Alternative Transportation Fuels

January 19, 2008

According to a new technical market research report, Alternative Transportation Fuels (EGY044A) from BCC Research (www.bccresearch.com), the total U.S. market for alternative transportation fuels (ATF) was almost 3.8 billion gasoline gallon equivalents (GGE) in 2005 and 4.5 billion GGE in 2006. By the end of 2011, this market will reach more than 8.5 billion GGE, a compound annual growth rate (CAGR) of 12.9%.

Alternative transportation fuels (ATFs) will play a growing part in a booming energy market through 2011 and beyond. However, gasoline and diesel fuels will still dominate revenues. Alternative fuels will also see increases in revenues, largely due to increased access and use of the fuels, as consumers demand more cost-efficient and environmentally friendly alternatives to gasoline and diesel. Adoption of Alternate Fuel Vehicles (AFV) may also help spur demand.

Ethanol holds the highest share of the market with 3.4 billion GGE in 2006, a share of 74.8%. It will hold this majority share through the forecast period, though it will drop significantly in 2011, to 57.9%. Electric vehicles have the highest growth rate through the forecast period, growing at a CAGR of more than 100% to reach 450 million GGE by 2011.

The time period examined by this report, 2005-2011, coincides with a period of great adjustment for both gasoline and diesel fuel suppliers. The elimination of gasoline additive methyl tertiary butyl ether (MTBE) and the introduction of new ultra low sulfur diesel (ULSD) requirements do much to change the economics and logistics of providing fuel to U.S. vehicles. The energy dilemma requires different solutions in the short, medium, and long terms. Many ATFs require substantial infrastructure changes to vehicles and to fueling stations.
 

Alternative Transportation Fuels( EGY044A )
Publish Date: Feb 2007    

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