University. In further review of additional information on hydrogen we are also making some adjustments to our fuel-ranking table.

We are revising Table 1 that was used in our post of October 3, 2007 for data on the energy density for hydrogen from 2.5 kilowatt-hours (KWH) per gallon to 10.1 KWH/gal and is reflected in the revised Table 1 below. The discrepancy lies in measuring the weight of hydrogen in liquid volume. We are calculating the energy density of hydrogen using the high heat values of hydrogen of 61,000 British Thermal Units (BTUs) and a weight 0.57 pounds per gallon from the Stanford Hydrogen Report.

As a reference: 1 KWH = 3,600 kilojoules = 3,412 BTUs

Revised Table 1 Specific Energy, Energy Density & CO2

Hydrogen offers tremendous energy potential, but as we see from Table 1, hydrogen has a low energy density meaning it requires a large storage container to make it practical for use in a motor vehicle. Several car manufacturers including GM and Toyota have developed hydrogen vehicles. Hydrogen can be used in internal combustion engines replacing gasoline or in fuel cells to generate electric to power the vehicle. However, there are some limitations to the current technology that may limit the economic viability hydrogen powered vehicles in the near term. But there are no detrimental emissions with hydrogen as apposed to hydrocarbon fuels thus providing tremendous benefits as vehicle efficiency improves.

Honda’s solar-powered hydrogen fueling station takes nearly a week in sun to produce enough hydrogen to power Honda’s FCX concept hydrogen fuel cell vehicle. Honda employs a Proton Exchange Membrane Fuel Cell (PEMFC) that converts hydrogen to electric that in turn, powers the vehicle. The Honda FCX fuel cell vehicle has two fuel tanks that can be filled with up to 156.6 liters of hydrogen or about 43 gallons that offers 430km (267 miles) driving range. The hydrogen fuel cell vehicle provides a reasonable driving range, but with a fuel efficiency of 6.5 miles per gallon (MPG), suggests more research is needed.

BMW’s Hydrogen 7 can travel 125 miles on hydrogen and 300 on gasoline before refueling. In tests the BMW 745h liquid-hydrogen test vehicle has 75 kg tank has a Hydrogen Fuel Efficiency of 10 km/liter or about 25.2 MPG and cruising speed of 110 MPH. Not too bad for an internal combustion engine that is able to run on gasoline or hydrogen.

Figure 1 Specific Energy

Given the changes to hydrogen’s energy density we are also adjusting hydrogen density (Figure 2) to reflect liquid hydrogen and high-energy value as noted by Hydrogen Properties College of the Desert.

Revised Figure 2 Energy Density: KWH per Gallon

We still have more questions given hydrogen’s very high specific energy, (3 times that of gasoline) and low energy density (4 times the volume of gasoline). Hydrogen is more efficient then petroleum fuel, yet when used as a fuel cell in a vehicle Honda’s MPG of 6.5 MPG is quite low. The fuel efficiency of BMW’s Hydrogen 7 of 25.2 MPG is only at parity with gasoline.

The efficiency of using solar energy to generate hydrogen may not be the most efficient method. One report from Walt Pyle, Jim Healy, and Reynaldo Cortez Solar Hydrogen Production by Electrolysis indicated that a 1-kilowatt solar photovoltaic device could generate 1 cubic meter of hydrogen in 5.9 hours. Essentially, 5.9 KWHs from a 1KW solar cell produces 1 cubic meter of hydrogen. We know that a pound of hydrogen in liquid state equals approximately 61,000 BTUs (51,500 BTUs at low heat value) or 17.9 KWH.

Research at Caltech, suggests that photoelectrochemistry The Lewis Group may offer a more efficient means of generating hydrogen. We will continue to explore solar efficiency and hydrogen fuel cells to evaluate the economics of alternative energy.

The bottom line is that our dependence on foreign oil is the biggest threat to national security and without cultivation of alternative energies we continue to endure an untenable situation. Further research into solar and hydrogen fuel cells could significantly ameliorate our dependence on oil.

Despite efforts that have enabled the U.S. to limit its demand for oil, world oil demand is up significantly. Advances in technology such as solar energy and vehicle fuel cell could help the world reduce its dependence on oil.

Figure 1 Oil and Gold Prices

The U.S. Department of Energy (DOE) and the U.S. Environmental Protection Agency (EPA) today released the Fuel Economy Guide for 2008 model year vehicles Fuel Economy Leaders: 2008 Model Year Coming in first place is the Toyota Prius (hybrid-electric) with city/highway miles per gallon (MPG) of 48/45. With higher fuel costs more people are factoring in fuel efficiency into their purchase decision. However, it is the purchase of pickup trucks and SUV that account for most of the vehicle purchases in the U.S. and these vehicles are dramatically less fuel-efficient than hybrids and small four-cylinder automobiles.

Despite the trend towards larger vehicles, the U.S is not experiencing a rapid rise in oil demand. Yet oil prices continue to climb. While geopolitical risk may account for the bulk of the recent price increase, latest information from the U.S. Energy Information Administration (EIA) Total Petroleum Consumption shows increasing oil demand from China.

Figure 2 Oil Demand: U.S. and China

Figure 2 illustrates that while oil demand in the U.S. has grown only modestly since 2000, the growth in China’s oil demand is rising rapidly. The recent data from the EIA shows oil demand through Q2/07. The demand for oil in the U.S. is up 5% from 2000 while in China oil demand is up 59% over the same period.

Improving vehicle fuel efficiency may abate rapidly rising oil demand in the U.S., but more emphasis on diesel and hybrids could take us a lot further. For example, Toyota has been slow to introduce its diesel line of pickup trucks in the U.S. while it offers a broad line of more fuel-efficient vehicle outside the U.S. Toyota offers several cars and trucks in Europe with impressively high fuel efficiencies that are not available in the U.S. Infact, the Toyota Hilux two-wheel drive pickup truck offers a four-cylinder diesel engine with an MPG of 44.8 on the highway and 29.1 in the city.

We are also seeing progress on fuel cell vehicles that could ultimately ameliorate are demand for oil, if not eliminate it entirely, all with no carbon dioxide or other emissions. We see most major automakers developing hydrogen powered fuel cell vehicles. Honda for one has the right concept in employing solar energy to make hydrogen.

Honda’s experimental hydrogen refueling station in Torrance, CA increases the solar incre3ases the efficiency of hydrogen fuel by using solar energy to produce hydrogen. The hydrogen is then used to power Honda’s Honda’s FCX concept hydrogen fuel cell vehicle with the only emission being pure water vapor. These fuel cell vehicles may not be ready for prime time, they provide a clear reality to what is achievable.

The bottom line is that supply and demand dictate price and the availability of cheap oil is on the decline. Further research into solar and hydrogen fuel cells could significantly change our dependence on oil.

The U.S. Department of Energy (DOE) is quite correct in suggesting that if every household in the U.S. substituted a 100-watt standard light bulb for a Compact Fluorescent Light bulb (CFL), it would eliminate an amount of carbon dioxide (CO2) equivalent to one million automobiles. However, it is the bigger picture that matters, – motor vehicles contribute the most to CO2 emissions. We must not forget that by focusing on CO2 emissions, they are admitting that CO2 is a real issue that potentially leads to global warming and climate change.

Let’s look at some facts about our carbon footprint. A 100-watt light in operation for 13.3 hours produces approximately one pound of CO2 when the electricity is generated by coal. Coal has significantly higher carbon emissions per kilowatt-hour (KWH) than oil or gas. Please see Carbon content of fossil fuels . Coal generates about half the electric power in the U.S. and produces roughly ¾ of a pound of CO2 for every KWH of electric. That means for every 1.3 KWH of electricity used (a 100-watt light used for 13.3 hours) we produce 1 pound of CO2. And remember it’s the oxygen in the air that contributes nearly 73% to the weight of CO2. This is why more CO2 is created than the actual weight of the fuel.

Using the same fuel emissions data, a motor vehicle with an average fuel efficiency of 22 miles per gallon (MPG), produces approximately 90 pounds of CO2 for every 100 miles driven. A gallon of gasoline produces nearly 20 pounds of CO2. That equates to one pound of CO2 for every mile driven by an SUV with a fuel efficiency of 19 MPG. (19.9 pounds/gallon times 1 mile divided by 19 MPG)

While it makes sense to address the issue of CO2 emissions, particularly as coal accounts for half of electric power generation and has higher CO2 emissions per KWH than oil, the real issue is an energy plan that givers us energy independence. Energy independence should equate to national security.

With the rapid growth in vehicle use around the world, it would be nice to know what are the most efficiency, economic, and least carbon emitting fuels. The number of motor vehicles on the road is increasing rapidly. The number of cars and trucks in China is up over 3,600 percent in the last thirty years. Data from the U.S. Department of Energy (DOE) and Ward’s Communications, Ward’s World Motor Vehicle Data provide an interesting view of the growth in motor vehicle use.

Figure 1 China Truck and Car Registration

While the U.S. still accounts for the largest motor vehicle market, the rest of the world is quickly accelerating towards more vehicles on the road. Figure 2 shows the number of vehicle registrations over the last thirty years for China, the U.S. and the rest of the world (ROW). Vehicle registration growth in the U.S. has been growing at a 2% per year rate from 1975 to 2005. The largest growth in vehicle registration is in China and India where growth in the last ten years is up 195% and 99%, respectively.

Figure 2 World Vehicle Registration

With an explosion in motor vehicle use, what fuel should we be using to better performance and reduce emissions? Let’s go back to two basic concepts of energy: Specific Energy and Energy Density. For a quick review, (Molecular Weight Calculator) the specific energy of a fuel relates the inherent energy of the fuel relative to its weight. Specific energy is often measured in kilo-joules per gram (kj/g). One kilo-joule equals one kilowatt-second meaning one kilowatt-hour (KWH) equals to 3,600 kilo-joules. Also one British Thermal Unit (BTU) equals 1,055.05585 joules. A reference to the specific energy and energy values of most fuels can be found at Hydrogen Properties

Figure 3 Specific Energy

By specific energy hydrogen is the clear leader. However, vehicles must inherently carry their fuel supply, so to determine which fuel is best for motor vehicles, energy density of the fuel is the next measurement. While vehicle fuel efficiency is dependent upon a number of factors such as engine type and performance, make and model of vehicle, road conditions and fuel, we are focusing on fuel energy.

Figure 4 Energy Density: KWH per Gallon

Figure 4 illustrates how fuels compare with respect to energy density, that is, energy relative the container size. We again are using KWH to measure energy value. Hydrogen, because it is so light, requires 15.9 times the container volume to provide the same energy as diesel. Biodiesel provides more power per gallon than Ethanol, which requires 1.6x, the container size for the same amount of energy as diesel. Biodiesel and diesel are relatively similar with respect to energy density. While both Ethanol and Biodiesel are both form of renewable energy, Biodiesel offers more bang per gallon. Before we are able invest more into hydrogen and solar energy to bring alternative energy into parity with conventional hydrocarbon fuels, diesel and biodiesel offer better energy efficiency among hydrocarbon fuels.

Table 1 Specific Energy, Energy Density & CO2

As a final assessment of hydrocarbon fuels, let’s compare carbon dioxide (CO2) emissions among our list of fuels. CO2 emission is a function of carbon concentration and combustion process of the fuel. Fuel energy research at the Department of Environmental Protection (EPA) and DOE indicate 99% to nearly 100% combustion of with fuels used in vehicles. That means almost all of the atoms in the fuel are converted to either heat or byproducts such as CO2.

Figure 5 illustrates how much CO2 is produced per gallon of fuel. Remember the molecular weight of CO2 is about 44 with oxygen contributor nearly 73% of the weight and is taken from our atmosphere during combustion. This is why more CO2 is created than the actual weight of the fuel. A second factor needs to be considered when evaluating CO2 emission and that is how much CO2 is produced per energy value. In comparing CO2 emissions per KWH of energy, Ethanol produces about 7% less CO2 than diesel or Biodiesel and 5% less than gasoline. Neither of these estimates considers the emissions from the processing to produce Ethanol or Bioiesel.

Figure 5 CO2 per Gallon

The bottom line is Ethanol and Biodiesel provide marginal relief to our energy crisis with biodiesel offering better efficiency and Ethanol marginally less CO2 missions. The only real solution to our imminent energy crisis is alternative energies such as solar, hydrogen fuel cells, and wind.

Without greater investment into solar and hydrogen energies, we are held hostage to rising oil prices. Alternative energies such as solar and hydrogen fuel cells offer tremendous potential to provide energy independence and energy security. The dependence of the U.S. upon imported foreign oil raises inflation, weakens our currency, exacerbates the trade deficit, and forces consumers to pay higher prices for home heating and transportation. With oil exceeding $80 a barrel in late September 2007, the only beneficiaries are countries exporting oil and oil conglomerates. I guess when countries such as Dubai, after accumulating a large trade surplus based on inflated oil prices, decides to diversify away from oil and buy a non-voting stake in the NASDAQ market, it’s a wake-up call.

To better understand the potential of alternative energy, we should try to understand two basic concepts of energy: Specific Energy and Energy Density. Without digressing into chemistry 101, (Molecular Weight Calculator) the specific energy of a fuel relates the inherent energy of the fuel relative to its weight. Typically, specific energy is measured in kilo-joules (kj) per gram. A joule is a measure of kinetic energy – one joule is the amount of energy needed to move two kilograms at a velocity of one meter per second. Or a kilo-joule equals one kilowatt-second meaning one kilowatt-hour (KWH) equals to 3,600 kilo-joules. Your local electric utility bills you by the KWH, which according to the US Department of Energy Average Retail Price of Electricity in 2007 is approximately $0.11 per KWH.

Table 1 Specific Energy and Energy Density

The specific energy of a fuel tells us how much energy can be derived from a measured amount fuel by weight. By ranking each fuel by its specific energy, one can determine how efficient each fuel is. Specific energy and fuel density are often proportional to the ratio of carbon and hydrogen atoms in the fuel. A reference to the specific energy and energy values of most fuels can be found at Hydrogen Properties

Figure 1 Specific Energy
Figure 1 illustrates how fuels compare according to their specific energy. As we can see, hydrogen, because it’s extremely light, has the highest specific energy in comparison to hydrocarbon fuels.

This however, is not the full story because volume or energy storage requirement becomes a significant factor for gaseous fuels. Specific energy is important to analyze fuel efficiency by weight, but for hydrogen that must be pressurized and cooled to bring to a liquid state, the energy density become more relevant to fuel efficiency.

Figure 2 Energy Density: KWH per Gallon

Figure 2 illustrates how fuels compare according to their energy density, that is, energy relative the container size. As we can see from figure 2, hydrogen, because it is so light, requires 15.9 times the container volume to provide the energy of diesel or oil. In comparison to diesel, ethanol requires 1.6x the container size for the same amount of energy.

The container size becomes a significant detriment for housing hydrogen. Energy density is usually measured in kilo-joules per cubic meter (kj/m3). As kilo-joules are readily translated into KWH by multiplying by the number of seconds in an hour (3,600) and the College of the Deserts’ computation into gallons, we are converting the data into KWH per gallon for those of us in the U.S.

Hydrogen fares poorly relative to energy density. However, technology offers an approach to enhance the benefits of hydrogen with fuel cells. Fuel cell enable hydrogen molecules to interact with oxygen through a membrane that allows transmission in only one direction to convert H2 into an electric current to power your automobile. Fuel Cell Basics Fuel cells often capture the hydrogen electron from hydrocarbon fuel such as methane allow convention fuels to generate hydrogen for electric generation.

In a hydrogen-based economy, solar energy can provide electric to generate hydrogen through electrolysis and vice versa. Jeremy Rifkin’s The Hydrogen Economy eloquently illustrated the hydrogen economy where fuel cell act as mini power plants and the electric network resembles the Internet where cars plug into an electrical grid supplemented by solar cells at your home and work. Electric power generation moves from large utility generation to a distributed generation – everyone plugged in can generate power to the grid. The key benefit of hydrogen is that it democratizes the energy economy bringing power to all countries in the world.

An interesting technical analysis of hydrogen energy is provided by Ulf Bossel and Baldur Eliasson Energy and the Hydrogen Economy The bottom line is that solar and hydrogen energies offer tremendous potential to low long-term fuel costs and improve our environment and climate. More research is required to lower costs and improve feasibility.

There are several studies evaluating ethanol as fuel for transportation that offer both positive and negative impacts from ethanol. On the positive side there is less CO2 emitted from ethanol than conventional hydrocarbon fuels, domestic producers gain economic value from employment and purchasing power, and there is less dependence on foreign oil. Other studies have concluded less efficiencies from ethanol such as negative energy values because of the fertilizers and energy used to produce ethanol is larger than the amount of energy produced, CO2 is released during the fermentation and combustion process, and it still must be blended with hydrocarbon fuels leaving us dependent on foreign oil.

Ethanol is alcohol-based fuel made from crops. Fermenting and distilling starch crops, typically corn, into simple sugars produce ethanol. Chemically ethanol is similar to hydrocarbon fuels in that they both contain carbon and hydrogen atoms.

To understand the economics, let’s compare ethanol to hydrocarbon fuels by efficiency and costs. The first step is to convert the BTU (British Thermal Unit) value of ethanol into Kilowatt-Hours (KWH) in order to have a common measure of energy. Remember the KWH is a useful measure of energy because we can equate KWH to engine horsepower performance and compare hydrocarbon fuels to alternative energies like solar and wind and compare these energy costs on a common level.

Our fuel energy conversion links Energy Units and Conversions KEEP, and Fuel BTUs provide some useful measures to evaluate ethanol in comparison to hydrocarbon fuels like diesel and gasoline.

One KWH equals 3,413 BTUs so we divide the BTU value for each fuel by 3,413 to arrive at its corresponding KWH energy value.

Energy Comparison
1 gallon of ethanol = 84,400 BTUs = 24.7 KWH
1 gallon of diesel = 138,690 BTUs = 40.6 KWH
1 gallon of gasoline = 125,000 BTUs = 36.6 KWH
1 gallon of oil = 138,095 BTUs = 40.5 KWH

Figure 1 Kilowatt-Hours per Gallon

As seen from figure 1, ethanol is not the most efficient fuel because of its low BTU value in comparison to hydrocarbon fuels. However, ethanol is a form of renewable energy because the crops can be grown to generate more fuel.

Energy Economics

To compare the energy cost of ethanol to hydrocarbon fuels we convert each fuel into a cost per KWH. Our prices are quarterly average U.S. energy prices by fuel type: Ethanol Prices, , and Oil Prices

Figure 2 Cost per Kilowatt-Hours

On a cost per KWH basis, ethanol is similar to hydrocarbon fuels. So depending on current fuel cost, which varies by location, ethanol could be higher or lower than diesel or gasoline.

On the production of ethanol a bushel of corn produces about 2.76 gallons of ethanol according a study by AgUnited . According to U.S. Department of Agriculture it takes 57,476 BTUs of energy to produce one bushel of corn Energy Balance of Corn Ethanol therefore, for BTU of energy used to produce ethanol there are 4 BTUs of energy gained from the ethanol for transportation.Carbon EconomicsEthanol is produced from fermentation of starch to sugars and is represented by the equation C6H12O6 = 2 CH3CH2OH + 2 CO2 according to University of Wisconsin Chemistry Professor Bassam Z. Shakhashiri The two CO2 molecules given off from the fermentation process of ethanol does add to CO2 emissions, but the growing process and biomass also extract CO2 from the atmosphere.

Emission of CO2 from hydrocarbon fuels depends on the carbon content and hydrogen-carbon ratio. When a hydrocarbon fuel burns, the carbon and hydrogen atoms separate. Hydrogen (H) combines with oxygen (O) to form water (H2O), and carbon (C) combines with oxygen to form carbon dioxide (CO2). How can a gallon of gas produce 20 pounds of CO2 To measure the amount of CO2 produced from a hydrocarbon fuel, the weight of the carbon in the fuel is multiplied by (44 divided 12) or 3.67. For ethanol we compared its basic structure to gasoline, diesel, and crude oil.

In the combustion process, ethanol produces CO2 at a rate that is below that of gasoline. The equation for ethanol combustion is C2H5OH + 3 O2 –> 3 H2O + 2 CO2. Ethanol Combustion In our simple example, the carbon weight in ethanol (two carbon with a combined atomic weight of 24 to a total weight of 46 for the molecule of C2H5OH) is multiplied by 3.67 to determine the amount of CO2 produced from ethanol. We then compared the output of CO2 to the amount of energy produced to arrive at pounds of CO2 per KWH. Bottom line is that ethanol emits 11% less CO2 than gasoline and is a renewable fuel.

Figure 3 Pounds of CO2 by Fuel Type

There are several studies on ethanol with the majority indicating benefits. Some of these include: High-level ethanol blends reduce nitrogen oxide emissions by up to 20% and ethanol can reduce net carbon dioxide emissions by up to 100% on a full life-cycle basis. Ethanol Benefits and Clean Cities While ethanol produces less CO2 than gasoline, it still emits CO2 and keeps us dependant upon hydrocarbon fuels.

For further information on fuel combustion Combustion Equations and for Energy to Produce Ethanol Ethanol Production