Year in review: Growing pains for green transportation
The eco-friendly auto market is full of promise and peril, as evidenced in the last year.
Growing pains for green transportation
It was another strong year for green transportation, but a lot of potential pitfalls in the industry became more apparent.
Just ask ethanol producers for the evidence. In 2005 and 2006, investors flocked to traditional ethanol makers, allowing companies like VeraSun Energy to go public. The high prices for the fuel, combined with the relatively low price of feedstocks it's made from, made the industry look attractive.
Then the price of corn shot up, budding profits turned to losses, and ethanol makers started to merge.
GreenFuel Technologies, meanwhile, had problems of a different kind. The company wants to capture carbon dioxide, feed it to algae, and then turn the algae into biodiesel. A pilot plant in Arizona proved adept at
Makers of electric cars didn't have it as rough, but the story was similar. Consumers and investors got intrigued by the category in 2006. In 2007, though, Tesla Motors,
But let's look at the bright side of the green-car business. Biodiesel refiners, both large and small, began construction on large-scale plants. Biodiesel still requires subsidies to stay competitive in the U.S., but larger plants and new feedstocks will help eliminate the price gap over time. Scientists and venture investors also continued to collaborate on concocting
And the auto industry saw a wave of new entrants on the manufacturing side, including Venture Vehicles, Fisker Automotive, and
2007 Highlights
FAQ: Guide to alternative fuels
Here's a handy guide to the major players in the alternative fuel world.
Hummers and muscle cars go green
Diesel's not just for truckers anymore. Converting cars with notoriously bad mileage can make them eco-friendly without compromising performance.
Are VentureOne's three wheels better than four?
Venture Vehicles, yet another entry in the alternative-car market, plans a motorcycle-car crossbreed to market in 2009.
A motorcycle that's fast, silent and green
Zero's electric bike takes some getting used to. The benefits? Forty miles on a single charge and no stopping at the pumps.
Newest X Prize targets 100 mpg car
images The X Prize Foundation's newest challenge won't be announced until early next year, but dozens of teams have already signed up and started work on their fuel-efficient cars.
Fisker trots out pictures of its sporty plug-in hybrid
First, electric cars go upscale with Tesla. Now Fisker Automotive takes plug-in hybrids upstream.
Nissan bets on electric cars, not biofuels
Your second car will run on electricity, says the automaker. Ethanol and biodiesel just don't have that cost/benefit equation going for them.
Will A123 get into plug-n-play plug-in hybrids?
Hot battery maker in deal to get battery installer.
The challenge of algae fuel: An expert speaks
Algae is great, but where do you grow it?
A diesel Honda that gets 62.8 miles a gallon?
Honda expects to bring a clean-diesel Accord to the U.S. by 2010.
Additional Headlines
The plot behind killing electric cars
Zap to make electric sedan based on its sports car
Biodiesel venture combines refining, genetic engineering
Growing pains for green transportation
It was another strong year for green transportation, but a lot of potential pitfalls in the industry became more apparent.
Just ask ethanol producers for the evidence. In 2005 and 2006, investors flocked to traditional ethanol makers, allowing companies like VeraSun Energy to go public. The high prices for the fuel, combined with the relatively low price of feedstocks it's made from, made the industry look attractive.
Then the price of corn shot up, budding profits turned to losses, and ethanol makers started to merge.
GreenFuel Technologies, meanwhile, had problems of a different kind. The company wants to capture carbon dioxide, feed it to algae, and then turn the algae into biodiesel. A pilot plant in Arizona proved adept at
Makers of electric cars didn't have it as rough, but the story was similar. Consumers and investors got intrigued by the category in 2006. In 2007, though, Tesla Motors,
But let's look at the bright side of the green-car business. Biodiesel refiners, both large and small, began construction on large-scale plants. Biodiesel still requires subsidies to stay competitive in the U.S., but larger plants and new feedstocks will help eliminate the price gap over time. Scientists and venture investors also continued to collaborate on concocting
And the auto industry saw a wave of new entrants on the manufacturing side, including Venture Vehicles, Fisker Automotive, and
2007 Highlights
FAQ: Guide to alternative fuels
Here's a handy guide to the major players in the alternative fuel world.
Hummers and muscle cars go green
Diesel's not just for truckers anymore. Converting cars with notoriously bad mileage can make them eco-friendly without compromising performance.
Are VentureOne's three wheels better than four?
Venture Vehicles, yet another entry in the alternative-car market, plans a motorcycle-car crossbreed to market in 2009.
A motorcycle that's fast, silent and green
Zero's electric bike takes some getting used to. The benefits? Forty miles on a single charge and no stopping at the pumps.
Newest X Prize targets 100 mpg car
images The X Prize Foundation's newest challenge won't be announced until early next year, but dozens of teams have already signed up and started work on their fuel-efficient cars.
Fisker trots out pictures of its sporty plug-in hybrid
First, electric cars go upscale with Tesla. Now Fisker Automotive takes plug-in hybrids upstream.
Nissan bets on electric cars, not biofuels
Your second car will run on electricity, says the automaker. Ethanol and biodiesel just don't have that cost/benefit equation going for them.
Will A123 get into plug-n-play plug-in hybrids?
Hot battery maker in deal to get battery installer.
The challenge of algae fuel: An expert speaks
Algae is great, but where do you grow it?
A diesel Honda that gets 62.8 miles a gallon?
Honda expects to bring a clean-diesel Accord to the U.S. by 2010.
Additional Headlines
The plot behind killing electric cars
Zap to make electric sedan based on its sports car
Biodiesel venture combines refining, genetic engineering