Category: electric vehicles

Frankfurt Motor Show looks electrified but how real is it?

Frankfurt Motor ShowThe German auto show is going full steam ahead and has been getting plentiful media coverage describing electrified vehicles as the central theme. There certainly have been a lot of displays, but the typical question arises – how much of this will really reach production lines, what will the volume look like, and when will they show up at dealer lots? Here’s a few highlights from last week…

Volkswagen took center stage – claiming to have 40 new hybrids, plug-in hybrids, and battery electric vehicles in the works to roll out by 2018; the company plans to roll out 14 vehicles with alternative powertrains by next year. Coming soon will be electrified versions of the Up! city car, Golf compact, Audi A3 Sportback plug-in hybrid, and a battery-assisted Porsche 918 supercar. Volkswagen CEO Martin Winterkorn says that his company will become the world’s largest producer of battery-based vehicles in the world.

VW also said that it’s considering rolling out natural gas-powered cars in the US. The automaker is urging the Environmental Protection Agency to do more to get a broader natural gas refueling network set up across the country.

Land Rover will be offering a diesel plug-in hybrid Range Rover SUV. It’s expected to pair a 288 horsepower turbodiesel engine with a 47 hp electric motor, and will get 44 miles per gallon.

BMW officially unveiled its i8 plug-in hybrid, which gets 362 hp that comes from a three-cylinder engine and an electric motor. BMW is also showing a Concept X5 eDrive at the show – a plug-in hybrid based on a four-cylinder engine.

Lithium-ion batteries see much brighter days for Asia-based battery makers

LG Chem battery researchNot long ago, Navigant Research identified what it considers to be the top 10 most significant lithium-ion battery makers active in the electric vehicle market. Its top 10 ranking is based on systems integration, safety engineering, chemistry performance, geographic reach, manufacturing and product performance, pricing, and overall corporate financial health. Here’s the top 10 list with a bit of company background information….

  1. LG Chem – formerly a subsidiary of LG Group, the South Korean company went public in 2001 with LG Group remaining a significant investor.
  2. Johnson Controls – a US-based company offering products and services to optimize energy and operational efficiencies to several industries including automotive.
  3. Automotive Energy Supply Corp. (AESC) – a joint venture between three Japan-based companies – Nissan, information technology company NEC Corp., and electronic device company NEC TOKIN Corp.
  4. Panasonic – a Japanese electronics company.
  5. Samsung SDI – a subsidiary of South Korea-based Samsung Electronics.
  6. SK Continental E-Motion – a joint venture between South Korea’s largest oil refiner SK Innovation and German automotive parts supplier Continental AG.
  7. Hitachi – a Japanese engineering and electronics conglomerate.
  8. Toshiba – a Japanese engineering and electronics conglomerate.
  9. GS Yuasa – a Japanese company known primarily for automobile and motorcycle lead-acid batteries.
  10. BYD – Chinese BYD Company is a major battery maker and also owns BYD Auto Co.

You might notice a pattern here – of these 10 companies, only one is US based and nearly all others are in Asia and bring many years of success in automotive, engineering, and electronics to their battery divisions. The US has its share of electric carmakers, but the battery packs haven’t gone well for US-based manufacturing. A123 Systems went bankrupt and is making a few batteries now for its Chinese company owner; EnerDel came from Ener1 and its troubled partnership with Norwegian electric carmaker Think. EnerDel is struggling with lack of business and just cut its Indianapolis-area workforce by one third. Coda Automotive has pulled out of the electric vehicle market and filed for bankruptcy. Management is now focused on building its battery energy storage system through its Coda Energy division, which it started in 2011, and it’s focused on markets outside of electric vehicles.

LG Chem has done very well in the global li-ion battery market, but the US has been a bad experience for the top-ranked company. LG Chem finally began producing li-ion batteries in July for the Chevrolet Volt at its Holland, Mich. plant, but that’s been stopped again in the past few days. The US Environmental Protection Agency (EPA) has raised questions about how the cells are being made. The EPA has issued a subpoena on LG Chem to find out what chemicals have been used in production. The company says that it’s still confident it can get production ramped up once this investigation gets wrapped up.

LG Chem had received $151 million in US Department of Energy funds, but had not built any Volt batteries from Holland, Mich., until very recently – only from its South Korean facilities. It got fairly ugly earlier this year when the Office of the Inspector General reported that LG Chem employees were sitting around doing nothing but playing games and watching movies while being paid from these federal funds. LC Chem was instructed to return $842,000 as a result of the report.

Lux Research reported that electronics giant Panasonic’s lithium-ion battery division earned about $40 million in profits during Q2 2013 – much better than in Q2 2012 when the company lost $20 million. The company is expected to invest over $200 million during the next year to expand its li-ion production lines in Japan. Panasonic has supplied nickel-metal hydride batteries to Toyota and Honda hybrid models, but more recently has invested more in its li-ion division. Tesla Motors is a major client – Panasonic has been producing 60 kilowatt hour to 85 kWh battery packs for its Model S electric car. Lux Research reported that Panasonic has overtaken LG Chem and AESC in US li-ion sales. The US market is competitive for li-ion EV battery market share, but it’s now coming from companies based overseas.

Big Picture: Nissan joins Tesla in selling ZEV credits, Volvo Trucks upping its green credentials, Toyota improving Prius performance

Nissan Leaf ZEV creditsHere’s my take on top news stories of the week:

  1. One of the gains made by selling plug-in electric vehicles in California is gaining zero emission vehicle (ZEV) credits and selling them to your competitors. Nissan Motor Co. now joins Tesla Motors in selling green-car credits. California requires large automakers to sell electric or other ZEVs in proportion to their market share in the state. Nissan has sold enough Leafs that it can sell its excess carbon credits to other automakers. The Tesla Model S can generate up to seven ZEV credits because of its range of as much as 300 miles per charge and the option of swapping its battery pack with a charged one (the company will open its first battery swap facility by year’s end). The Leaf earns three credits through the state program.
  2. Volvo Trucks is upping its green credentials even more – Through its Climate-Smart City Distribution project, emissions from 400 distribution trucks were cut between 30% and 80% over three years. Volvo worked with several partners to improve the efficiency of distribution operations in Gothenburg, Sweden. Conventional diesel distribution trucks were replaced with vehicles using renewable fuels – biodiesel, biogas, and dimethyl ether (DME); hybrid technology; and methane-diesel fuel. Volvo and Mack Trucks are committed to bringing DME powered trucks to roads soon; earlier this year, Volvo unveiled plug-in hybrid buses as part of a field test.
  3. Toyota is optimistic that its next generation Prius will get even better fuel economy and cost even less. Improvements will come through using lighter materials and significant advances in battery, electric motor, and gas engine technologies, the company said. Toyota thinks its miles per gallon rating on the hatchback Prius will gain from 50 mpg to near 55. It’s likely to come out in 2015. It next generation batteries will have higher energy density. For the Prius and other Toyota models, the automakers is working on a diverse set of batteries – lithium ion, nickel metal hydride, solid state, lithium air, and magnesium.
  4. Electric Drive Transportation Association (EDTA) and its GoElectricDrive Foundation have a partnership with Green Sports Alliance dedicated to improve the environmental performance of sports teams and facilities. Since being founded in March 2011 by six professional teams and five venues, Green Sports Alliance now has over 170 professional and collegiate teams from 15 different sports leagues. Members include Anaheim Ducks, Baltimore Ravens, Boston Red Sox, LA Dodgers, Miami Marlins, New York Jets, and University of Texas Longhorns. EDTA and Green Sports Alliance will show organizations the benefits of integrating electric drive in their fleets, and giving fans a place to charge up their EVs while watching a ballgame, said Brian Wynne, president of EDTA.
  5. The 2013 AltCar Fleet Conference and Expo will be put on by the City of Santa Monica on Sept. 20-21. It tends to offer the best green vehicle display and ride and drive with just about e everything you can think of available to check out. As for speakers at the Friday fleet conference, these will include Terry Tamminen, former secretary of the California Environmental Protection Agency; David Friedman, deputy administrator of the National Highway Transportation Safety Administration; JR DeShazo, director of the Luskin Center at UCLA; Randall Winston, special assistant to the executive secretary, office of Governor Edmund G. Brown, Jr.; Jon Coleman, fleet sustainability & technology manager for Ford Motor Co.; and Richard Battersby, Public Sector Fleet Manager of the Year, from East Bay Clean Cities. Vehicle debuts will include Southern California Gas Company’s west coast introduction of four new prototype consumer vehicles built to run on compressed natural gas and capable of using gasoline as backup.
  6. CleanFUEL USA has just brought in Blair Poulsen as its director of sales; Poulsen brings more than 23 years of propane industry experience to the company. He was most recently regional sales and marketing director for Heritage Propane and AmeriGas Propane, and currently serves on the Nevada Board of Regulation of Liquefied Petroleum Gas. Poulsen will lead a team serving clients in propane refueling infrastructure and OEM vehicle technology, including Thomas Built Bus, Collins Bus, General Motors Corp., and Freightliner Custom Chassis Corp.
  7. You think regenerative braking is pretty cool? How about a regenerative suspension? German automotive parts maker ZF says it’s bringing the first technology of its kind to the world. ZF Friedrichshafen AG has teamed up with Levant Power Corp. to product a system that works like regen braking, recapturing energy when the suspension gets put in motion. It would take away the large amount of energy needed by suspension systems and increase fuel economy.
  8. Is your community burdened by dirty coal? How about converting over to cleaner natural gas? Navigant Research is hosting a webinar on Sept. 10 that will explore that topic. Utilities are shutting down a lot of aging coal-powered plants through 2020. There are costs and complexities involved in switching over to natural gas that will be discussed by panelists, including examples of plants that have gone through these conversions in recent years.
  9. States like California are digging into the best financial models for reducing traffic congestion and repairing worn out roads. Vehicle Miles Traveled (VMT) taxes, gasoline tax increases, road tolls, increasing vehicle licensing and registration fees, transportation-focused sales tax, and infrastructure bonds – and all they pluses and minuses – are explored in an article that was just published in Westways. It’s a very tough issue that states are going through.
  10. Reincarnated electric carmaker Detroit Electric will still be making its all-electric SP:01, only it won’t be happening in Detroit. Its Lotus-based sports car will be made in the Netherlands, and production will start in the fourth quarter of this year. The company was going to bring jobs to Detroit initially – 2,500 cars per years with a workforce of 100. Plans started being delayed in June, as the company said it couldn’t find the right manufacturing location in Wayne County, Mich., where Detroit is located. 

Green Automotive bringing electric shuttles to US market as part of broad strategy

Newport Coachworks image on GAC websiteWe’ve certainly seen quite a few startup OEMs and battery makers go belly up in the electric vehicle space in the past three years. To survive and thrive in this newfound industry, building reliable, high performance product, marketing and “messaging” in a way that resonates with the core audience, and having solid financials, are key ingredients.

Green Automotive Company (GAC) is the holding company for three units – Liberty Electric Cars and GoinGreen in the UK and Newport Coachworks in the US. Ian Hobday, director of GAC, says the holding company has a business strategy of going “back to basics.” A steady cash flow is needed for EV makers, and each of GAC’s business units have revenue streams beyond EVs. “You can’t have 100 percent of your focus on EVs,” he said. “The volume’s not strong enough yet.”

His initial company, Liberty Electric Cars, was acquired last year by GAC and brings about eight years of experience in the European market to the table. It’s been delivering electric vehicles to customers in Europe for several years, and has other diverse offerings on the market including all Electric Range Rover conversions.

In November, Newport Coachworks will start building electric shuttle buses at its production facility in Riverside, Calif. The Newport Coachworks team has been in the bus market for years and was recently acquired by GAC. While most of the buses in chauffeured transportation tend to be converted from Ford E450 or F550 platforms, Newport Coachworks will be building its own electric buses from the ground up. Newport is tapping into Liberty’s experience delivering electric vehicles to parcel delivery and postal fleets, and to plumbers, gardeners, decorators, and other business customers. The shuttle bus is powered by an 80 kilowatt battery pack that goes about 100 miles on a charge; the A/C unit doesn’t need extra power during the trips as it has its own source, Hobday said.

What GAC is finding out is that customers appreciate the cost per mile differential with electrics buses – 14.5 cents per mile for typical shuttle buses and 2.5 cents per mile for electric shuttles. Drivers also love the fact that the electric bus has no vibration or noise – they feel more relaxed while doing their jobs, Hobday said.

A number of clients have been using GAC’s drivetrains in their own vehicles, including OEMs in Europe. They’ve also been accessing the Liberty E-Care service offering, which provides service and support for EVs already on the road, from trained and skilled technicians equipped with customized diagnostic tools.

GAC found California to be a smart place to launch its electric shuttle buses in the US market. It’s the largest market so far in the US for electric vehicles, and there’s incentives and support for the technology within the state. The company is also focused on getting as close to 100% as possible in using American parts and labor in its vehicles. GAC has been working with manufacturers of lithium ion battery cell makers such as Dow Kokam on its electric Range Rovers. GAC wants access to inherently safe, high energy density cells from US suppliers. “Why go to China? It’s much cheaper, but the failure rate is higher,” Hobday said.

GoinGreen is GAC’s retailer network in the UK. It offers a wide gamut of EV products – city buses, bikes, scooters, and city cars. It will be coming to California then launching a global rollout. As GAC acquired Liberty and GoinGreen, the idea was to consolidate operations, reach economies of scale, and to cover all the basics – from manufacturing electric powertrains and conversions, servicing the vehicles, and expanding retail store fronts. GAC serves the internal combustion engine sector, as well. As GAC and other thriving players in the EV market (i.e., Tesla Motors) know very well, good solid profits are required for EV makers to survive and thrive.

Don’t shoot me, I’m only the messenger! Why you should read John DeCicco’s commentary

Obama driving Chevy VoltThere’s an article you should read, even though many of you are going to hate it.

John DeCicco gets very blunt and criticizes the Obama Administration’s push for electric vehicles and alternative fuel vehicles – along with presidential programs going back to Ronald Reagan that he says were a waste of taxpayer’s money. Government subsidies and mandates haven’t worked, he says. He lambastes Obama administration policies, which are usually considered to be very green. He thinks that the policies are “under the misguided presumption that alternative fuels emit significantly fewer greenhouse gases than gasoline, and goaded by green groups and alternative fuel business interests.”

I do think you should take DeCicco and his article in a Yale University journal very seriously. He’s a noted academic researcher, has been a senior fellow at Environmental Defense Fund, and he pioneered US green car ratings for the American Council for an Energy-Efficient Economy.

He thinks the best way to go will need a three-prong strategy:  1. Continue to raise fuel economy standards. 2. Implement policies that will reduce driving. 3. Control carbon upstream in energy and fuels used downstream in our daily lives.

As for the upstream/downstream argument, he thinks much of it boils down to the source of the energy. DeCicco makes the classic argument about the downside of EVs. About two thirds of the electricity that powers plug-in electric vehicles comes from fossil fuels – coal and natural gas – which removes the good side of EVs. Carbon emissions need to be cut down at electricity power plants – although he does acknowledge that this is included in Obama’s new climate plan.

And, of course, he rips into biofuels:  “Similarly, for biofuels such as ethanol, any potential climate benefit is entirely upstream on land where feedstocks are grown. Biofuels have no benefit downstream, where used as motor fuels, because their tailpipe CO2 emissions differ only trivially from those of gasoline,” he wrote.

He’s painting a picture that can be bleak and depressing. At the end of the day, stakeholders in this field must stay well informed and effectively get the word out on their green transportation campaigns. That requires adopting strategies that have a good chance of accomplishing their intended goals. Using hybrids and highly fuel-efficient vehicles is part of reducing emissions. Natural gas, electricity, propane autogas, ethanol, biodiesel, and hydrogen – in their current realities – are far from perfect or ideal. You could think of it as “transitional fuels” that are a step forward away from petroleum and have their role to play in reducing carbon emissions, job creation and economic growth, and curing our addiction to oil. Electricity made from 100% renewables, algae and cellulosic biofuels, renewable natural gas, and hydrogen extracted from clean sources, are targets to aim for – but they’re still a long ways off.

BMW says it’s not taking on Tesla for luxury EV buyers, but who’s kidding who?

BMW i3 and i8“Revenge of the Electric Car” was a must-see in 2011 – the sequel to the influential “Who Killed the Electric Car?” shifted gears and explored who might become the iconic leader of the reincarnated electric vehicle market – Tesla’s Elon Musk, GM’s Bob Lutz, Nissan’s Carlos Ghosn, or custom electric car do-it-yourselfer Greg “Gadget” Abbott. While watching the movie, I kept wondering:  What about BMW?

BMW was testing out the Mini E with US drivers during the time the Nissan Leaf and Chevrolet Volt made it to the market. Next came the BMW ActiveE and now the BMW i3, and the i8 plug-in hybrid is next. Maybe the problem was the German automaker didn’t have any recognized US “car guy” celebrity to star in a movie? Well, the game is changing and BMW is poised to take on Tesla Motors for market share in the luxury electric vehicle market – even if BMW or Tesla doesn’t admit that being the case.

BMW says that’s its upcoming i8 sports car is not competing directly with the Tesla Model S. It’s a supercar of the future with the driving performance of the BMW M3, and the plug-in hybrid gets more than 80 miles per gallon, BMW says. The i8 is being shown at the Frankfurt auto show next month and will go on sale in the US in early 2014. Pricing hasn’t been released but it’s going to be steep – something less than $150,000. BMW is obviously paying attention to how well the Tesla Model S has been doing this year in sales performance. BMW says that the i8 and Model S will be reaching different buyers – but both automakers are clearly targeting sophisticated, high-income consumers. Incentives/rebates do apply, but that doesn’t really matter much at these price points. Leasing takes some of the edge off of it, but it’s still got a limited market potential. German luxury automakers have known this for years but have been committed to battling competitors (including Japanese luxury brands) for more share.

What about the BMW i3 versus the Model S? It doesn’t appear to be competing directly with the Model S. The i3 is a hatchback with a starting price of $42,275 versus the Model S sedan that starts at about $70,000. It might be more comparable to the Tesla Model X crossover that will be launched in 2014 for a starting price around $35,000. Tesla says it will go 200 miles on a charge, while the i3 gets 80 to 100 miles on a charge. The i3 is getting a lot of raves out in the automotive media and cleantech space – it’s the first in the series of BMW electric cars and the German automaker has been masterful at marketing its image – tying into BMW’s legacy as a high-performance carmaker and also tapping into the grand theme of global urbanization, as depicted in the photo above.

During a recent investor quarterly conference call, Tesla CEO Elon Musk chuckled when asked by an analyst about the BMW i3. It wasn’t clear what was so funny with Musk and a group of co-workers inside the conference call room, but he is known for putting down competitors (just ask Henrik Fisker). “I’m glad to see did BMW is bringing in electric car to market. That’s cool. There’s room to improve on the i3 and I hope that they will,” Musk said.

 

Workplace charging is taking off, but what does it take to succeed?

For car shoppers to take plug-in electric vehicles seriously, Level 2 and fast chargers should be installed at four locations:

  1. Homes
  2. Workplaces
  3. Starbucks
  4. Trader Joes

In all seriousness, analysts say that the workplace is the leading charging location for now. According to statistics from Ecotality, workplace chargers are used three times as much as typical public chargers. A recent survey by the charger company found workplace charging grew by leaps and bounds in the first half of the year – an increase of about 61% in the first six months of 2013.

The sales figures play into the interest and use at the workplace. There were more than 8,600 plug-in hybrid/extended range and battery electric vehicles sold in the US in June 2013 versus about 3,300 in June 2012.

workplace chargingAs of late July, there were 7,849 public and private non-residential charging stations in the US; 1,579 were located in California, according to the US Dept. of Energy. Workplace charging plays a significant role in the non-residential charging station networks in California, where Google and other employers are taking them very seriously. Google sees them as a key perk for keeping skilled technologists on their payroll and not losing them to a nearby tech company in Silicon Valley.

In its guide for employers interested in setting up workplace charging stations, the Minnesota Pollution Control Agency presented eight steps to take for a successful workplace charging infrastructure….

1. Survey employees on their interest in a workplace-charging program.
2. Discuss findings and EV charging needs amongst employees and company’s decision-makers.
3. Examine different types of EV charging equipment options and compare the benefits and costs (Level 1, Level 2, and fast charging).
4. Determine who will own the EV charging equipment – employer, parking lot owner, or third party.
5. Look for any existing incentives that might be available for workplace EV charging.
6. Create a company policy on workplace charging.
7. Contract with a certified electrician to determine ideal locations, comply with local permitting, and install the equipment.
8. Install signage and alert employees.

Toyota had an especially good green car sales month in July

Toyota Prius - Sea Glass PearlHere’s how US green vehicle sales fared during the month of July….

  • Toyota had a very strong sales month overall with a 17% increase over June, bumping out Ford’s place on the ranking list for the first time since March 2010. The Prius family played a big role in the outcome with a 40% increase and sales of 23,294 units for its best sales month ever.
  • Plug-in electric vehicle sales were fairly strong during the month and are moving closer to the 100,000 units sales mark for the year – they’re averaging more than 7,000 a month but were down to about 5,900 in July.
  • The Nissan Leaf beat the Chevy Volt in sales volume – 1,864 units sold for the Leaf versus 1,788 for the Volt.
  • They’re running neck-to-neck so far this year with the Leaf slightly out in front – 11,703 for the Leaf and 11,643 for the Volt.
  • The Leaf has shot way up in sales this year – more units sold in the US in 2013 than during all of 2011 or 2012. The Volt has been keeping pace with last year but moved ahead – it’s now nearly 1,000 Volts ahead of last year’s 10,666 units sold in the first seven months.
  • The Toyota Prius Plug-In Hybrid is still ahead of Ford – 817 units sold in July versus 433 of the Ford C-Max Energi and 407 of the Ford Fusion Energi plug-in hybrids.
  • The Chevrolet Spark EV sold 103 units in July in California and Oregon only. It’s doing a little bit better than other “compliance cars” in sales – the Mitsubishi i-MiEV sold 46 units, the Smart Electric Drive hit 58, and the Honda Fit EV had 63 units leased out. The Spark was behind two other electric vehicles – the Ford Focus EV at 150 units and the Toyota RAV4 EV at 109. Yet, the Spark was only in its second month on the market and only in two markets.

 

Big Picture: BMW i3 makes a splash, Attack of the drones, Plus more

Green Auto Market tree swing imageHere’s a few interesting happenings from the past week…..

  1. BMW unveiled its long-anticipated all-electric i3 hatchback. The German automaker has slowly been testing out electric drivetrains through its Mini Cooper subsidiary and through its ActiveE demonstration model. BMW hosted a series of elaborate events for the i3 on Monday in London, New York, and Beijing. It’s expected to price at $41,350 (plus a $925 delivery charge) in the US prior to incentives. It’s impressing analysts who see the automaker taking the technology very seriously, including investing $2.7 billion into it so far. The i3 can travel about 100 miles on a charge, and there’s also an optional diesel or gasoline range extender package you can buy that allows the car to travel about 300 miles. BMW has utilized lighter materials to extend the range; it’s built on a carbon-fiber based shell and an aluminum chassis.

Competitors will include other luxury brands with alternative technologies such as Lexus hybrid models, though it’s expected to be targeted primarily against German competitors in the home market. The most direct competition overseas will be Tesla Motors. The most popular version of its Model S is pricing at around $70,000. It will take until late 2014 for Tesla’s Model X crossover to come out and go more direct with the i3 in styling and pricing.

  1. Electric vehicle charging station maker AeroVironment just won a contract with the Federal Aviation Administration to use its drone for commercial purposes. It’s the first time this has happened, similar to Elon Musk’s SpaceX becoming the first civilian aerospace company to contract with NASA. AeroVironment has been providing its Puma 13-pound unmanned aircraft for military reconnaissance for several years. Now the Puma will be used to monitor oil spills and wildlife observation in the Arctic Circle. AeroVironment thinks its drone models can be used for other applications, like traffic monitoring, police surveillance, and storm tracking.

This is yet another example of robotics and autonomous systems striding forward. It’s similar to driverless cars being tested across the country, and several other advanced technologies. For those with ominous feelings about Big Brother and the Terminator taking over, you might want to get over it. There’s no going back.  

  1. Hydrogen fuel cell vehicles are on the verge of another breakthrough. UK-based ITM Power has figured out how to reduce the production cost of hydrogen by nearly 33% — from $9.57 per kilogram last year to $6.44 per kg. This includes a 10-year amortization period where its anticipated to drop to $4.13/kg – another 23% drop. The gain is coming from new, more efficient “stacks” – where hydrogen is extracted from electrolysis. Fuel cell vehicles will become much more affordable to fuel up. Now, if they just figure out a way to inexpensively install a lot of hydrogen fueling stations…..
  1. Japanese automakers are working together to install a lot more charging stations in Japan. The current number is about 1,700 fast chargers and more than 3,000 regular chargers; that’s expected to grow to more than 4,000 fast chargers and more than 8,000 regular stations. Toyota, Nissan, Honda, and Mitsubishi jointly announced their agreement to work together to promote the installation of chargers for electric-powered vehicles and build a charging network service that offers more convenience to drivers in Japan. There will probably be a universal card-based system for charging at many of the stations. The announcement doesn’t mention it, but the fast chargers will be CHAdEMO chargers, which are used mainly in Japan. In North America and Europe the SAE combo charger is the norm.
  1. Electric Drive Transportation Association just brought in new board members and officers. Tanvir Arfi, president of Bosch Automotive Service Solutions, takes over as the new chair. He succeeds Mary Ann Wright, VP of engineering and product development for Johnson Controls, Inc. A former chair, Ted Craver, president and CEO of Edison International, was honored during proceedings. New board members represent a diverse list of technology suppliers to electric drive transportation – ABB, Inc.; Autowatts; Schneider Electric; Qualcomm; Real Power; Odyne Systems; BASF; and CenterPoint Energy.
  1. Biodiesel has worries to deal with; Mercedes-Benz is pulling out of the Illinois market after state lawmakers approved incentives to boost demand for biodiesel. Mercedes-Benz is concerned that if the fuel is poorly blended, it could gunk up its engines and worsen air quality. The German automaker has set a limit of B5, or 5% biodiesel content, and the state’s sales tax revision is focused on biodiesel of at least 10% blend.

Solar power facing some very tough times

solar panelsFor business starters and investors looking at greentech/cleantech as a good possibility, keep something in mind:  It is a very, very tough business to survive and thrive in. Plug-in electric carmakers have been finding it out, and now solar power suppliers are going through their own wringer.

It’s not all bad news for the solar business. There are some real solar market opportunities for commercial and residential buildings, especially among electric vehicle owners. As Craig Shields of 2GreenEnergy.com reported, 35% of EV owners in the US (and about 56% of EV owners in California) either have or are installing solar panels on their homes. California, and a few other states, are pushing for renewable energy through mandates and subsidies, and solar makes the most sense for meeting the renewable targets. Tesla CEO Elon Musk, who also serves as the chairman of SolarCity, sees great opportunity in solar power, and Solar City’s stock price trend has been very strong for several months.

More recently, the pressure has been getting intensified for companies making and installing photovoltaic (PV) panels on buildings. Here’s my take on what the solar industry is dealing with:

  1. Electric utilities are not happy with solar. Utility companies are now pushing hard to roll back government incentives designed to promote solar power and other renewables. They’re worried about their profits being carved away and the future of their industry being in question, and are lobbying to stop credits being issued by state governments.

While the Energy Information Administration reports that solar only makes up one quarter of one percent of the country’s power generation, utilities are taking it very seriously.  Arizona’s largest utility is pressuring the state’s regulatory agency to reconsider its plan to issue a generous utility credit. In North Carolina, Duke Energy wants to see a new set of solar fees implemented for solar customers. There’s lobbying being done in California by the major utilities – in a state with lots of subsidies and the largest solar market in the US. (On the other hand, these utilities are playing a part in the integration of solar to meet California regulations based on AB 32 and as part of their campaigns for smart grid innovation.)

  1. Chinese companies are taking business away from US solar companies. The European Union had the most recent political fight over this issue, which has been a big one for the Obama administration. Tariffs are being applied to Chinese solar suppliers doing business in the US and Europe, but it doesn’t seem to be enough to stabilize it. Chinese solar companies can flood the market with products and low pricing (called “dumping”); these companies are able to do it by receiving huge subsidies from the Chinese government, and by using a much cheaper labor force to make the PV panels.
  1. The buyer market is limited. While there are a lot of subsidies for building owners in places like California to bring in solar, it’s still targeted to a very limited audience. Solar companies have been very successful marketing to groups like members of a few environmental organizations; or by partnering with automakers selling EVs, such as SolarCity has done with Tesla and Ford. It comes down to the challenges faced by other greentech companies – how do you get the consumer to make that commitment?

There a lot of questions floating out there on how much it costs to install and maintain solar panels; how much it lowers your electricity bill and does that make the investment worthwhile; and do solar and other renewables stand a chance of taking power generation away from coal? Very big questions. We’ll see what happens.