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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.

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).

    If GM delivers the goods with the Chevrolet Volt, it will usher in a new era in vehicles which are moving away from gasoline.  The current hybrids have paved the way for new technologies in the ultra-efficient vehicle field, and the Volt concept hopes to take it to another level. 

    The Volt is essentially a  plug-in hybrid/electric car.  On a full charge, the car’s battery pack has enough juice for a gas-free 40 miles of driving.   US commuters with commutes of less than 40 miles round-trip would be able to make the drive on electricity alone.  After those 40 or so miles, the highly efficient 1.0 liter 3 cylinder gas motor kicks in, but instead of powering the car itself, it powers the generator to recharge the batteries. 

    The concept sounds great, but everybody is worried about one thing; the batteries.  The biggest question mark rests with the performance of the batteries.  Is the technology there to bring this to market?  GM understandably wants to be absolutely positive that if they start producing Volts, it will be a success.  It most certainly won’t be successful if batteries are blowing up or wearing out after a hundred recharges. 

    Plug-in cars would be a great move away from foreign oil and would reduce greenhouse gas emissions greatly.  I personally would rather power my car off of the grid vs. filling up with gas.  With the continued growth of renewable energy sources such as wind, solar, and geothermal, plug-ins could be very clean vehicles. 

    GM wants to have the Volt in production within the next few years, and hopefully it is.  It would be a serious boost to the former top automobile company in the world.  After getting absolutely demolished in the hybrid field by Honda and Toyota, coupled with the fact that their flex-fuel vehicles are dead, GM needs this.