Chevron Corp. has suspended most of its program to install more methanol auto fuel pumps in California.
The company cited very low demand for methanol fuel, renewed concerns about methanol's air emissions, and strong prospects for other fuels, notably reformulated gasoline and compressed natural gas.
Methanol fuels earlier were considered the cornerstone of the state's push to back out gasoline use with alternate fuels to improve air quality. The emphasis has been on developing fleets of flexible fueled vehicles (FFVs) able to run on gasoline or a gasoline/methanol blend (M85).
Chevron plans to continue operating its 10 existing methanol retail outlets and proceed with plans to add four methanol pumps in the state.
The company agreed with the California Energy Commission (CEC) in March 1988 to help determine the commercial feasibility of methanol as an alternate fuel. To date, Chevron has spent about $4.5 million on its methanol program, including fuel research involving the auto and oil industries' joint venture on auto fuels and air quality.
"We originally envisioned building as many as 25 methanol outlets, which were intended to support about 5,000 flexible fueled vehicles CEC had expected in service by now," Chevron said. "However, the methanol fleet has remained constant at about 600 vehicles. As a result, our sales average only 18 gal/day/station."
Chevron cited research showing FFVs running on M85 or gasoline worsen air quality in terms of ozone, compared with a conventional auto running on average gasoline, and said major questions remain unanswered about methanol toxicity, cost, and range limits.
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