Green transport options

Because it is the world's largest single market for power generation, North American policies and legislation exert a global influence on power plant development and electrical component purchasing decisions. Hence the significance of a recently passed U.S. Senate legislation to extend the renewable energy production tax credit for one year, and solar energy and fuel cell investment tax credit for eight years. Technologies benefiting from renewable energy tax credits are wind, biomass, geothermal, small irrigation power, landfill gas, trash combustion, and hydropower facilities. But POWERnews says the biggest winner is fuel cells with a whopping eight year 30% tax credit extension.

June 10 (Bloomberg) -- Toyota Motor Corp., Japan's largest automaker, will build hybrid cars in Thailand and Australia, doubling its number of overseas production sites, as surging oil prices boost demand for fuel-efficient vehicles.

The automaker will start making as many as 9,000 hybrid Camry sedans a year in Thailand from 2009 and as many as 10,000 a year in Australia from 2010, it said in separate statements today.

Toyota, the maker of the Prius, plans to boost production of gasoline-electric vehicles as rising oil prices and increasing environmental concerns spur demand. The carmaker expects to more than double global hybrid sales to a million a year early in the next decade.

``There's been an increase in the popularity of hybrids because of surging gasoline prices,'' said Tsuyoshi Mochimaru, an analyst at Lehman Brothers Japan Inc. in Tokyo. ``It's positive for Toyota to get a headstart in these markets.'' He has an ``equalweight'' rating on the stock.

The Australian federal government will give Toyota A$35 million ($33 million) in subsidies to help start production of hybrids, it said in a statement today. The Victoria state government will also provide financial support, it added, without elaboration.

Australia Demand

``Australian demand for new autos is getting stronger thanks to the country's economy,'' said Yasuaki Iwamoto, an analyst at Okasan Securities Co. in Tokyo, who has an ``above average'' rating on the stock. ``Australia also has a strong interest in the environment.''

Toyota's Melbourne plant made 148,900 vehicles last year, close to its 150,000 capacity.
It now builds gasoline-powered Camry sedans and exports to the Middle East and other regions.

Toyota, which currently builds hybrids in Japan, the U.S. and China, sold 429,000 worldwide last year. Sales have risen in line with surging oil prices. The price of oil futures reached a record $139.12 June 6 and has more than doubled in the past year.

A hybrid vehicle combines a conventional gasoline engine with an electric motor. The electric motor powers the vehicle at low speeds, and the gasoline engine takes over as the car accelerates. The motor's battery pack is charged by the gasoline engine and by power regenerated by the brakes.

Last Updated: June 10, 2008 07:51 EDT