August 2004
General Motors Discontinues CNG Van Production  General Motors has announced that it will cease production of compressed natural gas (CNG) full size vans at the conclusion of the 2004 model year. This includes both bi-fuel (KL6) and dedicated (KL8) CNG Chevrolet Express and GMC Savana vans. All in-system 2004 model year orders for Express and Savana vans with KL6 and KL8 will be produced. GM asserts that a continued decline in market demand for CNG capable vehicles has led to this decision. According to the automaker, the volume reduction experienced by OEMs has placed increased cost pressures on GM and CNG suppliers, with the cost of CNG modification, specifically in the vans, inhibiting their ability to continue producing the product at a competitive price. GM has stated that they will continue its production of Silverado and Sierra CNG pick-up trucks. In addition, GM plans to offer a gaseous fuel prepped Vortec engine (KL5) for those that want to arrange natural gas upfitting on the Express and Savana vans. It is always disappointing when OEMs discontinue a model. But the Coalition is working to understand all the options available and is available to assist fleets in continuing their CNG programs. (posted August 2004)

August 2004
National Biodiesel Board Creates "Small Producer" Membership At the July 11-12 meeting of the National Biodiesel Board (NBB) in Washington D.C., NBB members voted to create a new membership class for small biodiesel producers. The decision was based on recommendations from a small producers working group formed by NBB to address challenges specific to them. The new Small Producer Nonvoting Associate Member category offers producers manufacturing less than 25,000 gallons a year reduced NBB membership dues. In order to encourage good quality control by small producers, they will be given the additional benefit of crediting two years worth of dues toward BQ-9000 certification fees. BQ-9000 is a quality control program established by the National Biodiesel Accreditation Commission, an autonomous committee of NBB. (posted August 2004)

August 2004
Ford Begins Production of Escape Hybrid  Ford Motor Company began producing the 2005 Ford Escape Hybrid in early August at its Kansas City Assembly Plant. The Escape Hybrid is the first hybrid sport utility vehicle (SUV) and the first hybrid vehicle to be manufactured in the United States. Ford plans to produce 20,000 Escape Hybrids during its first full year of production. As Ford began production of the Escape Hybrid, the U.S. Environmental Protection Agency (EPA) certified the vehicle's fuel economy ratings. The front-wheel-drive version of the vehicle earned a fuel economy rating of 36 miles per gallon (mpg) in city driving and 31 mpg on the highway, and the four-wheel-drive version earned a rating of 33 mpg in the city and 29 mpg on the highway. In contrast, model-year 2004 SUVs averaged 17.9 mpg. (posted August 2004)

August 2004
American Biofuels Plant Operating in Bakersfield  American Biofuels (35% owned by Green Star Products OTC-GSPI) began producing biodiesel from soybean oil in January. Recent biodiesel production has ramped up to 50,000 gallons per month, which is 15% of the Bakersfield Biodiesel Plant's current capacity. Joe LaStella, President of GSPI, stated "We can't keep up with the demand, and all of it is going outside of Bakersfield." So far, fuel distributors in Ventura, Santa Cruz and Ukiah have all the Bakersfield supply locked up. As with many producers, the company has been impacted by the soaring cost of soybean oil, which is driving up production costs. In order to expand production to cover Bakersfield's biodiesel demands, American Biofuels is now switching part of its plant's capacity to other feedstocks, such as waste vegetable oils. American Biofuels has processed limited quantities of other feedstocks earlier this year, but the production of large quantities of will require some plant expansion, which is now in progress. In the interim, the Bakersfield Biodiesel Plant will continue to supply soy-based biodiesel to its existing customers. (posted August 2004)

August 2004
U.S. Ethanol Industry Sets Production Record in April  The Renewable Fuels Association (RFA) recently announced that, according to data released by the U.S. Energy Information Administration, the U.S. ethanol industry set a production record for April of 218,000 barrels per day (b/d), an increase of 22 percent compared to April 2003, when 179,000 b/d of ethanol were produced. According to RFA, the ethanol industry is expected to produce approximately 3.3 billion gallons in 2004, up from an annual production of 2.8 billion gallons in 2003. RFA noted that the country's 78 existing ethanol plants have the capacity to produce more than 3.3 billion gallons annually and that 10 additional plants are currently under construction. Contact: Monte Shaw, RFA, phone 202-289-3835. (EIN STAFF: 6/25)  (posted August 2004)

June 2004
Toyota Increases Prius Production Toyota Motor Corporation boosted production of the Prius gasoline-electric car in April, taking advantage of the increased interest in more fuel-efficient vehicles resulting from surging oil prices. Production of the hybrid Prius was raised to 10,000 units 7,500 units a month. Toyota estimates that it can make as many as 130,000 Prius a year, a 44 percent increase over its earlier production target. Prius sales in the U.S. and Japan have more than doubled in the first four months of 2004. The surging demand for the Prius has lengthened the waiting time for U.S. customers to at least three months and up to nine months, depending on where the model is sold. Toyota plans to sell 300,000 hybrid cars globally by 2006. Toyota is planning to increase its hybrid lineup to six models by 2006. Toyota will produce a hybrid version of its Lexus SUV late this year, adding the hybrid Highlander SUV in early 2005. Toyota is not the only manufacturer planning new hybrid vehicles. Ford plans to produce gasoline-electric version of its Escape sport-utility vehicle next month in the U.S., while General Motors plans to sell hybrid large pickup trucks later this year. Nissan plans to release a hybrid Altima sedan in the U.S. in 2006. Source: Bloombergs June 02, 2004.

May 2004
BAF Technologies to Provide CNG Systems for Ford Vehicles BAF Technologies has announced that it will continue to provide both CNG and LPG systems for select Ford products. BAF hopes its actions will fill the void created by Ford's decision to exit the natural gas and propane vehicle markets at the end of the 2004 model year. BAF has been a long-term partner with the Ford fuel system supplier performing the up-fitting of Ford OEM vehicles. Currently, BAF is providing both CNG and LPG systems for the Ford E450, 6.8L shuttle buses and the Ford Crown Victoria. BAF is also exploring the production of CNG and LPG systems for the F250 and E350 engines used in Ford passenger vans and wagons. Those with questions and those interested in the F250 and E350 systems, should contact Bill Calvert at BAF Techonologies: bcalvert@BAFtechnologies.com. http://www.BAFtechologies.com

April 2004
Hydrogen - Many Years in the Future The promise of vehicles operating on hydrogen fuel cells is many years into the future, according to a report of the National Academies of Science (NAS). The report discusses the many technical, social and policy challenges that must be overcome before the projected promise of a hydrogen economy can be achieved. Obstacles noted include: fuel cell lifetimes are currently much too short and fuel cell costs are more than 10 times too high to provide a cost-effective alternative for consumers; the driving range of fuel cell vehicles, only about half that of a gasoline vehicle, is much too short; the production, storage and transmission of hydrogen are costly, use significant amounts of energy, and, in many cases, result in emissions of pollutants and CO2. The NAS report goes on to provide recommendations to overcome these obstacles. The full report "The Hydrogen Economy: Opportunities, Costs, Barriers, and R&D Needs" can be viewed and purchased at: http://www.nas.edu/

April 2004
MC Electric Vehicles Strives to be Leader in NEV Sales With dealerships in Seattle, Spokane and Portland, MC Electric Vehicles hopes to become an industry leader in the sales and service of neighborhood electric vehicles (NEVs).

March 2004
Cold Weather Operations with Biodiesel According to Dan Daly of the Red River Valley Clean Cities, recent experience with biodiesel in North Dakota demonstrates that biodiesel, when properly handled, can be used successfully in cold weather. The City of Grand Forks used biodiesel from the cold of winter to the warmth of summer in a 6-month demonstration, February 4 to August 4, 2003. About 4500 gallons of biodiesel were consumed during the demonstration involving a transit bus and a refuse hauler. A blend of 10% soy-based biodiesel and 90% artic diesel (B10) was used during the colder months. The vehicles switched to a B20 blend of 20% biodiesel with conventional diesel fuel in the warmer months. The biodiesel blends were stored in an unheated, above-ground 2000 gallon tank. The B10 fuel using artic diesel flowed freely even when the temperatures reached as low as -25o F (-32 o C) in early March 2003. Cold filter plugging tests run on the fuel blends prior to the demonstration suggested that the B10 would be good to -22 o F. The transit bus and refuse truck changed out fuel filters in the first 2 weeks of the demonstration (as do many vehicles using biodiesel) and spent their off-duty time in heated garages.