Big Picture: Wanxiang contemplates Fisker’s future, Clipper Creek co-founder Dave Packard goes over to ChargePoint

Fisker KarmaFisker Automotive’s new owner is sorting through its assets to determine a new business plan. Chinese auto supplier Wanxiang, which funded Fisker out of bankruptcy a few months ago, loves the product but isn’t sure about the name. Fisker president Roger Brown described the cars as “rock stars,” but isn’t sure if the company will keep the Fisker Automotive name. The Fisker Karma plug-in hybrid will resurrect by the middle of next year.

Soon after the Karma returns, Fisker is likely to launch the Surf, a $100,000 version that looks like a station wagon; and the Atlantic, smaller sedan that will go for about $50,000. The Surf will be coming out in 2016 and the Atlantic should be released in 2017. Fisker only has 25 employees left out of its original 150.

And in other clean transportation news…….

  • ClipperCreek co-founder and former president Dave Packard has left his electric vehicle charger company and has been hired to run competitor ChargePoint’s utilities business development. Packard was part of bringing ClipperCreek to life in 2006 and was part of the EV industry in its early days. Packard joined the EV market in the early 1990s as VP of Sales at EPTI, a start-up, rapid battery charging company.
  • Earlier this month, Florida Power & Light Co. (FPL) accepted the US Environmental Agency’s Clean Air Excellence Award for 2014; that award honors innovative programs that benefit communities, the environment, and the economy. The EPA rec­og­nized FPL’s deploy­ment of fuel-efficient vehi­cle tech­nol­ogy. NAFA Pres­i­dent and FPL Fleet Ser­vices Man­ager Claude Mas­ters, CAFM, and In-Home Tech­nolo­gies and Elec­tric Vehi­cles Direc­tor Brian Han­ra­han accepted the award on FPL’s behalf dur­ing the cer­e­monies held in Wash­ing­ton, D.C.
  • The Federal Trade Commission (FTC) has tipped its hat toward Tesla Motors in the corporate stores vs. franchised dealer stores legislative battle. In its “Competition Matters” blog, FTC said that it supports the Tesla direct  sales approach, comparing it to past technological advances in consumer-business relations.
  • A panel of top Canadian automotive journalists selected the Accord Hybrid from among five other category winners as the winner of its 2014 Canadian Green Car Award; they think that its the vehicle that best combines environmental benefits and mass-market appeal.
  • The US Dept. of Energy’s Clean Cities is proud to announce the expansion of the Plug-in Electric Vehicle Readiness Scorecard, a key tool for helping communities evaluate their PEV readiness efforts. The PEV Readiness Scorecard is a detailed, interactive online assessment tool that collects information about a community’s PEV readiness, provides feedback on its progress, and offers guidance for improvement.
  • Ford has launched the Ford Fleet Purchase Planner™ to help businesses identify the lowest cost and emission option when revamping their company fleet, while still meeting business goals. Developed by Ford researchers, the analytical tool factors in employees’ individual driving habits, terrain traveled, and environmental impact, to produce the optimal solution.
  • Classic Chevrolet in Grapevine, Texas, (the largest Chevrolet dealership in the US), has invested a million dollars in its own compressed natural gas fueling station.  Chevrolet offers a heavy-duty pickup that operates on both gasoline and natural gas; and this fall, it will offer a bi-fuel version of the Impala.
  • Los Angeles, Paris, and Tokyo are expected by Navigant Research to be the largest markets for selling light duty electric vehicles. The research firm thinks that the US will be largest market over the next 10 years with its EV sales exceeding 514,000 in 2023.
  • Recargo, Inc., is celebrating the return of its research managing director, Norman Haijar, who just finished a record-braking 12,000-plus mile journey around the US while driving a Tesla Model S. Haijar was able to drive around the four corners of the US without paying anything in fuel costs. Take a look at this map.

Going to ACT Expo 2014 next week? I am!

ACT Expo 2014If you’re passionate about alternative fuel vehicles, there are limitations to how many events you can attend each year. ACT Expo is one of them, and it’s taking place next week in Long Beach, Calif. I will be attending and am looking forward to meeting colleagues in the industry. It’s designed around fleets integrating clean transportation into their operations. You’ll see several US Dept. of Energy’s Clean Cities coordinators at the conference, along with association executives, and representative from OEMs, infrastructure suppliers, and government agencies. More than 3,500 people are expected to show up this year.

In the past, ACT Expo was dominated by natural gas vehicles, but that’s expanding for the first time this year through alliances with a few organizations. Several events will be co-located with ACT Expo 2014, including:  propane autogas summit “Lead the Way,” which is being presented by Propane Education & Research Council; California Hydrogen Business Council will be holding its spring summit; “Women in Alternative Clean Transportation Summit” has been organized by ACT Expo management firm Gladstein, Neandross & Associates; NGV Global will hold its conference in tandem with ACT Expo; “Alternative Fuel Toolkit for Local Governments, Fleet Managers, and Employers Workshop” is being organized by South Coast Air Quality Management District. Electric Drive Transportation Association, Advanced Biofuels USA, California Fuel Cell Partnership, National Biodiesel Board, and NGV America are among the conference’s endorsing organizations.

The ride and drive is always worth setting aside time for; it might be the only chance you get to drive around a hybrid medium duty truck or an electric delivery van. A full list of alt-fuel passenger cars are also on hand to test out. More than 70 alternative fuel vehicles will be featured in this year’s ride and drive. Though ACT Expo is certainly not all about light- and medium-duty vehicles. The American Trucking Associations has worked with ACT Expo organizers. “ACT Expo is a tremendous opportunity to learn more about the economic and environmental benefits of using alternative fuels and heavy-duty trucking efficiency technologies,” said ATA President and CEO Bill Graves.

Vehicles featured during the ride and drive include: Peterbilt 384 LNG tractor, Freightliner Cascadia 113 CNG daycab tractor, Honda Civic Natural Gas, Volvo VNL 670 CNG tractor, Chevrolet Express 2500 gasoline/electric hybrid cargo van, (XL Hybrids) and Ford F-250 pickup ( provided by ROUSH CleanTech). Heavy-duty trucks will include the Freightliner Cascadia and Kenworth T680 CNG trucks.

About 200 alternative fuel and clean transportation industry leaders will be speaking on panels. This year’s keynote speakers will be Southern California Edison President Ronald Litzinger and Volvo Trucks EVP Dennis Slagle; they’ll discuss the progress and momentum in today’s burgeoning advanced vehicle technology marketplace.

Big Picture: China is becoming the hottest EV market to enter, BMW i3 getting a lot of attention – and a World Green Car award

China new energyChina must be a hot market to sell electric vehicles (EVS) in, with all the recent corporate announcements. The reality has been that sales have been soft, and the Chinese government continues to offer attractive incentives to get the “new energy” market rolling. It’s been enough for Tesla Motors to decide not just to sell its Model S in China, but to also build future models there. CEO Elon Musk thinks the company will have a production line up in three-to-four years. That goes along with its near-term future investment in a charging infrastructure, including superchargers going into Beijing and Shanghai. Daimler and BYD will start selling its joint venture DENZA electric car in September; it will be the first complete vehicle that Daimler has built with BYD outside of Germany. The five-seater EV will have 190 miles of range and pre-incentive pricing of $60,000. Volkswagen has an even bigger plan – to sell hundreds of thousands of EVs in the China market before the end of this decade – and will spend up to $27 billion in the next five years to do it. The ambitious campaign will start up this year with the launch of the VW electric Up! and e-Golf models in China.

And in other clean transportation news…….

  • The BMW i3 electric car was given high honors at the New York International Auto Show – 2014’s World Green Car. It beat out the Audi A3 Sportback g-ton and Volkswagen XL1 and 11 other entrants. It comes at a time when BMW is finding strong demand in Europe while introducing it around the world. That demand has pushed for a higher production volume than originally expected. “From the production process onwards, the BMW i3 is a truly sustainable vehicle, created with the needs of the 21st century city in mind,” said Dr. Ian Robertson, Member of the Board of Management of BMW AG, Sales and Marketing BMW. The BMW Group also won the 2008 World Green Car award for the BMW 118d with Efficient Dynamics.
  • Further evidence that the BMW i3 is getting a lot of buzz: Winning the top spot in Kelley Blue Book’s Top Ten Green Cars for this year.
  • Major auto supplier Robert Bosch LLC is getting investigated by NHTSA after a 2013 Nissan Leaf drivers reported smoke emitting while charging the EV.  NHTSA reported that a possible 50 chargers may overheat and result in fires. Bosch said that it’s reviewing the filing and will cooperate with NHTSA. The charger used, a Bosch Power Xpress 240V, had been charging for over an hour at 30 amps at a private residence when signs of overheating, including a “strong burning smell,” were noticed.
  • The Keystone XL pipeline startup continues to get dragged out. The Obama administration delayed a final decision on the pipeline until an ongoing court challenge to its route in Nebraska is resolved. The controversial project will remain in limbo until after the November midterm elections. It has been a “hot potato” for the Obama administration.
  • Navigant Research thinks that medium- and heavy-duty trucks running on natural gas will see a huge growth spurt soon – from 1.5 million on the roads this year to 3.7 million on 2022.
  • Natural gas is crossing borders into several different market segments – now into motor oil. Pennzoil has added its Pennzoil Platinum with its PurePlus Technology; this patented process that converts pure natural gas into the first-of-its-kind, high quality full synthetic base oil.

Shopping for a new car? Stay tuned for Green Vehicle Database

Green Vehicle DatabaseIf you’re shopping for the best deals in cars or trucks, you’re probably visiting Kelley Blue Book, Edmunds.com, and Consumer Reports for the latest in reviewer and consumer ratings. You’re most likely looking for the sticker price, miles per gallon, safety ratings, incentives, engine size, interior spacing, and maybe a few other specifications. But what about alternative fuel vehicles?

As I’ve spoken with members of the Green Auto Market stakeholder group during monthly conference calls, the topic usually comes up. What’s a federal or state incentive on a specific alternative fuel vehicle? How does it compare to other hybrids, EVs, etc.? What does the cost of ownership look like?

In July 2014, LeSage Consulting will release its first-ever Green Vehicle Database with specifications, pricing, and incentive data on passenger and commercial vehicle offerings for the 2014 and 2015 model years. Vehicle types will include: Plug-in Electric Vehicles (Battery Electric Vehicles and Plug-in Hybrid/Extended Range Electric Vehicles); Hybrid Vehicles; Natural Gas Vehicles (Compressed Natural Gas Vehicles and Liquefied Natural Gas Vehicles); Propane Autogas Vehicles; Fuel Cell Electric Vehicles; Flex-Fuel Vehicles; and Fuel Efficient & Green Vehicles on clean diesel cars and the most fuel efficient gasoline engine models.

Specifications will include: Make, Model, Model Year, Style, Engine/Motor, Battery Size, Transmission, Suspension, Curb Weight (passenger), GVWR (commercial), MSRP, Conversion Cost, MPG/MPGe; and Federal Tax Incentives and State Incentives. These categories may change as I get more feedback in the weeks ahead from stakeholders experienced in making vehicle acquisitions and analyzing a total cost of ownership forecast model.

There are excellent resources out there that I’ll be accessing including the Clean Cities annual buyer’s guide. In the end, there’s always the automaker websites for specifications and agreed-upon standards such as EPA mileage ratings. The idea behind Green Vehicle Database is that alternative fuel vehicles are becoming a sizable presence in the auto industry; for vehicle buyers such as consumers, fleets, businesses, transportation companies, and government agencies – there’s a growing need for a comprehensive data source for reviewing, analyzing, and comparing the right information for making the best decision.

Volkswagen counting on TDI to break through clean diesel barriers

VW TDI engineHow does this one sound? If you’re driving the new Volkswagen Passat turbocharged direct injection (TDI) sedan, you get 43 mpg on the highway, can travel 795 miles on one fueling, and it carries you with 140 horsepower and 236 lbs/ft of torque. The 2014 Passat TDI Clean Diesel starts at $26,675 (excluding taxes and destination charges), so it’s very price competitive with midsize gasoline engine cars that don’t get as good a mpg rating or driving range per fueling.

The latest TV commercial for the Passat TDI emphasizes freedom from range anxiety – you can drive from Los Angeles to Philadelphia on just three stops for fuel – just a hop, skip, and a jump. Other midsize sedans need a lot more fuel stops, VW says – and you can receive a $1,000 fuel reward card on your purchase. It seems to be working – Volkswagen is leading sales for diesel passenger cars in the US. About 55% of diesel passenger cars sold in the US are the Volkswagen Passat and Jetta (with the Passat at 29%), and these two models are way ahead of any other diesel passenger car.

“Cruise from A to B, not from A to filling station to B,” says VW’s website promoting clean diesel TDI. The Passat and Jetta are joined by the Jetta SportWagen, Golf, Beetle, Beetle Convertible, and Touareg in the VW clean diesel TDI family. VW’s Audi division currently offers five clean diesel TDI models – the A6, A7, A8 L, Q5, and Q7. For the 2015 model year, Audi is launching a new version of the Audi A3 TDI. At the New York Auto Show, the 2016 Audi A3 TDI Sportback was unveiled – bringing a station wagon to Audi’s TDI lineup.

VW seems to be enjoying a few advantages in its clean diesel offerings……
• TDI is a registered trademark for VW and Audi – turbocharged direct injection brings more power and efficiency to sedans and taps into what many American car owners admire about German automotive engineering. VW is focusing specifically on TDI clean diesel models of its cars that also come in gasoline-engine versions – and is counting on the concept to sink into consumer minds.
• Clean diesel is considered by some people to be an alternative fuel – while it’s not as clean as electricity, natural gas, biodiesel, or propane – it is an alternative to gasoline. For car shoppers, buying a diesel engine car can be as big a switch as buying a hybrid or plug-in. It also helps that US fuel stations are only selling ultra-low sulfur diesel (ULSD) these days – adding more weight to the “clean diesel” identity.
• You can find diesel just about anywhere at US gas stations. With the extended range on a fueling of a VW Passat and with fuel stations all over the map, range anxiety is relieved. (Diesel does cost more than gasoline, but the fact that they’re getting great mpg seems to be offsetting that price differential).
• TDI Clean Diesel technology is part of VW’s Think Blue initiative, the automaker’s goal of creating and encouraging eco-conscious products and behaviors. While some people scoff at the idea of clean diesel actually being clean (especially when compared to electric vehicles), it does play into the drive for clean transportation – reducing emissions compared to gasoline engines on a mile-per-mile basis.

Big Picture: Cadillac ELR “Poolside” TV ad generates backlash; Fisker launches new website under new owner

Cadillac ELR commercial 2Cadillac’s “Poolside” TV ad for its ELR extended range electric luxury car, which has been airing recently during the Winter Olympics and Oscars, has generated a lot of unintended backlash. It’s been enough for Ad Age to interview Cadillac advertising director Craig Bierley about it. He says that the TV commercial has been misconstrued – it’s not targeted to the wealthiest, but to self-made customers who’ve used “hard work and hustle” and are now making $200,000 a year more. It’s created a maelstrom of debate with right-wing commentators seeing it as affirmation of what’s made the US great; left-wing commentators see it as ugly American chest-thumping. Green Car Reports readers have felt strongly about it – a recent article generated heated debated and more than 300  comments. Uwe Ellinghaus, Cadillac’s global chief marketing officer, doesn’t have any problems with it. The TV ad is delivering what they’d intended. The early research Cadillac had done on the ad suggested “we would break through the clutter and generate a hell of a lot of buzz. Mission accomplished.” There’s always the question of what TV ads like this do to America’s (and Cadillac’s) image in important global markets.

And in other clean transportation news……

  • The new website for Fisker Automotive speaks to its rebirth as an automaker now owned by Wanxiang America, the US arm of the largest auto parts company in China. “Fisker Automotive is poised & ready for a new beginning,” it states on the revamped website. It looks like the extended range Fisker Karma will return as it was before.
  • EcoMotors, the Michigan-based OPOC engine maker backed by Bill Gates and Vinod Kholsa, has created a joint venture in China with a subsidiary of First Auto Works (FAW), which is a Chinese state-owned auto manufacturing company. The FAW subsidiary, First Auto Works Jingye Engine Company, is investing more than $200 million into the venture that has been named BEM Shanxi Co. That venture will build an advanced engine designed by EcoMotors in 2015. EcoMotors previously established a similar deal with another Chinese company, Zhongding Power, nearly a year ago. Both Chinese companies are utilizing EcoMotor’s OPOC engine, which is said to be cheaper and more compact than conventional gasoline and diesel engines, and will deliver higher fuel economy and fewer emissions.
  • Linear City Development said it’s now offering the nation’s first apartment building to provide free electric vehicle charging for tenants. Linear City has installed 20 Level 2 EV charge stations at The Elysian, a 96-unit conversion of Los Angeles’ historic Metropolitan Water District (MWD) headquarters. It will cover the cost of electricity for the life of every original EV-driving tenant’s lease.
  • BMW is getting strong initial orders for its i3 electric car, Norbert Reithofer, BMW’s CEO, said at the Geneva Motor Show. It’s already available in Europe and will soon roll out in the US and Asia. Orders might be more than the automaker has production capacity for right now, he said. The model with the range extender (which can go 160 miles versus 80 for the battery electric model) is getting more purchase activity from early buyers, he said.
  • Toyota Chairman Takeshi Uchiyamada, father of the original Toyota Prius, foresees hybrid models making up 20% of global auto sales; they’re at the 13% to 14% mark now. Honda may add to those numbers; the company issued a press release stating its renewed commitment to hybrid technology. That may have been damage control after news broke last month about one of its original hybrid models, the Insight, being pulled off production lines by the end of this year.

Big Picture: Fisker Karma coming back to dealerships, Tesla financial losses could be offset by “gigafactory”

Fisker plant in DelawareFisker Automotive’s new owner has been shedding more light on where the luxury extended range sports carmaker is headed. Pin Ni, head of Wanxiang America (the US division of Wanxiang Group, China’s largest auto parts company), told Automotive News that the Karma will restart production as early as this year at its Finland plant; the Karma will be sold again in the US and Europe. Production could happen in the US as well, once sales move forward. Ni said there’s a “potential partner out of Michigan.” There’s always the former General Motors plant in Delaware, but Fisker Automotive may stay away from it. Long term, Wanxiang may set up production in China where there’s a lot of government purchase subsidies for cars like the Fisker Karma. Ni also commented on the Fisker Atlantic; Wanxiang wants to complete development of this mid-sized plug-in hybrid. It’s positioned to be more affordable model that is likely to be produced at higher volume than the Karma.

And in other clean transportation news………

  • Tesla Motors sold 22,247 cars last year, pulled in $2 billion in revenue, and took a $74 million loss. This year’s financials could be similar with speeding up production, starting production of the Model X, and expanding globally. Tesla also reported a second set of financial results outside of the generally accepted accounting principles – that one looked much better with a $46 million fourth quarter profit, which was up from $16 million in the third quarter. Tesla CEO Elon Musk also coined another phrase for how Tesla will rise to its challenges – the company may develop a “gigafactory” that would produce lithium batteries for its vehicles at much higher volume and much lower cost. More cash would be needed to do so, and with the company’s stock price so high, now could be a good time to make that investment, Musk said.
  • Check out two reports from the US Department of Energy. “A Guide to the Lessons Learned from the Clean Cities Community Electric Vehicle Readiness Projects” pulls together coverage of 16 different projects around the country. “State of the States: Fuel Cells in America 2013” looks at energy being produced at stationary fuel cell installations, fuel cell forklift deployments, and fuel cell buses, trucks, and cars placed in service.
  • The Kia Soul EV is being equipped with an advanced power pack featuring lithium-ion polymer battery cells supplied by SK Innovation. The battery pack features 192 lithium-ion polymer batter cells in eight modules that can output 27 kWh.
  • Echo Automotive will be adding the Chevrolet Express and GMV Savana full-sized vans to its plug-in hybrid lineup. Production will start in the first quarter of 2015 and will follow conversions of Ford E-Series vans.
  • Paice LLC filed a lawsuit against Ford Motor Co. for alleged patent infringement on its hybrid vehicle technology. The Baltimore company has won a similar case against Toyota Motor Corp. Paice said in its lawsuit that hybrid and plug-in versions of Ford’s C-Max and Fusion, and the Lincoln MKZ, infringe on patents that address ways to control electric motors and gasoline engines for increased fuel efficiency and reduced emissions. The two companies had made a deal in 2010 where Ford licensed one of Paice’s patents. Negotiations haven’t gone well, according to Paice, hence the lawsuit filing.
  • Nissan CEO Carlos Ghosn delivered two Leafs to the Kingdom of Bhutan last week in honor of the king’s birthday. He pledged more EVs to help the government electrify its fleet and the nation’s taxis. Nissan wants to showcase its technology in an unexpected market.

Big Picture: New SoCal alt fuel tech center, Fisker Automotive has a new owner

California Energy CommissionThe California Energy Commission has awarded funds to a consortium of Southern California-based organizations led by the Los Angeles County Economic Development Corporation (LAEDC) to establish a Southern California Center for Alternative Fuels and Advanced Vehicle Technology. The Center will consist of one virtual hub and two physical locations—one in San Diego, which will be managed by the California Center for Sustainable Energy, and one in Los Angeles, which will be managed by the Los Angeles Cleantech Incubator. The Center will serve the counties of Imperial, Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara and Ventura.

“Our goal with this critically important Center is to also leverage these assets to ensure that we’re a leading developer, designer and producer of these lower-emission technologies to add the high-value jobs and wages as well as the tax revenues that will result from a thriving advanced transportation cluster,” said Bill Allen, President and CEO, LAEDC. The California Center for Sustainable Energy (CCSE), a nonprofit organization that administers the statewide Clean Vehicle Rebate Project for the California Air Resources Board, will operate the San Diego Center. The Los Angeles Center will be managed by the Los Angeles Cleantech Incubator (LACI) at the La Kretz Innovation Campus in downtown Los Angeles.

And in other clean transportation news…….

  • Fisker Automotive has a new owner – Wanxiang:  The assets of bankrupt Fisker Automotive were sold to Wanxiang America for $149.2 million; Hybrid Tech Holdings had opened the bid for $55 million. It took two days and 19 rounds for the acquisition deal to be closed at the Delaware bankruptcy court. Wanxiang’s parent company in China is that country’s largest auto-parts supplier and it also owns A123 Systems, the lithium battery maker that has supplied battery packs to the Fisker Karma. US Bankruptcy Court Judge Kevin Gross chose the public auction route so that unsecured creditors could receive some payback from the deal.
  • Long Beach Clean Cities Coalition, which had been on hiatus for the past year, has now started up again through an alliance with the Municipal Equipment Maintenance Association (MEMA) Southern California chapter. Paul Condran, Fleet Manager for City of Culver City, CA, now serves as president of the board; three of the board members are Long Beach Clean Cities representatives. Bi-monthly MEMA meetings are serving as a main platform for recognizing Clean Cities’ goals and objectives; planning is being done for meetings, seminars, and educational sessions on green technologies, alternative fuels, and carbon footprint reduction methods. MEMA’s next general meeting will be on March 20, 2014 and details will be announced soon – see the chapter’s website for information on this meeting and alternative fuel vehicle educational sessions frequently offered by the organization.
  • US Secretary of State John Kerry mocked those who deny climate change in a speech in Indonesia. He didn’t say one word about the State Department’s and the Obama administration’s decision on the Keystone XL pipeline, which many analysts would say has a lot to do with climate change. Hmmmm………..
  • NAFA’s 2014 Institute & Expo (I&E) will be coming up April 8-11, 2014 in Minneapolis. I&E features over 60 hours of educational sessions, keynote speakers, an expo floor with more than 250 exhibitors, and excellent networking events. I had a great time attending last year, including the NAFA and Calstart workshops on alternative fuel vehicles and advanced technologies. Here’ s the conference’s website for more information and registration.
  • Tesla Motors will have its full-year financial reporting. There’s a slight chance the automaker may announce that day, or sometime soon, or never at all, that Apple may buy the luxury electric car maker. Executives may have had a conversation about it last fall and acquisition may have been discussed; another analyst said that, acquisition or not, Tesla may integrate Apple’s iOS system into Tesla vehicles.
  • ASTM International has issued a standard for dimethyl ether (DME), which could support a major advancement in alternative fuels that’s being developed by Oberon Fuels with Volvo Trucks and Mack. ASTM D7901 for DME provides guidelines for production of the diesel replacement fuel that can made from organic material. It would also apply guidelines to engine developers and for consumers of the fuel.
  • Green Automotive Company announced that its Californian subsidiary Newport Coachworks is planning to launch its 100% electric shuttle bus at the LCT Show in Las Vegas. The fully American built electric shuttle bus, The e-PATRIOT, will be presented for the first time at the upcoming February 16-18th International LCT Show at the MGM Grand Hotel & Casino in Las Vegas.
  • ChargePoint announced the installation of twenty-seven new stations at MGM resorts on the Las Vegas Strip and two new stations at Circus Circus in Reno.

Global Issue in Fleet Fueling is a Potential “Win-Win” for Heavy Vehicles Sector

Substantial HC Reductions to be Gained in the Capture of “Fugitive Transfer Emissions”

by Chris Hollerback

TCFS powerpoint slideHeavy duty vehicles have seen major transformations in hydrocarbon emission reduction in recent years. This is based on engine manufacturers’ massive investments in new technology and the mandates of Ultra Low Sulfur Diesel, along with SCR/Urea after-treatments. The industry has transformed diesel from the worst pollutant into one of the cleanest and most economic fuels available.

Truck engines and diesel fuel are two of several emissions sources that must be reduced to hit strict, ambitious federal standards to reduce greenhouse gas. So the big question is: “Where will the next significant reduction come from?” It is my belief that considerable gains can be realized through advances in fuel dispensing equipment. “Fugitive Transfer Emissions,” along with vapor purge, happens during the transfer of liquid and compressed gas refueling.

If the goal is to reduce hydrocarbons, wouldn’t it be prudent to capture as much of these emissions as well? With the exception of vapor recovery and on-board refueling vapor recovery (ORVR) in gasoline, this issue is currently “not on the radar” of the US Environmental Protection Agency (EPA). Consider that fugitive loss is a global occurrence and one that can be substantially corrected with significant benefits to the environment, the transportation industry, and the consuming public.

Diesel has secured the environmental future in the EPA’s focus of exhaust emissions.  In spite of these major advances, future reductions of hydrocarbon emissions are still being demanded by the EPA for the heavy duty vehicles market.

The EPA’s focus for hydrocarbon reduction in transportation is currently limited to “exhaust” emissions, which by definition is the measurement of “unburned” fuel. Fugitive transfer emissions (FTEs) are the vapors or purge containing concentrated levels of raw fuel, in suspension, that “vent” in order to displace liquid or compressed gas into a fuel vessel. Venting is a necessary function with all dispensing equipment.

Venting occurs somewhere near the refueling point and always after the fuel meter. The concept of the proposed solution is a common sense plumbing adjustment that effectively moves the vent point back to the supply source capturing vapor, and overfills, in a closed loop. With that said, how significant are these losses, and what gains can be made through total containment?

I am singling out diesel refueling as a starting point to illustrate how significant FTE reduction can be. Diesel refueling raised my awareness of the issue and inspired the proposed solution.

Fifteen years ago I was introduced to the non-public side of fleet transportation through refueling operations at a major metropolitan bus facility. Facility hygiene conditions were, and still remain, appalling.

As an outsider, my first impressions were of how grimy the fuel barn was with puddles of fuel that were obvious slip hazards. Everything was coated with fuel throughout the property. The pungent odor of diesel was inescapable, even in the office areas. My initial questions were “How can people work under these conditions” and “Why isn’t someone doing something to correct it?”

Pressure cleanings were a weekly event with spot cleanings performed daily.  “The nature of the fuel just gets on everything, you get used to it after a while.” This is the one comment that is consistently repeated and sums up the acceptance of the conditions industry wide. So what is the root cause of this rapid recurrence as a need for constant clean-up, and more importantly, can a solution be found to permanently correct it?

From a logistics stand point, the hectic activity to process 500 buses for the next day was fascinating. The buses all come in at once at days end, and stretch around the facility in an endless line.

“Hostlers” drive these vehicles into the fueling area, quickly connect a “high speed” fuel nozzle to a mating connection. Fuel is dispensed at an impressive 40 gallons per minute (GPM). The Hostler jumps back into the bus to sweep out trash and debris. (I still can’t shake the pungent smell of fuel.)

A “whistling” noise pierces the air during fueling; this is a safety indicator that the fuel tank is “pressurized” signaling the fuel nozzle is not to be removed until the whistling stops. This “safety whistle” is cleverly activated by pressure from within the tank, sort of like an industrial tea kettle. This whistle, combined with another pressure relief valve, is designed to dissipate tank pressure and a likely source for aerosol fuel releases. (All fuel tanks must relieve pressure or risk rupture. The trucking industry uses a standard nozzle and an over-sized filler neck that allows venting around the inserted nozzle.)

To confirm the theory in “MacGyver” fashion, I wrapped a handkerchief over the two suspect vent points, producing two oily damp spots. One source of contamination identified, but how significant is the output?

Despite the manufactures warnings, at this location, the fuel hose was repeatedly removed from each bus with the whistle still sounding to get to the next bus. This practice resulted in a back-pressure fuel spill, partially captured by a sludge pit.

As the hostler kicks the fuel door shut with his foot, fuel trails down the side of the bus and is tracked onto the tarmac out to the parking area. This tracking of fuel makes its way to storm drains with wash downs, rain, and snow melt run off.

Two sources of fuel release identified – what’s the volume for each and would there be a significant payback if these conditions could be corrected? The back-pressure spills were the most obvious, so I asked the obvious question “Why would they disconnect before the whistle stops if they know it will result in such a large fuel loss?” The answer was the fuel loss was acceptable as an offset for the extra minutes saved on each bus to reduce labor expense and time.

The fuel “spilled” was less than 1% of total fuel purchased and fuel was not “lost” as it was captured in the sludge pit and sold to “re-processers.”

The calculation for back-pressure spills rounded to .09% equated to 169,000 gallons annually based on this total fleet’s volume. The collected fuel is contaminated and not suitable for reuse and is sold for less than purchase.

Most facilities avoid overfills by properly waiting for tank pressure to dissipate; However, the “atomization” that occurs remains unavoidable due to dispenser design. Overfills, back-pressure spray, and atomized fuel losses all occur after the fuel meter, so for the most part, have gone unnoticed, and more importantly, unaccounted for.

What about the atomized fugitive loss? Is this a big deal? Specific measurement will be calculated with (yet to be determined) university collaboration, but viewed under an infrared camera, the visible “cloud” is significant. A little digging produced a citable reference regarding “fugitive transfer emissions” in an early study of vapor recovery. This was a collaborative effort which included the EPA and American Petroleum Institute (API).

The collaborative calculation states the fugitive transfer loss to be 8.4 lbs of liquid for every 1,000 gallons dispensed. (Conversion is approximate to 1.5 gallons of liquid fuel.)

This specific reference was performed with gasoline which admittedly has very different properties from diesel, but as a liquid transfer, this serves as a reference point for the theory. Gasoline is dispensed at 10 GPM whereas diesel fuel is commonly dispensed at 30 GPM at a travel plaza, and 40 GPM or better, through the pressurized system utilized by 98% of mass transit groups.

The transit group referenced dispenses 18 million gallons of diesel fuel in a year with a total fleet of 1,300 buses. The atomized loss at 1.5 gallons per 1,000 gallons dispensed would equal a 27,000 gallon loss which contaminates the site and places employees at unnecessary occupational risks. This volume in fugitive loss, if captured, would obviously better serve the fleet as usable fuel and provide a cleaner and healthier work environment for the total labor force.

Multiple regulatory programs seek reductions of contamination sources such as: The Air Pollution Act, Water Pollution Act, Spill Prevention, Control and Countermeasure (SPCC), Environmental Justice Act, SmartWays Partnership, Map 21, and OSHA’s Permissible Exposure Limits (PEL) guidelines.

Every commercially available fuel dispenser has a measurable degree of fugitive transfer loss. Diesel fuel does not evaporate as gasoline, but shares some of the same toxins such as benzene. Consequently, vapor recovery has not been required for use in diesel fuel dispensing. Due to the fact that it does not evaporate is reason for capture.

Looking beyond just exhaust emissions will further environmental and health efficiencies. Challenging antiquated dispensing processes provides opportunity to further reduce heavy duty vehicle emissions to improve environmental and occupational health. A closed loop containment dispensing assures that fuel consuming fleets are actually getting all the energy they are purchasing. That’s a “Win-Win” and reasons to consider the change.

Chris Hollerback has a 30 year background in facilities management and process improvement. He is the designer and utility patent holder of the Total Containment Fueling System (TCFS). The patent awards 43 claims of innovations above the state of the art in dispensing. A proof of concept prototype has been developed to validate a solution for fleet application as a logistics tool. Hollberback’s LinkedIn page offers a summary of the TCFS.

Big Picture: Consumers worried about driverless cars, Leaf and Volt sales down

Google driverless carsGovernment officials, DMVs, Google, and automakers (especially Nissan) are much more excited about autonomous, driverless cars than are American consumers. A new study by Harris Poll found that 88% of US adults (18 and older) are nervous about riding around in a driverless car. Some of their concerns focus on equipment in a driverless car failing such as a braking software glitch or failed warning sensor alerting the robot driver about upcoming danger. Nearly 60% are worried about liability issues – primarily who’s responsible for the crash if one were to happen. More than half are worried about hackers taking over the car and playing dangerous games. There’s also concern by 37% of the respondents that personal data will be extracted from the car that could be used against the owner. Another news item from last week about automated cars came from the National Highway Traffic Safety Administration; the agency announced it’s moving forward on V2V (vehicle-to-vehicle) technology as a key to saving lives and improving traffic flow in congested urban areas. It represents the next generation of safety improvements for NHTSA, and eventually will enhance development of autonomous vehicles that automakers want to put on US roads starting in 2020.

And in other clean transportation news…….

  • Nissan Leaf and Chevrolet Volt sales were down in January. At 1,252 units sold, the Leaf was way up over a year ago but down from the 2,529 units sold in December. The Volt saw 918 units sold in January, down from 2,392 units in December and 1,140 from January 2013. January has been a tougher month for sales and bad weather through much of the US hurt sales, too.
  • President Obama voiced support for natural gas vehicles during his State of the Union speech last week. He urged Congress to support construction of natural gas fueling stations for American cars and trucks. It’s part of his “all-of-the-above” energy strategy to create new jobs in America, reduce US dependency on foreign oil, and help curb climate change.
  • AltCar Expo will make its Northern California debut on March 14-15, 2014, at Craneway Pavilion in Richmond, Calif. Similar to AltCar Expo conferences in Santa Monica and Dallas, this one will start with an Industry/Fleet day and then will be followed by a Public Day; ride and drives will be available.  Partners include: Honda, Nissan, California Fuel Cell Partnership, San Francisco Clean Cities, and East Bay Clean Cities.
  • Happy birthday to Green Car Reports, which just celebrated five years and 9,800 articles. According to senior editor John Voelcker, “many people worked long hours for very little reward to tell the stories and spread the word that green cars come in a variety of forms and can be propelled by many different forms of energy.”
  • At the Washington Auto Show last week, US Energy Secretary Ernest Moniz said that nearly $50 million will be available to accelerate research and development of new vehicle technologies. This new funding includes support for the Energy Department’s EV Everywhere Grand Challenge, a broader initiative launched in March 2012 to make plug-in electric vehicles (PEVs) more affordable and convenient to own and drive than today’s gasoline-powered vehicles within the next 10 years.
  • Clean Cities just released its 2014 Vehicle Buyer’s Guidea comprehensive list of 2014 hybrids and vehicles that run on propane, CNG, electricity, E-85, and biodiesel. Like its previous reports, the guide focuses on fuel economy, emissions, information on fuel types, and vehicle pricing.