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Report: Efficiency, Alternative Fuels to Impact Market Through 2040

February 26, 2014 - 12:00am

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Fuel efficiency improvements and increased use of alternative fuels will shrink gasoline's share of the liquid fuel market share by 14% through 2040, according to a new report released by the National Association of Convenience Stores (NACS). The 2014 NACS '“Future of Fuels' report analyzes projections made by the U.S. Energy Information Administration in its Annual Energy Outlook 2014. Liquid fuels—gasoline, diesel fuel, and E85, which can be made of up to 85% ethanol—are expected to remain the dominant energy sources for light-duty vehicles, and are projected to remain above 99% of the fuel market share in 2040, according to the report. At the same time, the energy efficiency of vehicles on the road is expected to improve 42% by 2040, led by increased efficiency of vehicles powered by gasoline, natural gas, and propane. This increased efficiency may lead to an overall 8% decline in liquid fuel consumption by 2040, with a 24% decrease in gasoline consumption that will be partially offset by a 26% increase in diesel fuel consumption and a 2,210% increase in consumption of E85, according to the study. The report proejcts that non-liquid fuel alternatives—natural gas, propane, electricity and hydrogen—will increase their total contribution to light-duty vehicle energy consumption by 125%. See the NACS news release.

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