Methanol fuel incremental vehicle cost

In analyzing the transition to alternative fuels other than hydrogen— such as ethanol, methanol, CNG, LPG, and electricity—analyses with the TAFV model led to some important conclusions that bear on the proposed hydrogen transition. We find that the transition matters a lot. Furthermore, we can identify some of the most important barriers. For AFVs, the most important barriers seem to be limited fuel availability and vehicle scale economies. For HEVs, incremental vehicle costs are large. As a result, vehicle scale economies matter, but scale cost reductions are more easily attained by the use of widely shared components—such as batteries, motors, and controllers—across multiple vehicle platforms. Similar gains should be possible for FCVs. For HEVs, the dominant transitional factor is the uncertain prospect for LBD. 

New York s Alternative-Fuel (Clean-Fuel) Vehicle Tax Incentive Program offers tax credits and a tax exemption for people who purchase alternative fuel vehicles (AFVs). Purchasers of compressed natural gas, liquefied petroleum gas, methanol, ethanol, and hydrogen-powered vehicles, as well as hybrid electric vehicles (HEVs), are eligible for a tax credit worth 60 percent of the incremental cost. 

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