Interview with Jane Savage: Part 4 ― Future Fuel Station

March 6, 2009 -- Filed under Saving money by Andrew Macdonald

This is the last part of a conversation I had with Jane Savage, President and CEO of CIPMA, the Canadian Independent Petroleum Marketers Association. Here are the links for part 1, part 2 and part 3.

A: Let’s talk about the future. Say 2030. I will be 65. You?

J: Not telling. (You’re a young thing.)

A: Alright. The retail service station has supported the transportation and personal mobility industry with one fuel: hydrocarbons. Diesel and gasoline have powered our machines for more than a century. We’re addicted to the stuff. What’s the service station business model of tomorrow?

J: The fuel retailing businessperson does not have the same interest in the type of energy they deliver as, say, a refiner/marketer who is pretty tied to crude oil and hydrocarbons. So if tomorrow it’s less gas and more of some other liquid fuel or energy source, they are relatively indifferent.

A: But they are in the fuel business.

J: Not exactly. They are business owners of a site. A place. A patch of dirt. Infrastructure. These are flexible business operations capable of adjusting to new forms of energy for mobility and the corresponding change in the market.

A: Service stations sell diesel and gas. That is where drivers go to fill up and forms the basis of the core business.

J: The bottom line of a retail fuel station does not rely on hydrocarbon-based fuel. If consumers move away from fossil fuels, I’m sure fuel marketers will sell what the market demands.

A: What do you think the market will demand in 2030?

J: You’ll be 65, right?

A: Touché!

J: Hmm, let me think. You’re talking about what is at the pump. Not the type of food or drinks we might carry. Right?

A: Sure. What will be the significant changes? What will I see when I drive up to the facility of the future.

J: Well, biodiesel for sure. And I’m not just throwing that out so you can spout off about VW and their commitment to renewable fuels… I believe biodiesel remains one of the most viable alternatives from the perspective of both infrastructure compatibility and sustainable production methods. Biodiesel is going to be with us for quite a while.

A: By sustainable production, you mean …?

J: Moving away from a reliance on food-based feedstock to more second-generation raw materials such as algae and biomass materials. There are significant research and development projects in this direction.

A: VW is involved with a number of initiatives in renewable energy. I know they’re working on synthetic fuel in partnership with Shell and Choren. They call the fuel SunDiesel.

J: Was that you making a plug?

A: Uh huh.

J: We’re going to see more of these partnerships from all vehicle manufacturers with both liquid fuel alternatives and the battery industry. New vehicles in the mid-term will likely be propelled with multiple fuels.

A: The VW engineering schedule calls for multiple fuel capable engines mid-way through the next decade.

J: Oh, I think most manufacturers are moving in that direction. We’re at the early stages of a transition in the forms of energy we use to move people and goods.

A: What else will we see in this transition?

J: There will likely be a lull in ethanol, unless we can move quickly on second-generation fuels. Food and sustainability issues will continue to influence the future production of first-generation ethanol here in North America. Cellulosic ethanol is the hope for tomorrow.

A: And what about natural gas?

J: Absolutely. It’s viable now. We just have to address the infrastructure requirements for final delivery. The most successful Canadian venture with natural gas is Westport. They’re converting centralized truck fleets for use at depot filling stations. And this is happening today.

A: Hydrogen fueling stations?

J: The jury is still out. I doubt we’ll see it in mass personal transport before 20 years. We’ll probably see something in electrical storage systems ahead of this.

A: Hydrogen was first. There are filling stations up and down the west coast. VW has a large hydrogen project in Europe.

J: Agreed, however, I’m talking about a mass application where locating a refilling or recharging station is within the range of the vehicle you’re using and the vehicles manufactured to an affordable price level. The hydrogen stations built to date have been for demonstration and testing purposes only. But a start.

A: Anything else?

J: Services related to battery technology. We may see quick charge and battery replacement systems in the mid-term. Ontario is a partner with Better Place, a quick change battery replacement service company. They install the necessary equipment and supplies in an existing service station facility.

A: You would be selling electricity.

J: Uh huh. And replacement batteries, which are really just energy sources delivered in a form other than a liquid product.

A: Are you saying the future station could offer all of these energy products?

J: And perhaps some we haven’t yet discovered. Even today, some of our members have evolved to become “energy malls.” And this is happening across the country. These stations continue to sell gasoline and diesel, and they may also offer biodiesel, ethanol, natural gas and propane. So we’re already witnessing a diversifying market supply. We’re just going to see much more of it over the next 20 years.

A: Jane, thank you for all of this. It was great chatting with you.

J: Pleasure. One question. When this conversation is posted to the TDI site, will readers have questions?

A: I hope so. Do you want to answer directly?

J: Sure.

A: Then I’ll keep you posted on the comments we receive. Thanks again.

(This link will take you to a list, posted by NRCAN, of the many energy sources available and in development.)

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