A number of KGP projects between 2007 and 2010 have involved alternative fuel technologies and markets.  The  drive to reduce CO2 emissions and reliance on oil imports has lead many governments worldwide to introduce targets and incentives for alternative fuels.
 
Clients for these projects have come from throughout the industry ranging from vehicle manufacturers, component suppliers, and oil companies.  All were uncertain about the global impact of future fuel related legislation and policy on their future technology portfolios.  Although future CO2 legislation is relatively transparent globally the potential routes to meet those targets is less clear.  The opportunity for alternative fuels, for example, varies widely in Europe, with a dis-harmonised approach to policy and taxation, especially for 1st generation bio-fuels, limiting investment and sales to consumers. 

KGP research estimates the average penetration of E85 flex-fuel vehicles, as a share of new registrations across the EU27, at just 1% in 2009, with a peak of just over 30% in Sweden.  CNG vehicles averaged around 1.5%, of new sales, with Italy highest at just over 6%, with Fiat the dominant CNG car manufacturer.  For LPG the average is slightly higher at 2% with a peak of just over 10% in Italy, largely due to tax incentives launched in 2009 to stimulate sales of small eco-fuelled cars.  However all of these alternative fuels face uncertainty as manufacturers appear to have switched their focus to hybrids and EVs to achieve their CO2 targets.  Hybrids averaged 0.5% of the total EU market in 2009, and electric vehicles under 0.1%. 

KGP intends to market a number of alternative fuel related projects in 2010.  The first of which will focus on CNG markets prospects, technology developments and the impact on CO2 and noxious emissions, , the first of which will include light vehicles and heavy commercial vehicles -  trucks and buses.  The study will be launched in conjunction with KGP partner J. D. Power Automotive Forecasting.

Focusing on diesel markets J. D. Power recently updated its global diesel study (GDS).   The study examines global market penetration for diesel in depth, and examines the prospects for the market, based on taxation, incentives and general market trends.  More details from janewoodward@kgpauto.com.