Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Alternative Fuel Technology Being Blocked by National Policy

28.07.2004


Crude oil imported to the United States costs more than $100 billion per year. As these reserves become depleted, synthetic alternatives may provide the best opportunities to displace these imports with indigenous products, including ethanol from corn, bio-diesel from vegetable oils, and oil from coal. However, it has been difficult to bring this new alternative fuel technology to the United States. A new study by a University of Missouri-Columbia researcher found that by changing existing roadblocks, such as the U.S. tax structure, it would be possible for the United States to reduce the need for imported crude oil.



“In modern society, a nation must be able to commercialize new technology to maintain high worker productivity and an industrial base that is critical for national security,” said Galen Suppes, MU associate professor of chemical engineering. “When national policies inhibit this commercialization, the future of a country is inevitably compromised.”

In the study, Suppes and MU professor emeritus Truman Storvick examined a synthetic fuel sales price and four potential non-technical barriers: the number of years of petroleum crude oil reserves held by a corporation considering an investment into an alternative fuel facility, the intangible costs associated with investing into a new technology, the U.S. tax structure, and the return on investment. Suppes used an analysis that is similar to analyses used to make investment decisions in the chemical industry.


Suppes found that without the non-technical barriers, a barrel of synthetic fuel would cost $13, including technology costs. However, when the other barriers were added, the price dramatically rose. The return on investment and the existing U.S. tax structure would add $14 each, intangible costs related to foreign competition would cost $38 more, and conflicts of interest in the crude oil industry that might be relied upon to commercialize the technology would add more than $100 per barrel.

Suppes believes changes need to be made. For example, according to Suppes, there are essentially zero taxes made on imported crude oil. By contrast, a barrel of domestic synthetic crude oil would have corporate taxes, personal income taxes, FICA taxes, state income taxes, local sales taxes and other misc. taxes that are applied to income, dividends, and property before workers and investors realize their earnings. Stated in a different way, if a refinery pays $1 for a gallon of synthetic oil produced in the United States, about 50 cents of the purchase price goes to the U.S. state and local governments.

“These major non-technical barriers need to be removed for technology to continue to provide national prosperity in a global community,” Suppes said. “The industrial environment in the United States would be more conducive for the commercialization of new technologies that bring with them quality jobs, increased national research and development activities, and needed tax revenues.”

Suppes’ study was published recently by the American Institute of Chemical Engineers in the conference proceedings of the Spring 2004 meeting and will be in the book Energy Disclosed: Abundant Resources and Unused Technology, scheduled for publication at the end of August.

| newswise
Further information:
http://www.missouri.edu

More articles from Power and Electrical Engineering:

nachricht New tech for commercial Lithium-ion batteries finds they can be charged 5 times fast
20.02.2018 | University of Warwick

nachricht In best circles: First integrated circuit from self-assembled polymer
19.02.2018 | Max-Planck-Institut für Polymerforschung

All articles from Power and Electrical Engineering >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: In best circles: First integrated circuit from self-assembled polymer

For the first time, a team of researchers at the Max-Planck Institute (MPI) for Polymer Research in Mainz, Germany, has succeeded in making an integrated circuit (IC) from just a monolayer of a semiconducting polymer via a bottom-up, self-assembly approach.

In the self-assembly process, the semiconducting polymer arranges itself into an ordered monolayer in a transistor. The transistors are binary switches used...

Im Focus: Demonstration of a single molecule piezoelectric effect

Breakthrough provides a new concept of the design of molecular motors, sensors and electricity generators at nanoscale

Researchers from the Institute of Organic Chemistry and Biochemistry of the CAS (IOCB Prague), Institute of Physics of the CAS (IP CAS) and Palacký University...

Im Focus: Hybrid optics bring color imaging using ultrathin metalenses into focus

For photographers and scientists, lenses are lifesavers. They reflect and refract light, making possible the imaging systems that drive discovery through the microscope and preserve history through cameras.

But today's glass-based lenses are bulky and resist miniaturization. Next-generation technologies, such as ultrathin cameras or tiny microscopes, require...

Im Focus: Stem cell divisions in the adult brain seen for the first time

Scientists from the University of Zurich have succeeded for the first time in tracking individual stem cells and their neuronal progeny over months within the intact adult brain. This study sheds light on how new neurons are produced throughout life.

The generation of new nerve cells was once thought to taper off at the end of embryonic development. However, recent research has shown that the adult brain...

Im Focus: Interference as a new method for cooling quantum devices

Theoretical physicists propose to use negative interference to control heat flow in quantum devices. Study published in Physical Review Letters

Quantum computer parts are sensitive and need to be cooled to very low temperatures. Their tiny size makes them particularly susceptible to a temperature...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

2nd International Conference on High Temperature Shape Memory Alloys (HTSMAs)

15.02.2018 | Event News

Aachen DC Grid Summit 2018

13.02.2018 | Event News

How Global Climate Policy Can Learn from the Energy Transition

12.02.2018 | Event News

 
Latest News

'Lipid asymmetry' plays key role in activating immune cells

20.02.2018 | Life Sciences

MRI technique differentiates benign breast lesions from malignancies

20.02.2018 | Medical Engineering

Major discovery in controlling quantum states of single atoms

20.02.2018 | Physics and Astronomy

VideoLinks
Science & Research
Overview of more VideoLinks >>>