Alternative energy technology could be the key to the future of the auto industry.

General Motors, the world's largest automaker, is attempting to remake itself amid near-bankruptcy by designing vehicles with better fuel efficiency and alternative propulsion systems in China.

GM debuted its zero-oil, zero-pollution Chevrolet Equinox hydrogen fuel cell car in Beijing in October, kicking off a two-year Chinese promotional tour.

The Chevrolet Equinox can run 320 km on power generated by hydrogen energy, with a peak speed of 160 km per hour. The only emission from the tailpipe is pure water vapor.

The US automaker plans to introduce an extended-range electric vehicle, the Chevrolet Volt, to China for production by 2011, half a year after its debut in the US.

"Chinese elements were considered in the design of the Chevrolet Volt, which indicates the electric automobile has entered a new stage. And China will be a big market for electric vehicles," said Bob Lutz, GM vice-chairman of product development.

He said the vehicle is designed to run purely on electricity from onboard batteries for up to 64 km. With the use of a small internal combustion engine driving a generator to recharge the batteries, the vehicle's range potentially increases to 579 km on a highway.

Nissan, Japan's third largest automaker, also plans to make electric cars by 2010 and will bring them to China by 2012. Toyota plans to begin testing plug-in electric cars, which can be recharged from household electrical outlets in 2009.

But BYD Co, the Shenzhen-based Chinese automaker backed by Warren Buffett, beat GM, Nissan and Toyota to the electric-powered punch and started selling the world's first mass-produced plug-in hybrid F3 DM in December.

Electric cars could have geopolitical implications for China as well as environmental benefits. China relies on imports for nearly half its oil. "If China continues current growth rates it will almost double oil imports by 2030," said a McKinsey report. "But greater use of electric cars would cut this growth by around a quarter."

GM is also focusing on the commercializing of sustainable biofuels, particularly non-food based, next-generation cellulosic ethanol.

Andreas Lippert, director of GM's global energy systems intelligence center, said sustainable biofuels are the most feasible near-term solution among all alternative energy sources with the potential to displace petroleum.

China is the world's third largest ethanol producer, behind the US and Brazil, with annual production of around 1 billion gallons, which might make it an ideal partner for GM. The company has produced more than 5 million flex-fuel cars and trucks, which run on a combination of ethanol and gasoline.

GM is committed to making half its annual vehicle production in the US flex-fuel capable by 2012.

"China can produce cellulosic ethanol on marginal lands from wood waste, energy crops such as switchgrass and even garbage and China is in a good position to benefit from the development of such sustainable biofuels," said David S. Chen, vice-president of GM China Group.

GM sees China being one of the first markets and production sites for alternative propulsion systems, he said.

(China Daily 01/05/2009 page3)