GM and E85 Efforts September 2006 Mary Beth Stanek
General Motors Commitment Implement Propulsion Technologies that improve fuel efficiency and reduce environmental impact Work to assure that new propulsion and fuel technologies are linked Promote the use of alternative fuels that make sense economically and environmentally including biofuels and hydrogen Page 2
Advanced Propulsion Technology Strategy Reduced Emissions and Increased Vehicle Fuel Economy Reduced Petroleum Consumption Hydrogen Fuel Cell Hybrid Electric Vehicles Cleaner HC Fuels, Renewable Fuels Incremental Internal Combustion Engine and Transmission Improvements Biofuels Hydrogen Infrastructure Near-Term Mid-Term Long-Term Page 3
GM Perspective on Ethanol Opportunity Renewable. Reduce U.S. dependence on oil Grown in America appeal. High octane consumer alternative to gasoline Potential to displace significant amounts of petroleum. Greenhouse gas benefit depending on production methods and raw materials employed. Infrastructure issues much simpler and less costly than gaseous alternative fuels (CNC, LPG, Hydrogen). U.S. Job Creation Challenge Low concentration ethanol blends (E10, E6) present emission challenges. High concentration blend (E85) consumer availability is limited, infrastructure needed. Reduced volumetric fuel economy (miles per gallon) immediately observed by customer in typical E85 Flex Fuel Vehicles (FFVs). Near term pricing Page 4
2006 Chevrolet E85 FlexFuel Vehicles U.S. Silverado Avalanche Suburban Tahoe Page 5
2006 GMC E85 FlexFuel Vehicles U.S. Sierra Yukon Yukon XL Page 6
New in 2006 E85 FlexFuel Passenger Cars Chevrolet Monte Carlo Chevrolet Impala Page 7
New 2007 E85 FlexFuel Utilities on Sale Now GMC Yukon Chevrolet Tahoe Page 8
North America Pending E85 FlexFuel Vehicle Applications Chevrolet Malibu Chevrolet Uplander (Fleet) Full-Size Van Page 9
Europe Page 10
GM do Brasil Flex-Fuel... Page 11
Ethanol Has Traction! Large number of E85 FlexFuel vehicles in U.S. fleet: AMFA of 1988 provided option to obtain CAFE credits since 1993 U.S. vehicle fleet exceeds 5 million cars and trucks today The only alternative fuel where chicken & egg dilemma has traction 5 4 3 2 30% of U.S. Gasoline is sold as E10 2004 U.S. Fleet Alternative Fuels Vehicles in Millions 1 0 LPG CNG LNG M 85 E85 Fuel Page 12
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Well-to-Wheels Analysis Petroleum System Well-to-Tank Tank-to-Wheels Page 14
Well-to-Wheels Analysis Biofuel System Page 15
Ethanol Blends, Especially E85 Made from Cellulosic Ethanol, Can Significantly Reduce GHG Emissions 0% -2% -2% -6% -20% -23% -17% -40% -60% -64% -80% E10 GV: DM E10 GV: WM E10 GV: Cell. E85 FFV: DM E85 FFV: WM E85 FFV: Cell. Reductions in Per-Mile GHG Emissions by Ethanol Blend to Displace Gasoline Source : Argonne National Laboratory - Wang Page 16
Most of the Recent Corn EtOH Studies Show a Positive Net Energy Balance 60,000 40,000 20,000 NR Canada Shapouri et al. Agri. Canada Lorenz&Morris Wang Wang et al. Kim &Dale Kim &Dale Marland&Turhollow Shapouri et al. Graboski De lucchi Wang Net Energy Value (Btu/gallon) 0-20,000-40,000-60,000-80,000 Weinblatt et al. Chambers et al. Ho Keeney&DeLuca Pim entel Pim entel Pim entel Patzek Pim entel &Patzek GREET w/pimentel Assumptions -100,000-120,000 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 Energy balance here is defined as Btu content a gallon of ethanol minus fossil energy used to produce a gallon of ethanol Source : Argonne National Laboratory - Wang Page 17
Energy Balance Results of Ethanol Depend Heavily on System Boundary Choices Operation-Related Activities: Fertilizer, Farming, Corn Transportation, Ethanol Production, Ethanol Transportation, Energy Use for Producing Process Fuels Ethanol Plant Materials and Construction Farming Equipment Materials and Manufacture Food Intake by Farmers Solar Energy Embedded in Biomass Source : Argonne National Laboratory - Wang Page 18
GMR Practical Estimate of Potential U.S. Ethanol (Portion of U.S. Light-Duty Fuels - Year 2020) 4% Grain Ethanol 11% Crop Residue 61% Gasoline Cellulosic Ethanol 35% Energy Crops 15% MSW Forest/Mill 3% 6% All percentages are on an energy equivalent basis Based on University of Toronto data Page 19
Marketing, Communications, and Partnering
E85 Marketing Activities Yellow Cap pull FlexFuel badging Introduced E85 TV, print and radio campaign Live Green Go Yellow Educational livegreengoyellow.com web site created New E85 auto show exhibit incorporated LiveGreenGoYellow street marketing teams Extensive dealer training and IDL broadcast Chevy and GMC in-showroom point-of-sale materials Owner direct mail E85 campaign Extensive in-school (grades 5-8) education program Page 21
LiveGreenGoYellow.com Record 1,500,000 site visits in 2 weeks; 2/19 nearly 100,000 visits/day; achieved 64% more visits in a 2-week period than all of 2005 for GM Ability Exit rate of 20% vs. 35% average indicating high interest Page 22
Chicago Auto Show Page 23
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E85 Launch Magazine Page 25
Street Teams 1-on-1 contact with consumers Provide memorable experiences Tied to key events Street teams with IL State Senator and proud Yukon owner, Bill Brady Page 26
Example of GM Marketing North Central Region E85 Fuel Card Promotion With the sale of a new E85 Chevy or GMC, consumer receives $1000 Fuel Card to be used at participating E85 retailers Markets: Chicago/Rockford, IL Minneapolis, MN Promotion will run May 2 through July 31 Fuel Card purchases will be limited to fuel purchases at participating retailers Card will be active for one year
West to East Partnership Agreements GM & VeraSun May, 2005 SD GM, Chevron & State of CA Jan, 2006 CA GM & VeraSun, GM & Shell IL Feb, 2006 GM & VeraSun Mar, 2006 MN GM, Kroger, Abengoa & State of TX Mar, 2006 TX GM, Meijer, CleanFuelUSA & State of MI Apr, 2006 MI GM, Meijer & State of Indiana May, 2006 IN GM, Kroger & State of Ohio July 2006 OH GM, VeraSun & State of PA July 2006 PA Page 28
2006 Ethanol Activities Governors Ethanol Coalition Implemented 28 vehicle E85 FFV demonstration fleet in 2005 RFA, NEVC, CFDC included in demonstration fleet deployment Supported significant GEC vehicle media events in 10 states Extension and refresh announced in Texas in March 2006 Page 29