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GM Exec Raises Natural Gas As Alternative To Gasoline

By Daniel at 5 August, 2008, 11:19 am

DETROIT (Dow Jones)–General Motors Corp. (GM) may add natural gas to the arsenal
of energy alternatives it hopes will one day make gasoline a scarcity on U.S.
roads.

GM’s top researcher said in a recent blog posting that the auto maker considers
natural gas an “enticing” alternative to petroleum, signaling a new interest in
the fuel by GM as it struggles to combat the effects of soaring gasoline prices.

“It is abundant, affordable and relatively clean,” Larry Burns, GM vice president
of research and development, said in a posting on GM’s Fastlane blog.

The world’s auto makers are scrambling to find new, commercially viable
alternatives to gasoline as the reality of $4-per-gallon gasoline wreaks havoc on
the U.S. auto industry.

But while companies launch high-profile plans to shift toward battery power,
hydrogen and ethanol, little has been said about natural gas. Natural gas is
cleaner burning and about half as expensive as gasoline, but is also much harder
to find and less efficient in terms of energy density.

“In the near term, we can use compressed natural gas in internal combustion
engines,” Burns wrote. “In the long term, natural gas could be an excellent
source for making hydrogen for fuel cell vehicles, either at the filling station
or in people’s homes.”

GM has focused its alternative-energy efforts in the U.S. at developing
battery-powered vehicles, such as the Chevrolet Volt, and hydrogen vehicles. The
auto maker also has touted controversial corn-based ethanol as an interim
solution.

The auto industry’s efforts to wean consumers off gasoline have gained urgency as
the soaring cost of gasoline cannibalizes sales of profitable pickups and SUVs.
Auto makers also face stricter fuel economy and environmental regulations from
states and the federal government, and political fallout from the green movement
sweeping the nation.

“Natural gas is clean, it’s easy to design engines for it - it’s a great energy
alternative,” said Joseph Phillippi of AutoTrends Consulting in Short Hills, N.J.

The biggest roadblock to natural gas is that it can’t provide the same driving
range as can gasoline or diesel fuel, Phillippi said. Most conventional vehicles
can drive 300 to 400 miles between refueling. Safety also is an issue since
natural gas is stored in compressed form.

Infrastructure is less of an issue, Phillippi said, because it would be
relatively easy and affordable to set up at-home refueling stations since many
homes already use natural gas.

Honda Motor Co. (HMC) is the U.S. industry’s biggest natural gas player to date,
selling the Honda Civic GX NGV, which runs on the fuel. The natural gas Civic
costs about $7,000 more than a conventional version and is available only in
California and New York. Both states have a network of natural gas stations.

Natural gas is used as a fueling source in other nations, but hasn’t been
commercially viable in the U.S., in large part because there is a lack of fueling
infrastructure. GM has a natural gas-powered vehicle in Europe, the Opel Zafira
CNG van.

Burns said natural gas also may be used in the Volt, a car GM aims to build by
2010 that would run on battery power with an onboard motor used for refueling.
That motor, Burns said, could potentially run on natural gas.

He also said auto makers would need government support in the form of tax
incentives and infrastructure support to make natural gas a viable alternative.

“Ultimately, the cost of vehicle technology and fuel will determine whether
customers embrace natural gas as an automotive fuel,” he said.

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