Alternative fuel vehicles Archives

Big Picture: Green car award winners to be named soon, plus a review of five significant award contests and what it all seems to mean

Green cars – fuel efficient, plug-in, hybrid, and alternative fuel vehicles – now have enough sales volume and interest to garner annual awards. I’ve counted five significant award contests being in place, with winners of two significant awards approaching. Here’s a review of finalists and winners so far for this year, and a few thoughts on what it all means…..

Green Car Reports just released five finalists for its Best Car to Buy award, all of them being 2014 models:

BMW i3
Chevrolet Cruze Diesel
Chevrolet Spark EV
Honda Accord Hybrid
Mazda 3

There have been other nominees and winners named this year, including the influential Green Car of the Year award that will be given out at the LA Auto Show this month. Here is Green Car Journal’s top five:

Audi A6 TDI
BMW 328d
Honda Accord (in four-cylinder, V-6, hybrid and plug-in hybrid versions)
Mazda3
Toyota Corolla

In April, Kelley Blue Book named its 10 Best Green Cars of 2013, all of them 2013 models and some coming in various versions including battery electric vehicles, hybrid, plug-in hybrid, diesel, and gasoline:

1. Nissan Leaf
2. Tesla Model S
3. Ford Focus
4. Chevrolet Volt
5. Toyota Prius Plug-in
6. Ford C-Max Energi
7. Volkswagen Jetta
8. Honda Fit
9. Toyota Avalon
10. Lincoln MKZ

As for the 2013 World Green Car finalists named earlier this year, the Tesla Model S, Renault Zoe, and Volvo V60 Plug-in Hybrid made the list that was announced at the New York International Auto Show; the Model S won the award. This award is presented by Bridgestone Corp. and looks at tailpipe emissions, fuel consumption, and use of major advanced power plant technology aimed at increasing the vehicle’s environmental responsibility.

Classic car buff magazine, Motor Trend, just named its top five hybrid and diesel cars in its analysis of fuel efficient vehicles:

Volkswagen Jetta TDI
Toyota Prius
Volkswagen Jetta Hybrid
Honda Civic Hybrid
Chevrolet Cruze

Here’s what I get from studying the rankings:

There’s still a wide split over the pragmatic present realities versus the long-term goals of clean transportation. Plug-in electric vehicles are embraced by many, but its influence is still quite marginal. The Chevy Volt took the Green Car of the Year award three years ago, but for all of the cars on the ranking this year for the most influential annual award, plug-ins have very little to do with it. Ron Cogan and the Green Car Journal team, along with its panelists, seem more supportive of highly fuel efficient gasoline and diesel internal combustion engine models.
There are surprises, as well – especially Kelley Blue Book naming the plug-in Nissan Leaf as its No. 1 green car of the year. Battery electric and plug-in hybrid vehicles dominated its list, which is very interesting coming from a company focused on resale values.
Diesel engine passenger cars, especially with turbocharged direct injection engines (TDI), are really taking off in the US. It doesn’t seem to matter that diesel is usually about 50 cents a gallon more expensive than regular gasoline these days. The fuel efficiency is great and driver experience and positive reviews are helping. German automakers have been selling a lot of diesel cars in Europe for many years, and the US market is now starting to open up (which Volkswagen seems to be counting on to earn its No. 1 sales spot in global auto sales). US automakers have started getting into the game, such as General Motors with the Chevrolet Cruze diesel version.
Clean transportation shoppers have a lot of options today – whether you’re talking about fleet managers and purchase agents, government agencies and policy wonks, consumer organizations, environmental groups, or tire-kicking automotive journalists who go to all of the media days at car shows. Every green vehicle category has its hardcore advocates, but once all of the top five widely accepted industry standards are accepted – reduced emissions, fuel efficiency, safety, reliability, and performance – there’s a lot of competition in the market these days.

Aside from the awards, let’s take a look at top stories of the past week….

Plug-in vehicle sales were stronger in October than September, but not near the record level seen in August. The Chevy Volt saw 2,022 deliveries, up 14% from September; the Nissan Leaf was right behind it with 2,002 units sold, up 2.5% from September’s 1,953. Ford was thrilled to have its C-Max Energi and Fusion Energi plug-in hybrids collectively beat the Toyota Prius Plug-in Hybrid in sales numbers for the first time.
Tesla-Mania!: The automaker saw its biggest drop in stock value during October – down 17% from its peak of $23.5 billion to $19.4 billion at the end of the month…. Daimler AG would like to do more with Tesla beyond receiving electric motors for is Smart ForTwo EV and the new Mercedes-Benz B-Class EV….. Panasonic Corp. has a contract now with Tesla to supply lithium ion cells for the Model S and Model X battery packs, and that could mean $7 billion in revenue for Panasonic…. Elon Musk’s associates have formed Hyperloop Transportation Technologies, a company seeking investors for the high speed rail network that will get from San Francisco to Los Angeles in just 30 minutes….. Edmunds.com reported that the Tesla Model S is now the most-registered new car in eight of 25 wealthiest US neighborhoods tracked by zip code.
GreenLots is bringing its Sky open access network to the Vancouver area as part of the west coast’s DC fast charger corridor that so far extends through Oregon and Washington and will soon go up into British Columbia and down to California.
BYD Co. defended itself in a California court yesterday on charges that it didn’t comply with minimum wage laws for engineers working at its Lancaster, Calif., plant and its Los Angeles office. The Chinese company has a contract to make electric buses for the Los Angeles Country Metropolitan Transportation Authority.
Respected junior college training center Rio Honda Community College in California is offering a campus tour on Nov. 14 from 11:00 am until around 1:00 pm PST. Click here to learn more and register for the facility tour at what’s one of the most significant training grounds for future engineers and service technicians in: CNG; LNG; hydrogen fuel systems; hybrid, plug-in hybrid, and battery electric technologies; high-voltage storage and generation technology; and solar and wind energy technology.
Via Motors’ plug-in hybrid cargo van, built on the Chevrolet Express platform, passed its crash tests needed to be met before it can go on sale, according to the company. The van gets 35 miles on battery only, with a total range of 400 miles.
Ford recalled 2,618 Focus Electric cars due to potential loss of power to its wheels while in motion that’s related to software anomalies. Nearly all of these 2012 to 2014 models were sold in the US, and the automaker says there was one crash and no injuries related to the recall question.
Biofuel and oil industry lobbyists are quite busy in Washington as the White House and US Environmental Protection Agency prepare to issue a ruling on ethanol blending rules implementing the federal Renewable Fuel Standard.
While this TV ad campaign has been around since the summer, you may have noticed General Motors advertising that the GMC Sierra pickup is in league with the Hoover Dam’s smart grid hydropower. Fuel efficiency and performance are promoted as GM competes for truck sales head-to-head with the Ford F-Series pickups and its EcoBoost-powered engines.

Hurricane Sandy anniversary: Concern over climate change and sea level rise

A little over a year ago – Oct. 29, 2012 – Hurricane Sandy struck New Jersey and the New York City metropolitan area in what became the most significant weather disaster since Hurricane Katrina hit New Orleans in 2005. Debate flared up about what caused this devastating event and its aftermath – 117 deaths; 200,000 homes damaged and a few hospitals; eight million residents affected by power outages; transportation being stopped; and $68 billion in costs. A lot of cars were destroyed at Port Newark, New Jersey, and it was one of the events that pushed Fisker Automotive far to the edge of staying in existence.

New York City Mayor Michael Bloomberg knew it was caused by climate change; New Jersey Gov. Chris Christie doesn’t think climate change had anything to do with it. Stakeholders in the automotive and transportation sectors have been discussing the impact of the storm and what needs to be done to prepare for future emergencies.

Here’s the latest analysis on the impact of Hurricane Sandy……

There’s been some disagreement by scientists and oceanographers on whether Hurricane Sandy was actually caused by climate change or if it was started by “perfect storm” conditions converging and flooding the region. As for the future – a recent report by the Intergovernmental Panel on Climate Change (IPCC) found low confidence that there will be climate-changed caused increases in tropical storms; other studies by experts that were completed too late to be included in the IPCC report differ on predictions for climate change’s storm impact.
There is agreement by experts that the sea level has been rising and will continue to do so. This increases danger from storm surges; with the growling population around the world close to coastlines, the implications are staggering.
Scientists at Stevens Institute of Technology in Hoboken, N.J., and their colleagues, are taking lessons learned from Hurricane Sandy to improve their coastal-flooding models to better assist evacuation and disaster relief plans. Bulkheads and seawalls will need to be elevated in preparation.
Sandy wasn’t actually a hurricane – its wind speed had fallen below the necessary 74 miles per hour minimum level that’s needed for a tropical storm to become a hurricane. It actually should be referred to as “post-tropical cyclone” Sandy.
While New Jersey and New York got most of the attention and media coverage, the coastal storm covered more than 1,000 miles along the East Coast. It broke 16 records for the highest storm tide ever.
More than a third of the US population – 123 million people – live in coastal counties; this increased nearly 40% from 1970 to 2010; about 3.7 million live within feet of the sea at high tide.
“Climate adaption,” “disaster preparedness,” and “sea level rise” were three search terms found to be connected to media coverage and discussions of Hurricane Sandy.
Mayor Bloomberg has proposed a $20 billion plan designed to toughen the city against floods and storm surges. Much of that money would go to build flood walls, levees, and bulkheads.
While government officials are exploring disaster relief and coastal protection policies, public opinion and media coverage have shown little interest in climate change and rising sea levels as issues that need to be addressed at the national level.
10. We can expect to see storm preparation and disaster relief as political and economic issues that will become more commonplace in elections, regional planning, and corporate policies. Transportation planning would be part of it.

How AltCar Expo has become a workable event model

Christine Dzilvelis, one of the partners who organizes AltCar Expo in Santa Monica, Calif., has a different perspective on what constitutes a successful community event than what I wrote about recently. For example, on Friday afternoon, September 20, during AltCar Expo, a speaker panel on electric vehicle charging stations at multi-family housing units led to action being taken by stakeholders. The intensive three hour discussion led to a planned installation in Santa Monica; key players like Schneider Electric began working out the details.

Dzilvelis said the feedback the organizers are getting is appreciation from local residents and from stakeholders such as automakers on hosting a grass roots, hands-on annual event. People are overwhelmed by all of the new technologies, and AltCar Expo makes it easier for fleets, industry, and the public to experience the vehicles and have their questions answered. “AltCar Expo is not a business to make money,” she said.

What seems to be working best is strong local/regional events. Alternative Clean Transportation (ACT) Expo and Electric Vehicle Symposium (EVS) have been receiving kudos, but other national events like Green Fleet Conference & Expo and Plug-in 2013 are only getting small-to-medium attendance that are very supplier-intensive. ACT Expo is getting better feedback, but there’s still a lot of concern that it’s dominated by CNG vehicles. AltCar Expo, now in its eighth year, gets positive feedback for playing a role in pushing alternative fuel vehicles forward by bringing together leaders in government, fleets, automakers, and infrastructure, along with local residents who are very interested and supportive of having this event each year. This year, they especially loved seeing and driving the Chevrolet Spark EV, Dzilvelis said.

Dzilvelis is part of two other events with similar goals for public education and bringing stakeholders together. The first annual Northern California AltCar conference will be taking place March 14-15, 2014 at the Craneway Pavilion (a former Ford plant) in Richmond, Calif.; it’s sponsored by the Bay Area Air Quality Management District. On March 28-29, 2014, the fifth annual Texas AltCar conference will be held at the Irving Convention Center in Irving, Texas, and is being sponsored by Dallas Fort Worth Clean Cities. (Next year’s AltCar Expo will be taking place Sept. 19-20, 2014.) AltCar Expo organizers are being contacted regularly by stakeholders in cities across the country that want to get their own AltCar conference going. It does seem to be the most realistic event model for bringing the technology and experience to a lot more people.

The latest on hydrogen fuel cell vehicles and infrastructure

Tesla CEO Elon Musk got a lot more media coverage for calling fuel cell technologies “bullsh#t” –except when used in a rocket. Hydrogen fuel cell vehicles don’t come anywhere near the energy density of the lithium-ion battery pack located inside the Tesla Model S, he said.

So what’s the latest on hydrogen fuel cell vehicles?

The infrastructure is very thin – the US Dept. of Energy says there are only 10 hydrogen stations in the US, most all of it in California. California did approve a funding plan that will be bringing 100 hydrogen stations to the state. Europe is ahead of the US on the infrastructure, especially in Italy, Germany, and Belgium.
Hydrogen fuel cell electric vehicles are being included in the zero emission vehicle policies adopted by California, Connecticut, Maryland, Massachusetts, New York, Rhode Island, Oregon, and Vermont.
Hyundai wants to beat competitors by bringing the first of its fuel cell models to US dealer showrooms in early 2014. The volume of these cars will be limited, with total worldwide sales to reach about 1,000 over the next three years, the company said.
Toyota will be putting a fuel cell vehicle into limited production by 2015. Honda says it will be rolling out a replacement to its FCX Clarity fuel cell car. General Motors, which has been testing out its Chevrolet Equinox fuel cell SUV in Project Driveway, will begin production of its own hydrogen vehicle later in this decade. There’s no word yet on what Mercedes will be doing next with its F-Cell, which like the FCX Clarity, has met with very limited sales so far in California.
Fuel cell vehicles are in the midst of ramping up to commercialization, according to Navigant Research. The challenge is reaching sufficient volume to bring down system and plant costs. This is where technology partnerships that we’re starting to see between automakers comes to play. Fuel cell bus deployments are gaining in volume, as are fuel cell scooters and forklifts, which are being carefully monitored by automakers who are rolling out hydrogen fuel cell cars.
Home energy stations, such as one that can generate hydrogen from natural gas, are being tested out by Honda.
The value of hydrogen fuel cell vehicles are being recognized by automakers and advocacy/support groups for a few reasons: you can fill the tank in just a few minutes; they’re zero emission, clean vehicles; hydrogen can be extracted from a number of natural sources; the price for manufacturing these cars is coming down quite a bit; they’re fun to drive, as people participating in Project Driveway or driving a fuel cell vehicle at a car show will tell you.

Tesla-Mania: Eric Cartman cusses out Tesla Model S; Millennials can bring electric scooters to America

While it has taken awhile for the creative team at “South Park” to slap around the Model S, the plug-in car did get a few moments on screen. Tesla Motors joins the ranks of Scientology and the Toyota Prius in getting lampooned. In an episode inspired by a variation of the George Zimmerman court verdict (called “World War Zimmerman”), extremely angry young man Eric Cartman stops a Model S and its driver at gunpoint. He yells at her: “We’ve got about ten minutes before this entire country is up in flames! If you wanna live, you’d better step on the gas! Oh wait, is this a Tesla? Sh*t! Well press on the prissy pedal! We’re gonna die!”
In more serious Tesla news….. Tesla was the top seller of zero-emission vehicle (ZEV) credits in California from Oct. 1 2012 to Sept. 30, 2013 (and Toyota led hybrid credit trades). Tesla transferred 1,311.52 ZEV credits during that time, according to a California Air Resources Board filing. The number two company was Suzuki and was far behind Tesla; Suzuki discontinued US auto sales in 2012 but was able to transfer credits accumulated in the past. Companies that acquired ZEV credits to meet their requirements included Chrysler, GM, Honda, Jaguar Land Rover, Subaru, and Volkswagen (though it’s not reported if they acquired their credits through Tesla or another automakers). California requires automakers to sell electric or other non-polluting vehicles in proportion to their market share in the state.
Tesla CEO Elon Musk spent $989,000 at a London auction on a Lotus Esprit used in The Spy Who Loved Me by the James Bond character. Bond drove the car off a pier in the movie as it transformed into a submarine by merely pressing a button. Musk had fun with it, telling the USA Today he loved watching it as a kid in South Africa. He was disappointed to find out you can’t press the button and make it happen, but plans to upgrade it with a Tesla electric powertrain so that it can transform for real.

Millennials can bring electric scooters to America
Check out this video interview Terry Duncan, chief of consumer engagement at Mahindra GenZe, a US startup that has backing from India’s Mahindra. GenZe is rolling out an electric scooter in early 2014 targeted toward Millennials in the US. The product and audience was chosen based on two premises – urbanization is happening in the world’s major cities and transportation is being heavily impacted; Millennials in their late teens to early 30s are the right market to start with, since they’re not buying cars as much as previous generations, are moving to cities, and want functional, practical transportation alternatives. In another video, you’ll hear him discuss the design decisions made on the bike; while these types of vehicles have huge sales numbers in countries like China, they need to be extremely pragmatic and, let’s say, cool, to make it in the US.

Top News of the Week:

A group of Chinese investors based on Hong Kong and led by Richard Li are investing in Fisker Automotive for an unreported amount. This should finish the US Dept. of Energy’s loan to Fisker – most all of the $192 million loan needs to be paid back and the investor deal will probably only meet some of it, which the US government has been ready to accept. A small chunk of the payback will come through former GM vice chairman Bob Lutz. VL Automotive, a small Detroit company that has Lutz’ backing, will be converting 25 unsold Karmas from plug-in hybrid power to Corvette power. VL had to settle a dispute with an Asian investor that had prevented them from accessing codes operating the car’s infotainment system. Lutz says these converted Karmas will come out in 2014 for something close to $200,000.
CleanFuel USA has installed 85 retail propane autogas fueling stations across 13 states. This was funded by a $12 million grant from the US Department of Energy’s American Recovery and Reinvestment Act. Texas State Technical College – TSTC – served as the lead grantee. The majority of the 85 stations are located near heavily trafficked roadways, existing fueling stations, major airports and home improvement stores, CleanFuel said.
Don’t believe in climate change? What about lung cancer? The International Agency for Research on Cancer, based in Lyon, France, has released a study that formally declares air pollution is causing lung cancer. The research arm of the World Health Organization focused on diesel cars and trucks in operation around the world as a major source of the problem.
ChargePoint is offering a lease-to-purchase program for businesses and cities to install its charging system. The systems usually cost between $6,000 to $12,000 to buy and can cost about $3 to $6 a day over five-to-seven years to pay off under the finance program.
GM will be offering a bi-fuel version of the Chevrolet Impala that will be able to travel up to 500 miles on gasoline and natural gas.
General Electric Co. is converting heavy-duty trucking fleets from diesel to natural gas. GE has partnered with Clean Energy Fuels Corp. and truck fleet operators can apply for loans and leases through GE Capital to make the conversions.
Plug-ins missed the Green Car of the Year award nominee list. The winner will be announced next month at the LA Auto Show form the following list: Audi A6 TDI, BMW 328d, Honda Accord (though the plug-in hybrid was included with the hybrid and ICE versions of the Accord), Mazda3, and Toyota Corolla.
Experts speaking at the annual ITS World Congress in Tokyo expressed concerns over issues that do tend to come up with self-driving cars – technical challenges, lack of industry standards, vague and minimal regulations, implementation costs, and liability issues. Toyota is being a little more optimistic, expecting that elderly drivers could likely make up a strong market segment for self-driving cars.
A study by UK-based Kantar Media says that the BMW i3 saw huge media gains in the third quarter after its debut last month at the Frankfurt auto show. It was No. 2 in online news coverage from No. 60 during the second quarter. It came in 8^th place in both Tweets and blog mentions during the third quarter versus being in low 100s rankings for both segments in the previous quarter.

40 years after OPEC oil embargo – and the problem hasn’t been solved yet

October 17^th saw the 40^th anniversary of the oil embargo by the Organization of the Petroleum Exporting Countries (OPEC) – a six month embargo that cut the supply of oil to the US and skyrocketed gasoline prices. The days of 25 cents per gallon gasoline were over and the coming years would see desperate attempts to solve the problem. The 1973 embargo started right after the Yom Kippur war was launched, and was spurred by US support for Israel; the second gasoline crisis in 1979, again driving up pump prices and forcing drivers to wait in long lines to fill their tanks, was triggered by another Middle East crisis – the takeover of the US embassy in Iran.

For Keith Crain, editor-in-chief of Automotive News, it was the end of innocence – when automakers had been competing to provide the biggest and best cars to drivers and mileage didn’t really matter at all. The OPEC oil embargo changed all of that; General Motors president Ed Cole vowed to raise the automakers corporate average fuel economy (CAFE) by 50% from 12 mpg to 18 mpg within a decade. The US Congress thought it was very good idea and raised the bar even higher – CAFE was to be 27.5 mpg by the 1985 model year, though that did not happen. For Peter Ward, then with the California Energy Commission, the 1973 oil embargo was the watershed, defining moment illustrating the power of the oil cartel on global economics and clarifying the necessity for alternative fuels.

There were other watershed moments taking place after the initial OPEC embargo….

“Non-OPEC” oil field drilling started to break dependence on OPEC supply, led by drilling in the North Sea and Alaska.
The Keystone XL pipeline fight had a predecessor with Alaska’s Prudhoe Bay oil field. It had been stopped by environmentalists in the late 1960s, but Congress approved the pipeline that would eventually add up two million barrels a day to the US supply.
Alternatives to oil took off – nuclear power and coal became important in electric power stations. Solar energy saw a startup phase that didn’t take hold until very recently.
Import cars stated being taken seriously in the Detroit 3-dominated US market. Japanese small cars provided the fuel economy, and owners started expecting their cars to be more reliable and long lasting from their experience with these cars.
In 2008, the US (and the rest of the world) once again experienced the power of oil on the economy. Oil and transportation fuel prices skyrocketed in August 2008; within a month, the Lehman Brothers debacle spurred the Great Recession, and the dramatic oil price increase from the previous month was thought to be instrumental in the recession’s tipping point being passed in September.

As then-president George W. Bush said a few years ago during his State of the Union address, “We’re addicted to oil.” Recovery from oil addiction is being played out now in the federal fuel economy standards; growth in plug-in, hybrid and alternative fuel vehicle launches; development of the alternative fuel and charging infrastructure; California’s (and states following California’s guidelines) zero emission vehicle targets; and demand for green, alternative fuel vehicles from consumers, fleets, municipalities and government agencies, and transportation companies. There’s a still a long ways to go, but oil supply disruption and skyrocketing pump prices continue to be a very motivating force.

EPA Appears to be changing its mind on biofuels and E15 mandate

It looks like E10 could very well remain the blended ethanol-to-gasoline ratio instead of 15%, or E15, according to a leaked proposal last week from the US Environmental Protection Agency (EPA). If that’s the case, courts are likely to see more case filings coming from biofuels industry associations focused on the EPA backing away from 2014 targets. The oil industry had already filed two suits over 2013 targets. The EPA document referred to the E10 blend wall as an “important reality” and comes from more acceptance that the federal 2007 Renewable Fuel Standard biofuels mandate appears to be unreachable. If it gets approved, the EPA proposal would cut the biofuel mandate in 2014 to 15.21 billion gallons from 18.15 billion gallons. The EPA only has a draft proposal and has not made a final decision on it, according to administrator Gina McCarthy. EPA also considered a corn-based ethanol rate of 12.36 billion gallons and 13.18 billion gallons.
Days prior to the leak, two US oil industry groups had sued the EPA over its 2013 biofuels target. Ethanol groups were ready to sue over any changes to the 2014 rule. The Renewable Fuels Association said it would sue over any attempts to roll back the targets – if the EPA does issue its revised 2014 target, biofuels groups appear ready to file lawsuits.
The clash comes down to industries fighting over falling profits – biofuels companies are depending on increasing output and delivering ethanol to gas stations, and oil companies and refineries are fighting the increased cost of adding more ethanol to gasoline. The oil industry is also upset with the soaring cost of ethanol credits built into the Renewable Fuel Standard. While the EPA has ruled that gasoline blended with E15 is safe to use in vehicles made after the 2001 model year, many automakers are refusing to allow their vehicle warranties to cover the use of fuel over E10. Gas station owners don’t want to invest in another storage tank and pumps to provide E15.

Why I disagree with Forbes article on Pickens and Clean Energy pulling a scam
Forbes staff writer Christopher Helman says the launch of Clean Energy Fuel’s “Redeem” renewable natural gas is a bit of a scam. Read his article “The Clever Gimmicks Behind T. Boone Pickens’ New ‘Green’ Fuel” for details. The commentary states that while the company is gathering landfill gas from dump operators across the country and two of its own, it’s just a marketing gimmick that comes out of selling carbon credits like the one being implemented by the California Air Resources Board. Helman wrote that the natural gas is,” simply injected into the nation’s natural gas pipeline grid, where it’s intermingled with all the other conventional gas flowing down the pipes to plants that turn it into CNG…. The ultra-green nature of Redeem is really just an accounting gimmick. The more gas that Clean Energy’s traders can procure from landfills (as well as methane-rich wastewater plants and dairies) across the country, the more CNG it can slap with the Redeem label. But on the molecular level, it’s exactly the same stuff.”
Well here’s my take on it: For anyone interested in buying Redeem, such as a fleet with stringent sustainability targets, there would probably be interest. It costs the same as natural gas. It would have the same GHG/carbon reduction benefit as natural gas – around 20% to 25% less than diesel. Natural gas has another benefit in air pollution reduction – 90% less NOx in natural gas compared to gasoline/diesel. There would also be the part about tapping into landfill for the natural gas. If you were a corporate or government fleet, you could say you’re contributing to reducing our landfill problem and using clean fuel. Plus, you get credits from California Air Resources Board. Helman also makes a comment about it costing 50 cents less than gasoline and diesel. If that’s per gallon equivalent, he was way off – natural gas is sold for only about one third the cost, or around $1.25 or more per gallon – much more than 50 cents in savings.
Another interesting point was seeing a statement by Energy Vision, an energy advocacy group in Washington that tends to hold the natural gas vehicle industry accountable….“By capturing and refining the biogases generated from a number of large landfills across the country, one of which is the Sauk Trail Hills landfill in Michigan, which is owned and operated by Republic Services, Clean Energy will provide approximately 15 million gallons of ultra-low-carbon “Redeem” (RNG) this year alone, a volume far greater than most (including the EPA) estimated was possible nationally, let alone in California. Energy Vision commends the pioneering efforts of Clean Energy/Clean Energy Renewable Fuels in making the path to fully-sustainable renewable natural gas a reality.”

Green transportation news roundup:

Another Tesla Model S competitive model releases details…. The 2014 Cadillac ELR is priced at $75,995 including destination charges. It’s more than twice the price of the Chevrolet Volt and uses the same powertrain, but GM is expected to produce it in smaller numbers and hopes that increases its value to buyers.

As Ecotality leaves the charging infrastructure following its bankruptcy filing, competitor and fellow DOE-grant recipient ChargePoint is offering owners of Ecotality Blink charging stations a trade-in credit for switching over – for those switching to a dual-port CT4000 station ($2,200 credit) or a single-port station ($1,200).

The U.S. Department of Energy on Friday started an auction on its loan to Fisker Automotive that was made back in 2010. The DOE is still owed $168 million from the $192 million loan, though any sale is expected to be at a discount.

Intertek, which certifies electric vehicle supply equipment, has acquired ETEC Labs, a leader in advanced transportation testing, including alternative energy vehicle analysis, research, and demonstration projects.

Honda is going after Toyota’s domination of the hybrid market by rolling out a hybrid version of the Fit (joining its ICE and EV versions). The automaker began selling the hybrid Fit last month in Japan where it’s competing directly with the Toyota Aqua, which is known as the Prius C in the US market.

Toyota is dropping the base prices of the 2014 Prius Plug-In to $29,990, a $2,010 reduction from the current price.

Ford Motor Co. and the University of Michigan, Ann Arbor, are opening up an $8 million battery research lab. Researchers will be developing and testing new chemistries for automotive applications, and making breakthroughs for electric vehicles and hybrids that will go to market as quickly as possible.

Toyota thinks it can cut hydrogen fuel cell vehicle costs in half by 2020 – closer to the production cost of a plug-in hybrid and cheaper than the MSRP for an electric vehicle. It’s still going to be expensive when it launches its first fuel cell vehicle in 2015 – somewhere between $50,000 and $100,000 as its sales price. That came down from Toyota’s cost of $1 million per unit in 2007 to build 100 Highlander fuel cell demonstration vehicles.

Los Angeles-based MPG Car Rental is now offering the Toyota Model S to renters for $499.99 per day. MPG Car Rental prominently displays other vehicles in its green-only lineup including the BMW i3, Volkswagen Jetta TDI, Chevy Volt, Honda Insight, Toyota Camry Hybrid, Toyota Prius, Toyota Highlander Hybrid, and Chevy Tahoe Hybrid.

New book follows the money trail shaping renewable energy – Plus, a very surprising prediction of stance Obama will take on Keystone XL pipeline
“Do you get the feeling that the energy industry and the Congress that it owns are deliberately lying to you? If so, you are 100% correct,” according to an announcement that 2GreenEnergy.com Editor Craig Shields just had his third book published, Renewable Energy: Following the Money. The book features another set of interviews; the effects that economics and financial power have on the course of the energy industry are explored by high-ranking officers in the US military, lobbyists, scientists, economists, environmentalists, journalists, and heads of NGOs. I applaud Shields’ hard work and wide ranging perspectives on renewable energy and clean transportation. I admire how much he’s kept his word on staying in the trenches on where all of this is going as a business – whether that be through attending key conferences or interviewing experts of all genres for his books and blog. This new book digs into what I would describe as what “Deep Throat” ex-FBI official W. Mark Felt kept telling reporter Bob Woodward about the Watergate scandal: “Follow the money trail.”
Shields also wrote a surprising blog post on the Keystone XL pipeline and President Obama’s decision on whether to back or reject supporting the pipeline from Alberta to Texas. Here’s a few reasons why he thinks it’s going in that direction….

Smart transportation explored in market report and Toronto conference
Navigant Research issued a report on “smart transportation” covering global smart city projects around the world. This came out soon after the annual Meeting of the Minds took place in Toronto last month. Meeting of the Minds has been bringing together urban sustainability and connected technology stakeholders since 2007. Navigant Research thinks the global smart city technology market will grow from $6.1 billion in revenue last year to $20.2 billion by 2020. New projects include investment in smart grid, urban mobility, water management, and government service applications for smart cities. Forecasters see urbanization as a major trend around the world impacting transportation in significant ways.

More skepticism about alternative technology vehicles from industry bible
What an Automotive News video had to say about tough sales challenge cars like Tesla Model S, Chevy Volt and Toyota Prius have on market…. Stop start, micro-hybrids, and regenerative braking are taking away the strength of plug-ins and hybrids.

Solazyme just took top spot for the third year in a row on Biofuels Digest’ “50 Hottest Companies in Bioenergy” for 2013-14. Propel Fuels (provider of biofuels and other alternative fuels refueling stations) made the list for the first time at No. 29. Solazyme produces renewable oil and bioproducts from a range of plant-based sugars. The company is providing algae diesel with Propel Fuels. Cellulosic biofuel producer KiOR made No. 3 on the top 50 list. The annual rankings recognize innovation and achievement in biobased chemicals and materials development; it’s based 50% on votes from an invited panel and the other 50% from readers – more than 100,000 individual company ratings were received from panelists and voters.

Ethical dilemma Part 2: Clean transportation has its own hills to climb

“Monsanto is the whipping board for every person that has limited agricultural knowledge and is fearful of what they don’t understand. They are probably credited with saving more lives than any corporation. Without their technology there would be many more deaths because of starvation. I know I will not change anyone’s mind about the company because it takes a lot of time to understand how GMOs and their efforts are good for populations.” Reader comment posted last week.

“There’s certainly a lot we don’t know. I had very mixed feelings about voting for the GMO labeling in November. We’ve been eating these genetically modified foods for many years and I’ve yet to find out about any real negative consequences. The main reason I wrote this post is that it symbolizes our tendency to find Darth Vader, and what it might mean for other companies out there.” Editor’s response to blog post, “Monsanto beats BP as ‘Most Evil Corporation’ and adds Climate Change to its list along with GMOs.”

So, let’s take this further…..

Mother Jones’ Josh Harkinson analyzed Tesla CEO Elon Musk and his company taking the US Dept. of Energy grant to help bring the Model S electric car to market – how hypocritical it is for Musk and other Silicon Valley entrepreneurs to espouse libertarian politics and then take federal funding. The link to my post in Autoblog Green isn’t working now, but if you go there, scroll down about four articles to find and read my take on it.
A biographical PBS documentary on Henry Ford details his accomplished life as the father of the modern automotive manufacturing plant with the Model T, but also digs into his moral quandaries including his antisemitism and how he treated his son Edsel Ford, the second Ford Motor Co. chief executive.
Or Thomas Edison, developer of the phonograph and the long-lasting light bulb, for staging and filming electrocution of and elephant to demonstrate the danger of alternating current (AC) and why direct current (DC) should have been adopted by electric utilities. Edison was at war with AC leaders such as Nikola Tesla (sound familiar?), Westinghouse and General Electric. He didn’t win that fight, but DC is still around (DC faster chargers, for example).

These moral quandaries permeate the business world, not to mention politics, albeit in much more sublime and tedious methods than chosen by the legendary Henry Ford and Thomas Edison. Corporate ethics has become a mainstream topic in recent years and is the subject of conferences and professional networks. Along with adopting a sustainability policy, many corporations are investing heavily in improving their image in community service and donations and endorsing organizations dedicated to human health and other worthy causes. Yet there’s no getting away from taking on aggressive, and occasionally manipulative and questionable, tactics for companies to surpass their competitors and to navigate through the regulatory environment.

Public image and facing condemnation by activists skilled at tarnishing that image is one thing, and pragmatic reality is another. Alternative fuel vehicles and technologies each have their own walls to climb to reach widespread adoption. Many of these issues have shades of ethical debate behind them, along with huge challenges to overcome. For example…..

Plug-in electric vehicles and the “dirty coal,” nuclear, and fossil fuel natural gas powering electricity plants – plus not enough renewable energy like solar producing electricity; range anxiety and the time it takes to charge EVs can be troubling questions, too.
Natural gas vehicles (NGVs) and hydraulic fracturing (“fracking”) and other shale and methane field extraction dilemmas; plus the higher cost of converted vehicles compared to gasoline and diesel-engine vehicles – and the need for more natural gas fueling stations.
Hybrids being more costly and competing with cheaper fuel efficient models, which gets trickier if gasoline prices soften.
Hydrogen fuel cell vehicles offering zero emissions but being too expensive and having hardly any fueling stations; plus the question of where the hydrogen is extracted from and the safety of the vehicles; pins and needles can still be raised for some people by mention of the infamous explosion of the Hindenburg hydrogen-powered aircraft.
Propane autogas is many times not taken as seriously as natural gas – including federal lobbying by T. Boone Pickens and colleagues for NGV commercial vehicle incentives. There’s resentment that propane is being treated as sort of a step cousin to natural gas while its fuel stations are all over the country and it offers clean fuel much cheaper than gasoline and diesel.
Biofuels: The corn ethanol E15 battle and Renewable Fuel Standard clash (see lead story for this week). Not long ago, the Detroit 3 had been pushing flex-fuel vehicles and building a bunch with few people finding stations to put E85 into the tank or even trying to; and then there’s the food versus fuel battle – and the struggle of advanced biofuels ever scaling up and being consumed at that same level.
Fascinating alternative fuels like Volvo Truck’s DME, Rentech’s synthetic fuels, methanol coming back, renewable natural gas (see coverage of Clean Energy’s Redeem), and algae fuel – but they’re in very early stages and need a ton more backing to go anywhere and deliver their true offerings and benefits. It sure sounds good, but……..

The point being: It’s a very big topic, but here are a few things to start thinking about…. Tell a great story and stick to it; tap into every funding source and incentive you can find; partner with stakeholders to build the infrastructure; get butts in seats at ride-and-drives and get fleet managers to test them out; and stick to it – that’s what Musk, Ford, and Edison would probably agree upon when offering advice about succeeding.

Big Picture: Tesla Motors dealing with battery fire, September sales figures

Have you seen the YouTube video that went viral a few days ago – where passengers driving down a street in Kent, Wash., view a Tesla Model S on fire? The car struck metal debris on Oct .1 in the town near Seattle – said to be a “curved section” that fell off a semi-trailer. First responders said that the fire occurred in the electric vehicle’s lithium-ion battery. “The geometry of the object caused a powerful lever action as it went under the car, punching upward and impaling the Model S with a peak force on the order of 25 tons,” Tesla CEO Elon Musk wrote in a statement. “Had a conventional gasoline car encountered the same object on the highway, the result could have been far worse.” The driver was safe and only had good things to say about the car. Tesla’s booming stock price dropped 10% over two days but looks like it could be coming back. It will most likely turn out to be similar to what Chevrolet went through with the NHTSA report on the Volt lithium battery catching fire in a test; or to Nissan going through the wringer last year over the Leaf’s battery life receding in extreme heat conditions in Arizona. The Volt and Leaf are doing just fine, and the Model S will probably come through in sales and reputation if handled the right way by Tesla Motors.

In other Tesla news, the automaker is moving forward to direct sales in Virginia. The Virginia Department of Motor Vehicles and the Virginia Automobile Dealers Association reached an agreement late last week to allow the automaker to apply for a single dealership license. Tesla withdrew a lawsuit and now needs to get approval from the Virginia Motor Vehicle Dealer Board, the state regulatory agency that oversees dealers in the state, before it can begin selling vehicles in Virginia. Tesla Motors has taken another step toward expanding its fast charger options for Model S drivers. For $1,000, you’ll soon be able to get a CHAdeMO fast-charger adapter. While the 50 kilowatt CHAdeMO stations aren’t nearly as fast of the 120 kW Tesla Superchargers, there are a lot more of them out there on the roads – primarily in the Pacific Northwest region.

Correction: California funding of 100 hydrogen fueling stations
As reported by a Green Auto Market reader close to the story…. The coverage of California’s governor approving bills last week incorrectly reported funding for 100 hydrogen fueling stations in the state. It wasn’t $20 million in one lump sum – it needs to be described as “either $20 million per year or a potential total of $220 million during the life of the extended program (until 2023).” My reporting assumed that hydrogen stations would cost $200,000 each but it’s actually costing a bit more than that amount. So, if you catch incorrect reporting, please let me know. If you completely disagree with what I wrote, please let me know. It could inspire and fuel another commentary from me.

September sales figures didn’t break records, but the metal was still moving
Electric Drive Transportation Association just released electric vehicle sales numbers for September 2013. About 8,127 plug-in vehicles were sold last month – 4,477 plug-in hybrids and 3,650 battery electric vehicles. The numbers weren’t as high as August’s record sales, but they do show a 40% jump over September 2012. Cumulative 2013 sales for plug-ins were 117% higher than they were by this time in 2012. There were 33,576 hybrids sold last month, which correlates with the overall downward sales trend in new vehicle sales in the US market. Long term, it looked better – total sales for hybrids in 2013 were 21% higher than they were in the first nine months of 2012.

New book follows the money trail shaping renewable energy
“Do you get the feeling that the energy industry and the Congress that it owns are deliberately lying to you? If so, you are 100% correct,” according to an announcement that 2GreenEnergy.com Editor Craig Shields just had his third book published, Renewable Energy: Following the Money. The book features another set of interviews; the effects that economics and financial power have on the course of the energy industry are explored by high-ranking officers in the US military, lobbyists, scientists, economists, environmentalists, journalists, and heads of NGOs. I applaud Shields’ hard work and wide ranging perspectives on renewable energy and clean transportation. I admire how much he’s kept his word on staying in the trenches on where all of this is going as a business – whether that be through attending key conferences or interviewing experts of all genres for his books and blog. This new book digs into what I would describe as what “Deep Throat” ex-FBI official W. Mark Felt kept telling reporter Bob Woodward about the Watergate scandal: “Follow the money trail.”

CARB streamlines propane and NGV upfits, but Peter Ward calls for it to go further
The California Air Resources Board (CARB) has streamlined the process for propane autogas and natural gas vehicle upfits through approving changes to its rules. This brings the process closer to requirements of the US Environmental Protection Agency. Peter Ward of Alternative Fuels Advocates would like to see the process go further, where adjustments to the requirements could be made without having to go to the Board each time. It’s the first substantial revision to the CARB rules in 18 years. Ward would like to see continued cooperation and mutual interest continued between CARB and the industry. “Keep the regulations nimble,” he said.

Highlights from Plug-In 2013 in San Diego

Debate continued by panelists on how public charging should be funded. Some say it should be essentially free to the public – paid for by retailers wanting to offer consumers incentives for showing up and staying a while. Some charger makers and others argue that most of the charging is happening at home and the EV drivers should just have to swipe their credit card to charge somewhere else. However, one-time processing fees could be a problem for acceptance of these systems by consumers. Then there’s the problem of too many people charging during peak hours when utilities are limited in how much energy should be flowing to charging stations. It’s likely there are not enough EVs out there yet for it to be a problem, but the worry continues.
Via Motors has a contract to build and deliver $20 million worth of plug-in hybrid pickups and vans to over 50 participating fleets. The fleets will also be sending real-time data to the US Department of Energy to study for improvements in fuel economy and emissions.
ABB launched the Terra 53 for North America. This 50 kW DC fast charging station meets both SAE Combo and CHAdeMO standards for battery electric vehicles, all in one station.
A coalition of US and German automakers unveiled a public combo charger at the Fashion Valley Mall in San Diego—in an eVgo Freedom Station. It uses the CCS plug and combines a J-1772 Level 2, 240-volt charge point with direct current (DC) fast charging.
Eaton released its Dual AC Level 2 charging stations for simultaneous charging of two EVS. The stations can charge electric vehicle batteries up to three times faster than traditional charging systems to offer a cost-effective solution.

And in other news during a busy week…..

Clean Energy Fuels released its “Redeem” renewable natural gas fuel. The company says it is the first one to commercially distribute a renewable natural gas vehicle fuel made from waste streams such as landfills, large dairies and sewage plants directly to fleets around the country and at 35 public Clean Energy stations throughout California. Clean Energy says it’s 90% cleaner than diesel and comes from biogenic methane, or biogas – methane generated by decomposition of organic waste. The target is to produce and distribute 15 million gallons of Redeem in its first year.
General Electric Co, Whirlpool Corp, Eaton Corp and others are developing more affordable natural gas vehicle home refueling systems. For about a tenth of the price of current models, plus installation, they aim to sell the new units to the millions of homes across America that are already hooked up to natural gas pipelines. Energy providers in Georgia, California and Utah are working on distributing new refueling units in the next two years. Honda has also expressed interest in the new technology.
UK-based hydrogen fueling company ITM Power has a 4.45 million (pounds) project that will integrate its hydrogen energy storage and vehicle refueling system on the Island of Wight. It’s called EcoIsland Hydrogen Vehicle Refueller, which is supported by the UK’s innovation agency, the Technology Strategy Board.
General Motors is expanding its collaboration with the U.S. Army’s Tank Automotive Research, Development and Engineering Center (TARDEC) to develop hydrogen fuel-cell technology. It ties in with GM’s new fuel-cell development facility in Pontiac, Mich., which is about 20 miles from TARDEC’s new fuel-cell research lab in Warren, Mich. The two entities will focus on testing the durability and performance of fuel-cell materials. In related news, Daimler and GM will be investing in two other fuel cell projects aimed at advancing the vehicle technologies and building out the fueling infrastructure. Daimler is putting about $500 million into a network of hydrogen stations in Germany over the next 10 years.
The Toyota RAV4 electric version took the top ranking away from last year’s winner, the 2013 Lexus GS 450h in the Automobile Club of Southern California’s 2013 Green Car Guide. Results come from the organization’s Automotive Research Center, which has been a leading vehicular emissions test lab since the late 1960s. Testers look at how hybrid, alternative fuel, electric, fuel efficient, and extremely low emitting gasoline-powered vehicles on the market are performing following a number of patterns vehicles are typically experiencing.
Kia will release the 2015 Soul EV, the first electric car from a Korean automaker to be sold in the US beyond concept cars displayed at auto shows.
The US Environmental Protection Agency wants to make right with consumers to avoid future fuel economy rating meltdowns like the ones we’ve seen lately. EPA will be giving more information about its audits and data submitted by automakers. Results from 20 recent fuel-economy audits will be released soon to the public to start the changeover.

Millennials and GenY: How to market green transportation and employ them without getting too annoyed

Most everyone reading business news these days and going to conferences are hearing a lot of information on young people, who are typically referred to as Millennials or GenY. The number of young people in this demographic is huge – kids of Baby Boomers are much larger in numbers than the previous generation, which has been called GenX. It’s good to get educated and updated on some of the study findings, as these people are being educated and employed, working up the ranks, and are making very significant transportation decisions. So here are a few trends and perspectives to think about…..

Age range: They’ve been born somewhere between 1980 to the mid-1990s – so they’re about 18 to 33 years old.
No longer in love with cars: While their parents got their drivers licenses soon after turning 16, that’s getting extended much longer these days – some of them up to age 20. Their interesting in buying a car or inheriting an aged family car is much less than it was 25 years ago. There’s a lot of concern among automakers and dealers that this huge market segment is buying fewer cars than Baby Boomers and Generation X – and that there’s quite a lot of them.
They are very interested in green transportation – hybrids and electric vehicles; car sharing and public transportation makes sense to them. They are more likely to embrace autonomous, driverless vehicles than their parents seem to be. They’re very utilitarian about transportation and don’t look forward to driving spacious cars and crossovers, luxury vehicles, or pickups like many other consumers in the US market. We’re starting to see a lot of recognition of these deeper trends from BMW testing out EV and urban transportation options, and Ford being active on intelligent highway consortiums. Automakers are starting to change their identities from vehicle manufacturers to transportation providers, and seem to recognize that it’s critical to go this route to engage brand loyalty from Millennials.
Extremely pragmatic and independent – with “Whatever!” being their teenager mantra: You may notice young people don’t carry some of the social order unspoken rules that their parents did. If they’re dating someone from another racial/ethnic group or have friends who are gay, lesbian, or bisexual, it’s not an issue for them. They don’t seem to understand their parents being uneasy about it. Dad might say, “Well, one of my friends in college was gay,” to offer support, and his son will tell him that he’s being discriminatory.
Don’t have the same work ethic and habits of someone over 40: Mom and dad might be willing to work really long hours and get pay raises, but their kids usually march to the beat of a different drummer. They tend to be focused more on basic living expenses and pragmatic necessities. Many times, they were given a lot of stuff already by their parents and it doesn’t impress them all that much anymore. They might get absorbed in a new project at the office for a few weeks, but won’t necessarily consistently deliver on what was asked of them by their employers. That can be a source of frustration for young employees and older supervisors who see a generational split.
Very special education: They received lots of awards at school from an early age for just about anything, including showing up in the classroom. Their parents demanded excellent education for them and moved them to the best high schools to get the highest test scores, earn college credits, and take music lessons. The sad part is that many of these kids have bachelor’s and master’s degrees and are struggling to get jobs.
Distraction is a problem: They grew up gaming and surfing the web – and do spend a lot of time staring into their phones. They’re capable of doing four things at once, but focusing on one task for very long can be tough for them – not to mention for their supervisors. There’s a lot of emphasis lately on distracted driving by young people being a crisis, according to safety specialists. However, that might be a bit extreme since there are less of them driving than in the past and cars are safer these days. The problem with people texting and talking on their smartphone while driving extends to all generations; state laws are getting tough to try and deal with it.
Get creative about connecting with them. As Scott Pechstein, VP of Sales for Autobytel recently told Automotive Digest, it’s taking a lot of work for dealers to reach young consumers. Facebook, social media, and reputation of the dealership is important to them. Social media and speaking to them via text in the style and method Millennials want to be spoken to are necessary to reach the market segment.
Younger people see cars quite differently: New car-sharing services, travel applications and other technological tools are contributing to a broader shift away from driving among Americans, especially younger ones interested in digital multitasking on the go, according to a study released by the US PIRG Education Fund. “Personal auto ownership used to be the clear ticket to mobility,” said Joanna Guy, of the Maryland PIRG Foundation. “For baby boomers, driving your car represented freedom and spontaneity. But today — especially for younger people — owning a car increasingly represents big expenses and parking hassles.”
Younger car shoppers (especially first-time buyers) are very interested in seven-inch touchscreens on the new compact Chevrolet Spark. Pairing is available to the iPhone or Android and other mobile devices for contact lists, stored music, reading and composing text messages, videos and slideshows, and other perks on Chevy’s MyLink infotainment system.
There are persuasive articles out there saying Millennials are more similar to previous generations than you’d think. While their style, communications, interests, and love affair with cars seems to be different than their elders, they are coming through with typical behaviors seen for many years in the workplace and retail environment. Much of that comes through their background – education, family, peer group, opinions, life experiences, etc.