1. Diesel Market Potential in US
Diesels good for towing and highway efficiency
But hybrids get better fuel economy in city driving
Diesels are currently cheaper than hybrids, but are not cheap
$1500 for 4-cyl., $2000-$3000 for V-8
Tier 2 emission standards will add significant cost
Less convenient service stations (only ~ 20% carry diesel)
Will take time for public to recognize improvements in noise, vibration, smell, starting, and emissions
Plus pickup customers want a “tough” diesel, not a wimpy quiet one
Must compete with improved gasoline engines and hybrids
Europe refineries already shipping unwanted gasoline to US
With continued fleet turnover to diesel in Europe, who will buy gasoline if US also shifts to diesels?
You may have notice that I haven’t talked about diesels. That’s because there are also barriers to introduction of diesels in the U.S. Unlike Europe, diesel taxes and fuel price are similar to gasoline. Diesels are expensive, even before considering the additional cost to meet Tier 2 emission standards, and most customers don’t care much about the fuel savings. Add to that less convienent service stations, hard-to-change perceptions that diesels are noisy, rough, smelly, hard to start, and dirty, and introduction of improved gasoline engines and hybrids, and it’s hard to make a case for substantial diesel penetration in the US, at least in the short run.
Certainly there is a market for trailer towing in the larger light trucks, but diesels are likely to be only a niche market for cars and smaller light trucks.

2. Hybrids

3. Hybrid Vehicles Civic Hybrid Electric Motor CVT Efficient hybrid
Hybridization is particularly effective for conserving fuel.
By coupling a clean engine with an electric motor assist system, fuel consumption and carbon dioxide emissions can be reduced significantly.
Electric Motor
CVT
Efficient
hybrid
engine
Intelligent
Power
Unit (IPU)

4. Integrated Motor Assist Hybrid
Parallel - Type
Motor / Generator
Relatively Simple, Lightweight & Compact
Efficient in City and Highway driving
Engine
Transmission
Honda’s motor assist hybrid system supplements the engine to enable a relatively lightweight construction, which is appropriate to the goal of reducing fuel consumption.
This particular hybrid system is quite effective in a wide variety of driving conditions, including both city and highway driving.
Inverter
Battery

5. Honda HEV Technology Evolution
1999
2002
2004
"World Best Efficiency”
High volume compact car
Performance + efficiency
Fuel Economy No.1
First optional hybrid powertrain
First V6 hybrid
The Insight was developed as a 2-seat commuter car combined with an extremely lightweight aerodynamic body, targeting the worlds best fuel economy.
Next, a second generation IMA system and a new dual-spark plug engine were developed for the Civic. This expanded the scope of the technology into a mass-production vehicle for the first time.
Hybrid vehicle for personal use
Mainstream compact
Mainstream midsize
255 horsepower –better than V6
i-DSI + IMA system
VTEC + IMA system
Light aluminum body
Innovative Sedan Package
City 29, hwy 37 mpg (same as Civic class)
World best aerodynamic design

6. (Variable Cylinder Management)
Powerplant
V6 3.0L i-VTEC VCM Engine
(Variable Cylinder Management)
IMA Motor
DC brushless
New IPM Motor
Resolver sensor
Compact 5AT
Long torsion, LC response
UP torque converter
Parallel-Type Hybrid System
Simple, Lightweight & Compact
Efficient in City and Highway driving

7. Engine and Motor Output Characteristics
CIVIC HYBRID
High Efficiency,
High Torque
Electric Motor
(1.3L Engine only)

8. Attractive Hybrid Features Fewer Trips to the Station!
Integrated
Electric Motor
Fuel Savings!
Low Operating Cost:
Best “Idle” Quality:
Superior Driving Range:
Pride of Ownership:
Beats any Luxury Car!
Hybrid power trains do add new values to vehicle ownership:
With an idle stop system, you come to a stop in complete silence.
Because of the highly efficient power plant, there are far fewer trips to the gas station over the course of a year.
And, a Hybrid instills “pride of ownership” in one’s personal vehicle choice.
Fewer Trips to the Station!
Social Benefits!

9. Alternative Fuels

10. Honda’s Advanced CNG Technology
Compact Cars - CO2 Comparisons “Wellhead-to-Wheel”
Civic GX Values
Range > 200 miles
CO2 reduction > 20%
Performance = Gasoline
Near-Zero Emissions
Proven Honda DQR
Satisfied customers
400
-25%
353
306
-11%
300
264
CO2 emission
236
200
100
Honda continues to develop dedicated Compressed Natural Gas vehicles. The current Honda Civic GX is our 3rd generation Compressed Natural Gas design! Based upon EPA certification data, it is simply the cleanest vehicle in the world with an internal combustion engine.
It also provides about a 20% reduction in greenhouse gas emissions. While this is slightly less CO2 benefit than a hybrid, it is significantly cleaner when measured on a well-head to wheels basis.
Civic
Gasoline
Jetta
Diesel
Civic
CNG
Civic
Hybrid

11. Infrastructure Innovations
NGVs
Fleet & Consumer
Buses, Heavy Duty
Public Fast Fill
Infrastructure
Network
Fleet
Forklifts
To try to realize the opportunity presented by natural gas vehicles, we need to look at infrastructure. Natural gas offers new opportunities here, due to the possibility of distributed, dedicated refueling stations.
For example, the FuelMaker company offers small scale refuelers to serve small fleets not close to a public station. And, with the vision of FuelMaker and Honda, a home refueling appliance is under development, targeted at a price of $ This would fill the car conveniently overnight - providing new consumer values.
The great thing about this technology is that we are getting ideas on how to solve the infrastructure problems of pure hydrogen. And we can test out these ideas in relatively low cost, low risk ways with compressed natural gas.
Home Refueling
Private Fleet Refueling

12. Development History of Honda FC Stack
‘99
‘00
‘01
‘02
‘03
‘04
FCX-V2
FCX-V3
Improved performance and reliability
Evolves to the next generation
1999
2001
Next-generation
Honda FC Stack　released
Start of R&D on fuel cell basic technology
Honda started working on fuel cells in the 1980s.
In 1999 we installed an onboard methanol reformer fuel cell stack on the FCX-V2.
Since then we continued to improve the performance and reliability of fuel cell stacks. In 2001 we installed a high-pressure hydrogen tank on a pure hydrogen-fueled FCX-V3.
And then, last autumn we presented the next-generation Honda fuel cell Stack.
Compact
Excellent performance
Superb durability
Methanol-reforming fueled
fuel cell stack on
FCX-V2
High-pressure hydrogen tank
on a pure hydrogen-fueled FCX-V3
Series of public road tests as part of
CaFCP
2005 model launch

13. Output density of Honda FC stack
Compact
High output
The Honda fuel cell Stack uses a new, simplier, hydrocarbon material. This reduces the weight and increases the efficiency.
Both the volumetric and the weight output density are more than double the previous fuel cell stack.

14. FCX Equipped with Honda Fuel Cell STACK
Spring 04 confirmation in California, and fall 04 in New York
Japan testing started fall 03
First delivery to an individual customer in July 2005
Environmental adaptability
Low/high temperature
The New FCX improves all factors relative to the 2003 FCX. Not only is performance and fuel efficiency improved, but Honda’s new fuel cell stack can start up at temperatures well below freezing. As the output from a fuel cell is water vapor, operation at temperatures below freezing is a major challenge.
The new FCX has been certified by the governments of Japan and the US and is being tested on public roads in Japan, California, and New York.
Honda was the first company to put a fuel cell vehicle in the hands of an individual customer for evaluation
Fuel efficiency
Performance
Improved energy efficiency
Improved acceleration
performance

15. Home Refueling with Co-generation
Home Energy Station ～
Heat
Fuel cell ～
Electricity
Inverter
Natural gas
Reform
Refine
Hydrogen
Compress
Storage tank
Reformated Gas
Home Refueling with Co-generation
Looking to the future, we are working with Plug Power to develop a Home Energy Station using natural gas. A reformer is used to generate hydrogen from natural gas. The hydrogen is used to provide heat and electricity for the home, as well as compressed hydrogen for use in a vehicle.
Tests began last autumn to evaluate the efficiency, reliability and running costs of the system.
Cooperative development with Plug Power

16. Fuel Cells: The Holy Grail
Challenges
Packaging, size, weight
Cost
Waste heat rejection
Air supply  Compressor
Cold temperature operation
On-board hydrogen storage
Hydrogen infrastructure
Advantages:
Very high fuel conversion efficiencies
Greatly reduced heat loss
Virtually zero emissions
Quiet
Reliable and long lifetime
Low maintenance
Wide range of applications in addition to vehicles
Fuel cells will someday replace the internal combustion engine. They just have too many advantages. They are the only technology with the potential to solve all our problems.
The real question is - When?
Most discussion has focused on when fuel cells and the related infrastructure will be ready. I don’t want to minimize the substantial challenges in bring fuel cells to market, especially storing hydrogen onboard the vehicle and developing a hydrogen infrastructure. However, there seems to be an unspoken assumption that, once these challenges have been solved, fuel cells will naturally start to replace the internal combustion engine.

17. System Comparison

18. Comparison of CO2 Emissions
JAPAN mode
Tank to Wheels
Well to Tank
FE base in 2010
16km/L
(1250kg)
CIVIC (VTEC-E)
20km/L
FIT (i-DSI)
23km/L
Improvement of
Gasoline Vehicle
Oil
Base
CIVIC IMA
29km/L
Diesel Engine
Gasoline Reform.
FCV
Here is one example of a well to wheel analysis.
The tank to wheels is shown by the blue bars and the wheel to tank is shown by the orange bars As you can see, improvements in vehicles with internal combustion engines can progressively reduce CO2 emissions.
Hybrid powertrains also offer substantial reductions A natural gas vehicle can reduce CO2 emissions in comparison with gasoline vehicles.
While the fuel cell itself has no CO2 emissions, production, delivery, and storage of hydrogen uses far more CO2 than comparable processes for fossil fuels. Thus, CO2 emissions from the hydrogen fuel cell vary according to the methods of producing and storing hydrogen. Fuel cells offer a substantial reduction in CO2 only if the hydrogen is generated from a non-fossil fuel source, such as solar or nuclear energy or renewable fuels.
CIVIC CNG
Natural Gas
Base
Methanol Reform.
FCV
Hydrogen FCV
Renewable Energy 50
100
150
CO2 emissions [g/km]
Honda’s Estimate