Category: clean transportation

Making crowdfunding work for your clean transportation and cleantech startup

Making Crowdfunding Work

This Week’s Top 10: GM unveils the Bolt crossover and Volt redesign, More news from the Detroit Auto Show

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. Chevrolet Bolt conceptThe Detroit Auto Show opened with a bang for Chevrolet as it announced the Bolt electric crossover and the redesigned 2016 Volt. Rumors about General Motors working on a crossover version of the Volt have been fairly accurate – only it has a different name and it will be all-electric, not a plug-in hybrid like the Volt. The Chevrolet Bolt is expected to roll out in 2017 and compete directly with the Tesla Model X electric crossover. General Motors says the Bolt should get 200 miles per charge and will sell for about $30,000 with the federal tax incentive; and it will play a big role in strengthening its leadership role in electrified transportation. (See photo of the Bolt concept car.) The 2016 Chevy Volt was revamped to address needed improvements, including quieting the engine, improving performance and adding space to the interior. It will also deliver a lot more range – an estimated 50 miles per charge instead of its current range of 38 miles.
  2. More from Detroit Auto Show: Winners of the North American Car and Truck of the Year awards were the Volkswagen Golf “family” (which will include all-electric and clean diesel versions) and the Ford F-150 and its lightweight aluminum body and improved fuel efficiency. Mercedes debuted its new plug-in hybrid, the C350. Daimler AG chairman Dieter Zetsche downplayed fuel economy in these days of cheap gasoline and focused on performance – zero to 60 in 5.9 second, sports-car like handling, and the ability to reach a top speed of 130. The Nissan Leaf may more than double its output in its next version – up to 200 miles on a single charge. Nissan CEO Carlos Ghosn unofficially made this comment following a media briefing.
  3. Nissan is working with NASA on a five-year project to enable autonomous vehicles. By the end of this year, a fleet of Nissan Leafs will be tested to use hardware and software jointly developed by Nissan and NASA. Testing will take place at Nissan’s Silicon Valley Research Center and NASA’s Ames Research Center in Moffett Field, Calif.
  4. California Gov. Jerry Brown raised the bar again during his State of the State address last week. Gasoline consumption should be reduced by 50% over the next 15 years, 50% of the state’s electricity supply should be powered by renewables by 2030, and energy efficiency should be doubled in existing buildings. Brown, at age 76, just started his fourth and final term as California’s governor and wants to see the state heighten its role in the fight against global warning.
  5. Solar-powered electric car Stella has been nominated by TechCrunch as one of the five biggest Technology Achievements for its upcoming 8th annual “Crunchies Awards.” Stella is up against an impressive list of contenders — Apple Pay, The Block Chain (Bitcoin), Rosetta Mission’s Comet Landing, and SpaceX Lateral Booster. Stella, created by Solar Team Eindhoven from the Eindhoven (Netherlands) University of Technology, has been widely recognized and is gaining support. Stella took first place in the 2013 Michelin Cruiser class at the World Solar Challenge race in Australia. Partners include National Drive Electric Week, Plug In America, and the Coast to Coast EV Connection project. The team calls it the “world’s first solar-powered family car.”
  6. Pope Francis is expected to issue an “encyclical” outlining the Catholic Church’s stance on climate change. It will likely reinforce the church’s strong stance with concern over climate change and its impact on the planet and its population. This has been gaining a wave of media coverage and social media mentions for its symbolism. The leader of the Catholic Church with its 1.2 billion members is joining ranks with most of the world’s leading scientists – uniting religious and moral issues with science, at least on the global warming question.
  7. Here comes the fastest electric car………. The Detroit Electric sports car is moving forward and will soon be built at a new facility in Leamington Spa in England. Detroit Electric is shooting for building the world’s fastest electric car that will hit 60 mph in a mere 3.7 seconds and is powered by a 285-hp electric motor. It’s being built on the chassis of the Lotus Elise, the same as the now-discontinued version of the original Tesla Roadster. While still calling itself Detroit Electric, the company had to move out of that hometown overseas to England last year.
  8. Car-sharing company car2go, will be launching its service in China. That will happen in the Chinese metro market of Chongqing within the next year, and will involve a fleet of several hundred Smart Fortwo small cars. The subsidiary of Daimler AG says it now has 12,500 vehicles operating in 29 locations and serving over one million customers in Europe and North America.
  9. RIN prices have doubled – Renewable Identification Number (RIN) prices have recently doubled year-over-year in all three reported categories – biomass-based diesel, advanced biofuel, and renewable fuel. They’re still about 30% below the peak period during the summer of 2013, commonly referred to as “RINsanity.” High RIN prices are expected to shield biofuel producers from falling oil prices, while refiner profits will be cut into by high RIN expenses if RIN prices remain high.
  10. So who will be the dominant force behind self-driving cars? Google or Daimler? Mercedes played it up at the Consumer Electronics Show showing off its “F 015 Luxury in Motion” concept car with its futuristic metallic exterior, swiveling seats to support face-to-face passenger conversations, and touch screens every passenger could access. Daimler CEO Dieter Zetsche said that this Mercedes-Benz will provide an escape from the crowded urban environment of the future.

Two funding sources that make the most sense for clean transportation startups

crowdfunding investorsFor those of you reading this article that are working for startups – or for major companies looking to dive into advanced vehicle technologies and infrastructures – there are five types of funding sources to consider tapping into:

  1. Government grants and low-interest loans
  2. Overseas investors
  3. Private equity and venture capital
  4. Green bonds
  5. Crowdfunding

So let’s take a brief look at each type – and two of them that present substantial opportunities in 2015 for both startups and large companies………

Government Grants and Low-interest Loans:
As you probably know, the US Dept. of Energy’s Clean Cities coalitions lead the way on gaining access to federal and state grants and low-interest loans. If you haven’t already done so, become active with your local Clean Cities coalition. Automakers and their suppliers have tapped into low-interest loans through the federal Advanced Research Projects Agency – Energy (ARPA-E). State programs are particularly strong in California, and most other states have some grant funding and incentive programs in place. California Energy Commission continues to be the most significant state funding source, with South Coast Air Quality Management District’s Mobile Source Air Pollution Reduction Review Committee being another channel that the clean transportation community has to stay up on.

Overseas Investors
Startup companies in the US that are breaking into the market are finding that overseas investors might be the best (and sometimes, the only) capital source out there. Investments might come from India, Brazil, Israel, China, Spain, or United Arab Emirates. In recent years, most of these investments have come from Chinese government-backed companies with Wanxiang Group’s bailouts of Fisker Automotive and A123 Systems being the best-known examples. The ZAP and Jonway Auto alliance is another example of a US-based company (three-wheeled, low-speed electric vehicle maker ZAP) finding its needed cash flow through Chinese capital.

Private Equity and Venture Capital
Initial public offerings (IPOs), angel investors, joint ventures, corporate shareholders, private equity firms, and venture capital investors – these are a few of the elements that it takes for a small startup like Tesla Motors to become a major player. Angel investors typically provide capital at an early state of a startup’s development, followed by venture capital firms providing investments and sometimes business guidance and other resources to a new enterprise. One good example of how this is working on the cleantech front has been Vivint Solar’s successful IPO in 2014 that was led by major investment firm Blackstone Group. Another funding source worth following is Cleantech Group’s i3 program, where firms like GM Ventures match up with the right startup companies.

Green Bonds
Toyota’s Asset-Backed Green Bond, a $1.75 billion fund announced in March 2014, is part of a much larger global financial trend in green bonds. Funds used to finance bonds that are friendly to the environment are gaining popularity worldwide, according to Christopher Flensborg of SEB, a Swedish bank. Toyota Financial Services’ (TFS) $1.75 billion was upsized from $1.25 billion as institutional investors have expressed interest in this clean transportation investment opportunity. TFS will use the proceeds from Green Bond toward the purchase of retail finance contracts and lease contracts for Toyota and Lexus vehicles that meet high green standards. Overall, green bonds accounted for about $12 billion in funding last year.

Crowdfunding
“Crowdfunding” has become a capital source that’s taken off in the past few years, but it’s riddled with more automotive failure stories than success – as Autoblog Green regularly documents. If done the right way, crowdfunding can be an excellent way to raise seed capital. What initially started out as a simple way to make donations to causes and startups through social media communities has evolved into a mechanism for investor returns. Indiegogo and Kickstarter are the two major crowdfunding sites out there; Indiegogo is more focused on arts and entertainment such as movie projects. Kickstarter is more focused on advanced technology startups. Investors are tracking what will come of a ruling by the Securities and Exchange Commission (SEC) on the JOBS Act of 2012. The JOBS Act will probably ease federal regulations and allow start-ups to raise seed capital from a large number of individual investors up to a limit of $1 million. The SEC won’t be finalizing its crowdfunding rules until October 2015; these rules usually take up to 60 days to be published, meaning that the JOBS Act won’t really be in effect until early 2016. Regardless of that delay, crowdfunding has been booming in the past couple of years as a capital source for startups and major companies.

For startup companies and major players creating clean transportation subsidiaries, there are two investment sources that are likely to be viable this year and beyond: crowdfunding and government programs. My firm, LeSage Consulting, is now offering services to assist clean transportation stakeholders in finding needed investments………..…..

  • I’m working with an experienced colleague who has several years of success in securing funds through writing and submitting grant proposals. Funds have come through government grants and loans and crowdfunding sites. Funded projects have included telematics, autonomous vehicles, nautical and aerospace projects, and emissions reduction technologies.
  • If you visit Kickstarter and Indiegogo, you’ll see that two elements need to be in place: an innovative technology with positive economic and environmental gains; and telling a great story that generates enthusiasm from individuals and institutional investors. LeSage Consulting will manage that project for you – creating quality video and website content to tell that story the right way.
  • Preparing for “pitch meetings” organized by firms such as Angel Launch. These networking meetings are ideal for reaching startups, investors, and business executives. Winning awards provides access to capital and strong visibility.
  • Marketing to the right niches. LeSage Consulting will work closely with you on sharing your story and reaching out to the best-suited communities of stakeholders. That can come through market intelligence research, media coverage, social-media messaging, and setting up meetings with the right players in the field – including attending the appropriate pitch meetings.

When you become active in crowdfunding projects, you’ll notice that it’s not just startups who use Kickstarter and Indiegogo, or other relevant sites for cleantech such as Fundly, GoFundMe, Rockethub, Greenfunder, or Green Fundraising. Large companies are using crowdfunding to see if their projects in the R&D stage are gaining interest and support. Private equity firms also are active in crowdfunding sites to gauge where new technologies are heading in the marketplace; being active on Kickstarter and other crowdfunding can provide a meeting ground for institutional investors and corporations to move new technologies forward.

Most crowdfunding is targeted at small, startup technology launches that are receiving donations from an enthusiastic community who want to see that new company thrive. For larger companies and investors, there’s occasionally another business model utilized on crowdfunding sites – such as a board of advisors who’ve contributed $10,000 or more and participate in user-interface meetings. They’re not the same as shareholders attending a publicly traded corporation’s annual meeting, but they do contribute more input than individual donors on crowdfunding projects.

The cleantech community is very interested in crowdfunding, and has witnessed a few success stories. Solar Roadways provides an excellent “how to” on making crowdfunding work. The company makes modular panels that replace asphalt, generate energy, and save money on road maintenance. Its first round of funding – about $850,000 – came through the US Federal Highway Administration for research and development in 2009; and through winning GE’s first Ecomagination award in 2010. Lately, Solar Roadways has doubled its initial Indiegogo campaign – more than $2 million has been raised so far, with some of that interest supported last year by its entertaining Youtube video, “Solar Freakin Roadways.”

You may have an electric truck perfect for urban deliveries; a mobile device application that guides drivers to alternative fueling and charging stations; a propane dispenser ideal for fleets; a carsharing program ready to enter a dozen new markets; or a need for seed capital on an advanced vehicle technology R&D project (such as a NextGen lithium battery) so that it gain investment capital for its next phase. Keep in mind that LeSage Consulting can work closely with you on lining up funding to take it to the next level.

Government loan guarantees are seeing positive returns lately, even in the wake of the Solyndra scandal – the California-based solar company that went bankrupt and led to Congressional hearings on the Obama administration backing risky ventures. One clear example of government grants and low-interest loans coming back comes from the US Dept. of Energy investing in the world’s largest cellulosic refinery that opened up last fall in Hugoton, Kansas. Spain-based Abegona has built this refinery capable of producing up to 25 million gallons of cellulosic ethanol using non-edible waste. About $132 million of that plant’s $500 million was backed by the federal loan-guarantee program.

Government grants and loan guarantees (and incentive programs available to fleets through alternative fuel associations), along with crowdfunding, make the most sense these days. They can open the door later on for larger capital investments such as IPOs and venture capital partners. As we’ve clearly seen since 2008, cleantech and clean transportation are tough markets to enter, survive, and thrive within. Finding the right support and resources makes all the difference in the world. (For more information, please contact me at jlesage@jonlesage.com.)

Where petroleum prices are heading in the next few years

Gas pricesThe economic power of the oil industry continues to be more influential than any other business sector in the world; that includes OPEC and non-OPEC oil-producing countries like Canada and Russia, and supply chain partners such as oil refineries. When the price of oil jumps up or down, the economic rippling effect is felt throughout the world; sales of hybrids and electric vehicles are affected and geopolitical issues, such as alliances between countries, are impacted.

When oil, gasoline, and diesel prices spiked in 2008, the term “fuel volatility” became commonly known by fleets and consumers. Sales of hybrid electric vehicles jumped up. Investment in natural gas vehicles and infrastructure – and to a lesser extent propane autogas – had a resurgence not seen since the early 1990s. The oil price spike in the summer of 2008 helped push along the US financial market collapse that started in September of that year – and it also supported the introduction of plug-in electric vehicles (EVs) by the end of 2010. Volatility in fuel prices has given car shoppers more concerns for fuel efficiency and more interest in EVs and other alternative technologies. Oil prices, and gasoline and diesel, did drop back down in 2009 but came back up again in 2011. Those prices stayed up and fairly level until dropping nearly 50% in the second half of 2014.

Even though the US and the world had been hit with the Great Recession, the first EVs produced in fairly large numbers were introduced by major automakers before the economy started recovering. When the Nissan Leaf and Chevrolet Volt were rolled out in late 2010, advertisements for the Leaf and Volt emphasized freedom from oil addiction (such as driving by gas stations) and environmental benefits. Tesla Motors had introduced the limited production volume Roadster in early 2008; its Model S, launched in the summer of 2012, had been able to generate enough enthusiasm long before roll-out to support the company’s 2010 initial public offering and large investments by Daimler and Toyota.

Major automakers expect that within the next five-to-10 years, oil price increases and the possibility of more motor fuel taxes, will drive up prices at the pump. Increasing environmental regulations and fuel economy standards, and the drive toward sustainability targets by corporations and governments, are also influencing those capital investments and new vehicle planning. Major automakers, including commercial truck manufacturers, are going to continue to invest in alternative fuel vehicles and advanced vehicle technologies. Along with fuel price trends, automakers are planning for a fast-changing transportation landscape where they’ll be selling less new vehicles and partnering with other stakeholders in carsharing, autonomous vehicles, urban planning, vehicle safety improvements, and reducing traffic congestion gridlock and air pollution.

If you study the Forbes’ list of the world’s biggest public companies, you’ll see that major oil companies are high on the list and that the annual ranking is becoming more expanded and globalized. China, which became the largest importer of oil in 2013, plays a very visible role on this list. No. 1 on the list is ICBC (Industrial & Commercial Bank of China), which funds a lot of petroleum production. Number 10 on that list is PetroChina, which refines crude oil and petroleum products and is engaged in the exploration, development, production, and sale of crude oil and natural gas. PetroChina was also the largest emitter of greenhouse gas emissions in the world during 2013. Advanced vehicle technologies are in the pipeline, but for now, the power of the global oil industry and its impact on emissions can’t be ignored.

As for the near future, and for the long-term, here are a few market forces to follow that likely will be influencing motor fuel prices………..

  • While crude oil has been selling for about $55 lately on the WTI exchange, analyst firm Trefis forecasts those prices will reach about $100 per barrel by 2020. Recent price declines in oil should extend for a longer period of time than Trefis had originally predicted; a slower growth demand scenario and the weakened price controlling power of OPEC will extend these current prices longer, but they will be going up to the $100 per barrel range in about five years. Rapid growth from non-OPEC supplies relative to overall demand has been at the heart of the recent oil price drop.
  • Approval of the Keystone XL pipeline in Washington, DC, appears less likely to happen. Lower gasoline prices and skeptical comments from President Barack Obama may be behind it. While it may be very good for Canadian oil companies, it’s not going to provide much for American consumers, Obama said. That’s the fourth non-supporting comment the president has made publicly since early November on the six-year old proposed pipeline that would run between Alberta and Texas. Several analysts have said that falling gas prices support the argument of Keystone XL pipeline opponents that it’s not worth the investment; Canadian oil isn’t necessary with all the global oversupply that’s already out there.
  • The US may benefit from these price fluctuations in stabilizing hostile relationships with Russia, Iran, and Venezuela – which face financial collapse with oil price drops. Russia’s former finance minister and long-time ally with Russian president Vladimir Putin has called for his country to improve relations with the US as the oil price drop is creating for them a “full-blown economic crisis.” Putin has been at odds with the US and other countries over Western sanctions after Russia intervened in Ukraine. The Venezuelan government had hoped to continue with the free-spending policies enacted by former President Hugo Chavez, but that’s not likely with oil prices dropping. Iran has been losing about $1 billion a month because of the oil price declines. Long-time Pentagon adviser Edward Luttwak says the price drop, “is knocking down America’s principal opponents without us even trying.”

This Week’s Top 10: Why Tesla’s stock price has dropped, President Obama signs bill supporting credits for natural gas and EV charging stations

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. Tesla Motors’ stock price fell below $200 on Tuesday of last week after reaching a high point of $284.89 in September. The price has continued to move back up in the past few days (finishing at $222.60 when the market closed yesterday). The price started declining during the fall in line with a 50% drop in crude oil prices since August. Earlier in December, the average US gasoline price dropped to $2.75 per gallon versus $3.27 a year ago. Along with dropping gas prices, analysts think Tesla stock price decline relates to the company scaling back production of the Model S by 2,000 units after an assembly line took longer than had been planned for. Another development was pushing back the delivery date of the long-delayed Model X crossover to the third quarter of 2015.
  2. President Obama has signed The Tax Increase Prevention Act of 2014 extending the natural gas vehicle fuel credit of .50 cents per gallon equivalent through the end of this year. Natural gas refueling equipment has received a tax credit through the end of this year identical to one being granted to electric vehicle charging stations — a $1,000 credit for home refueling appliances, and a 30-percent investment tax credit up to $30,000 for businesses.
  3. US Environmental Protection Agency (EPA) regulations on electric power plant carbon emissions will likely be dragged out a long time. The January 8, 2015, deadline may be missed due to being late in the process of receiving public comments. It’s also likely to hit a roadblock from a more hostile Congress over the next two years. This has been possibly the biggest move by the Obama administration on environmental policy, and it faces an uphill battle. On Friday, the EPA did set the first national standards for disposal of coal ash from coal-fired power plants; coal ash has been classified as solid waste instead of a hazardous material. EPA says the final rule establishes safeguards to protect communities from coal ash impoundment failures and establishes safeguards to prevent groundwater contamination and air emissions from coal ash disposal.
  4. Second generation biofuels should reach $23.9 billion as a global market by 2020, a combined annual growth rate of 49.4% from now until 2020. The market report by Allied Market Research says that while biodiesel is the highest produced second-gen biofuel, cellulosic ethanol should surpass it within the next two years. North America holds the largest regional market share, followed by Europe. Growth drivers should be favorable regulatory policies and the fuel’s environmentally friendly nature.
  5. Job training programs continue: I-CAR has launched the Alternative Fuel Vehicle Damage Analysis and Safety (ALT03) The live, instructor-led program is worth three credit hours and is designed to enhance a collision repair professional’s understanding of how to safely approach all types of alternative fuel vehicles. “Each vehicle will require specific knowledge about the different risk avoidance elements engineered into these vehicles from a propulsion system perspective,” says Josh McFarlin, I-CAR Director of Curriculum & Product Development. “This makes building knowledge on the different alternative fuel vehicle types extremely important.
  6. Carbon War Room has merged with Rocky Mountain Institute in a campaign designed around combatting climate change and accelerating demand and financing for low-carbon solutions that are technically viable and cost effective. Carbon War Room, co-founded by Virgin Group Chairman Richard Branson, has been active in clean transportation including its alliance with Freight Efficiency.org. Rocky Mountain Institute has conducted major studies on electrified transportation. Earlier this year, the two organizations worked on a joint project, the Ten Island Challenge, that’s supporting transitioning Caribbean island energy systems from imported diesel to renewable sources such as wind and solar.
  7. Beverage delivery fleets are increasing fuel efficiency. Coca-Cola, PepsiCo, and Dr. Pepper Snapple Group have increased the fuel economy of their fleets by 12.6% since 2010. The improvements come from an industry-wide initiative in which the three beverage companies agreed to share proprietary data on their truck fleets with the American Beverage Association.
  8. Tesla Motors next week will start a pilot battery swap program with Model S owners. They can set an appointment and show up at the Tesla shop in Harris Ranch, Calif., which is across the street from a few Tesla Superchargers. Right now it’s taking about three minutes to swap these batteries due to the titanium and hardened aluminum ballistic plates shielding the battery pack; the goal is to reach one minute for the swap through further automation and refinements of the vehicle.
  9. It’s taken a long time, but Nissan is getting ready to roll out its NV200- based taxi cabs on the streets of New York City. April 20, 2015 is the start date of the city’s Taxi of Tomorrow program, and it follows a stream of public debate and legal challenges. Nearly all of the older Ford Crown Victoria taxis on the streets of New York will have to convert over to the modified Nissan NV200 vans. Advocates of the NV200 cite benefits for taxi fleets including more room and better visibility for passengers and improved fuel economy for fleet operators.
  10. Tesla CEO Elon Musk’s “hyperloop” high-speed rail project just issued a 76-page report. The project, which is being developed through another of Musk’s companies, SpaceX, acknowledges the project is still in its infancy, but this is the first time since the announcement last year that more details and research findings have been revealed.

 

This Week’s Top 10: Honda delivers Green Dealer Guide, Carlos Ghosn has fun bragging about Nissan and Renault ZEV sales

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

  1. Honda dealerHonda’s sustainability drive is being carried forward to its dealer network through its Green Dealer Guide resources. The 93-page guide offers instructions to Honda dealers on making their operations more energy efficient. Methods include installing high-efficiency lighting, using climate-control systems, managing water use, and using renewable energy sources like solar power. This strategy goes well with Honda’s corporate blueprint on environmentally sound practices – which has been impressive enough for the company to win several “greenest automaker” rankings from the Union of Concerned Scientists. The guide has been in the works over the past three years, and now offers its network dealers techniques on saving energy and money. One example is adding an automated thermostat and adjusting lights after business hours, which can save the dealer $7,000 per year and would cut energy consumption by at least 10%.
  2. Convenience, economy, increased awareness, and driving fun and reliable cars are the main reasons Renault-Nissan surpassed its 200,000th zero-emission vehicle (ZEV) in sales, according Carlos Ghosn, chairman and CEO of the Renaualt-Nissan Alliance. Ghosn is very good at championing the cause and made some impressive statements in his LinkedIn post…… The Nissan Leaf is by far the best selling its electric vehicle worldwide – so much so that sales up 20% this year. The Leaf, Renault Zoe and other zero emission vehicles in the automakers product lineup have been driven about four billion kilometers – enough to circle the earth 100,000 times!
  3. Two non-internal combustion engine vehicles made this year’s top rankings in Wards Auto’s “10 Best Engine” annual listing. The BMW i3 was the only one of four battery electric vehicles evaluated for the contest to make the cut. Judges liked the power options, including the i3 Rex gasoline range extender edition. The Hyundai Tucson Fuel Cell also made the top 10; the panelists liked how Hyundai has packaged the fuel-cell stack under the hood – helping to make the entire ownership experience similar to driving a regular internal combustion engine vehicle.
  4. Here’s a huge opportunity: only 4% of companies surveyed by GE Capital have alternative fuel vehicles in their fleet, but more than 55% plan on adding them in the coming years. That comes from a national survey of 409 executives at middle market companies who have responsibility for their company’s vehicle fleets.
  5. Tesla China President Veronica Wu has resigned from her position with Tesla Motors after less than nine months in the job. No details have come out yet on why this might have happened. “We remain confident in the Chinese market,” the company said in an e-mailed statement.
  6. Having trouble managing your analysis of company and fleet greenhouse gas emissions (GHG)? Here’s a guide for corporate environmental health and safety (EHS) officers on approaching methods for accurately calculating GHG emissions for reporting purposes. Regulatory uncertainty means that companies need to stay current on the latest and best methods.
  7. Two leaders from Alabama Clean Fuels Coalition have been named to the Clean Cities Hall of Fame. Executive Director Mark Bentley and President Phillip Wiedmeyer were inducted by National Clean Cities Co-Director Linda Bluestein while representatives from nearly 100 Clean Cities coalitions gathered for the annual coordinator workshop. In 2013, Bentley and Wiedmeyer lead the Alabama coalition as it saved more than three million gallons of petroleum and averted more than 12,000 tons of greenhouse gases through deploying alternative and renewable fuels.
  8. California Energy Commission (CEC) is receiving applications for funding medium- and heavy-duty advanced vehicle technology demonstration projects. Those applications will be received through Jan. 29, 2015. Demonstrations receiving funding must enhance market acceptance of advanced vehicle technologies that will lead to vehicle production and commercialization, reduce greenhouse gas emissions, and reduce petroleum use, according to the CEC.
  9. France is pushing for a huge change in its car ownership model – getting rid of diesel-powered cars. About 80% of French motorists drive diesel-powered cars, so the government is launching a car identification system to rate vehicles by the amount of pollution they emit. Taxation is the method that will be used to redirect consumers to more ecologically sound choices.
  10. Only a third of diesel-powered passenger cars have lower cost-of ownership than their non-diesel counterparts. That’s down from 46% of diesel vehicles being cost effective in the 2013 edition of Vincentric’s Diesel Analysis study. Of the 35 diesel vehicles included in the study, only 11 have lower ownership costs than their all-gasoline counterparts. Of these 11, 10 were luxury models – making it even tougher to save any money during diesel vehicle ownership.

 

Fair competition beats out chosen winner technology as key theme at CALSTART annual meeting

CALSTART buildingIs the hydrogen fuel cell vehicle the winning technology of the day, or is it plug-in electric vehicles? Natural gas or renewable natural gas? The landscape shaped by regulators, OEMs, infrastructure players, and legislative officials may be evolving into more of a level playing field – according to speakers last week at the CALSTART Annual Meeting and Blue Sky Award ceremony in Los Angeles.

 

Automakers have given up fighting federal and state standards for fuel efficient, reduced carbon vehicles – replacing it with competition for leadership in a wide spectrum of alternative fuels and advanced vehicle technologies. “The industry is spending billions on technology,” said keynote speaker Christopher Grundler, director, office of transportation and air quality at the US Environmental Protection Agency. “They have to do their job to achieve fair competition.”

 

This perspective was complemented by Janea Scott, commissioner at the California Energy Commission, during an afternoon speaker panel on private-public investment partnerships. “You don’t want to pick a winner technology,” Scott said. “You want to receive proposals and make the best decision. We’re creating a bigger pond with more competition.”

 

Speakers acknowledged that the regulatory environment is certainly very challenging with California’s AB 32, low carbon fuel standards, and cap and trade credits; the status of Renewable Fuel Standard rules and credits; phase two of federal standards for heavy-duty vehicle fuel economy and emissions coming up; details on the US-China greenhouse gas emissions agreement being decided next year; and air pollution from goods movement and its impact on disadvantaged communities and others working at, and living near, ports and major interstate highways.

 

CALSTART’s founding chairman and current president of the California Public Utilities Commission (PUC), helped put things in perspective. When he served as president of Southern California Edison during CALSTART’s creation in 1992, Michael Peevey said that all of the targets being hashed out by states and federal agencies seemed unattainable back then. Now the decisions are becoming more intricate, he said – such as whether the PUC should lift its ban on electric utilities deploying their own electric vehicle charging stations.

 

The tension between California and the federal government (and automakers) was more of a battleground in the early days of CALSTART, but that is getting worked out. Grundler made some humorous comments about it while participating on another panel with Richard Corey, executive director of the California Air Resources Board; that came across in his comments on California considering itself its own sovereign nation and having to accept that fact that its slipped from the seventh largest economy in the world to the eleventh.

Another colorful moment came up when Dave Barthmuss accepted a Blue Sky Award for his company, General Motors. Barthmuss acknowledged that he did look familiar to people from having been featured as the GM spokesman in “Who Killed the Electric Car?” While Barthmuss looked like one of the bad guys is that influential movie, things seemed to have changed. After taking the award for GM’s full suite of plug-in vehicles and its clean manufacturing, he was pleased to share his own pride in being an electric vehicle driver and for being part of efforts to get CALSTART employees to start driving Chevy Volts to work.

 

The other winners of the Blue Sky Award were: California State Senator Fran Pavley became the first-ever second-time award winner for several accomplishments over the years, more recently for leading the creation of incentive programs to move clean transportation forward including bringing cap and trade funds to mobile sources. California State Senator Ricardo Lara was honored for leading Senate Bill 1204 that will help reduce pollution in communities living near freight corridors and ports, particularly in disadvantaged communities. California Assemblyman Henry Perea was acknowledged for his leadership role with Senator Pavley on the passage of Assembly Bill 8 to extend clean transportation incentive programs through 2023. Award winners acknowledged CALSTART for its role in getting important bills passed in Sacramento, and for helping their implementation go forward. (And many thanks to CALSTART for inviting Green Auto Market to serve as a supporting organization for the event.)

Frito-Lay was given a Blue Sky Award for its large-scale commitment to alternative fuels; the company has made a strong investment in compressed natural gas and electric vehicles to its fleet and with its partners. Caterpillar Inc. was honored for developing and commercializing its Off-Road Large Size Hydraulic Hybrid Excavator. The hydraulic hybrid excavator captures and reuses energy that would normally be lost during earthmoving operations and reduces fuel consumption and CO2 emissions.

Ports of Los Angeles and Long Beach bringing opportunities for clean air improvements

Ports of LA and Long BeachAs acknowledged during the annual CALSTART annual meeting and awards presentations, facing air pollution at freight corridors and ports is a serious challenge. Workers and local residents are prone to serious health hazards including asthma, lung cancer, and emphysema from toxic air pollutants. It is getting better at the ports of Los Angeles and Long Beach and the entire southern California region;  the cancer risk has dropped 65% since 2005, but it’s still considered to be too high and one of the worst in the nation. Incentive programs and cleaner fuels have slashed diesel emissions from trucks, ships, and other vehicles. For anyone living and working near the ports, there continues to be a strong demand for air quality to get better.

Two meetings in the Los Angeles area last week gave me some hope for the future of clean transportation at the largest port area in the US.  On Monday afternoon, PortTech Los Angeles, a non-profit organization funded by the Port of Los Angeles, held its annual open house meeting. Guests were able to see PortTech’s expanded office facilities and view table displays from startups in PortTech’s newest portfolio of companies. Like LA Cleantech Incubator, PortTech helps cleantech entrepreneurs go from early startups to thriving businesses. Member companies are in a good place to support PortTech’s vision of advanced, clean technologies serving the port community.

One of the displaying companies, Transpower, is manufacturing battery-electric drive systems for Class 8 trucks. The electric drive system offers lower lifecycle costs than diesel engines and is well suited for port drayage trucks, local delivery trucks, and refuse collection vehicles. NorthSouth GIS LLC (NSG) designs and deploys geospatial systems for ports. The company integrates these systems with other port systems, populates them with data, devises processes, and trains personnel with a focus on long-term sustainability. In September during the 5th annual PortTechEXPO, cleantech companies were able to connect with business prospects at Southern California’s ports and explore opportunities with ports worldwide working to achieve a more sustainable future.

Another meeting last week focused on a test project for cargo trucks serving the ports. On Thursday, the e4 Mobility Alliance, which is managed by the Los Angeles County Economic Development Corp., hosted a meeting featuring Dennis Rodriguez, the Southern California account manager for Siemens. Rodriguez gave a presentation on electric trucks participating in a test project in Carson, Calif. Siemens is providing electric drive systems that will operate on a catenary system, similar to what you see powering metro buses in San Francisco and other cities. Along with the overhead external conductive box and cable system that Siemens is providing, Volvo Trucks is supplying test freight carrier trucks.

For Siemens, this technology has proven to be safe and efficient; trucks participating in previous tests have been able to perform at maximum weight loads and speeds. “Road freight emissions has become a big deal at ports,” Rodriguez said.

This project with its mile-long path in Carson, is the first part of a multi-phase project Siemens is seeking support for. South Coast Air Quality Management District is providing funding for this project that will start up next year. Siemens is hoping that its catenary system could be part of a dedicated single lane within 710 freeway’s corridor project set to start up in the next five years. That 12-mile project is still seeking buy-in from cities along that stretch of the freeway and government agencies overseeing the region. The concept is to launch the corridor project in 2020 and complete it in 2030; it’s expected to create 500,000 project jobs and to help reduce harmful emissions.

 

This Week’s Top 10: Audi takes on Tesla for wealthy eco-conscious buyers, Federal tax credits on AFVs extended

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. Audi R8Audi takes on Tesla: Even though reaching out to upscale, climate change-conscious car shoppers probably won’t be enough to take electric vehicle sales to the next level, Audi thinks there’s enough potential in that segment to take on Tesla Motors. In 2017, Audi will be rolling out an electric crossover that will compete with Tesla for business among wealthy, environmentally conscious consumers. It will be a battery-powered version of the $115,900 R8 sports car – Audi’s first battery electric vehicle. It will follow deliveries of the A3 E-Tron plug-in hybrid hatchback this year. Competition with Tesla (and BMW) for the luxury electric car buyer market will be tough. Tesla Model S drivers who recently took a Consumer Reports survey say they’re more likely than Porsche owners (or any other brand) to buy one of these Tesla cars again. The car shopping experience is one of the reasons Tesla drivers are staying very loyal to the brand. Even though most franchised dealers hate Tesla for running their own stores, they are showing an example of what luxury car buyers are expecting from the experience. Major dealer chain Sonic Automotive was recently dubbed the “Tesla of dealers” by Morgan Stanley for giving their customers a faster and better buying experience.
  2. Tax credits on AFVs. If you’re looking for tax credits for vehicles running off of compressed natural gas, liquefied natural gas, and propane autogas, there’s good news. The House last week passed HR 5771, the Tax Increase Prevention Act of 2014, which includes a 50-cent per gallon tax credit through the end of this year. That credit had previously expired at the end of 2013, and the US Senate is now reviewing the bill.
  3. Simplifying electric vehicle (EV) charging monitoring and reporting. Siemen’s energy management division is working with Duke Energy on the next phase of a US Dept. of Energy-funded project. Siemens has what it says is the first Underwriters Laboratories (UL)-approved residential EV supply equipment (EVSE) to demonstrate the ability to monitor status, report energy use, and be controlled from the local area network and the cloud. That comes out of an 18-month test project to reduce cost and expand charging technologies.
  4. British OEMs “onshoring” jobs back to UK. British automakers are expected to create 50,000 new jobs in the UK over the next two years; 63% of them are planning on developing low-carbon or electric vehicle technology. According to a study by Lloyds Bank, 70% of car manufacturers or their supply chain partners plan to return more of their production to the UK; improved economic conditions there and a desire to support local communities are reasons why – along with creating more reliable and shorter supply chains.
  5. Ryder System joins Trucking Efficiency. Major fleet management and supply chain company Ryder System is supporting this joint initiative between the Carbon War Room and the North American Council for Freight Efficiency.org provides fleet owners and operators with data on available vehicle technologies and the benefits and challenges of deploying them.
  6. More workplace charging. Coca-Cola Company will provide electric vehicle charging at seven of its facilities across California, and NRG eVgo will install and manage them. It’s part of offering support with the state’s goal of bringing 1.5 million zero-emission vehicles to its roads by 2025.
  7. Diesel plug-in hybrid. Volkswagen will enter the plug-in hybrid diesel market through its Audi brand. The Audi Q7 will debut next year with gasoline and diesel powertrains, and a plug-in diesel will come later to Europe and the US.
  8. Getting NGV support in Washington. Executives from Daimler Trucks, UPS, Clean Energy Fuels, and other companies spoke last week before the US Senate Finance Committee asking for support of federal tax incentives for natural gas vehicles. High-ranking senators agreed that reform is needed on tax and energy policies to level the field for alterative fuels. However, how and when this will take shape was not resolved by the finance committee.
  9. Boeing 787 Dreamliner battery fire. National Transportation Safety Board reported that the lithium-ion battery fire last January in a parked Boeing 787 Dreamliner came from design and certification defects. The NTSB is recommending that the Federal Aviation Administration improve guidance and training provided to industry FAA certification engineers on safety assessments and compliance methods. NTSB made 15 safety recommendations to FAA, two to Boeing, and one to battery manufacturer GS Yuasa.
  10. Fuel Efficient Military Vehicles. GMZ Energy, which produces high temperature thermoelectric generation (TEG) solutions, announced the successful demonstration of a 1,000W diesel TEG that directly converts waste heat into usable electricity to increase fuel efficiency by reducing the load on the alternator. This announcement follows GMZ’s June 2014 demonstration of its 200W diesel TEG, and marks the next milestone in the $1.5 million vehicle efficiency program sponsored by the US Army Tank Automotive Research Development and Engineering Center (TARDEC) and administered by the US Dept. of Energy. TEG could save the US military billions of dollars per year by increasing fuel efficiency in Bradley Fighting Vehicles, which get less than one mile per gallon.

This Week’s Top 10: BMW and Tesla deal didn’t actually take place, Wisconsin wants to tax EV and hybrid owners more

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. Elon MuskWell it looks like many of us fell for it on the BMW-Tesla deal. Last week, Tesla CEO Elon Musk told German media giant Der Spiegel that the two automakers were continuing talks that could set aside competition for the luxury electric car space and focus more on mutual gains. That could have meant combining “lightweighting” from BMW and advanced batteries from Tesla Motors and jointly creating better charging stations. Now, BMW told German business magazine Wirtschafts Woche that it doesn’t have plans for cooperation with Tesla and won’t be doing what other major OEMs have done in buying Tesla’s stock shares. That comes from an unnamed source at BMW. It could also have something to do with BMW digging plug-in hybrids over the battery-electric-only mindset of Tesla. BMW just launched a three-prong approach to bringing these extended-range plug-ins to China. One is a long-wheelbase 5-Series sedan, another is a prototype 3-Series sport sedan, and another project is the new Power eDrive system than can produce 670 horsepower. Tesla will be able to get over it; things are going well enough for the electric carmaker to ramp up its Fremont, Calif., production plant ahead of an expected production increase. Global demand is moving things along and will allow for building its all-wheel drive Dual Motor Model S and the start of its Model X crossover production, the company said.
  2. State governments are looking more at electric vehicle (EV) and hybrid owners as a funding source. Wisconsin has joined five other states to impose a fee on fuel-efficient vehicles; EV and hybrid owners will get a $50 annual charge. The new fee has been designed “to ensure these owners continue to pay their fair share of the operating costs of our infrastructure,” said Wisconsin DOT Secretary Mark Gottlieb. Washington Governor Jay Inslee sees it another way; Inslee wants to extended a state tax break for EVs and look into giving them access to carpool lanes. Cutting carbon pollution and reducing dependence on fossil fuels gets support in the state, but others question whether EV owners should get preferences. Inslee would agree with many leaders mentioned in another Green Auto Market article – this is part of his larger effort to tackle climate change. One representative who heads the House Finance Committee has concerns about extending that tax break, which expires on July 1.
  3. EPA’s Christopher Grundler makes Automotive News’ annual all-star list. Grundler, director, Office of Transportation and Air Quality at the US Environmental Protection Agency, has been acknowledged for the role he’s playing in guiding the agency through adoption of its tough emissions and fuel economy rules. Grundler has led offenses against automakers overstating their mpg stickers about their best-in-class fuel-efficient vehicles. Hyundai and Kia were recently hit with a $100 million civil penalty for overstating mileage along with other fines; other automakers have revised fuel economy labels, including Mini and Mercedes-Benz, and Grundler’s office has played a leading role in this tactic.
  4. Fleets in Texas have access to an incentive for propane autogas vehicles. The Propane Council of Texas is offering up to a $7,500 incentive for purchasing a propane-powered vehicle for their commercial fleet. The program is capped at $15,000 available per fleet.
  5. The Renault-Nissan Alliance has passed the 200,000 mark in electric vehicle (EV) sales. The global automaker says that about 150,000 of that has been Nissan EVs sold in the US, Asia, and Europe – mostly the Leaf but also the e-NV200 small commercial van that may be introduced into the US. Renault offers four EV models – with its Zoe and Kangoo ZE being top selling, followed by the Twizy and Fluence ZE.
  6. Southern California Edison’s (SCE) energy storage may be good for electric vehicle (EV) batteries. Electric utility giant SCE is investing more than anyone else in storage – enough for 250 megawatts (MW) of energy storage. That started out as needing 50 MW to make up for the loss when its San Onofre nuclear power plant was taken offline due to safety concerns, but its order has been five times that need. Much of that storage is coming from lithium-ion battery cells similar to what’s being used now in electric vehicle battery packs. Vehicle-to-grid (V2G) systems may be used to turn these EVs into storage units for excess energy.
  7. Shedding 700 pounds has been very good for F-150 fuel economy. Ford Motor Co. has increased the fuel efficiency of its 2015 F-150 pickup by 29% with its lighter-weight aluminum body. When equipped with a 2.7L V-6 EcoBoost engine, the truck is getting 26 mpg highway, 19 city, and 22 combined, according to the US Environmental Protection Agency.
  8. Miami-Dade County, Fla., has added more hydraulic hybrid trash trucks to its fleet. That’s the third order of the trucks built with Parker Hannifin’s RunWise Advanced Series Hybrid Drive System, bringing the total in its fleet up to 64 of these vehicles. Using these hydraulic hybrids is reducing fuel consumption by up to 50%, according to Parker Hannifin.
  9. Renewable natural gas is getting more support. A new report, “Decarbonizing the Gas Sector,” from the Bioenergy Association of California (BAC), makes some impressive statements about the fuel’s potential. Organic waste converted into biogas could meet more than 10% of California’s natural gas demand. According to BAC, total organic waste in the state could be used to produce 2.5 billion gge (gasoline gallon equivalents) of transportation fuel, enough to replace three quarters of all the diesel fuel used in the state.
  10. Volkswagen has high hopes for its “Think Blue. Factory” program. The German automaker thinks it can reduce energy and waste consumption, along with CO2, waste, and solvent emissions, by 25% by 2018 compared to its 2010 levels. The company has already implemented more than 2,700 projects that have made its production processes 17% more environmentally sustainable over the past three years. Recycling and reusing cooling water at some of its plants has been one of the tactics producing benefits, Volkswagen said.