Consumers Want to Buy Away From Biofuel

VANCOUVER - Jun 27/08 - SNS -- The long term potential of the biofuel sector is predicated on the notion people prefer to burn something in order to power their vehicles and heat their homes.

It has been clear from the beginning that any one of several events would weaken or nullify the current strong relationship between energy prices and field crop prices, including moving away from burning fuel to power vehicles.

A recent survey by a German auto supplier and tire maker suggests there is growing consumer interest in weaning themselves from bio- or petroleum based fuel systems.

Surveying 8,000 motorists in eight major markets around the world, Continental AG found 36% of those surveyed were willing to buy a hybrid car and 46% were interested in purchasing a fully electric car. The company found interest was jointly spurred by environmental concerns and fear of rising fuel prices. The survey covered 1,000 people each in China, Germany, France, UK, Japan, Austria, Switzerland and the USA.

It found 45% of all motorists reported that increasing fuel prices have forced them to change their driving behavior to lower their fuel consumption. At 62.6%, the Japanese have changed their driving behavior the most in response to higher diesel and gasoline prices, followed by Germans at 55.2%.

The figure among Americans was 42.8%. Exception: 60% of the British and 48.9% of the Chinese do not adjust their driving behavior at all, even when faced with increasing fuel costs. "The vast majority of car drivers across the countries has realized that conventional fuels such as diesel and gasoline will become even more expensive in the future," commented Dr. Neumann on the current developments at the gas pump.

The upward trend in fuel prices is feeding greater interest in alternative drive systems, but the study indicates that awareness of such systems varies greatly around the world. About one in five motorists thinks immediately of hybrid drives, which combine a gasoline and electric engine. This type of drive is best known among the Japanese at 46.9%. The British, however, are not the only ones with the need to catch up: only 3.9% are aware of this type of drive, placing them at the bottom in international comparison. Likewise, only 6.6% of Americans are familiar with the hybrid drive.

With an average recognition of 16.8%, the pure electric drive comes in second. Austrians and French at 33.3% and 31.7%, respectively, mentioned this variant even more frequently than the hybrid drive. Further fuel efficient drive systems are diesel (14.1%) and cars powered by natural gas (11.4%). One noteworthy observation is that 81.7% of the Chinese knew nothing of fuel efficient drives. When asked what they associate with hybrid technologies and hybrid drives, more than one third (36.4%) of motorists state that the drives are a combination of electric and combustion engines. One in five referenced environmental and economic factors.

Hybrid drives present significant savings potential, especially in urban traffic. And it is in urban traffic where the vast majority of motorists can be found each day: 85.7% of motorists travel less than 30,000 kilometers a year, more than two thirds (69%) primarily in urban traffic. In Japan, 63.7% of motorists stated that they drive less than 10,000 kilometers per year, of which 63.7% were on short routes or in urban traffic. "Urban and short route drivers can reduce their energy consumption by more than 25% using hybrid drives, while also reducing CO2 emissions," stated Dr. Neumann regarding advantages compared to conventional vehicles. "There is also tremendous potential for American drivers: almost two thirds of all motorists there drive in urban traffic and/or on short routes."