This Week’s Top 10: Trump releasing fuel economy policy, VW pleads guilty in U.S. and faces more in Europe

by Jon LeSage, editor and publisher, Green Auto Market

  1. Fuel economy policy: President Donald Trump is expected to announce the new administration’s stance on the fuel economy and emissions policy on Wednesday. After meeting with automaker executives in a Detroit suburb, Trump will likely announce extending the public comment period and softening the mandates for automakers. The largest automakers have been asking the Trump administration to revise the mandate to be more in line with the market – making it difficult to sell smaller, fuel efficient cars, hybrids, and plug-in vehicles. Auto executives started approaching Trump administration transition team members soon after the election and staff members and advisors after the inauguration. They were upset with the Obama administration over cutting off the comment period and finalizing the mandate.
  2. VW guilty plea: Volkswagen pleaded guilty on Friday to fraud, obstruction of justice, and falsifying statements in the diesel car emissions scandal. It was part of a $4.3 billion settlement that had been reached with the U.S. Justice Department in January and was the first time the automaker has pleaded guilty to criminal charge in any court around the world. Legal battles also started heating up in Europe about the same time. Criminal investigations are intensifying across Europe, and thousands of consumer lawsuits have been filed. The lawsuits could add up, as there are a lot more owners in Europe of VW brand diesel cars.
  3. BMW sales double: BMW Group announced that global sales of its plug-in vehicles more than doubled in the first two months of 2017, over that period the year before, to more than 10,000 units sold. Vehicles currently for sale include the BMW i3 in battery electric and extended range plug-in hybrid versions; and the i8, X5, 3-Series, and 7-Series plug-in hybrids. Coming up next will be the BMW 530 iPerformance plug-in hybrid and the Mini Cooper SE Countryman All4 The company expects plug-in vehicles sales to increase through the launch of the plug-in hybrid BMW 530e iPerformance this month, and the Mini Cooper S E Countryman All4 plug-in hybrid in June.
  4. Renewable diesel: Oil refining company Neste has become the world’s largest supplier of renewable diesel. Recent additions to the client list include UPS for delivery vans and Google for its buses that transport employees to and from work. Fleets are taking to it for reasons found in support for renewable diesel – cutting carbon emissions, particulates, and NOx significantly without having to convert over diesel vehicles. Nearly 80% of the company’s renewable products are based on waste and residues.
  5. Detroit Electric: Detroit Electric has a $1.8 billion investment through a joint venture with a Chinese company that will roll out the long delayed SP:01 and other vehicles. The startup electric sport carmaker launched in 2008 and took the name of one of the very first electric carmakers that hadn’t been building cars for over a century.  Detroit Electric has created a joint venture with Far East Smarter Energy Group, a Chinese company that makes batteries and electrical components. The two companies will get production started by the end of this year for the SP:01, and are  planning for two more electric car models in the near future.
  6. Tesla energy storage: Tesla Energy is working on getting business overseas – Australia and Kauai. Tesla CEO Elon Musk has made an offer to Australia by tweeting with Australian tech billionaire Mike Cannon-Brookes. Musk pitched him on bringing Powerwall and Powerpack products to the South Australia state to have the necessary energy backup in case of another emergency. South Australia was hit by a state-wide blackout during September and are interested in Musk’s $25 million, 100 megawatt hour offer. In another deal, Tesla Energy has set up a a 13 megawatt solar farm that generates energy stored in a 52 MWh Tesla Powerpack storage set. It fits well into Hawaii’s mission to free the islands from fossil fuels for energy and transportation. Watch the video.
  7. In-wheel drive: Protean Electric is partnering with Consolidated Metco to develop an electric in-wheel drive system to provide hybrid-electric solutions for the medium and heavy-duty commercial vehicle markets. The companies say that the drive system will enable ConMet’s OEM and fleet customers to address the tightening of  safety and emissions regulations, increasing demands for improved fuel efficiency, weight and drivetrain packaging optimization, and shifts in vehicle demands for long-haul and urban delivery.
  8. Ford wins award for sustainability practices: Ford was named one of the World’s Most Ethical Companies for the eighth straight year by Ethisphere Institute, which the automaker says is the longest streak for any auto manufacturer. The award honors companies “who recognize their role in society to influence and drive positive change in the business community and societies around the world.” Ford’s Partnership for a Cleaner Environment (PACE) program with its supply chain partners helped the company make the list. The program, which started in 2014, added tools that help suppliers reduce carbon-dioxide emissions and waste. Members of PACE share best practices in reducing carbon and adopting procedures for reducing water and energy consumption.
  9. Site tours: ACT Expo 2017 has announced three technical tours for those attending the conference in Long Beach, Calif., in early May. Monday, May 1, 1 p.m. – 4 p.m.: Join American Honda at its North American Headquarters in Torrance for a reveal of its three Clarity models. The reveal will include an overview of national marketing efforts to deploy the Clarity as well as an opportunity to get in the new vehicles and test them out. Monday, May 1, 1 p.m. – 4 p.m.: City of Long Beach has one of the most diverse and innovative municipal fleets in the nation, offering an array of fuel and vehicle types with renewable diesel, renewable natural gas, and plug-in hybrid vehicles. Attendees will see an assortment of city vehicles, as well as its renewable fueling infrastructure, extensive maintenance shop, and fleet charging infrastructure. Thursday, May 4, 1 p.m. – 3 p.m.: Long Beach Container Terminal is the world’s first zero-emission marine container terminal. It uses fully automated battery electric cargo handling equipment to move containers through its terminal. While there is a lot of talk of heavy-duty vehicle automation, LBCT has more than 60 battery electric units running in every day service. Visit this incredible project, and also see how these units autonomously change their own battery packs! Enhance your ACT Expo experience by adding an offsite tour for just $50. You can also view a video about the upcoming event.
  10. Low carbon pathways: The California Air Resources Board’s Low Carbon Fuel Standard (LCFS) staff has released for public comment four new Tier 2 renewable diesel (RD) pathways using soy oil, used cooking oil, tallow, and corn oil at the Diamond Green facility in St. Charles, Louisiana. Diamond Green Diesel (DGD) uses the UOP Ecofining Process to produce RD from Used Cooking Oil (UCO), tallow, corn oil, and soybean oil. The Ecofining Process hydrogenates triglycerides and free fatty acid feedstocks which are then isomerized to create a high-quality hydrocarbon fuel.

    Geneva Motor Show reveals a few electrified supercars for global competition

    Held March 9-19 at the Geneva Palexpo convention center, automotive media have been seeing several premiers at the 87th annual Geneva Motor Show.

    The Geneva car show is best known for showing off supercar concepts, and this event is featuring a few electric performance cars that seem to be targeted at Tesla and a few startups from the U.S. and China. This year, a few of them have been electrified, one is designed for urban mobility, and another will be a combination of a self-driving car and a flying pod…………

    Artega Scalo Superelletra:  This German supercar maker was founded in 2007 and has been through a series of prototypes, starting with the Scalo sports car and Karo quad bike. The company said those concepts served as testing grounds for its first production electric car, the Scalo Superelletra, which was just unveiled at the Geneva auto show. It’s being built with a 120-kilowatt-hour lithium-ion battery. It may be able to go 300 miles on a single charge, though that’s yet to be determined; and if drivers gun it like a race car, the range will be a good deal lower. Artega says it it will come with four electric motors, two at each axle, which combined can deliver 1,020 horsepower. It will go 0 to 62 mph in just 2.7 seconds. The top speed has made it up to 186 mph. The electric supercar has been developed in partnership with Artega’s parent company, German automotive electronics supplier Paragon. They’re using energy dense batteries that can add another 60 miles of range in four minutes, and 80% capacity after 17 minutes.

    Audi hypercar:  CEO Rupert Stadler said in Geneva that the company is working on what’s being called a “hypercar,” and which may be in the early development phase with a launch coming up at the end of the decade.  The hypercar may come from the Audi R8 e-tron project that was halted about 19 months after being started up for development. That prototype test model was powered by two electric motors producing a combined 456 brake horsepower and 679 lb.-ft., with 0 to 62 mph in 3.9 seconds. The new hypercar could be a rival to similar vehicles in the works, such as the Mercedes Project One and Aston Martin Valkyrie. (The featured image is another Audi concept released a few years ago.) The German VW subsidiary has committed to having three electric production cars on sale by the end of the decade. The Audi Q6 e-tron sport utility vehicle should be the first to come out, and ready for launch later this year. Stadler also expressed interest in the company’s role in the Formula E series and the idea of electromobility.

    Bentley EXP 12 Speed 6e:   British luxury automaker Bentley Motors revealed the EXP 12 Speed 6e concept electric convertible at the Geneva Motor Show. Details haven’t been released on the motor or battery pack, but it will be an all-electric convertible sports car and the automaker is promoting access to wireless charging as one of its offerings. If rapid wireless charging isn’t available for a few years, the electric car can be charged through an auxiliary charging point that will be out sight behind the rear license plate. The compmany reiterated its plan to introduce plug-in hybrid electric vehicle models across the Bentley model range, which will start with the Bentayga in 2018. As for the EXP 12 Speed 6e, “Bentley is committed to offering an electric model in its future portfolio and we are interested to receive feedback on this concept,” said Wolfgang Dürheimer, chairman and chief executive.

    Honda NueV:  Honda Motor Europe’s President and COO Katsushi Inoue announced that the European division will be following the Honda brand’s new ‘Electric Vision.’ Two-thirds of its European sales will have electrified powertrains by 2025, he announced in Geneva. The Honda NeuV (New Electric Urban Vehicle) will be part of it and was announced in Geneva. The all-electric concept vehicle will offer owners both personal trips and a revenue model for automated ridesharing when the owner doesn’t need to use the vehicle. Rolling out hybrid technology across of its vehicle line will be the first part of the Electric Vision; and the automaker said it will also make available a line of plug-in hybrid, battery electric, and hydrogen fuel cell vehicles in the European market. “We will leverage Honda’s global R&D resources to accelerate the introduction of a full portfolio of advanced, electrified powertrains for the European customer,” Inoue said. In other car show news, Honda announced that the all-electric and plug-in hybrid versions of the Clarity will be launched next month at the New York Auto Show.

    Hyundai FE Fuel Cell Concept:  The Korean automaker announced it will be launching its second fuel cell SUV next year – and it will break the world record for driving range in a zero emission vehicle. The company says it will go 800 kilometers (497 miles) on a tank of hydrogen. Hyundai said it will be 20% lighter and have 10% greater efficiency than the Tucson Fuel Cell (called the ix35 in Europe). Energy density will be improving quite a bit, by 30%, which the company said will be integral in boosting the range from 265 miles in the Tucson Fuel Cell to 497 miles in the FE Fuel Cell Concept (at least for now; EPA fuel economy ratings will probably bring down that total for the concept fuel cell vehicle).

    Italdesign and Airbus flying car:  Italdesign, Audi’s design and engineering subsidiary, and Europe-based aircraft giant Airbus debuted a concept car at the Geneva auto show that will be self-driving and able to release its passenger to a flying drone. A drone will hover over the car, attach itself, and then carry the passenger pod to its destination. Italdesign’s Capsula concept goes back all the way to the 1982 Turn auto show. The new concept vehicle from Italdesign and Airbus would offer the latest in ground mobility tapped into flying vehicle technology being tested – ideal for crowded city streets.

    Lexus LS 500h: The LS 500h debuted last week in Geneva as an electric- and gasoline-fueled version of Lexus’s flagship sedan. The Toyota division hasn’t released the price, but it could compete directly with the Tesla Model S at a base level and go near $90,000 at the high end. It has a V6 gasoline engine paired with two electric motors, a lithium-ion battery, and 354 horsepower on a multi-stage hybrid transmission. It will come out as a 2018 model year vehicle.

    Mercedes-AMG GT Concept:  This concept vehicle has EQ Power+ designation, which indicates that the German sports car brand is looking at adding the new model to electrification of its future models under the new electric brand. All performance hybrids from AMG will carry this EQ Power+ designation. This concept taps into a combination of a gas-powered 4.0-liter twin-turbo V8, a high-performance electric motor, and a powerful yet lightweight battery to get a total system output of 805 horsepower. The concept vehicle is being tied into Mercedes-AMG’s 50th anniversary.

    Porsche Panamera Turbo S E-Hybrid:  Porsche world-premiered the Panamera Turbo S E-Hybrid in Geneva, and will be launching it in the European marketing in July 2017. The company is promoting it as the flagship in the Panamera brand for its impressive power delivery. It can deliver 500 kW/680 horsepower of system power and 850 Nm of torque. It goes from zero to 100 km/m (62.13 mph) in 3.4 seconds, and can hit a top speed of 310 km/h (192.62 mph). The power comes from a 100 kW electric motor combined with a four-liter V8 engine that can bring the hybrid system 550 in horsepower.

    Renault Zoe e-Sport:  The Zoe e-Sport Concept displayed at the Geneva car show brings together the automaker’s commitment to electric vehicles with winning two titles in FIA Formula E races. The e-Sport Concept will be built on the Zoe all-electric car’s platform and will have some of the same aerodynamic design and styling of the Renault e.dams team’s Formula E single-seaters. It will also utilize lightweight carbon fiber, as does Renault e.dams’ racer. The Renault e-Sport is powered by two motors that deliver a total of 340 kW of power. It will come with two batteries for energy storage with a total capacity of 40 kWh.

    Toyota i-TRIL:  Toyota’s urban mobility concept vehicle, the new electric i-TRIL concept, debuted globally at the Geneva Motor Show. It’s been designed to be smaller than other specialized cars ideal for roaming through crowded city streets and parking garages. The market will be SMESTO (Small to Medium Sized TOwns) in which Toyota references European Union studies. The automaker thinks that these types of cities in Europe and other markets will be ideal.

     

      This Week’s Top 10: Conflict and confusion over biofuel blends, Green car sales beat overall sales in February

      by Jon LeSage, editor and publisher, Green Auto Market

      Here’s my take on the 10 most significant and interesting occurrences during the past week…….

      1. Battle over biofuels: Conflict and confusion over biofuel blends in gasoline – and who will do the blending – continue to shake up Washington. Renewable Fuels Association President Bob Dineen told Reuters last week that Carl Icahn, an oil industry billionaire and advisor to the Trump administration, had told Dineen that the administration would be taking a favorable position for refiners such as corn ethanol producers. The fuel blending of about 10% ethanol to gasoline would be sent down the supply chain to gasoline marketers through an executive order by the president, Dineen said. Icahn and the White House later denied this was said to Dineen. Biofuel groups and producers have been upset that Icahn has been playing this role for the White House. The oil executive demanded during the election campaign that the obligation and costs should go to fuel blenders and not to oil companies and their supply chain partners. Several biofuel companies have also been upset with RFA for taking what had appeared to be a position opposing their stance on the matter. As of Monday, oil refiners including Valero Energy Corp. and CVR Energy Inc. (in which Icahn owns a majority stake) currently have to show environmental regulators they are meeting annual mandates; they’ve urged the federal government to push this compliance further downstream to fuel blenders and integrated oil companies. The White House says it’s taking this request under review. In other related news, U.S. ethanol production set a new record of 15.33 billion gallons in 2016, according to data from the U.S. Energy Information Administration (EIA). The EIA data showed that the average gallon of gasoline likely contained slightly more than 10.0% ethanol in 2016. The American Petroleum Institute (API) estimates that Environmental Protection Agency rules on 2017 biofuel volumes will put the ethanol-to-gasoline ratio at 10.4%, higher than the 9.7% ration recommended by the oil industry association.
      2. Green car sales in February: Sales of hybrid and plug-in vehicles were up sizably from January in the usual seasonal sales pattern, and both categories beat the overall market according to HybridCar’s Dashboard. Total light-duty vehicles sales were down 1.1% from February 2016, but hybrids saw an increase of 16.3% and plug-ins saw a leap of 45.12% over the previous year. The Chevy Bolt continued to do well, finishing fifth for all plug-in electrified vehicles sold in the U.S. during February. The Chevy Volt had another leading month, finishing in first place with 1,820 units sold; that compares with the No. 2 Tesla Model S, finishing at about 1,700 units sold. For hybrid vehicles, the Toyota Prius Liftback took its first position back from the Ford Fusion Hybrid but both vehicles have sold at nearly the same totals so far in 2017.
      3. EPA likely to issue revised fuel economy: The U.S. Environmental Protection Agency is expected to reverse course this week on the 2022-25 phase of the fuel economy and emissions standards. The unexpected decision made by the agency at the very end of the Obama administration to approve the proposal and cut short the public comment period has been a source of tension with automaker executives and Washington officials. Last week, auto trade groups representing Ford, General Motors, Honda, Toyota, Volkswagen, and others asked recently approved EPA Administrator Scott Pruitt to withdraw the Obama administration’s decision to finalize the rule in January. That had cut short the timing for giving public comments, which was originally supposed to go until April 2018. They would also like to see the rule become more favorable to automakers than what was finalized under the Obama administration. The EPA notice coming out soon is expected to state that the agency will work in tandem with the U.S. Transportation Department to set consistent standards in the ruling, a source said.
      4. Trouble keeping Tesla’s talent: Pressure to get the Tesla Model 3 out on time has led to tough working conditions at the company – and exodus of management. CFO Jason Wheeler’s  departure, just 15 months after he joined Tesla from Google, will be the latest in a round of executives leaving the company. Former execs speaking confidentially said it has to do with long work hours prepping for high-volume production and a tense working environment that reflects the persona of CEO Elon Musk. Of course, setting up shop in Silicon Valley is known to run the risk of high-churnover rate. A Tesla spokesman said the company’s attrition rate was below average among technology companies.
      5. Uber facing heavy criticism: Uber is feeling a “blowback” over the aggressive fighter approach taken by CEO Travis Kalanick and its corporate culture, with the latest being an apology sent to staff by Kalanick over a conflict he’d engaged in with an Uber driver captured on video. Kalanick and others at the ride-hailing giant are known for plunging into new markets around the world, price-war fighting Lyft and overseas competitors, and taking on lofty goals like deploying self-driving and flying cars. The company had been hit hard by news coverage and social media posts leading to Kalanick quitting President Donald Trump’s economic advisory panel over the immigration ban; having a female engineer protest over alleged sexual harassment; being sued by Alphabet’s Waymo over claims its self-driving car’s intellectual property had been stolen; and using a tool called “Greyball” used to fool regulators into thinking the company is not providing ride services in markets where it’s not supposed to be operating. Lyft, its toughest U.S. competitor, is quietly looking to raise $500 million in funding to expand; smaller ridesharing companies such as Juno are able to take advantage of frustration over pay to poach Uber drivers. “I must fundamentally change as a leader and grow up,” Kalanick, wrote in a note to Uber employees last week. “This is the first time I’ve been willing to admit that I need leadership help and I intend to get it.”
      6. What will happen to Ampera-e?: The future of the Opel Amera-e, built on the Chevrolet Bolt platform, is up in the air now that General Motors has sold its stake in the Opel/Vauxhall subsidiary to French automaker PSA Group. The $2.3 billion dollar sale will make PSA the second-largest automaker in Europe. PSA will gain intellectual property licenses from GM as vehicles transition over to PSA platforms. It may be that the originally planned launch of the Bolt as the Ampera-e in Europe will stick to that plan and roll out later this year. Green Car Congress reports that GM and PSA expect they will collaborate on further deployment of electrification technologies. PSA may also source long-term supply of fuel cell systems from the GM/Honda joint venture.
      7. Maven lengthens sharing time: General Motors’ Maven carsharing division has launched a four-week rental plan through a program its calling Maven Reserve; that adds to its previous longest rentals by 24 days. Carsharing members in Los Angeles and San Francisco can now schedule rental of a Chevrolet Volt or a Chevrolet Tahoe for an hourly, daily, or monthly fee, the company said on Friday. Markets being aimed at include entertainment industry people in L.A. and entrepreneurs in San Francisco. It’s expected to expand later to other markets.
      8. Workplace charging in NYC: Calstart yesterday launched “Charge to Work,” a first-of-its-kind electric vehicle workplace charging initiative to increase the adoption of EVs in the New York City area. It’s a three-year marketing and outreach campaign seeking to bring support from over 100 businesses that will encourage their employees to replace their conventional gasoline-engine vehicles with clean and efficient EVs. Announced by New York Governor Andrew Cuomo, Charge to Work supports the governor’s Charge NY program, which is accelerating the growth of the electric vehicle market in New York State through education, research, consumer outreach and financial support for the installation of charging stations across New York. The goal is to spur 450 electric vehicles (EVs) and the installation of 132 Level 2 EV charging ports.
      9. 2,150 PHEV pickups sold: Workhorse Group Inc. is now working with Clean Fuels Ohio to bring 500 units of the W-15 Plug-In Electric Pickup trucks to Ohio-based fleets. The company says that, overall, it has received Letters of Intent for 2,150 units of its upcoming plug-in hybrid pickups. The company has received LOIs from Duke Energy, Portland General Electric, the City of Orlando, Southern California Public Power Authority, Clean Fuels Ohio, and one other utility. The company currently builds medium-duty PHEV work vans for several fleet companies including FedEx, Penske, UPS, Ryder, DHL, USPS, and more.
      10. Lucid Air details: During a recent test drive, startup Lucid Motors revealed more details on its upcoming luxury electric car, the Lucid Air. The starting price is $165,000 for the Launch Edition, in which 255 units will be made in 2019. That one gets a 130 kWh battery pack that can carry the car about 400 miles. After that, the Air will see production scaled up to build a cheaper edition. That one will have a 100 kWh battery with about 300 miles of range. Before any of these electric cars roll out, the Lucid will have to put in place its $700 million production plant in Casa Grande, Ariz., which is slated to start production in 2018.

        Taking a look at next-generation transportation fuels and the future of oil

        Last week’s announcement of the $155 million that oil giant BP will be placing in Clean Energy Fuel Corp.’s Redeem renewable natural gas (RNG) shows a microcosm of much larger trends:

        • The oil industry is seeing a global marketplace out there where investing in clean fuel and energy is becoming more economically viable; it’s also being pushed by new government and corporate policies being enacted as the Paris climate change agreement takes hold – even if the Trump administration pulls out of the agreement.
        • Natural gas vehicle acquisitions are expected to grow, and there’s already thousands of those vehicles in fleets across the country. Using RNG is the same as using biodiesel or renewable diesel – the engine technology, and much of the fueling infrastructure – is already in place, and greenhouse gas emissions are reduced significantly overnight by switching over. RNG has about 70% lower greenhouse gas emissions than equivalent gasoline or diesel fueled vehicles; and renewable diesel offers similar benefits in emissions reductions.
        • Fossil fuel consumption, including gasoline and diesel, is expected to decline worldwide in the near future under stringent government regulations and increasing sales of vehicles consuming less gasoline and diesel. More pressure has been coming from increasing concern over air quality, health hazards, and climate change; in that context, stakeholders are pushing for change at the legislative, regulatory, corporate, interest group, and consumer levels. This is true of both the developed economies in Europe, North America, and Asia; and of developing economies such as China, India, and Brazil. Renewable energy used to generate electricity is seeing more government support in developing nations; as is vehicle electrification and alternative fuels as government regulations and subsidies flourish.

        Here’s a look at the landscape of alternative, renewable fuels and energy for this year and beyond……..

        BP and Clean Energy agreement:  BP is buying Clean Energy’s existing biomethane (RNG) production facilities, its share of two new facilities, and its existing third party supply contracts for RNG. The oil company will continue to subcontract the operations of these facilities to Clean Energy, and the natural gas fueling company has an extensive network of natural gas fueling stations around the country for purchasing RNG. Clean Energy will have a long-term supply contract with BP, and will buy RNG from the oil company and collect royalties on the Redeem fuel sold at its stations. Redeem comes from organic waste; Clean Energy sold 60 million gasoline gallon equivalents of the fuel in 2016. Customers buying Redeem have included UPS, Republic Services, Ryder, Kroger, and the City of Santa Monica’s transit agency. Using RNG and renewable diesel gives fleets and transport companies access to California’s low carbon fuel standards and cap-and-trade funding programs. Other governments, including Canada, are adopting the standard calling on fleets to reduce carbon emissions by 10%, no matter what the fuel may be.

        Oil companies investing in alternative fuels and energy:  Seven oil and gas companies – BP, Shell, Eni, Repsol, Saudi Aramco, Statoil and Total – are creating an investment fund to develop technologies to promote renewable energy. The industries face mounting pressure to take an active role in the fight against climate change; that joint announcement was also tied into more formal guidelines being issued on the 2015 Paris Agreement to phase out man-made greenhouse gases in the second half of the century. BP had invested heavily in biofuels and other alternative fuels years ago but then had backed off. That investment has been picking up again lately with the Clean Energy Fuels deal and other sustainable energy including biofuels and wind energy. Finland-based oil refining company Neste Corp. is now the world’s leading supplier of renewable diesel and has been investing in jet biofuel. It’s been producing over two million tons of renewable diesel annually. Shell CFO Simon Henry said in a November interview that demand for oil is expected to peak in about five years. Hydrogen has been an alternative energy of choice for Shell with investments made in six hydrogen stations that are open for fueling – four in Germany and two in the Los Angeles area, and a seventh near London’s Heathrow Airport opening soon; and the new agreement with Toyota to jointly construct seven hydrogen stations in California. Shell is also part of a global hydrogen council that formed last month that will be investing about $10.7 billion in hydrogen products within five years. Last year, Shell also did what other companies such as Total, Statoil, and ExxonMobil are doing through investments in wind farms, electric battery storage systems, and carbon capture and storage.

        Oil consumption will be declining: A new study by Edinburgh-based consultancy WoodMackenzie is in agreement with comments made by the Shell executive (and other oil company leaders) that what we used to call “peak oil” is showing clear signs of coming up. WoodMackenzie analysts say that the rising number of hybrid and electric vehicles being sold around the world, and greater engine efficiency, along with higher fuel standards and emissions reduction targets in the U.S., Europe, and Asia, will cause an historic shift in consumption patterns. Oil consumption reached a record high last year from oil prices plunging in 2014; the study forecasts demand for oil will reach its peak in the U.S. next year and by 2021 globally. Vitol, the world’s top oil trader, thinks it will take a few years longer with demand for gasoline and diesel reaching their peak in 2027-2028; but it will happen. Major oil companies and processors face an historic period of change as several countries, along with the Paris agreement, support getting rid of fossil fuels entirely in the next few decades.

        Renewable energy being taken seriously as its own industry:  There was another $287 billion in clean energy investments made in 2016, according to Bloomberg New Energy Finance – a sign that the clean energy economy has global reach. Natural Resources Defense Council reported that India had installed 11 gigawatts of solar and 29 gigawatts of wind capacity during 2016; that helped move things along toward the country’s goal of having 100 gigawatts of solar and 75 gigawatts of wind by 2022. China became the world’s leader in solar power capacity last year, surpassing Germany; that came through adding more than 34 gigawatts of solar capacity last year, nearly 1.5 times the amount the U.S. has installed in its entire history. China also installed more than 23 gigawatts of wind power in 2016, almost three times as much as the U.S. added last year. Latin America has also been a bright spot in renewable energy with three out of the top five developing countries for clean energy coming from this region: Chile, Brazil, and Uruguay. In the U.S., more than half of about 24,000 megawatts of electricity generation capacity added to the grid in 2016 came from renewable resources. The U.S. Energy Information Administration also reported that more than half of electricity generation capacity added to the U.S. grid last year came from renewable energy. Last year, National Renewable Energy Laboratory issued a report forecasting that renewable electricity generation from technologies that are commercially available today, in combination with a more flexible electric system, could supply 80% of total U.S. electricity generation in 2050 while meeting electricity demand in every region of the country.

         

          This Week’s Top 10: Waymo claims Uber stole self-driving car tech, Workhorse supplying 500 plug-in hybrid pickups to utilities

          by Jon LeSage, editor and publisher, Green Auto Market

          Here’s my take on the 10 most significant and interesting occurrences during the past week…….

          1. Waymo sues Uber: Waymo has filed a federal lawsuit claiming Uber and its self-driving truck company stole Waymo’s self-driving car technology. Uber is dismissing the allegations, calling them a “a baseless attempt to slow down a competitor.” In the San Francisco federal court, the complaint alleges that an Otto self-driving truck employee earned that company more than $500 million before Uber acquired Otto. The suit alleges that Uber allegedly built a Lidar system for its own self-driving test project that lifted confidential designs from Waymo’s own technology. The company had committed “calculated theft” of Alphabet’s technology, the filing said. Uber committed to “vigorously” defend against the claims in court.
          2. Plug-in pickups: Workhorse Group will be supplying 500 of its W-15 Plug-In Electric Pickups through an agreement made with Southern California Public Power Authority (SCPPA), a joint power authority made up of 11 municipal utilities and one irrigation district in the region. The company cites letters of intent also being signed with Duke Energy, Portland General Electric, the City of Orlando, and other fleet clients for acquisitions of electric trucks. Workhorse says tat the W-15 light duty platform design is an extension of the E-Gen electric technology used in its medium-duty delivery trucks. It will be revealed at ACT Expo 2017 in Long Beach, Calif, with an expected starting price of $52,500 and deliveries beginning in 2018.
          3. Tap into event promotions: Don’t forget about working Green Auto Market to promote your industry events. Readers show a lot of interest in upcoming events and resources they can utilize to participate, as you can see in this week’s special feature on Green Truck Summit and ACT Expo 2017. GAM has been able to offer support and promote conferences through event coverage, e-blast announcements to readers, updates and links to websites, social media (such as an active Twitter page), and video. Those interested can reach me at jon@jonlesageconsulting.com.
          4. Musk’s email on UAW: CEO Elon Musk has asked Tesla workers to turn down joining the United Auto Workers union, according to a leaked email. Reported by BuzzFeed, Musk’s email disputed claims about harsh working conditions made by an employee, and criticized the UAW’s efforts to organize workers at the carmaker’s Fremont, Calif., factory. The email argues that the UAW’s “true allegiance is to the giant car companies” that Tesla is challenging. Musk is concerned that the unionization would work to get in the way of the company’s “mission to accelerate the advent of a clean, sustainable energy future.”
          5. Panamera plug-in hybrid: Porsche says that the new Panamera Turbo S E-Hybrid will be the new flagship in the Panamera line for its “electromobility” and power delivery. The all-wheel drive plug-in hybrid is expected to deliver impressive performance numbers in power and torque. The company said that the Panamera Turbo S E-Hybrid shows the “high importance of electromobility to Porsche.” It will go 50 kilometers (31 miles) on battery only; but that comes from European NEDC standards and would be less in the U.S.
          6. Carbon tax: ExxonMobil CEO Darren Woods is backing the Paris Agreement and has called for a carbon tax to reduce U.S. emissions. In a blog post on the ExxonMobil website, Woods outlined his company’s plans to boost natural gas generation, energy efficiency, biofuels and carbon capture and storage to help drive down emissions. Woods replaced Rex Tillerson in January. Tillerson now serves as Secretary of State under President Trump. Tesla CEO Elpn Musk has been asking Tillerson to support bringing a carbon tax through Washington.
          7. Short range Clarity: Honda’s all-electric Clarity, which debuts this spring in the U.S., will only be able to go about 80 miles on a single charge, according to Automotive News. Honda said the 80-mile range has been based on two factors: building it on a platform right for the fuel cell and plug-in hybrid versions, and keeping the electric Clarity affordable to the typical Honda customer. “A pillar of the Honda brand is affordability, and if Honda came out with some obscenely priced long-range electric car, what does that do for the brand?” Steve Center, vice president of environmental business development at American Honda Motor Co. “Most of our customers would not be able to acquire it.”
          8. Mercedes EQ Power: Mercedes is launching the EQ Power sub-brand this summer, the company announced. All of the next hybrid and EV models will come out under the new brand, which was first revealed at the 2016 Paris Motor Show. Future AMG hybrid models will have EQ Power+ designations. The company has said it will launch 10 battery electric models by 2025 under the EQ umbrella, with the first model expected to arrive in 2019.
          9. 4 more Gigafactories: As a note to investors sent with its quarterly financial report, Tesla said it expects that long-term demand for its electric vehicles require the company to add four more Gigafactories beyond its current Nevada plant. One of the four will be established at SolarCity’s facility in Buffalo, N.Y., which Tesla acquired through the acquisition of the solar power company; the other three will probably be placed overseas such as in Europe and Asia.
          10. VW e-Golf doubles range: Volkswagen of America has gained a 50% increase in estimated range by the U.S. Environmental Protection Agency for the 2017 Volkswagen e-Golf. The new e-Golf can go 125 miles on a single charge, up from 83 miles in the previous model year. A new lithium-ion battery has 35.8 kWh, up from 24.2 kWh. It also received a better EPA fuel economy rating with 126 MPGe in city driving, 111 MPGe highway and 119 MPGe combined. That’s up over 126/105/116 respectively in comparable ratings for the 2016 model in EPA ratings.

            Green Truck Summit and ACT Expo exploring regulatory climate and technology and fuel innovations

            For those interested in staying current on phase two of federal fuel economy and greenhouse gas standards for trucks, and the latest in government incentive programs for clean vehicles and fueling infrastructures, two conferences are coming up that will address these and other significant issues. Green Truck Summit, coming up next month in Indianapolis, and ACT Expo, taking place in early May in Long Beach, Calif., provide great opportunities to stay informed and learn more about the latest in advanced clean technologies and fuels best suited to fleet operators and suppliers.

            Fleets and transport companies operating medium-duty trucks, delivery trucks and vans, work trucks, heavy-duty trucks, and buses, should consider attending both annual conferences – and should take a look at the latest in alternative fuel vehicle offerings in these vehicle classes. It’s an excellent time to see the latest offerings in vehicles and fueling infrastructure in natural gas, renewable natural gas, propane autogas, renewable diesel, hybrid and electric vehicles, and biofuels.

            Stakeholders active in Clean Cities coalitions will be attending in large numbers and can tap into discount offers from both event organizers. For Green Truck Summit, free admission is being offered to NTEA’s Work Truck Show and advance member rates for its Green Truck Summit to Clean Cities coalitions and stakeholders. Here’s the registration form, with a promo code presented by Greater New Haven Clean Cities Coalition. For ACT Expo 2017, Clean Cities coordinators and stakeholders are eligible to receive discounted registration to attend. Coordinators don’t need a discount code to register, and can access this registration portal to select their Clean Cities option and register.

            A panel discussion on the new U.S. Environmental Protection Agency provision, “Delegated Assembly Provisions in GHG Phase Two – A Potential Game-Changer for Multi-Stage Commercial Vehicles,” will take place at Green Truck Summit 2017 on Tuesday, March 14. Matt Spears, center director, heavy-duty diesel standards, EPA; Rob Stevens, VP strategy and engineering, Roush CleanTech; and Ken McAlinden, manager for on-board diagnostics and regulatory compliance, Ford Motor Co., will speak to the issues.

            The Work Truck Show is produced by NTEA – The Association for the Work Truck Industry. It runs March 14–17 at the Indiana Convention Center. Educational sessions begin March 14, and the exhibit hall is open March 15–17. Green Truck Summit general sessions are held March 14, and concurrent educational sessions run March 15–16. In addition to attending March 14 general sessions, Green Truck Summit registrants have the opportunity to choose from Green Truck Summit and NTEA Work Truck Show concurrent sessions on March 15–16.

            Dr. Wilfried Achenbach, senior vice president of engineering and technology, Daimler Trucks North America, will give the 2017 Green Truck Summit keynote address. Other topics to be explored include: creating an efficient path to zero-emission commercial vehicles; renewable fuels analysis and vehicle life cycle impacts; government insights and outlook on future policies; and new products and technology applications for fuel use and emissions reduction. Attendees can also participate in the Work Truck Show’s ride and drive event.

            Attendees at the year’s ACT Expo look forward to seeing the comprehensive vehicle, fueling, and technology exhibit displays and hearing speakers on a wide range of topics. One of the workshops will provide a forum to explore the North American Council on Freight Efficiency’s (NACFE) work encouraging the use of advanced technologies to improve fuel economy for Class-8 tractor trailers. Small group discussions will uncover the benefits and challenges of adopting various technologies, including 6×2 axles, idle reduction devices, electronic engine settings, and automated transmissions.

            For those attending ACT Expo 2017, taking place May 1-4 in Long Beach, register by March 31 for the value registration. You can view the agenda here.

            Here’s a look at alternative fuel vehicle news and announcements recently made on the eve of these two industry conferences………….

            • Urban eTrucks: Mercedes-Benz Trucks is in talks with 20 potential fleet customers in Europe about bringing its all-electric Urban eTruck to potential customers about participating in a European test project. The 124-mile range Urban eTruck will provide fleets with electric trucks designed for short-range commercial deliveries. The company had earlier committed to bringing about 150 of these trucks, including light-duty Fuso eCanter electric trucks, to customers in Europe, Japan, and the U.S. “Following the world premiere in September 2016 at the International Commercial Vehicle Show the customer reaction was outstanding. We are currently talking to around 20 potential customers from the disposal, foodstuffs and logistics sector. With the small series we are now rapidly taking the next step towards a series product. By 2020 we want to be on the market with the series generation,” said Stefan Buchner, head of Mercedes-Benz Trucks.
            • DME-powered trucks: Mack Trucks has started a field test in partnership with Oberon Fuels and New York City’s sanitation department to bring trucks powered by dimethyl ether (DME) to the fleet. The test will use the clean fuel alternative to diesel in a Class 8 Mack Pinnacle tractor with a 13-liter engine for an evaluation run over several weeks, with results to be published by mid-year. Mack and parent company Volvo Trucks have been very interested in DME in the past few years. This will be first commercial test of a DME-powered Mack truck.
            • Long range electric bus: The Proterra Catalyst E2 vehicle series, named for its efficient energy storage capacity of 440 – 660 kWh, recently logged more than 600 miles on a single charge at the Michelin Laurens Proving Grounds in Mountville, S.C. With a nominal range of 194 – 350 miles, the Catalyst E2 vehicles can now serve challenging transit routes on a single charge. Ryan Popple, CEO of electric bus manufacturer Proterra, thinks that by 2020, one third of new fleet bus purchases will be electric and that number will go up to 100% by 2030.
            • Propane school buses: Roush CleanTech is pleased to see three school bus manufacturers offer propane-powered buses – Blue Bird, IC Bus, and Thomas Built Buses. School districts across the country have purchased the buses. Roush formed a partnership with Ford for a 6.8-liter V10 gasoline engine that it converts into an engine that can run on propane by installing up to 170 of its own components. The company also created a partnership with Blue Bird and ships the engines to the bus manufacturer’s plant in Ft. Valley, Ga. Seeing these major bus makers enter the space “helps to legitimize the technology with the school districts,” said Todd Mouw, vice president of sales and marketing for Roush CleanTech. “Instead of taking a year and a half to make to make a sale, it’s taking months.”
            • BYD in the U.S.: Along with building electric buses at its Lancaster, Calif., assembly plant, BYD has been adding several electric commercial trucks to its product offerings. The company’s workforce of 530 people is expected to triple by 2020. Vehicle offerings now include medium-duty step vans; stake-bed, box and refrigerated trucks using BYD’s trucks in the Class 5 through 7 weight segments; Class 6 and Class 8 trash trucks; and Class 8 tractors designed for the short-haul goods movement industry. Class 1 to 4 trucks are in the development phase.
            • Fuel cell buses: The Orange County Transportation Authority in California will gain more than $13 million to add 10 zero-emission hydrogen fuel cell buses to its fleet, OCTA, in partnership with the Center for Transportation and the Environment, will receive most of the grant funds from the California Air Resources Board for the purchase of the buses, a fueling station, and maintenance facility modifications.
            • Toyota’s fuel cell buses: Toyota has delivered the first of its hydrogen fuel cell buses to the Bureau of Transportation of the Tokyo Metropolitan Government that will run on a regular route starting in March, with a second bus delivery that month. The 76-passenger green bus is the first of an anticipated fleet of 100 fuel cell vehicles being deployed prior to the Tokyo 2020 Olympic and Paralympic Games.
            • Tesla heavy-duty truck: A Daimler executive is working on Tesla’s heavy-duty semi electric truck, but it’s on the backburner behind the Model 3 sedan, according to tweets from CEO Elon Musk. Jerome Guillen was hired by Tesla in 2012 after working for Daimler while playing a leading role in its venture with Freightliner through the U.S. Department of Energy’s SuperTruck initiative. In September, Tesla hired several key Daimler engineers who also worked on the same program, including Evan Chenoweth, who had lead designer of Freightliner’s SuperTruck hybrid engine.
            • Nikola semis: Nikola Motors recently unveiled its prototype Nikola One hydrogen-powered electric semi-truck at its headquarters in Salt Lake City, Utah. By that time, the startup company reported having taken 7,300 pre-orders before the prototype was shown. The company said that the heavy duty Class 8 truck would travel 800 to 1,200 miles while carrying a full load of 65,000 pounds before having to stop at a hydrogen fueling station; and once that happened, refilling time would take just 15 minutes.
            • Self-driving truck: Another startup company is coming into the autonomous trucking space. San Mateo, Calif.-based Embark publicly revealed its prototype self-driving truck on February 24. The company, which gained approval from the State of Nevada earlier this year to begin testing its truck on public roads, said its tractor-trailer setup uses a combination of radars, cameras and Lidar (sensors “to perceive the world around it.”

              This Week’s Top 10: GM and Lyft bringing out self-driving Bolts soon, Battles ensue over autonomous vehicle rules

              by Jon LeSage, editor and publisher, Green Auto Market

              Here’s my take on the 10 most significant and interesting occurrences during the past week…….

              1. GM bringing out 1,000s of automated Bolts: General Motors believes enough in the synthesis of electric vehicles, autonomous driving, and shared rides to roll out “thousands” of self-driving Chevy Bolts through its Lyft alliance by 2018. That comes from two sources familiar with the matter who weren’t identified. GM’s Maven carsharing business unit is likely to be involved in managing some of the automated Bolts as well, sources said. That would make for the largest fleet deployment of self-driving vehicles ever seen, as Waymo, Uber, Ford, Fiat Chrysler Automobiles, and others prepare for commercialization of the nascent technology. Analysts think that the fusion of EVs, AVs, and mobility will be taking place in increasingly crowded, polluted cities around the world. Automated EVs can be recharged efficiently and cheaply, are much easier and cheaper to maintain than ICEs, and can converge more logically with computers already driving AVs. Human drivers are expected to deliver most of the trips for Lyft, Uber, Maven, Zipcar, and others in the near future, but autonomous vehicle trips are thought to provide a solution to mobility services getting hit with peak demand during periods when there aren’t enough drivers out there and fares are known to skyrocket.
              2. Battles ensue over future of autonomous vehicles: Thorny legal issues are being delved into as autonomous vehicle technology strides forward. Waymo, Uber, a few automakers, and industry groups are working against potential new state laws that would only allow automakers to test autonomous vehicles in those states. Michigan started it all off with a bill that was given input from General Motors limiting access to state testing to automakers. The state did revise the bills wording of “motor vehicle manufacturer” based on suggestions by Uber and Waymo to include companies developing and testing self-driving systems. Tennessee, Georgia, Maryland, and Illinois are reviewing bills in line with Michigan’s first version limiting access to automakers, Automotive News reports. Last week, executives from Toyota, General Motors, Volvo, and Lyft urged the U.S. Congress to unify the patchwork of state laws governing testing and development of self-driving cars. One of the problems has been how much the regulatory structure varies by state, with California wanting a more careful, phased in testing and adoption procedure and Michigan supporting fully autonomous vehicles in the near future. Ford Motor Co. has found that gradual, semi-autonomous vehicle testing hasn’t been the way to go; with several Ford engineers falling asleep during test runs. The rides have been relaxing enough for engineers to fall asleep and take away the human safety factor. Ford agrees with Alphabet’s Waymo self-driving car division and a few other automakers that Level 5 fully autonomous is the way to go; there are also several other automakers who disagree over that one and think vehicles should stay at Level 3 for now and complete extensive testing.
              3. Fighting over fuel economy standards: Automakers and environmental groups are prepared for a long-term skirmish over the future of the 2025 federal fuel economy and emissions standards. Tension increased after a recent letter was sent o President Donald Trump signed by 18 auto industry executives asking him to reinstate a U.S. Environmental Protection Agency review of fuel economy regulations through 2025. Automakers say that the U.S. Environmental Protection Agency unfairly cut the public comment period short before the Obama administration left office. Automakers had been sending out warning to the administration on job loss and heavy costs connected to manufacturing and marketing these fuel efficient vehicles; when the public has been showing more interest in SUVs, crossovers, and pickups. Environmental groups have been threatening legal action if the rule gets weakened.
              4. Some Nissan dealers love the Leaf: While the Nissan Leaf has been seeing softening sales in the U.S. in the past couple of years, some markets are very strong for the electric car. It depends a lot on the dealers. In Seattle, the Leaf is outselling the brand’s volume-leading car, the Altima. In Kansas, Delaware, New Jersey, Minnesota and Connecticut, Leaf sales have risen by double and triple digits in the past few months, according to Brian Maragno, Nissan’s director of electric vehicle marketing and sales. Boulder Nissan loves the Leaf and plans to sell a lot more them; other dealers are wondering what’s next for Nissan EVs in the pipeline. Ride and drive events work well for Boulder Nissan. “The Leaf now accounts for 80 percent of the new cars we sell here,” Ted Christiano, executive manager of Boulder Nissan in Boulder, Colo. “We’re doing a great business with them.”
              5. Prius Prime sales: The Toyota executive considered to the “father of the Prius” when it was launched 20 years ago thinks that the plug-in hybrid will hit the million unit sales mark faster than the original hybrid version. Toyota chairman Takeshi Uchiyamada said he expects Prius plug-in hybrids to pass the one million unit sales mark in less than 10 years, which is how long it took for the hybrid Prius to reach that sales benchmark; that will include the original Prius Plug-in Hybrid and the new Prius Prime. The company expects to sell about 60,000 Prius Primes a year, with more than half of these vehicles being sold in Japan. The original Prius plug-in hybrid only had about 75,000 units sold from its launch in 2012 to its closure in 2015. “Environmental awareness has become a bigger issue today than it was 20 years ago, and demand for environmentally conscious products has increased,” Uchiyamada said.
              6. Greenest and Meanest: The Hyundai Ioniq Electric won the highest-ever green car score in American Council for an Energy-Efficient Economy’s annual Greenest vehicle award, with the BMW i3 coming in a close second. Each car is given a green score by ACEEE based on an environmental damage index, which estimates pollution coming from vehicle manufacturing, the production and distribution of fuel that powers the vehicle, and vehicle tailpipe emissions. The Mercedes-Benz AMG G65 was named the Meanest vehicle on this year’s list, tying with the Chevrolet G2500 Express passenger van; these vehicles are considered to be the least friendly to the environment.
              7. Advanced biofuels: A new Lux Research study sees first- and second-generation biofuels bowing out to newer low-carbon fuels. Biodiesel is projected in the study to lose 26 percent market share by 2022 due to the rapid growth of low-carbon and high-performance drop-in biofuels such as renewable diesel. The study predicts advanced biofuels will nearly double in five years to 9.6 billion gallons per year. “A new era of technology commercialization has brought the global biofuels industry to the cusp of a tipping point, as new facilities target low-carbon and high-performance drop-in biofuels,” said Runeel Daliah, Lux Research associate and lead author of the report.
              8. Midwest coalition: A new group called Evolve will bring together supporters of electric vehicles from Illinois, Indiana, Michigan, Minnesota, North Dakota, Ohio, and Wisconsin. The American Lung Association and other organizations are joining together with these states to promote the campaign. Evolve is also partnering with eight regional Clean Cities coalitions, which will be hosting more than 200 events across the Midwest states starting this year through 2020.
              9. Volvo electrified launches: Volvo will be bringing out a three-cylinder engine plug-in hybrid, a battery electric vehicle (its first production BEV), and a new 48-volt micro hybrid in 2019. This new three-cylinder PHEV will feature a 9.7-kilowatt hour lithium ion battery in the tunnel, an electric air conditioning compressor, a seven-speed dual-clutch transmission, and a 55-kW electric motor. Estimated battery-only range will be about 31 miles.
              10. Smart electric cars: Mercedes-Benz USA has announced that Smart cars is becoming an electric-vehicle only brand. For the U.S. and Canada markets only, the company will stop selling the gasoline-powered Smart ForTwo coupe and convertible later this year. The Smart lineup will consist exclusively of the all-electric Smart electric-drive coupe and cabrio. “Developments within the micro-car segment present some challenges for the current Smart product portfolio,” Dietmar Exler, CEO of Mercedes-Benz USA, told dealers in the letter, which was obtained by Automotive News. “Therefore, with the launch of the fourth-generation Smart ForTwo electric drive this summer, the Smart lineup will consist exclusively of the zero-emissions Smart electric-drive coupe and cabrio in the U.S. and Canada.”

                India seeking solutions to oil imports, power blackouts, and polluting vehicles

                India offers a look at steep challenges and vast opportunities for clean transportation and energy from the fastest-growing country in the world.

                India is expected to soon have the world’s largest population at 1.25 billion people. The United Nations predicts India’s population will be larger than China’s by around 2030. Energy demand and oil consumption are expected to reach record levels as an increasing urban population with rising income has propelled greater use of cars, trucks, and motorbikes.

                And plenty of electricity consumption, as the infamous blackout demonstrated. The July 30, 2012 blackout affected over 300 million people and was briefly the largest power outage in history in terms of the number of people affected. It’s a country where millions of workers are moving to cities for jobs, renting apartments and buying houses, and blowing out power stations through turning up air conditioners on hot and muggy days.

                India has been dependent on coal for electricity, and oil imports for its transportation.

                India’s auto sales, including commercial vehicles and motorcycles, rose 9.2% last year to 21.9 million, according to the Society of Indian Automobile Manufacturers. It’s the fifth largest auto market in the world. The country needs a lot of oil to fuel its fleet. Oil consumption set a record by growing 11% last year. Demand for gasoline jumped 12% last year to 23.7 million tons, while diesel demand grew 5.6% to 76.7 million tons.

                Ever-increasing urban air pollution and the government’s commitment to reduce carbon emissions are drivers for change. India has also been quite concerned over its dependence on foreign oil imports, mostly from the Middle East. Neighboring nation China has very similar concerns. More than 80 percent of India’s crude oil demand is being met through foreign oil suppliers.

                Along with air pollution, climate change, and the geopolitics of importing oil, India faces capital intensive road and infrastructure issues. Poorly developed roadways and infrastructure will be another hurdle for the Indian government – and Indian and foreign automakers – to clear for vehicle transport to become more viable.

                India’s goals include more domestic oil production; electrified transportation; liquefied natural gas for commercial vehicles; compressed natural gas for light-duty vehicles; and renewable energy replacing coal. The nation would also like to see its rail system expand.

                Like China, India has put in place incentives to get automakers to build plug-in electrified vehicles in the country, and to import their PEVs from elsewhere. India’s renewable energy ministry launched a program in 2010 that included a reduction of battery import duties from 26% to 4%, and consumer rebates of up to 20% off the window sticker price.

                The PEV market could offer huge potential in coming years for Indian and foreign automakers. Finding a charging infrastructure will also be an issue blocking car shoppers, as will be cost, and trying out a new technology that they have little experience with.

                Maruti Suzuki India Ltd., a subsidiary of Suzuki Motor Corp. of Japan, is India’s largest provider of passenger vehicles. Tata Motors and Mahindra & Mahindra Ltd. are two leading automakers in India, with other Indian commercial vehicle and motorcycle manufacturers doing well in sales in that market. Korean maker Hyundai has been another leading foreign import company in India along with Suzuki’s subsidiary. An Indian government program called “Make In India” has been helping the auto industry grow and create jobs in India.

                Mahindra & Mahindra’s electric vehicle division has been selling its e20 small electric car in the country, and its eVerito electric sedan, but there are few import PEVs to choose from. Mahindra Electric just introduced a new electric car, e20Plus. The challenge for Mahindra Electric has been selling the idea of idea of owning and driving an electric car, according to Mahesh Babu, chief executive officer. Making people understand the need for “sustainable mobility” has been a very important point to make, the Mahindra Electric chief said.

                Babu sees the need for developing an ecosystem with adequate infrastructure to encourage consumers to try out the new technology.

                The company had increased its production capacity to 5,000 vehicles a year, and would like to sell its cars globally. As for now, meeting the aspirations of Indian customers has been challenging enough, he said.

                A government program, “Make In India” is considered to be helping the automotive sector grow robustly and create jobs for locals.

                While there’s interest from India’s national government to see more electric vehicles come to its streets, its product selection and sales volume pales in comparison to Asia’s leading auto markets, China, Japan, and Korea. Tesla will be opening up in India by this summer, and Mahindra has been the EV market leader so far.

                Maruti Suzuki, a subsidiary of Suzuki Motor Corp. of Japan, has reported selling 100,000 hybrid variations of its vehicles as a way for consumers to find fuel efficiency, reduced running costs, and lower carbon emissions. The automaker has about 50% of the overall market share in the Indian market.

                Tesla, Inc., is taking its global outreach very seriously this year. Tesla’s website says that outside the U.S, the company has a presence in Mexico, Canada, Europe, Australia, China, Hong Kong, Japan, and Taiwan. The electric automaker will soon be adding India, Dubai, and South Korea to its list.

                CEO Elon Musk on February 7 tweeted that Tesla is hoping to open a store in India during summer 2017. Musk has been thinking about entering the Indian market for a few year now; in 2015, he mentioned setting up a Gigafactory in that country.

                Indian Prime Minister Narendra Modi and his delegation toured Tesla’s California corporate campus in fall 2016. Tesla was invited to be a part of India’s strategy to become a global center for renewable energy leadership. Modi was particularly interested in Tesla’s Powerwall energy storage product as part of its own renewable energy campaign. The country has a serious problem to overcome in distributing energy evenly, and affordably, across the country and Powerwall could help accomplish the government’s goals.

                One thing to keep in mind is that vehicles built for the Indian auto market are similar to the UK market – steering wheels are placed on the right side of the vehicle. Tesla’s manufacturing plant in Asia, which is expected to be located in China, will have to accommodate that need.

                Tesla will be entering the Middle East to sell and service its electric vehicles through online sales and a retail store in Dubai. Tesla said that it’s opening a store at the Dubai Mall. A Tesla service center will be opened on Dubai’s Sheikh Zayed Road in July. At a Dubai press conference, Musk recently said that a store and service center will open in Abu Dhabi in 2018, with plans by the company to expand to Bahrain, Oman, and Saudi Arabia.

                Tesla is preparing to enter the Korean market in May following the South Korean government’s approval, and will establish Tesla service centers. The service centers will also offer Superchargers and will oversee Tesla autonomous driving features. Tesla went into talks last year to set up a Tesla store at what has become South Korea’s largest shopping mall, Starfield Hanam, which opened in September.

                JSW Group, an Indian power and metals conglomerate, will be building electric cars by 2020; that’s coming from expectations the India government will further promote PEVs and falling battery prices will make them more affordable. The Mumbai-based corporation will set up the PEV business on its own and initially buy batteries from suppliers, Chairman Sajjan said in an interview. The company will consider setting up a joint venture for making batteries in the longer term.

                The Indian government has set a few goals to reduce oil imports, improve air quality, and reduce carbon emissions. Objectives include more domestic oil production, liquefied natural gas for commercial vehicles, compressed natural gas for light-duty vehicles, and renewable energy replacing coal. Strong demand for oil and fuel production has led Indian refiners to spend billions of dollars in recent years to meet market demand, especially in nationalized companies. State-run Indian Oil Corp. has been expanding its existing refineries across the country.

                India is seriously considering LNG as a replacement for oil. Indian conglomerate Tata is bringing long-distance trucks powered by LNG as a replacement to diesel-fueled trucks to the market. Public transport, taxis, rickshaws, and quite a few private cars have been converted to compressed natural gas (CNG), which is cheaper and cleaner than diesel or gasoline. The country is looking for economic stability and environmental gains from reducing its dependence on oil and coal.

                  VW establishes $2 billion Electrify America subsidiary as part of emissions settlement

                  Volkswagen’s settlement of the its “dirty diesel” scandal took a step forward last week with formation of the Electrify America LLC subsidiary. The new business unit, led by longtime executive Mark McNabb, will carry out $2 billion in investments in zero emission vehicles, infrastructure, and public outreach over the next decade. As part of the settlement, VW has been directed to make its outreach and education programs “brand neutral,” and not become VW electric vehicle marketing campaigns; and, its charging stations are to be accessible to all plug-in electrified vehicles.

                  The $2 billion settlement presents a big opportunity for stakeholders in the field to find funding and support for their own contributions of PEVs, fuel cell vehicles, alternative fuel vehicles, charging and fueling infrastructure, and public education and outreach. It’s all part of the automaker’s settlement last fall on excess diesel emissions from nearly 600,000 U.S. vehicles; it requires that $800 million be spent in California and $1.2 billion be invested throughout the rest of the U.S. VW has already agreed to spend up to $25 billion in the U.S. on diesel emissions cheating settlements to address claims from owners, regulators, U.S. states, and dealers; and has offered to buy back about 500,000 polluting vehicles. The German automaker has other settlements to reach in Europe and Asia.

                  It’s important to follow, as many leaders in the field have indicated, and here are the latest developments…………

                  • Timing: Volkswagen Group of America will accomplish its 10-year mission over four 30-month investment cycles. The four $500 million investment cycles must receive approval from the California Air Resources Board and the U.S. Environmental Protection Agency.
                  • 22 deadline: For those institutions submitting proposals, that process began in December. Initial ZEV Investment Plans are being shared with the U.S. Environmental Protection Agency and the California Air Resources Board by February 22. The first 30-month investment cycle received proposals through January 16. Electrify America says that “noteworthy concepts received now could be included in our plans for subsequent investment cycles.”
                  • Chargers: Construction of PEV chargers will start in 2017, in about 15 metro areas with 300-plus stations at Level 2 or DC fast chargers in the 50 to 150 kW range. A cross-country network of fast chargers will be set up at 200 or more stations, and these may include multi-unit dwellings, workplaces, retail locations, and community centers including municipal parking lots.
                  • Phase 2 and beyond: Following the first cycle, Electrify America says that other “promising ZEV initiatives, such as hydrogen fueling stations or national ZEV car-sharing or ZEV ride-sharing services, will be considered in later investment cycles.”
                  • Outreach: Public awareness and outreach will be carried out through information on charging availability, the benefits of electric mobility promoted through various methods including ride and drives, multi-channel advertising, website, social media, and educations programs.
                  • Future concepts: A Green City initiative will be launched in a California municipality to pilot future concepts supporting sustainable mobility, a ZEV-based shuttle service using PEVs or fuel cell vehicles, PEV-based carsharing services, or ZEV transit vehicles.
                  • VW executive: Mark McNabb, has served as executive vice president and COO for EVP and for Volkswagen of America. He has overseen the diesel settlement program and will continue to do so in his new role as head of Electrify America.
                  • California sales: While VW is to remain brand neutral in the campaign, California wants the company to sell more PEVs in the state. In December, California said VW would be rolling out three new PEVs in the state by 2020, including an SUV. The automaker also agreed to selling at least 5,000 PEVs annually in California through 2025.
                  • I.D. electric vehicles: VW has been rolling out its I.D. family of all-electric vehicles since the Paris Motor Show last fall showcasing a compact-sized hatchback. That was followed later by an electric SUV and a microbus MPV. These EVs are said to be coming out between 2020 and 2022. Overall, VW has said it will launch 30 all-electric vehicles by 2025 through its brands.
                  • Hot topic: How this $2 billion will be spent has become an important issue to follow at industry conferences and through information resources. It’s a topic being discussed now at Energy Independence Summit 2017 in Washington, D.C, which goes through February 15. It will also be an issue discussed during ACT Expo in May 2017 in Long Beach, Calif.
                  • Reaching out to state legislators: National Propane Gas Association and Propane Education & Research Council are working with state associations for development of mitigation plans at the state level; NPGA is relying on its extensive grassroots operation to advance this initiative. There are still several steps that need to take place before funding is made available, but the momentum is already building in the states to develop mitigation plans, according to NPGA. States are being given funds to replace older, dirtier diesel vehicles with clean vehicles. Propane has been successful in replacing diesel fleets, and other alternative fuels and clean vehicles are being considered, as well.
                  • Charging fairness: Charging infrastructure companies have asked regulators to take give fair competition a chance – so that VW doesn’t build and install its own chargers or favor one or more suppliers over others in the market. ChargePoint, which operates the largest U.S. network of charging stations, requested an intervention in federal court in October, stating that the settlement could have an “enormous, and if not modified, potentially disastrous” effect on the market. Chargepoint was one of 28 companies and organizations that sent a letter to the U.S. Department of Justice calling for an independent regulator to ensure VW’s spending doesn’t take away competition in the market.

                    This Week’s Top 10: Prius drops from hybrid top spot, Super Bowl ads not so green

                    by Jon LeSage, editor and publisher, Green Auto Market

                    Here’s my take on the 10 most significant and interesting occurrences during the past week…….

                    1. Hybrid and EV sales: The Toyota Prius dropped out of the top spot for the first time in January, with the Ford Fusion Hybrid finishing first in U.S. sales. The Prius hybrid drop goes beyond the usual sales decline at the time of year, dropping 28.1% in sales from January 2016, according to HybridCars’ Dashboard. The Fusion has been doing well lately, also finishing in the third spot in the plug-in hybrid category for January. The Prius Prime plug-in hybrid had a good month, finishing ahead of the Toyota Model S in sales. The plug-in vehicle market leader was the Chevy Volt, with 1,611 units sold in the U.S. last month. Another interesting result was seeing the new Chevy Bolt all-electric car come in at 1,162 units sold, right behind the Model S, which had 1,200 units sold. Overall, plug-in sales were down 52.4% from December but up 65.1% from the previous year; hybrids were down 32.3% from the previous month and up 7.6% from a year ago.
                    2. Super Bowl ads: While the controversial Trump administration policy on immigration had its share of references in Super Bowl commercials, green car spots were a bit light this year. The game started with the long “2017 Ford Go Further” ad showing people getting stopped from what they want to do. It was full of mobility services Ford is getting into including bike delivery and Chariot van shuttles, but it only gave a brief nod to one of its electric vehicles being charged. Toyota’s Mirai fuel cell vehicle saves the life of a poor daisy being choked to death by fossil fuel pollution. Comic Melissa McCarthy gets to use the 2017 Kia Niro Eco hybrid to drive forward and help save whales, pine trees, ice caps, and rhinos – each time narrowly escaping death in painfully hilarious outcomes. “It’s hard to be an ecowarrior, but it’s easy to drive like one,” says the Kia voice over.
                    3. Job loss from federal regs: Ford CEO Mark Field’s claim that going forward on the Environmental Protection Agency’s finalized fuel economy and emissions rules will cost the auto industry a million jobs was overstated and inaccurate, according to analysis of the data. During a speech last month at the NADA conference in New Orleans, Fields said that a few studies had shown these results; more recently, a Ford spokeswoman clarified that the analysis came from one report by Center for Automotive Research. The huge job loss was one of several scenarios that the report delved into, with another possible scenario finding that about 144,000 jobs could be created in the auto industry from the federal rules. For the potential million jobs lost, only 322,000 jobs would be in the automotive sector, according to the study. The remaining 805,000 jobs lost would indirectly relation to vehicle manufacturing.
                    4. Fleet lawsuit against VW: Volkswagen Group is being sued by a company that had acquired a large number of VW diesel vehicles drawn into the emissions “cheating” scandal. German fish distributor Deutsche See sued the automaker for misrepresenting a fleet of vehicles it leased as environmentally friendly. Duetsche See leases about 500 vehicles from VW, and said it had been able to reach an out-of-court settlement. This is the first corporate customer to sue in Germany. The automaker faces several lawsuits from VW owners, regulators, states, and dealers, with many of them coming from U.S. class-action suits.
                    5. Ioniq coming to America: For those wondering when the first electrified Ionics will be released by Hyundai, a company executive said that will happen this week. Mike O’Brien, vice president-product planning for Hyundai Motor America said that the hybrid and all-electric variations are coming to the U.S. sometime this week. The plug-in hybrid version will roll out in September. The automaker sees the Ioniq sedan, especially the hybrid, playing a big part of its green vehicle strategy. The Ioniq hybrid’s 58 mpg rating should make it competitive with the Toyota Prius.
                    6. BYD electric buses: Major Australian airport ground transportation provider Carbridge has placed orders for 40 more all-electric buses from BYD. The contract was signed three months after the first BYD Electric Blu bus made its commercial debut at Sydney Airport. The Electric Blu can carry up to 70 passengers and has a range of 400 kilometers (248.5 miles) per charge. “We are the first Chinese company to crack Australia’s electric bus market, having come a long way since the trial of our electric buses at the country’s busiest airport in Sydney in late 2014,” said Liu Xueliang, General Manager of BYD’s Asia Pacific Auto Sales Division.
                    7. Tesla owners get Ontario incentive: Owners of fully loaded, expensive Tesla Model S and Model X vehicles can now tap into a revised electric vehicle rebate in the Canadian province of Ontario. Consumers are now eligible for the rebate that can go up to $14,000. A cap has been taken off for vehicles that can go over $150,000 in price, such as a Model S P100D.
                    8. Musk not quitting Trump panel: South African-born U.S. citizen, and Tesla CEO, Elon Musk said he won’t be following Uber CEO Travis Kalanick in quitting President Trump’s economic advisory panel over the immigration issue. Musk claims that he managed to get the immigration ban discussed “first and foremost” on the meeting agenda where it wasn’t even going to be mentioned at all; and that he raised the climate change issue once more. Musk and General Motors CEO Mary Barra were scheduled to meet with Trump at forum on Friday, according to Automotive News. The two main topics were said to be immigration and corporate taxes.
                    9. NGV annual report: Check out NGVAmerica’s annual report for the latest on legislative policy issues and how to make the case for the benefits of using natural gas vehicles. One bipartisan bill, if passed, would increase cost savings for using heavy-duty NGVs. The association reports that “the Natural Gas Tax Parity Act of 2016 (S.3372 and HR 6111) would provide a permanent 35 percent exclusion from the 12 percent FET for heavy-duty trucks powered by natural gas. This would result in an average tax savings of $7,000 per heavy-duty truck. NGVAmerica worked closely with Sen. Cassidy and Rep. Ryan to write this legislation that would help level the playing field for natural gas among other transportation fuels.”
                    10. LCFS summit: The agenda is available on the Clean, Low-Carbon Fuels Summit hosted by Calstart to be held Feb. 27-28, 2017, in Sacramento, Calif. One panel will include a briefing on the California Public Utilities Commission “SB 350” proceeding, which has recently received proposals by the state’s three largest utilities to collectively invest more than $1 billion in charging infrastructure, with a focus on medium and heavy duty vehicles. A roundtable for truck and bus fleet operators will focus on Renewable Natural Gas (RNG) distributors and farms and other businesses that are sources of biogas. Speakers will include Henry Stern, State Senator, California State Senate; Mike Britt, Director of Maintenance & Engineering, UPS; Richard Corey, Executive Officer, California Air Resources Board; Karen Hamberg, Vice President of Natural Gas Industry and Government Relations, Westport; and Janea Scott, Commissioner, California Energy Commission.