Flexible Fuel VehiclesA Pathway for the Future
Overview
● A Pathway for Today and Tomorrow: E85● The Auto Industry’s Commitment ● Infrastructure – Midwest Corridor● Ford’s Flexible Fuel Vehicles & Features● The Role of Stakeholders: An Integrated
Approach● Final Thoughts on E85
A Pathway for Today and Tomorrow: E85
Ford supports a broad range of renewable fuels All Ford gasoline vehicles can run on up to E10 All Ford diesels can operate on to B5 bio-diesel
Ethanol has been a transportation alternative fuel for more than 10 years Vision must move from fuel blends to a true
fuel choice – E85 Ethanol has the potential to provide customers with a viable
fuel choice and help dampen gasoline pricing volatility Public policies must support:
– Convenient customer access– Distribution that enables customer value – fuel
price differential is key Ethanol feedstock diversity (e.g., cellulosic sources) will
play a pivotal role in the vision to move production volumes from blends to support E85 growth
Making a Real Impact
Over the last decade, Ford has placed more than 2 million E85 flexible fuel vehicles on America’s roads
Combined, U.S. automakers have produced a total of nearly 6 million E85 FFVs
In July, Ford, GM, and DaimlerChrysler voluntarily committed to doubling the production of FFVs by 2010 Combined yield approximately 10 million FFVs in service by 2010 Infrastructure is lagging to support 10 million E85 vehicles:
– Industry would need 18,000 pumps if consumers used E85 50% of the time 1,100 Existing E85 Pumps
9,000 25% use Expanded commitment to 50% of vehicle production by 2012 if fuel
infrastructure exists to support
Case Study:
The Midwest Ethanol CorridorWhat We Have Learned
The nation’s first “ethanol corridor” was launched in June – involving VeraSun (IL), MFA Oil (MO) and Ford
Adds about 50 new sources of E85 and allows drivers to travel from Chicago to Kansas City using only E85
Both VeraSun and MFA established term contracts with retailers to support competitive E85 pricing – necessary to address near-term ethanol volatility in pricing and supply MFA retailers have maintained 20% pricing differential
(February 2007 @ $1.65 E85 vs. $2.05 gasoline) Customer base is growing and sustainable (value pricing supports
repeat customers) Ford is sending out notices to all FFV owners in Missouri to enhance
awareness and has billboard advertisements along the route in Illinois Consumer awareness of E85/FFV issues is extremely low
Mis-fueling is a key concern and requires ongoing messaging Coordination in vision among stakeholders – production, distribution and
retail – is critical to deliver customer value Disparity in retail pricing objectives must be addressed
Midwest Ethanol Corridor – 50+ New Sources of E85
E85 Availability is Midwest Centered Enabling Energy Security Initiatives at the State Level
1100+ Stations
Midwest Ethanol Corridor Billboards
Engine Control Computer:Engine Control Computer:Adjusts engine calibration for proper Adjusts engine calibration for proper performance and to meet emission performance and to meet emission requirements on all fuel blendsrequirements on all fuel blends
Upgraded FFV Fuel System Components:Upgraded FFV Fuel System Components:Low Permeability Fuel Tank, Higher Flow Fuel Pump, Low Permeability Fuel Tank, Higher Flow Fuel Pump, Fuel Delivery LinesFuel Delivery Lines
FFVs Provide Fueling Options:FFVs Provide Fueling Options:They operate on gasoline, E85 or any They operate on gasoline, E85 or any blend in betweenblend in between
Upgraded FFV Engine Components:Upgraded FFV Engine Components:Valves and Valve Seats, Spark Plugs, Fuel Valves and Valve Seats, Spark Plugs, Fuel
Injectors, Cylinder Head GasketsInjectors, Cylinder Head Gaskets
Development/certification testing Development/certification testing more than doubled:more than doubled:Evaporative testing more stringent and difficultEvaporative testing more stringent and difficult
Ford Flexible Fuel Vehicle Features Incremental and Program Costs
Ford, GM and DaimlerChrysler commitment to double FFV production represents more than $200 million in incremental costs per year.
Advanced Vehicle Technologies
Ford Escape Hybrid E85 Ford will deliver 20 ethanol-fueled hybrids this spring for use in
fleets in six states Consumer testing to gather data on functionality, durability,
emissions and software applications Other Potential E85 Applications
Ford's new TwinForce engine using direct injection technology and turbocharging delivers V-8 power with enhanced fuel economy. Flex-fuel capable version highlighted on Lincoln concept vehicle.
Ford and Ethanol Boosting Systems, LLC, researching direct injection fuel systems
Studies to define E85 blend specification and in-vehicle performance
Ethanol-to-hydrogen conversions to demonstrate feedstock diversity for H2ICE and fuel cell applications
The Role of Stakeholders:An Integrated Approach
Automotive
Industry
Accelerate E85 vehicle deployment Continue to pursue advanced technology applications Educate consumers on E85 use and expectations
Agri-Energy
Industry
Invest in developing and marketing E85 Establish new distribution channels integrating
producers/distributors/retailers to focus on price and value Protect and enhance fuel quality specifications Define goal – commodity supplier or integrated transportation fuel
provider
Government
Prioritize incentives for E85 production/distribution initiatives and support retail fueling infrastructure
Shift from blend incentives to promote consumer access to alternative fuel choice – E85
Support research efforts on expanded fuel production efficiencies and feedstocks (cellulosic ethanol)
Drive public awareness and education on E85
Consumers Become advocates for choice in transportation fuels Support FFV vehicle purchases
Final Thoughts – E85
Energy security is a critical issue for the U.S. and states can lead the way through vision/policy State renewable fuel initiatives can have an impact
now on reducing oil consumption Blends play a role but E85 is a pathway for increased
energy security for today and tomorrow Chicken and Egg – demand for FFVs will continue to
wane unless customers see: Value pricing for E85 (20% cost differential at the
pump) Growing access/convenience
● Ford is poised for growth and building the foundation for a real transition – E85 fuel production/distribution breakthroughs are needed
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