Comments on: Why does the Government need to promote alternate fuel sources? http://make-energy.net/uncategorized/why-does-the-government-need-to-promote-alternate-fuel-sources Thu, 22 Jul 2010 18:32:28 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Anonymous http://make-energy.net/uncategorized/why-does-the-government-need-to-promote-alternate-fuel-sources/comment-page-1#comment-1577 Anonymous Sat, 16 Jan 2010 16:20:06 +0000 http://make-energy.net/uncategorized/why-does-the-government-need-to-promote-alternate-fuel-sources#comment-1577 The problem with a new fuel source is that developement is likely to be expensive, but if done properly, the product will not be. The new fuel certainly has to be cheaper than the present ones or there is no incentive for people to change. Also, even if it is significantly cheaper, the developer will not make any money initially, because the prohibitive cost of switching the oil and gas burning equipment over to whatever new equipment is necessary will make the changeover slow. So the governments role in promoting a new fuel source would be in offering grants to large industrial companies that are willing to switch, and in subsidizing the research so that nobody has to take the risk of spending a billion dollars developing Newfuel, then making 1,000$ a year for five years because nobody uses it except Cameron Diaz, simply because they don't want to change equipment. The problem with a new fuel source is that developement is likely to be expensive, but if done properly, the product will not be. The new fuel certainly has to be cheaper than the present ones or there is no incentive for people to change.

Also, even if it is significantly cheaper, the developer will not make any money initially, because the prohibitive cost of switching the oil and gas burning equipment over to whatever new equipment is necessary will make the changeover slow.

So the governments role in promoting a new fuel source would be in offering grants to large industrial companies that are willing to switch, and in subsidizing the research so that nobody has to take the risk of spending a billion dollars developing Newfuel, then making 1,000$ a year for five years because nobody uses it except Cameron Diaz, simply because they don’t want to change equipment.

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