Plug-in Hybrid Electric Vehicles Far Better Choice Than Coal-to-Liquid Fuel Projects, Say Carnegie Mellon Experts

Researchers from Tepper School of Business warn that failure to use carbon capture and sequestration would actually increase emissions from such projects

PITTSBURGH, June 7, 2007;

 WHO:   Lester Lave, professor of economics at the Tepper School of
         Business and co-director of the Carnegie Mellon Electricity
         Industry Center, and Jay Apt, executive director of the Electricity
         Industry Center.

  WHAT:  Comments/perspective on House Committee on Energy and Commerce
         proposal to subsidize production of transportation fuel from coal
         to-liquid projects. "A major program to subsidize coal-to-liquids
         makes no sense, since the goals of energy independence and reducing
         greenhouse gas emissions can be achieved at lower cost through
         plug-in hybrid vehicles charged with electricity from reduced
         carbon sources," according to an Issue Brief by the Carnegie Mellon
         Electricity Industry Center.

  WHY:  The House Committee on Energy and Commerce is considering enacting
        policies to subsidize the production of transportation fuel from
        coal-to-liquid projects. Tepper School of Business researchers
        determined plug-in hybrid electric vehicles are a far better and
        less costly choice.

        -- Generating electricity from coal with carbon capture and
           sequestration and replacing the fleet with plug-in hybrid
           vehicles could enhance energy security by reducing 85% of motor
           vehicle gasoline use and reduce greenhouse gas emissions from
           vehicle travel by 70%.

        -- Even the most carbon-intensive scenario using plug-in hybrids has
           substantially less greenhouse gas emissions than the best
           possible coal-to-liquids case.

        -- Nearly three-fourths of the existing light-duty vehicle fleet
           could be accommodated as plug-ins without requiring additional
           power plants through off-peak charging.