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Technology Stocks : Energy Conversion Devices -- Ignore unavailable to you. Want to Upgrade?

To: Don Devlin who wrote (3433)	3/28/1999 12:46:00 PM
From: Futurist	Read Replies (1) \| Respond to of 8393

Everything that pushes the world toward low emission vehicles or high cost of petroleum products ought to be good news for ECD. Reflections on annual meeting to come in subsequent post. March 27, 1999 California to Phase Out MTBE, Dealing a Setback to Methanol Dow Jones Newswires NEW YORK -- California's decision to phase out the controversial fuel additive methyl tertiary butyl ether, or MTBE, is set to reduce demand for methanol, the natural gas derivative used in making MTBE. The methanol industry, however, sees its hopes for future growth in fuel-cell vehicles, officials said Friday. The potential decline in methanol demand "is certainly significant but I think we're certainty looking for new demand opportunity with this particular product," said Chris Cook, business analyst for investor relations at Methanex Corp., the world's largest maker of methanol. "Fuel cells, I think, is where the future growth lies." California Governor Gray Davis Thursday ordered that MTBE, or methyl tertiary butyl ether, which he called a "significant risk" to the environment, be phased out of the state's fuel supply by the end of 2002. Gov. Davis urged the federal government to waive its requirement that California use MTBE to cut air-pollution emissions, saying the state can meet federal clean-air rules without using the compound. Federal law requires that gasoline sold in the nation's 10-most severely polluted cities, including three in California, contain smog-fighting oxygenates such as MTBE. But the chemical, which is highly soluble, has been controversial because it has been found in thousands of underground water wells, and to a lesser degree, elsewhere, across the state. MTBE production represents about 40% of domestic consumption of methanol, according to the American Methanol Institute in Washington. Mr. Cook of Methanex estimates that California, which uses about 1.5 million metric tons a year of methanol, represents about 6% of world methanol demand (Methanex makes about a quarter of the world's methanol). But Methanex and other makers of methanol expect a boost in demand from methanol-powered fuel cells used to run cars. "We're disappointed and we don't agree with the time frame that's been selected [for MTBE phaseout in California]," Mr. Cook said. "But I think as much as we respect the decision, the focus for us now is going to be with methanol-powered fuel cells." Fuel cells take hydrogen, or a hydrogen rich fuel source such as methanol or gasoline, and combine it with oxygen to generate electricity for a vehicle. Methanol contains hydrogen and is the auto industry's favorite fuel to power fuel cells. Some in the auto industry envision fuel cells replacing traditional propulsion technology in the future, but the success of alternative fuels is far from certain. Fuel cell-powered vehicles are used in some parts of the country. In California a number of lawmakers, responding to public concerns over air pollution, have called for an in increase in the number of cars and trucks powered by electricity or fuel cells. The state is mandating that 10% new vehicles sold in 2003 be emission free. Mr. Cook said, "We're encouraged by the enthusiasm."