MARCH 2009 newsletter

In the past several months we have expanded our reach to include search work for clients in the alternative fuels and biofuels industries. As the government continues the push to move the country in this direction, we anticipate an increasing demand for qualified technical professionals to staff these growing initiatives. I’m learning about these new technologies as I continue to speak with potential new clients so this month I thought I’d share a “primer” on the subject of alternative fuels with you for starters. As always, I welcome your input, suggestions, comments and opinions.

In 2007, there were 1.8 million alternative fuel vehicles sold in the United States, indicating an increasing popularity of alternative fuels. There is growing perceived economic and political need for the development of alternative fuel sources. This is due to general environmental, economic, and geopolitical concerns of sustainability. The major environmental concern, according to an Intergovernmental Panel on Climate Change report, is that most of the observed increase in globally averaged temperatures since the mid-20th century is due to the observed increase in greenhouse gas concentrations. Since burning fossil fuels is known to increase greenhouse gas concentrations in the atmosphere, they are a likely contributor to global warming.

Other concerns which have fueled demand revolve around the concept of peak oil which predicts rising fuel costs as production rates of petroleum a terminal decline. According to popular theory, when the production levels peak, demand for oil will exceed supply and without proper mitigation the gap will continue to grow as production drops, potentially causing an energy shortage. Lastly, the majority of the known petroleum reserves are located in the Middle East. There is general concern that worldwide fuel shortages could intensify the unrest that exists in the region, leading to further conflict.

In an attempt to increase demand for alternative fuels in the US, the IRS began allowing taxpayers to claim a special tax credit for using alternative fuels, known as the Alternative Fuel Vehicle Refueling Property Credit. The definition used for alternative fuel under this credit is: Any fuel containing at least 85 percent of one or more of ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, or hydrogen; or any mixture which consists of two or more of biodiesel, diesel fuel, or kerosene, and at least 20% of which consists of biodiesel.

Renewable energy is energy from renewable resources such as wind power, solar power, tidal power, geothermal power, hydropower, or thermal depolymerization. Biofuels are also considered renewable if their source is sustainable. Although renewable energy is used mostly to generate electricity, it is often assumed that some form of renewable energy or at least sustainable energy is used to create alternative fuels. Several alternative fuels however, such as nuclear fuel and alternative fossil fuels, are made from non-sustainable sources, and fuels for Hydrogen fuel cells and air engines can be created by non-sustainable means as well. Such non-sustainable fuels are offered as alternatives usually because they cause less pollution at the point of use.