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In our progress towards a world that doesn’t rely almost entirely on fossil fuels, I can’t imagine many industries within the global economy that won’t undergo massive change.  A few posts back, we had a good discussion about whether or not people are actually making changes and acting on this, or if they will not change until inaction is too painful.  Whenever the majority of our population decides to make changes and embrace a new way of life, and they will have to at some point, we will need an economy that allows us to live and do business in an entirely different way. 

Everything from automobiles to airplanes, homes, utilities, retail, food, and energy will dynamically change from what we know now.  These imminent changes will no doubt present huge opportunities for entrepreneurs as well as existing businesses.  There is a ton of investment already within the business world, but it’s really just the tip of the iceberg.  For example, look at the energy industry.  For all the investment and implementation of renewable energy sources, it still makes up just a tiny, tiny percentage of the US power supply.  Granted, it’s tough for average Joe to get a 25 MW wind farm off the ground by himself, but these opportunities aren’t just limited to large conglomerates.  Small businesses that operate in an innovative and environmentally friendly way stand to be rewarded heavily as well. 

I know I would like to be an environmentally friendly entrepreneur, hopefully sooner rather than later.  As a freshman in college, my options are currently limited somewhat by lack of resources, but I’m constantly racking my brain and researching ideas.  We only hear about the negatives when it comes to this situation, but there are limitless possibilities as well.  I’ll make a new habit of highlighting businesses that are capitalizing on these opportunities. 

I came across this interesting article on the Environmental News Network site. It discusses how much of the US grain crop is already being diverted to our vehicles. We have already begun to see prices rising at the supermarket, with almost all the major food groups being affected by high grain prices. With the new fuel mileage standard bill also calling for massive increases in ethanol production by 2022, it only figures to get worse.

The article states that for an SUV with a 25 gallon fuel tank, filling up with ethanol would use about 560 pounds of grain, enough to feed an average person for a whole year. That’s insane. I think there will be big consequences for diverting more and more crops for fuel. I don’t understand what people see in ethanol. Anyways, here’s the link- http://www.enn.com/agriculture/article/29370.

One thing is for certain right now.  The environmentally conscious/energy conservation movement is big; really big.  Many individuals are trying to change their ways while businesses are scrambling to improve their PR in this area, not to mention all the firms trying to come up with the earth-saving solution.  I’m curious though as to whether or not this trend is here to stay.  If we continue seeing the negative effects of our actions on the earth and/or fossil fuel prices continue rising, I don’t doubt it will go anywhere.  On the other hand, if there are no new developments that keep us acting, could the movement fall by the wayside? 

I’m reminded of the energy shortages faced by this country back in the 70s, and all the positive changes that followed.  Congress lowered the speed limits on highways, there were many new incentives and grants available for alternative energy, and smaller cars began dotting the roadways.  It looked like America was going to do something about its reliance on foreign oil sources.  Not exactly.  OPEC lifted their embargo on us, fuel prices retreated from their all-time highs, and people forgot all about those positive changes.

Fast forward 30-some years, and we are even more dangerously addicted to foreign oil, especially from unstable areas of the world.  The energy-conservation movement from back then succumbed to larger vehicles, including the birth of SUVs, along with the evolution of the suburban lifestyle.  My question is; can it happen again?

We have a lot of pressing issues both home and abroad, and our presidential candidates are ever-reminding us of how they plan to fix them all.  With all these things that our country is facing right now, it’s entirely possible that this important issue could lose steam as others make more headlines.  The stakes are a lot higher now then in the 70s, and I hope that this country will realize that inaction this time around would be foolish. 

What do you think?  If energy prices remain stable and we grow even more accustomed to $3/gallon gas, will we forget about what drove us to act in the first place?  Will other political issues push this to the back burner on our priority list?  Is it a real movement, or is it a trendy fad that is likely to pass?

In the movement away from fossil fuel burning vehicles, fuel cell cars powered by hydrogen could possibly be a fixture in our future transportation. With water as the only emission, they are a true zero emission vehicle. Fuel cell cars definitely have their advantages, but there are plenty of obstacles that currently loom.

While the vehicles themselves are zero emission, the process of producing hydrogen is far from it. Extracting hydrogen from sources such as water, natural gas, or coal burns fossil fuel, therefore much more technological progress is needed to produce hydrogen in an environmentally friendly way.

Another large issue is the infrastructure required for hydrogen to be available to the public. Thousands and thousands of refueling stations would be needed, and it wouldn’t be easy for them to be constructed fast enough to support the industry. There is also the problem of storing the hydrogen within the cars themselves. It must be stored as a gas, and it is posing challenges to engineers trying to produce a car with a respectable range between refueling.

The current price of buying and running a hydrogen vehicle is astronomical compared to current hybrid offerings. Automakers, many of which are working on getting a fuel cell car to market by decade’s end, must think that they will eventually be able to compete price-wise.

Unlike plug-in hybrids, fuel cell cars would not be dependent on the electric grid for power. Millions of plug-in cars charging every night would put more strain on the electric supply and ultimately burn more fossil fuels. However, if the renewable energy field continues its current explosion, plug-ins could be powered by completely clean energy, and would be a clear winner over hydrogen, in my opinion.

It’s easy to sit here and point out all the flaws in fuel cell cars and pick apart reasons why it won’t work, but that’s beside the point. We’re going to need an array of options and a diverse game plan to end this addiction, and we need to be studying anything with potential. With a few breakthroughs, fuel cell cars could be a vital part of our future.

(Note- 6/30/09- on my new site, Shultice Financial, I am incorporating sustainable economics and financial practices into my writing.  Feel free to check it out).