Posted: February 25, 2008

Nobody knows more about plug-in electric hybrid vehicles than Felix Kramer, founder of the California Cars Initiative (CalCars.org), an advocacy group working to put cars and trucks that run on electricity from an ordinary outlet in everybody’s garage. So when Kramer tells EnergyTechStocks.com there will be an “explosion” of plug-in and hybrid vehicles on the market in the period 2010 through 2012, it’s information every investor needs to think about, because every investor’s portfolio is going to be significantly affected by how cars and trucks are powered starting in just a couple of years.

The bulk of the trillions of dollars worth of new technology starting to revolutionize the global energy industry is focused on revolutionizing the operation of two things: cars and power plants. With vehicles, it’s all about how (and how soon) the cars and trucks people drive will run on something other than straight gasoline, something that both reduces oil dependence and is less damaging to the environment. Will it be a blend of gasoline and biofuel and, if so, how much will be biofuel and from whence will it come? (Corn? Cellulose?) Or, as Kramer and others are advocating, will it be cars that, for the most part, can bypass gas stations and be filled at home just by plugging them in?

Only a few months ago, it appeared as if biofuel would dominate in the short run, with plug-ins not making a significant impact for several years. But with ever more public criticism being directed at biofuels’ impact on the environment, with environmentally friendlier cellulosic biofuel technology largely still a few years off, and with plug-in battery technology developing quicker than expected, it’s starting to look like plug-ins and biofuel will revolutionize the market at the same time – between 2010 and 2012.

If it’s up to Kramer, the plug-in revolution will arrive sooner than that. During a lengthy conversation, he told EnergyTechStocks.com that he and others are pushing General Motors to introduce plug-ins even sooner. Kramer sees GM marketing as many as 100,000 plug-in vehicles (Saturn Vues and Chevrolet Volts) in the first year, making the venerable Detroit automaker the indisputable plug-in market leader. Asked whether Toyota will give GM a run for its money, Kramer said Toyota “could be right there,” but he doesn’t think it will be, in part because Toyota has chosen to go with a different battery technology, the same one that has posed problems when used in laptop computers.

Given what Kramer said about how other carmakers may jump into the plug-in market before GM, investors might also want to consider the potential of some lesser-known firms. They include Chinese firm Byd Co. Ltd., which plans to sell in China starting in late 2008 a plug-in that can go 60 miles before it must be recharged. (Plug-in hybrids can run on regular gasoline if an electrical outlet isn’t handy.) Another situation that may be worth watching involves Fisker Automotive, a U.S. firm that plans small production runs in 2009 and 2010. While Fisker is privately held, it is partnering with Quantum Technologies, a publicly-traded company.

Tomorrow, February 26, Part 2 of Felix Kramer Series – New Technology that may cut gas consumption up to 50% in EXISTING cars