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 Silicon solar cell of ISFH yields 25% efficiency with passivating POLO contacts
08.12.2016 | Institut für Solarenergieforschung GmbH

nachricht Robot on demand: Mobile machining of aircraft components with high precision
06.12.2016 | Fraunhofer IFAM

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: Electron highway inside crystal

Physicists of the University of Würzburg have made an astonishing discovery in a specific type of topological insulators. The effect is due to the structure of the materials used. The researchers have now published their work in the journal Science.

Topological insulators are currently the hot topic in physics according to the newspaper Neue Zürcher Zeitung. Only a few weeks ago, their importance was...

Im Focus: Significantly more productivity in USP lasers

In recent years, lasers with ultrashort pulses (USP) down to the femtosecond range have become established on an industrial scale. They could advance some applications with the much-lauded “cold ablation” – if that meant they would then achieve more throughput. A new generation of process engineering that will address this issue in particular will be discussed at the “4th UKP Workshop – Ultrafast Laser Technology” in April 2017.

Even back in the 1990s, scientists were comparing materials processing with nanosecond, picosecond and femtosesecond pulses. The result was surprising:...

Im Focus: Shape matters when light meets atom

Mapping the interaction of a single atom with a single photon may inform design of quantum devices

Have you ever wondered how you see the world? Vision is about photons of light, which are packets of energy, interacting with the atoms or molecules in what...

Im Focus: Novel silicon etching technique crafts 3-D gradient refractive index micro-optics

A multi-institutional research collaboration has created a novel approach for fabricating three-dimensional micro-optics through the shape-defined formation of porous silicon (PSi), with broad impacts in integrated optoelectronics, imaging, and photovoltaics.

Working with colleagues at Stanford and The Dow Chemical Company, researchers at the University of Illinois at Urbana-Champaign fabricated 3-D birefringent...

Im Focus: Quantum Particles Form Droplets

In experiments with magnetic atoms conducted at extremely low temperatures, scientists have demonstrated a unique phase of matter: The atoms form a new type of quantum liquid or quantum droplet state. These so called quantum droplets may preserve their form in absence of external confinement because of quantum effects. The joint team of experimental physicists from Innsbruck and theoretical physicists from Hannover report on their findings in the journal Physical Review X.

“Our Quantum droplets are in the gas phase but they still drop like a rock,” explains experimental physicist Francesca Ferlaino when talking about the...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

ICTM Conference 2017: Production technology for turbomachine manufacturing of the future

16.11.2016 | Event News

Innovation Day Laser Technology – Laser Additive Manufacturing

01.11.2016 | Event News

#IC2S2: When Social Science meets Computer Science - GESIS will host the IC2S2 conference 2017

14.10.2016 | Event News

 
Latest News

Researchers identify potentially druggable mutant p53 proteins that promote cancer growth

09.12.2016 | Life Sciences

Scientists produce a new roadmap for guiding development & conservation in the Amazon

09.12.2016 | Ecology, The Environment and Conservation

Satellites, airport visibility readings shed light on troops' exposure to air pollution

09.12.2016 | Health and Medicine

VideoLinks
B2B-VideoLinks
More VideoLinks >>>