HK Motors to develop natural gas hybrids

An HK concept

I'm still not sure that I believe Hybrid Kinetics Motor Company will be around in 5 years, however, if everything goes as expected, HK will begin producing a family of natural gas hybrid vehicles in 2013 at it's Alabama manufacturing facility.

In partnership with the American Public Gas Association (APGA) and NGVAmerica, HK hopes to develop a new natural gas infrastructure, while lobbying the government to pass the The NAT GAS Act of 2009.

Plugging in is America's best chance forward?

The Fisker Karma plug-in hybrid

According to The Electric Coalition, if the US set in motion a plan to be 75 percent EV by 2040, that plan would result in massive job creation, a smaller deficit and an increase in household wealth. Obviously, and of course, the plan would require significant targeted incentives for the purchase of plug-in vehicles, infrastructure, etc.

Sadly, however, the report also shows that the US is probably going to be dependent upon foreign oil for a very long time forward, regardless of whether this plan is put into motion or not.

If true isn't this also more proof of the importance of natural gas, purely as an interim solution, particularly if new horizontal drilling techniques can be proven groundwater safe? Ultimately, it seems natural gas could provide many of the same economic benefits as this EV plan, but sooner. Couldn't that more immediate savings then help fund this EV plan?

Inevitably, it is going to take more than 3 decades for electrification to completely displace the need for America's foreign oil dependence. Can't we do more in the interim to facilitate this plan?

Is new drilling a necessary evil?

A natural gas hybrid

National security. We all know that foreign oil dependence is a national security risk, but our increasing national debt might be an even bigger national security risk if not taken seriously, claimed Secretary of State Hillary Clinton recently.

While I couldn't agree more, it seems to me that energy independence is the key to both risks.

Finish reading: Is new drilling a necessary evil?

Obama renews 'clean' coal and biofuels plan to reduce foreign oil

Nothing like a good old coal ash spill

President Obama and a bipartisan coalition of governors plan to use 'clean' coal - still an oxymoron today - and biofuels as key resources to ween America off foreign oil dependence according to a White House press release.

Ironically, however, cost-effective clean coal technologies simply do not exist. And, according to a recent Oxford Study, even next gen biofuels will be significantly constrained by land-use issues.

So, why not natural gas?

Even if CO2 can be cost-effectively captured and managed, is coal technology really so much better for the environment than natural gas, for instance? Furthermore, natural gas doesn't require any magical breakthrough today to clean itself up compared to coal. More important, both natural gas and 'clean' coal - if such a thing ever exits - should be seen ONLY as interim technologies.

Is not an interim technology that is cost-effective and clean today better than an interim technology that might one day be clean and cost-effective? Are we being pragmatic, or just playing politics?

US on verge of energy independence?

A paradigm shifter?

A few weeks ago I asked, Would natural gas vehicles make sense?

According to an interesting Telegraph piece regarding last week's World Gas Conference in Buenos Aires, the answer is, yes.

Because the technologies for extracting gas from shale and methane beds have evolved much faster than anyone was anticipating, the US - and its large natural gas supplies - is expected to reap huge rewards, while Europe should become less dependent upon Russia.

Consequently, writer Ambrose Evans-Pritchard claims "we may soon be looking at an era when gas, wind and solar power, combined with a smarter grid and a switch to electric cars returns the country to near energy self-sufficiency."

Would natural gas cars make sense?

A rough look at pricing

Today, buying hybrid cars only makes sense if you think long term, and not even then in some cases. Inevitably, achieving even 10 percent hybrid market share will require far better cost-effectiveness.

So, what about natural gas vehicles?

My local Honda dealership is selling Civic GX natural gas vehicles for $25,388, while a Civic hybrid lists for $23,650.

Thus, those additional upfront costs would require much cheaper natural gas versus gasoline prices, which might be possible. Once the Rocky Mountain natural gas pipeline is fully functional - within a year - natural gas prices throughout the nation could see a significant drop. Still, might not demand eventually catch up to supplies and push prices higher?

On the other hand, economies of scale would seem to suggest that if automakers sold as many natural gas vehicles as hybrid vehicles, natural gas vehicle components would drop in price; therefore, natural gas vehicle pricing would also decline. Nonetheless, a natural gas vehicle would never be as cheap as conventional vehicle, but maybe hybrids.

What do you think? Could natural gas cars make sense?

Natural gas: Another crown for Japan?

Another sign of Toyota's forward-thinking?

I've been casually following the natural gas story since Boone Pickens made this issue his cause. At first, I was extremely skeptical and critical of the idea. Sure there might be a few hundred years worth of natural gas in America, but mining natural gas out of shale and creating an infrastructure would certainly outweigh any benefits I figured.

But, the truth is, I was only making assumptions then. Even as I've become more open-mined to natural gas, I still know very little about the viability of natural gas as a transportation fuel.

Yet, I watch a lot of financial news, and natural gas as a transportation fuel is becoming an increasingly common subject. Long term investors are beginning to build positions. Perhaps its just the fact the Congress appears to be warming to natural gas, and legislation - including huge tax breaks - now seems inevitable, but the money is starting to move towards natural gas.

In recent years, Honda has tried to make a run at natural gas, building not just cars, but home fueling stations. In fact, Honda's long term plans include adding a fuel cell and a reformer to these home fueling stations, but that's another topic.

And, late last year, Toyota rolled out a natural gas Camry hybrid.

If natural gas does become a viable transportation fuel due to Congressional action, is this just another area that US automakers will be chasing the leaders?

Government to support natural gas hybrids

A platform for a new round of hybrid tax credits?

Buy a Toyota hybrid today and you will not qualify for any clean vehicle tax credits. That might soon change however, except your hybrid will have to be a natural gas hybrid.

In addition to funding natural gas engines for conventional vehicles and building infrastructure for natural gas refueling, a $150 million natural gas bill ready to pass through the House also includes provisions for the development of natural gas hybrids.

Hopefully, that legislation will include tax credits for the buyers of natural gas hybrid cars.

Change? Why not natural gas hybrids?

New fuel, new battery

Starting Wednesday, the Pickens Plan will kick off a virtual march to push Congress and the White House towards a greater embrace of natural gas and wind power.

President Obama, however, has indicated that natural gas isn't an option. It's the electric car or nothing, but is that really wise?

I'm certainly not arguing against plug-in hybrid and electric vehicles. It just seems to me that scaling up production of these vehicles is going to take much more time than most advocates are willing to accept. Likewise, many of these vehicles are going to be consuming dirty coal for decades.

Thus, shouldn't natural gas be at least part of the conversation? And, to protect the drive towards electrification, the program could be driven by natural gas hybrid vehicles, which keeps investment into battery technology rolling while replacing foreign oil with domestic, cleaner natural gas.

Certainly having big dreams of solar power plants in the Southwest powering America's fleet of plug-ins via a super-grid are worth pursuing, but such a plan isn't going to happen over night. And the costs of making this happen far more quickly are probably more expensive than most tax payers would accept.

Thus, couldn't natural gas, especially focused around hybrids, be a bridge off foreign oil while electrification is developed and scaled?

Toyota's natural gas hybrid: Going nowhere fast?

Just an auto show filler?

Let's be honest. When it comes to Toyota and hybrid cars, it's all about the Prius, especially when the third generation Prius is just months from making its North American debut.

In the past couple of years, Toyota has used the green-focused LA Auto Show to, well, show off its new gas-guzzlers, such as the Sequoia.

This year, Toyota will show off its Camry natural gas hybrid. Yet, under the Obama administration, does natural gas mean anything? Is this hybrid even less valuable the Sequoia?

Pickens: Support the Camry natural gas hybrid

Fill 'er up with natural gas

Boone Pickens is calling out his SoCal natural gas army to attend the LA Auto Show this weekend to support the Toyota CNG Camry hybrid, and other natural gas vehicles.

I'll be at the show tomorrow and Thursday for the Media Preview, but I think I'll stop by this weekend and see what kind of presence the Pickens Army has at the show.

Automaker bailout with natural gas catch

Honda Civic natural gas vehicle next to a home refueling station

Today, Jim Cramer opened MadMoney with his vision for how Obama should solve most of America's major problems in the first 100 days. Regarding energy independence, Cramer called for an immediate automaker bailout, with a catch. To qualify for a bailout, automakers would have to make a serious commitment to natural gas vehicles.

Likewise, oil companies would have to add natural gas pumps to their stations if they wanted any tax incentives. I'd add, if they wanted to avoid a windfall profit tax.

Sounds compelling, however, I would insert some kind of fuel efficiency requirement or tax incentive that would ensure that hybrid and electric vehicle development continues concurrently during this transition. We don't need natural gas guzzlers.

Isn't it time to turn this financial crisis, this need for an automaker bailout, into a an opportunity to end foreign oil dependency ASAP?

Natural gas hybrid tax credit

Fight foreign oil dependency and invest in electrification

Not long ago I suggested new tax credits for non-plug-in hybrid vehicles, but with higher fuel economy standards. Since it's going to take decades before everyone is driving a plug-in, if ever, America needs other fuel efficient choices in the interim, especially cheaper solutions.

But, instead of raising the fuel economy requirements for a new hybrid tax credit, how about tax credits for natural gas hybrids, including plug-in hybrids?

Elevate the battle against foreign oil dependency, and invest in the electrification of the automobile. Isn't it time for tax credits for natural gas hybrid vehicles?

Can hybrids sell natural gas?

Camry hybrid - Fill 'er up with natural gas?

According to proponents, natural gas is cheaper and cleaner than gasoline, and it's not derived from foreign oil. Of course, if demand for natural gas increased drastically, would it still be so cheap?

Regardless, interest in natural gas vehicles isn't very strong. Part of the problem is the lack of refueling stations. There are only about 1,000 natural gas stations across the US. However, home refueling stations, for instance, could alleviate this problem much the same way standard plugs will help plug-in hybrids overcome limited plug-in stations.

Add the fuel economy of hybrid cars, or plug-in hybrids, and natural gas vehicle refueling would be much less common.

Can hybrid vehicles help sell natural gas as a transportation fuel?

Toyota Camry natural gas hybrid in works

Fill this hybrid up with natural gas

Toyota plans to debut a Toyota Camry hybrid concept at the LA Auto Show that uses natural gas rather than gasoline according to reports coming out of a Toyota Conference in Oregon. Toyota doesn't have concrete plans to build natural gas hybrid vehicles yet, but if US interest in natural gas continues to increase, Toyota would then consider developing such hybrids.

Natural gas better than hybrids?

Honda natural gas Civic next to Phill

USA Today is wondering why people don't care about natural gas vehicles. It's cheaper than gasoline. Natural gas vehicles are clean. Why so much attention on hybrid vehicles rather than natural gas?

"Gasoline-electric hybrids have received attention because they are touted by Japanese automaking giant Toyota. They are being introduced haltingly by other automakers because their high-tech battery packs and dual gas-electric power plants make them costlier and less profitable to produce."

The article then claims there is a 60 year supply of natural gas. Hmmm. You mean at current consumption levels, right? If America started guzzling natural gas the way we guzzle gasoline, those reserves would dry up quite quickly, right?

More important, why is America moving to imported liquid natural gas if domestic natural gas is so plentiful? Ultimately, if America significantly increases natural gas use, it will be imported natural gas - much of which comes from countries that also hate the U.S. Is that really a significant improvement?

Fuel diversity is a good idea and natural gas is worth exploring, but it does only offer limited help. More important, comparing fuels to fuel efficiency-increasing technology, such as hybrid cars, is a very poor comparison.