The United States and China: The Race to Disruptive Transport Technologies

January 26, 2011 at 7:00 am

Accenture has completed a study that compares how the United States and China are in a race to bring alternative transport fuels (including vehicle electrification and biofuels) to their respective markets. Past research has shown that while new technologies will reshape the future fuel mix, adoption is not completely dependent on technology development.

It is also influenced by individual countries’ domestic agendas. This includes a balance of economics, energy security, climate change and legacy (or lack of legacy) infrastructure. Both the United States and China are aggressively pursuing these “disruptive” transport technologies.

Given the current activity and outlook, this report examines how their trajectories line up and what trade-offs we anticipate the two countries might make. Whoever wins the race to commercialize technology first may have unique advantages. These include intellectual property ownership and opportunities to provide jobs to their domestic population.

In addition, the outcome will have implications for energy companies. Depending on which technologies scale first, oil and gas companies may experience significant competition from biofuels, electrification and Next-Generation Engine technology. This will likely impact their business models, portfolio planning and asset rationalization.

On the other hand, utilities will likely see new opportunities in distribution and retail as electrification develops and takes shape. Their challenge will be understanding individual markets and investing quickly enough to establish their dominance before new competitors aggressively pursue this space. Read More

SOURCE: Accenture, Research and Insights


Entry filed under: China, Energy.

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