More than a quarter of the new cars purchased in 2030 will use alternative technologies, including electric hybrid systems, diesel or flex-fuel engines that can burn gasoline or mixes containing mostly ethanol, the US Energy Departments statistical division said Tuesday in an early version of its “Annual Energy Outlook 2007.“
The Energy Information Administrations report assumes no major policy or regulatory changes and steady economic and technological growth over the next 23 years. An expanded report, planned for release early next year, will include a range of assumptions about economic growth, new energy technologies and possible regulatory changes.
In addition to an increase in the purchase of high-tech vehicles from about 8 percent of sales today to 28 percent in 2030, Tuesdays report projects steady if conservative growth in ethanol-based fuels from corn and grasses, biodiesel from vegetable oils and super clean diesel from coal.
Ethanol production is expected to grow from todays 4 billion gallons per year to nearly 15 billion gallons in 2030--about 8 percent of the total gasoline consumption.
The use of unconventional sources for diesel and other distillate fuels such as heating oil and jet fuel is expected to grow from less than 1 percent of supply today to more than 7 percent by 2030.
Despite the rapid growth in farm-based fuels and expectations of the first orders for new nuclear plants in over 25 years, the Energy Department thinks oil, coal and natural gas will still account for about 86 percent of the nations primary energy supplies in 2030--the same as in 2005.
The agency expects more nuclear plants to be built because of new incentives, but it didnt say how many. And it expects nuclears share of total power generation to fall as more coal-fired plants come online.
Carbon dioxide emissions into the atmosphere, the natural result of combustion, now suspected to cause climate change, will increase by about 1.2 percent annually over the period, the report predicts- assuming new regulations dont curtail the use of coal.
Mandatory limits on carbon dioxide emissions, called for by environmentalists but rejected by the Bush administration, could dramatically change this scenario.
Total energy demand will increase by 1.1 percent a year, assuming the nations economy grows at an average rate of 2.9 percent.
Crude oil prices will decline gradually through 2015 as new supplies are developed, but then increase as global demand continues and higher-cost supplies are brought to market. The bottom line? Oil in 2030 will cost about what it does today, adjusted for inflation. About half the retail price of gasoline and diesel fuel is linked to oil prices.
Natural gas consumption wont grow as fast as previously believed, because the fuel has become relatively expensive compared with coal and utilities are planning to build new coal-fired rather than gas-burning power plants.
But dont expect the return of cheap gas. Wholesale prices, now averaging $7 to $8 per 1,000 cubic feet, are expected to dip a little over the next several years before bouncing back to just about where they are today.
The average delivered price of electricity is expected to dip slightly in the next couple of years but return to todays prices by 2030, adjusted for inflation.
PIN/CLEVELAND.COM
News ID 94551
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