Ford of Europe Offers Good Example of Building Biofuel Infrastructure

Ford of Europe Offers Good Example of Building Biofuel Infrastructure

April 20, 2006
By Michael J. Ureel, FCN

As alternative fuel vehicles gain traction around the globe, Ford of Europe stands out as a good example of how automakers, governments and fuel suppliers are working together to further move towards making mobility more sustainable.

The biggest challenge facing Ford Motor Company and other automakers that are producing alternative fuel vehicles -- powered by fuels such as bio-ethanol, biodiesel, or hydrogen -- is breaking through a "chicken-and-egg" market scenario.

"Consumers will not buy the vehicles if they cannot easily refuel them, so an adequate fuel infrastructure is needed," said Andy Taylor, director, Corporate Citizenship, Ford of Europe. "But if -- with regard to bio-ethanol for instance -- there is a lack of flexible fuel vehicles (FFVs) on the road, there is little incentive for an fuel infrastructure to grow.

"The development of alternative fuels is first and foremost a political decision," he said. "You need political willingness to create the right framework to bring all the industry players -- fuel providers, fuel distributors, custom organizations, private customers, fleet customers, vehicle manufacturers -- together to act."

The European Union and member state governments are starting to do just that across Europe. In the last year, Ford of Europe has partnered in several successful alternative fuel initiatives, including:

* The BEST project (Bio-Ethanol for Sustainable Transport), which focuses on bio-ethanol, which has regional pilot projects planned or under way in Ireland, the United Kingdom, Spain, Italy and the Netherlands.
* The PROCURA project (derived from "procurement"), which looks at bio-ethanol, bio-diesel and natural gas, is establishing test programs in Italy, Portugal, Poland, Spain and the Netherlands.
* These programs hope to establish additional FFV sales of a few thousand to help create the fuelling infrastructure. In addition, they are prompting other regions to show interest. For example, in the U.K. organizations from Cornwall, East Anglia, Wales, and others have all begun a dialogue with Ford
* Ford is also at the forefront of promoting bio-ethanol and FFV technology in other markets such as in Germany and France (e.g. the Ford lead has catalysed establish 25 bio-ethanol filling stations in Germany in just the past few months.

These projects and work are the result of cooperation of local and national governments and non-governmental agencies, as well as Ford of Europe. The BEST and PROCURA projects are also being funded in part by the European Union.

Sweden in particular is a good example of how government involvement is spurring alternative fuel development. In Sweden, FFV and other environmentally friendly vehicle owners pay reduced fuel taxes, get free parking in selected cities, have reduced company car taxes and vehicle insurance by 20 percent, and receive an exemption from congestion charges in Stockholm.

About 80 percent of all Ford Focuses sold in Sweden are FFV models.

"The Swedish example shows what is achievable when key societal players work together in an integrated approach," said Taylor. "One of the unique things that Sweden has done, is they are mandating that 60 percent of all large fueling stations have an alternative fuel pump by 2009. So they are forcing an infrastructure into the marketplace."

A number of other countries are taking steps, as well. Germany and Spain offer fuel tax exemptions for biofuel, and in the U.K. the fuel tax is lower. Other markets are considering such incentives. As a whole, the EU is leading member nations by setting a target of approx 6 percent of all transport fuel energy by biofuels in 2010.

"Only through concerted efforts will society be able to meet the complex challenge that sustainable development imposes on us," said Wolfgang Schneider, vice president, Governmental and Environmental Affairs, Ford of Europe. "Government incentives is a big part of what governments can do to help alternative fuel programs take off."

Ford Focus and Focus C-MAX Flexi-Fuel models are available in a growing number of European markets, including Sweden, Germany, the U.K., the Netherlands, Ireland, Spain, Italy and France. Ford has launched flexible fuel vehicles in Asia-Pacific, Europe, North and South America, and other regions in the past few years. ‹ previous  •  6975 of 12774  •  next ›