September 2014 - Page 2 of 2 -

Suggested theme for marketing success in clean transportation: Pragmatism

Pragmatism: (noun)

a reasonable and logical way of doing things or of thinking about problems that is based on dealing with specific situations instead of on ideas and theories

–Merriam-Webster

Advanced, alternative fuel vehicles face the challenges of any new technology – overcoming ignorance and resistance to change. The past four years have witnessed positive, impressive numbers in US sales of electric vehicles (EVs) and breakthroughs in new vehicles and fueling infrastructure for natural gas, propane, and hydrogen. It is going to take a while to see sales increase substantially, and charging and alternative fueling stations to become commonplace.

All that being said, there are green vehicles seeing sales growth; and solid steps are being taken in government and corporate policies embracing alternative fuels and clean transportation. Fleet managers are bringing in more alternative fuel vehicles and doing the numbers on lifecycle cost comparisons; consumers are looking into deals on EVs, or trying out their first diesel, hybrid, or natural gas vehicles (NGVs). Corporate sustainability programs are including clean transportation targets more often lately. They seem to value clean transportation meeting a few of their goals – reducing emissions and petroleum consumption, offering more energy independence, and contributing to domestic economic gains. They do see it as a pragmatic alternative.

What seems to be working? Pragmatic messages seem to be clicking with shoppers and buyers:

You get to drive by gas stations while smiling big – the original Nissan Leaf and Chevrolet Volt ads played on these messages, and you can still see it in TV commercials for new EVs.
You could also pull up into a gas station and have more options – buying less fuel, choosing biodiesel or ethanol, and eventually even more – hydrogen, methanol, natural gas, and maybe even an EV fast charger; as mentioned in the upcoming film, “Pump.”
Lifecycle ownership cost savings – this big question is still being worked out. What does it cost for a fleet to convert over to natural gas or propane compared to gasoline and diesel engine vehicles? How long until the acquisition cost evens out? There’s always the question of how long incentives will last, how many charging and fueling stations there are – or the cost of having one installed on your property. But it is a tipping point that’s taken seriously in electric, CNG, propane, hybrid, and flex-fuel vehicle options for fleets and consumers. Hydrogen fuel cell vehicles have a big challenge here, but their pricing is starting to come down; and per gallon equivalent pricing on hydrogen will be released in the near future by government agencies. Rising gasoline prices always help tip the scale to green vehicle, but the prices are probably not going to be spiking up substantially anytime soon. Finding other analytics and messages makes a lot of sense.
Reducing greenhouse gas/carbon emissions – that’s becoming the widely accepted global tracking standard, whether or not the policy is based on the climate change/global warming issue or if its primarily a logical, accepted standard. It’s becoming the broad standard that encapsulates air pollution, smog, carbon, and other pollutants. The advantage coming from GHG/carbon emissions as the standard is that you can reduce your emissions several ways – purchasing EVs, natural gas, or other alternative fuel vehicles; buying more fuel efficient vehicles and hybrids; driving less and using carsharing and ridesharing services; using stop-start technologies and reducing driver idle time; or some combination of methods. That’s good news for those concerned about emissions, or who are being directed by their employers to reduce vehicle emissions.
Connectivity to mobile devices, dashboards and WiFi, and to “the internet of things.” A good example being Android Auto, which offers a simple and intuitive interface, integrated steering wheel controls, and powerful new voice actions designed to minimize distraction and keep the driver focused on the road. Automakers and technology suppliers are integrating safety systems that are considered a stepping stone toward autonomous vehicles. It also brings more simplicity to drivers. They can find charging stations, NGV stations, schedule maintenance, and use carsharing and ridesharing services – all from their mobile device integrated into their dashboard.
Economic development and job creation. If you’re looking for perspectives on this issue, ask a venture capital executive; or a good number of automotive executives, military officers; scientists, college students, and young professionals. Many people see clean transportation as a pragmatic, win-win scenario, meeting economic and environmental targets. There are significant job announcements, as reported by Environmental Entrepreneurs. Another sustainability organization, Ceres, has always supported federal mpg standards as a vital catalyst for reducing fuel consumption and emissions and creating more jobs.
The US has a strong platform for capitalizing on technology innovations – with examples being Tesla Motors and its Model S and the “Gigafactory;” General Motors research centers, Ford’s personal mobility campaign; automaker sustainability and water conservation campaigns, such as Ford’s Oakville Assembly plant sending zero waste to landfill; and EVs, hybrids, NGVs, propane, hydrogen, and advanced biofuels seeing increasing signs of acceptance and support.

Cellulosic ethanol plant brings back hope for biofuels supporters

The grand opening of one of the world’s first cellulosic ethanol production facilities has given hope to the biofuels industry and to supporters of biofuels as an alternative to oil. The biofuels industry faces imminent changes from the US Environmental Protection Agency (EPA) on the Renewable Fuel Standard that will reduce production of ethanol and advanced biofuels. The EPA recently sent its revised rules to the White House for review and approval. A new advanced biofuels plant in Iowa shows an industry weathering diminishing government and public support, while also taking steps forward with investors and regional markets.

POET-DSM Advanced Biofuels, LLC, a joint venture between Royal DSM and POET, LLC, on Sept. 3 hosted the grand opening of “Project LIBERTY.” The plant converts baled corn cobs, leaves, husk, and stalk into renewable fuel at the cellulosic ethanol facility in Emmetsburg, Iowa. Those present at the ribbon cutting included His Majesty Willem-Alexander, King of the Netherlands, US Secretary of Agriculture Tom Vilsack, Iowa Governor Terry Branstad, and thousands of guests.

At full capacity, the plant will convert 770 tons of biomass per day to produce ethanol at a rate of 20 million gallons per year, later ramping up to 25 million gallons per year. Fuel from Project LIBERTY represents a greenhouse gas reduction of 85% to 95% over gasoline. It will consume 285,000 tons of biomass annually from a 45-mile radius of the plant. The plant employs more than 50 people directly, and biomass harvesting is creating another 200 indirect jobs in the community. Hundreds of people were involved in the construction of the plant.

“Some have called cellulosic ethanol a `fantasy fuel,` but today it becomes a reality,” said Jeff Broin, POET founder and executive chairman. “With access now to new sources for energy, Project LIBERTY can be the first step in transforming our economy, our environment and our national security.”

POET considers the cellulosic ethanol facility to be a huge step forward in the wider adoption of biofuels, both in North America and around the world. “It is also a victory for the Renewable Fuel Standard (RFS), which prompted increased investment into advanced biofuels that accelerated development of this new technology,” according to the press release.

The cellulosic ethanol plant isn’t the only biofuels investment seeing significant investment support lately. The challenges are there for regaining support for biofuels in the US. Freedonia has addressed the economic issues in its latest World Biofuels Report – which expects global biofuels to top 115 million metric tons in 2018, and will be up from 96.30 in 2013. As for the US, Freedonia has a less optimistic vision: “Healthy growth will be experienced in all regions with the exception of North America, where conflicting government regulations and waning public support in the United States — the world’s largest market for biofuels — will limit advances.”

“Hands off the Steering Wheel” white paper on driverless cars launched

Driverless cars – also known as self-driving cars and autonomous vehicles – have recently become a heated topic in the US. In the wake of Google’s launch of a test project featuring its own self-driving pods, debate has gone viral on the internet. There’s fear of privacy being violated, hackers taking over control of the car, and loss of personal freedom behind the wheel. On the other side, there’s been much enthusiasm for the technology solving huge problems coming from car crashes and worsening traffic congestion and gridlock.

The polarized debate calls up two images – computerized artificial intelligence system HAL 9000 becoming an antagonist murderously attempting to take control of the spaceship in “2001: A Space Odyssey;” and there’s KITT, a black Pontiac Firebird Trans Am that safely transports do-good action hero Michael Knight in “Knight Rider.” A new white paper on the subject, “Hands off the Steering Wheel – The state of autonomous vehicle government policies, testing projects – and when these vehicles will likely make it to roads,” explores these polarizing issues and what to expect in coming years.

Since Google’s announcement in May of this year, there’s been a wave of debate and analysis over this ground-breaking technology and when it’s likely to show up in large numbers on our roads. Beyond Google, Nissan and other car and truck makers are making bold statements about it, and studies have been released this summer sharing perspectives from consumers and transportation and technology experts. Highlights of this white paper include details on states that have adopted autonomous vehicle testing programs and policies, along with where it stands in the US government and other nations; and the role Google has played in self-driving cars being tested in states, and the company potentially entering the automotive business with its own car. General Motors has played a key role in the history of autonomous vehicles dating back to its 1956 short movie, “Key to the Future.” Technology suppliers like Cisco and Continental are also playing an important role in developing these autonomous vehicle systems.

“Hands off the Steering Wheel” also presents the latest in academic, engineering, and policy studies on the subject matter from organizations including IEEE, SAE, and Navigant Research. Public opinion trends are explored that will likely influence autonomous vehicle resistance and support in the near future.

The white paper was written by Jon LeSage, editor and publisher of Green Auto Market, and media consultant at LeSage Consulting. The consulting practice creates content, marketing communications, and market intelligence in clean transportation, advanced and autonomous vehicles, and urban mobility. Green Auto Market delves into these issues on a weekly basis.

“Hands off the Steering Wheel” digs deep into the subject matter that readers are very passionate and opinionated about – and need to stay current and well informed on where it all stands. While the characters of HAL 9000 and KITT come from science fiction, the topic of self-driving, autonomous vehicles has lately been stirring more passionate comments on social media, blogs, and editorial think pieces than anything else seen for years in the automotive and transportation space. Click here to read more about the white paper.

This Week’s Top 10: California Gov. Jerry Brown gets three EV bills sent to his desk, Natural gas trucks behind diesel with fleets

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…….

California Gov. Jerry Brown has three bills to sign before the end of September that will affect electric vehicles (EVs) and the charging infrastructure. Wealthy people over a certain income level would have their $2,500 state EV rebate phased out; another bill would increase the number of carpool-lane permits for solo drivers using plug-in hybrid cars. The third bill addresses multi-unit dwelling chargers; the bill would prohibit landlords from stopping renters from installing electric car chargers as long as the tenant pays for installation. California has been the leading market for EV sales in the US – about one third of EVs sold in America are sold in California. The rebates have been a key incentive for people in California, along with carpool lane access stickers. California’s rebates of up to $2,500 for EV buyers have been instrumental in the state hitting its target of having 1.5 million zero emission vehicles on its roads by 2025. Changing its incentive program comes from pressure felt in Sacramento that the rebates are just a windfall for the wealthy. While there’s a strong market for luxury EVs like the Tesla Model S, it’s a limited niche market; consumers at average income levels will need to see state and federal incentives, and have been responding well to automaker incentives like discounts and attractive leasing deals.
Natural gas vehicles are not winning the natural gas vs. diesel fight in commercial vehicles, according to a Wall Street Journal feature. About 10,480 natural gas heavy-duty trucks should be sold this year in North America, down from the 16,000 initial forecast. Fleets are spending about $150,000 for heavy-duty trucks and an additional $50,000 for natural gas versions; that’s taking about four years to pay off. Saving $1.60 to $1.70 for the gas equivalent of diesel is appealing, but the acquisition cost differential and scarcity of NGV fueling stations in some parts of the country are tipping the scale toward diesel. Diesel fuel and diesel-powered trucks are also gaining more interest and credibility with fleets, as well.
Tesla Motors’ stock price reached a record level Friday after closing a charging station network deal in China. The shares closed at $269.70, up 2.2%, after reaching a high point of $271.40 during the day. Tesla began selling its Model S electric sedan in China in April, and just signed an agreement with China United Networks Communications Corp., the second-largest mobile phone company in China. The companies will build 400 charging stations in 120 cities at China Unicom outlets; and 20 Supercharger fast-charger stations. Both Tesla and BMW are now adding public chargers in China.
Kia is going with open-standards for DC fast-chargers as it rolls out its 2015 Kia Soul EV at select Kia dealerships on the west coast. Greenlots, a global provider of open standards-based technology solutions for electric vehicle (EV) networks, is partnering with Kia Motors America and ABB, a global leader in power and automation technologies, to offer these DC fast-chargers. The partnership illustrates the increasing role interoperability among EV charging technology networks plays in meeting pricing flexibility demands from automakers and providing a seamless experience for EV owners, Greenlots says.
The Ram 1500 EcoDiesel scored big, winning Consumer Reports’ top spot among full-size light-duty pickups and beating out Ford, GM, Toyota, and Nissan. The Ram 1500 EcoDiesel earned high marks for best-in-class fuel economy at 20 mpg city and 27 mpg highway; and for its “whisper quiet” interior.
Owners of the 2012 Fisker Karma will be getting something they need from Fisker’s new owner – supplies of spare parts. Fisker Automotive had built about 3,000 Karmas when it stopped production in July 2012; parent company Wanxiang America and Fisker management is negotiating with over 300 suppliers. Most of these supplier relationships have been set up, and Fisker will have access to needed parts.
Sakti3, a Michigan-based battery technology company, says that it will be able to double the energy density for lithium-ion batteries used in electric vehicles. Sakti3’s co-founder and CEO Ann Marie Sastry says the company’s solid-state lithium cells have reached 1,143 Watt-hours per liter; that would drive your electric car about 300 miles on a charge and would reduce the battery cost, too.
Volvo will roll out a first-of-its-kind vehicle – a plug-in electric vehicle that can seat seven passengers. The 2016 Volvo XC90 will offer both a seven-seat options and the availability of a twin engine plug-in hybrid model. The SUV will also have a weight savings of 250 pounds, which will increase its fuel economy.
China will offer tax breaks on purchases of electric vehicles predominantly made by Chinese automakers. The government posted a list of 17 vehicles from 11 automakers, including one model each from the China joint ventures of Nissan, General Motors, and Daimler. It’s the latest policy measure to boost green vehicles in the world’s biggest auto market, part of its strategy to deal with rising concern over air pollution.
Toyota’s “Choices” TV commercial for its Prius Plug-In Hybrid shows a father facing a tough choice in his garage. Does he unplug the fish tank or the refrigerator in the garage so he can charge his Prius Plug-In Hybrid? His son shakes his head no as his father prepares to unplug the fish tank and risk the pet fish’s life. “It’s also a hybrid,” the voice over says as the father puts away his power chord and decides to go without a charge.

“Hands off the Steering Wheel” white paper on driverless cars coming out this week

Driverless cars – also known as self-driving cars and autonomous vehicles – have recently become a heated topic in the US. In the wake of Google’s launch of a test project featuring its own self-driving pods, debate has gone viral on the internet. There’s fear of privacy being violated, hackers taking over control of the car, and loss of personal freedom behind the wheel. On the other side, there’s been much enthusiasm for the technology solving huge problems coming from car crashes and worsening traffic congestion and gridlock. A new white paper on the subject, “Hands off the Steering Wheel –The state of autonomous vehicle government policies, testing projects – and when these vehicles will likely make it to roads,” explores these polarizing issues and what to expect in coming years.

The white paper was written by Jon LeSage, editor and publisher of Green Auto Market, and media consultant at LeSage Consulting. Since Google’s announcement in May of this year, there’s been a wave of debate and analysis over this ground-breaking technology and when it’s likely to show up in large numbers on our roads. Beyond Google, Nissan and other car and truck makers are making bold statements about it, and studies have been released this summer sharing perspectives from consumers and transportation and technology experts. Highlights of this white paper include details on states that have adopted autonomous vehicle testing programs and policies, along with where it stands in the US government and other nations; and the role Google has played in self-driving cars being tested in states, and the company potentially entering the automotive business with its own car. General Motors has played a key role in the history of autonomous vehicles dating back to its 1956 short movie, “Key to the Future.” Technology suppliers like Cisco and Continental are also playing an important role in developing these autonomous vehicle systems.

The topic of self-driving, autonomous vehicles has lately been stirring more passionate comments on social media, blogs, and editorial think pieces than anything else seen for years in the automotive and transportation space. The white paper will be released on Thursday of this week, and an announcement will go out to Green Auto Market readers.

Solar power, Tesla and GM drive clean energy and transportation job growth in second quarter

Solar power and electrified transportation were key drivers of US job growth in the second quarter of 2014, according to a report from Environmental Entrepreneurs (E2). Arizona topped the list of states with the largest number of announced jobs in clean energy. Solar Wind Energy Inc. expects to hire at least 350 permanent jobs for a new project in San Luis, AZ. California came in at No. 2 on the list, driven by Tesla Motors announcing 500 new jobs and the utility-scale solar industry making its share of announcements. Michigan placed third on the ranking, with General Motors Corp. expected to add as many as 1,400 jobs producing advanced battery technologies.

E2, a nonprofit, nonpartisan business group, reported that more than 12,500 clean energy and clean transportation jobs were announced in the second quarter – more than double the number of jobs announced in the first quarter of this year. The remaining states in the top 10 for announced clean energy and clean transportation jobs in the second quarter were: Utah (4), Massachusetts (5), New York (6), Nevada (7), New Mexico (8), North Dakota (9), and North Carolina (10).

During a media conference call on Thursday, two factors were discussed driving economic growth in clean energy and transportation. One of these is more states adopting renewable portfolio standards, which are policies designed to increase generation of electricity from renewable resources. Another factor has been greater interest and support for clean energy in venture capital markets such as in Silicon Valley and San Francisco. Nancy Floyd, managing director of San Francisco-based venture capital firm Nth Power, and John Cheney, founder of San Francisco-based Silverado Power, both acknowledged that cleantech, clean transportation, and alternative fuels are gaining traction with investors; not long ago, mobile devices and social media had a lot more funding.

California’s AB 32, the Global Warming Solutions Act of 2006, is also helping drive corporate decisions. Transportation fuels will be included in AB 32 beginning in January 2015, and E2 expects to see more job announcements in the clean vehicles sector. Economic gains from AB 32 are being seen in the state.

“I’ve had companies we invest in open offices or relocate their entire companies to California, specifically due to AB 32,” Floyd said. Cheney shares that perspective: “What AB 32 and other good policies do is create certainty that there will be demand for clean energy and clean cars in the future,” he said.

Washington, DC, has seen mixed signals for support on clean energy policies from Congress. However, there has been new confidence about future clean energy growth tied to the recently announced federal Clean Power Plan that’s designed to cut carbon pollution and increase clean energy and energy efficiency, according to E2. You can review the report and see how clean energy sectors break out by state at E2’s Clean Energy Works for Us site.