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Alternative Fuel Tax Credit

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We saw this happen in 1986 when the price sank to $10 per barrel and ethanol refineries were being given away by state governments that had taken them for unpaid taxes. This is now happening because the price of oil has fallen from $150 to $35 in just a few months.



Thus, the ideal energy source must have an equivalent price below the lowest possible price of oil. According to the Financial Times, the Mideast price of oil is about $30 per barrel.

How do the alterative energy sources compare? Coal to liquids and oil shale have a cost equal to $100 per barrel of oil. Oil sands maybe $85. US ethanol costs about $65.Onshore wind costs $75.

We have a massive investment in fossil fuel infrastructure. Our challenge now is to convert this infrastructure to a new fuel. According to the IEA, about 80% of our energy base is fossil fuel. Changing electrical power plants from coal to something else would require years. To switch from oil, we have to change the production system from oil wells and refineries to something else, and change over countless gas stations and vehicles. Even if we have the right technology, do we have enough money?

We must have an energy source that needs the least amount of capital investment in its production system, one that can convert our existing diesel and gasoline engines and gas turbines to the new fuel.

Finally, even if we have the right system, do we have the time? How many years will be needed to change a large amount of our energy mix to a new system? The outlook is that over 20 years from now, in the year 2030, fossil fuels will still be over 2/3 of our energy. It seems that we do not anticipate a real solution to fossil fuels.

So the ideal alternative fuel solution, the answer to our energy problems would have at least these characteristics: (1) cheap variable cost, below $30 per barrel equivalent of oil, (2) predictable cost, (3) low capital cost for production facilities and delivery systems and other infrastructure, (4) provide a fuel that can be used in existing infrastructure, (5) and a fuel that can with be implemented rapidly implemented at a low cost. This would be the ideal alternative energy, the ideal alternative fuel, the real answer to our energy problems.
Alternative Fuel Tax Credit
Liquefied Petroleum Gas, commonly known as LPG, is generally used as a fuel in heating appliances, in vehicles, as well as a refrigerant and an aerosol propellant. It has rapidly replaced CFC's or Chlorofluorocarbons to reduce the damage to the ozone layer. LPG is essentially a mixture of Butane and Propane, and the most commonly marketed ratio is 40:60. This ratio varies from season to season, as in winter more Propane is used and in summer more Butane is used. A powerful odourant called Ethanethiol is added in minor amounts to LPG to help in easy detection of any leakage.

LPG is primarily derived from fossil fuels. The maximum amount of LPG is extracted during the refinement of crude oil and the next most common source is oil and gas streams, as and when they emerge from the earth. LPG evaporates at normal room temperature and pressure. To prevent this, LPG is supplied in pressurised cylinders and steel bottles. These bottles are never filled completely so as to accommodate thermal expansion. Normally, they are filled to 80- 85 % of their capacity. The ratio of the liquefied gas to vaporised gas also varies depending upon the pressure, temperature and composition. It is typically around 1:250.

Vapour pressure for a substance is the pressure at which it becomes liquid and it varies depending upon composition, pressure and temperature. LPG is heavier than air and if leaked tends to flow along the floor and settles in low spots like basements. This causes ignition and suffocation hazards if not properly dealt with - and hence the odourant.

So why use LPG at all? LPG is the lowest carbon emitting fuel available. It is not dangerous to the health of the users, as it burns cleanly leaving no soot and minute quantities of sulphur emissions. It does not pose any water or ground pollution hazards either. This, plus the fact that huge quantities of LPG could be stored in bulk tanks and stored underground or underwater if required, tends to make it the number one cooking fuel in some countries. It is also referred to as auto gas when it is used in automobiles, or to fuel internal combustion engines. It is also used as an alternative fuel for sparking ignition engines. It is non corrosive, non toxic and does not contain any lead additives. It also has a very high octane rating (108 RON). It has a specific calorific value of 46.1 MJ/kg, which is better than both petrol and diesel.

LPG constituents Propane and Isobutane, at high purity, are used to make hydrocarbon refrigerants. This is done because hydrocarbons tend to be more efficient and are generally cheaper as they are byproducts of fuel production. Millions of households worldwide use LPG as cooking fuel, and in some countries like Brazil the government also gives special discounts on LPG prices to people below the poverty line. LPG is definitely worth a try, especially when the entire world seems to be concerned about carbon footprints and green living.
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About Author
Both John Lux & Ivor Window are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

John Lux has sinced written about articles on various topics from Home Management, Debt Consolidation and Venture Capital. "TrueFuel is the Answer" For more on TrueFuel, go to =>
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