Electric transportation and the use of alternative fuels are increasingly cited as methods to reduce greenhouse gas emissions and the country’s dependence on foreign oil. We are actively involved in research and other initiatives to accelerate the development and deployment of these advanced vehicle technologies.
Hybrid vehicles We have several hybrid vehicles in our fleet, including the recent addition of four International Truck Company hybrid service bucket trucks. In keeping with our overall commitment to innovative energy solutions, we added 20 hybrid vehicles to our fleet in 2008, and we plan to purchase 14 more in 2009.
A Progress Energy employee plugs in the company's new plug-in hybrid electric bucket truck. This truck can operate its boom in electric mode for 6 to 8 hours, eliminating the need for idling the diesel engine at the worksite.
Plug-In Hybrid Electric Vehicles (PHEVs) PHEVs can run on either electricity or an internal-combustion engine, but unlike normal hybrids, PHEVs have larger batteries that can be recharged by plugging into an electrical outlet. Research by the Natural Resources Defense Council and Electric Power Research Institute demonstrates that widespread adoption of PHEVs would reduce greenhouse gas emissions and improve air quality in almost all areas of the country. In addition, electricity is cheaper than petroleum and is almost completely domestically sourced, which helps reduce our nation’s dependence on foreign oil.
Progress Energy is a leader in researching PHEV technology, with a test fleet that spans both utilities and includes seven Toyota Prius PHEVs, a Ford Escape PHEV and the Southeast’s first plug-in hybrid electric bucket truck. The company is working with the Electric Power Research Institute, General Motors, and Ford to facilitate the integration of PHEVs into the nation’s electric grid.
In addition, Progress Energy and NC State University announced in April 2008 the creation of the Advanced Transportation Energy Center. This innovative research center will focus on developing a lighter, cheaper, more-efficient battery and advanced charging systems for PHEVs.
Hydrogen Fueling Station for Shuttle Buses in Orlando, Fla. – Progress Energy, the Florida Department of Environmental Protection (FDEP) and Chevron teamed to construct Florida’s first hydrogen fueling station on company property near the Orlando International Airport. Completed in May 2007, the station fuels eight state-owned, hydrogen-powered shuttle buses. With a range of up to 150 miles and near-zero emissions, the 12-passenger hydrogen shuttle buses use an internal-combustion engine designed to run on hydrogen fuel instead of gasoline. The station provides a test platform for showcasing the safe and cost-effective production, storage and dispensing of hydrogen as a transportation fuel. It also provides the foundation for a hydrogen hub in central Florida where hydrogen fleets can be concentrated with a series of fueling stations.
Hydrogen Fuel Cell Vehicles and Fueling Station in Oviedo, Fla. – We are field-testing six hydrogen fuel cell vehicles over a three-year period through a partnership with Ford Motor Company, BP America, Inc., FDEP and the U.S. Department of Energy. Our counselors who make home and commercial visits to advise customers on energy efficiency drive the vehicles. The recently completed fueling station for these vehicles – the second one for Florida – is located at our Jamestown Operations Center in Oviedo.
Biofuels
Progress Energy is committed to increasing the use of biofuels in our fleet. We are focusing on opportunities for E85, an ethanol blend that can be used in flexible-fuel vehicles, and B20, a biodiesel blend that can be used in any diesel engine.
In 2007, Progress Energy set a target of a 5 percent combined increase in E85 and B20 biofuel usage each year from 2008 to 2010, with a cumulative goal of achieving 15 percent usage in 2010. The company re-evaluated its biofuel goals due to several obstacles that were unforeseen and uncontrollable. Biofuel infrastructure, both wholesale and retail, has not developed as the industry originally envisioned. Also, the significant spikes in 2008 fuel prices coupled with the drastic downturn in economic conditions have forced us to scale back our aggressive goals. We continue to monitor all aspects of the alternative transportation industry for opportunities to advance our position in this arena.
