Report

10Alternative Energy in Automotive Industry

ALTERNATIVE ENERGY IN AUTOMOTIVE INDUSTRY

Alternative Energy in Automotive Industry

Given increased development in economy and social progress, transformation into newer energy is realized. In relation to automobile industry, automobiles have continuously explored alternative sources of energy. Consumers are driven towards more consumer friendly products, in a way that conserves natural resources. As such, no industry has experienced such significant change as the auto industry towards green energy. This retrospect paper seeks to present research on possible future and manufacturing capabilities of the auto industry.

Scope of the study

The automotive industry encompasses design, engineering, manufacturing and sales sectors. This paper seeks to exploit the manufacturing sector of the auto industry. It is required that companies deliver customer expectations of the commodities in question like smell and feel, aesthetics and technical performance as well as understanding how these are changing around the globe. Furthermore, they must also comply with regulatory requirements of different countries like those involving CO2 emission and safety.

Alternative energy is being exploited to curb problems of energy and climate security in addition to enhance regional economic development (Zhang & Cooke 2014). This report examines the impact of alternative fuels in the automotive industry with an exemplification of the transport sector having green innovation. As such, emissions from transport will rise to 84% as anticipated in the year 2030 (Tomilson 2015). In relation to curbing this problem, major technologies such as electric cars, biofuels and hydrogen cells are expected to cater for reduction of greenhouse gas emission in the long run. In recent times, electric, hybrid and hydrogen vehicles have gotten established while exhibited in automotive shows worldwide. These vehicles utilize alternative sources of energy directly. In this report, technology applications are discussed in the view of getting clear understanding of the drive to cleaner energy systems.

For decades, electricity has been utilized as alternative source of energy in place of traditional fuel engine. As such, three kinds of vehicles that use electricity are presented as plug-in hybrids, pure-electrics and hybrids (Hickman 2015). Pure-electric vehicles instead of petrol, use batteries in powering engines as such it reduces emissions of carbon dioxide, and examples include Subaru 4 seat, Chrystler EV, Miles EV and Th!nk Ox (Madslien 2014). Hybrid vehicles are meant to utilize both internal combustion engine and and electric motors. Furthermore, the batteries required in hybrids allow the vehicle to move longer distances as compared to pure electrics and they are also smaller in size, examples of this include Ford Fusion HEV, Mercedes S400 HEV and Pirus HEV (Madslien 2014). Hybrids using plugs have a mix of revitalizing energy from braking, grid electricity as well as, power out of an internal engine or fuel cell, examples include Toyota PHV, Fisker Karma S PHV, Ford PHV and Volvo PHV (Madslien 2014).

Electric Vehicle

Hybrid Vehicle

Plug-in Hybrid

Subaru 4 seat

Ford Fusion HEV

Toyota PHV

Chrysler EV

Mercedes S400 HEV

Fisker Karma PHV

Pirus HEV

Volvo PHV

The report also views automotive industry in the European Union. Maintaining a powerful automotive manufacturing field in the EU, meeting consumer demands, delivering affordable products and desirable commodities, in relation to a competitive market for automotive services and products especially in the aftermarket can only be in existence when good business conditions are given (Barradale 2015). In addition to accompanying national policies such as structural labour law reforms and macroeconomic structural reforms can have visible results on framework conditions, evidently via the regulatory policy. As such, this should provide enough strength and flexibility to the automotive industry as postulated by Bristola (2014).

The European automotive industry has a front role in the establishment of clean and energy essential technologies for transit and is also a major sector in relation to employment, economic prosperity and investments in Europe (Weiss et al. 2014).

The body of an alternative energy using vehicle is shown below; it has no internal combustion engine.

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Image 1: Internal Systems of A hybrid vehicle

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Image 2: The manufacturing and design sector in the automotive industry

Impact in the future

In expanding their national fleets, most developing countries seem to have capabilities of adopting technologies of hybrid vehicles. At the local, regional and national levels, electric vehicles and hybrids may get utilized in light service motorcades, as seen in the U.K Postal Service or for commercial application as seen in the United States Pepsi-Cola and Postal Service. Present trends show adoption rates in the near future will rise for such technologies. Weiss et al., (2014) examined electric and hybrid vans adoption rate of the EU in accordance with various productive models, such alternative technology approach which portrayed a combination of green energy trains ,for instance gasoline turbo’ of 55% of total sales by 2035.

Whereas sales of hybrid vehicles peaked in 2012, with 25,000 sales witnessed, there has been a reduced sale in 2015. Costing between $ 3000 to $5000 Dennis DesRosiers, asserts that the production vehicles may no longer be worth to its consumers; given the improved efficiency of fuel consumption. GM plans on closing its production of Chevy Volt, following slow sales (CBCnews, 2015). Additionally, Honda Civics hybrid vehicle productions are bound to reduce (CBSnews, 2015). The challenge is to manufacturers to produce such automobiles at competitive price, in comparison to traditional vehicles. As such, manufacturers have to find a new strategy of alternative propulsions systems in a competitive approach.

According to Barradale (2014), the model may seem unrelenting in accordance to acquiring of alternative fuel technologies. Although, noting that gasoline as well as diesel hybrids contain parts of alternative fuels is necessary since this would bring about beneficial results to the environment

Features requiring considerations in determining effectiveness of recent approaches in provision of necessary savings in reduction of toxic emissions and in general cost to justify their investment include:

  1. Indemnity costs; which are reduced for hybrids.

  2. Fuel purchase price and tax incentives

  3. Substitute of battery and electrical charges

  4. Frequency of using traditional fuels such petroleum (Tomilson 2015).

Assumptions

On global basis, vehicle supply is expected to rise at estimation of 46.2% from 2006 to 2020 showing India and China growing rapidly at rate of 10.7% and 12% respectively (Tomilson 2015). The worldwide vehicle market for hybrid is estimated to increase with 18% to 20% yearly. Furthermore, electric and hybrid vans are promising an estimated rise of 10% in all automotive sales and the estimation will vary upon petrol price scenarios among varied economic estimate models (Green Chip Stocks 2015).

Conclusion

It is evident that alternative energy has emerged as an imperative solution in the near future. Various sources of alternative energy are being promoted actively as significant replace the present diesel-powered and gasoline engines. This consolidates the more promising potential alternatives fuel cells and natural gas. This was based on their cost effectiveness and proven track records of performance. This, together with other emerging technologies, will however require large sums of investment in infrastructure so as to support on their widespread deployment (Madslien 2014). Under the energy crisis, there are urgent needs to establish green vehicles typified by zero emissions in order to replace a significant proportion of gasoline cars. Fuel cell and hydrogen technologies provide promising benefits in terms of CO2 emission and energy security. However, they require potential technical breakthroughs, appropriate policies and cost reduction to enter the energy market (OECD 2014).

References

Barradale, MJ, 2015, ‘Impact of policy uncertainty on renewable energy investment: wind power and PTC’. United States Association of Power for Energy Economics WP, 08-300.

Bistola, A & Pause, F, 2014, ‘Cooperation Mechanisms Legal Overview and Important Aspects of the EU RES-Directive, New York: 9th Workshop of the International Feed -In Cooperation.

CBCNews 2015, ‘GM to pause production of Chevy Volt as sales slow,’ CBCnews, April9. Available from http://www.cbc.ca/news/business/gm-to-pause-production-of-chevy-volt-as-sales-slow-1.3026920

CBCNews 2015, ‘Honda to scrub natural gas, hybrid Civics because of slow sales’, CBCNews, June 15. Available from http://www.cbc.ca/news/business/honda-to-scrub-natural-gas-hybrid-civics-because-of-slow-sales-1.3114444

Clean Energy Council, 2014b, ‘The Impact of Reducing the Renewable Energy Target on investments’, Available at: http://www.cleanenergycouncil.org.au/policy- advocacy/renewable-energy-target/impact-of-reducing-the-ret.html [accessed 22 December 2014].

Demitdoven, N & Deutch, J, 2014, ‘Hybrid Cars Now,’ fuel cell later, Science 305:5686.

EPA, 2014a, ‘Renewable Portfolio Standards’, United States Environmental Protection Agency.

Hickman, J, 2015, ‘Clean vehicles, Renewable Energy Focus’, Available at: http://www.hyweb.de/

Klessmann, C, Lamers, P, Ragwitz, M, Resch, G, 2014, ‘Design options for cooperation mechanisms under the new European Renewable Energy Directive’, Energy Policy , 38(8), 4679-4691.

Madslien, J, 2015, ‘The future of electric motoring,’ BBC News, Available at: http://news.bbc.uk/1/hi/business/8001667.stm

Tomlinson S 2015, ‘Breaking the climate deadlock: Technology for a low carbon future, E3G with The Climate Change Group, The Office of Tony Blair’, Available at: http://tonyblairoffice.org/180_TCG_BTCD_TB%20TECH%20REPORT.pdf

Wiese R, Namovicz, C, Gielecki, M, Smith, R, 2014, ‘Renewable Portfolio Standards: A Factual Introduction to Experience from the United States’, Electricity Markets and Policy Group.

Zhang, F & Cooke, P, 2014, Future Prospects and Perspectives on biofuels, working paper for Dynamics of Institutions and Markets in Europe (DIME). Available at: http://www.dime eu.org/working-papers/sal3-green/biofuels.