clean transportation Archives

Facing perplexed looks on what LeSage Consulting actually has to offer

While attending Plug-In 2014 Conference last week in San Jose, I learned something beyond the state of the charging infrastructure: how people perceive what I do. That usually came across as a perplexed look on a person’s face – during an interview, seated for lunch, or during a conversation while standing outside a seminar room. As I left San Jose McEnery Convention Center, I had the same question. What is it that LeSage Consulting offers?

I think some of the confusion deals with a perception gap between me playing a press/media role and a consulting role. In the past few years, people have known me through doing video interviews with Automotive Digest, phone interviews, sitting in on stakeholder conference calls, or chatting at a conference – while wearing my media badge. Several people congratulated me earlier this year after starting the consulting practice, and could see the logic behind it – industry expertise, market analysis, and the ability to pull it all together in content such as this weekly newsletter. For some of us, there is a crossover between the research and editorial sides. I spent a few years in market research/intel and have met a number of people who’ve been in media and now work in market research and analytics. Jobs have been changing for many of us in recent years. I think it’s my duty to keep Green Auto Market accurate and thorough – but it does come from my perspective on what’s taking place and worth paying attention to. That’s one of the more rewarding trends in the internet age for writers like me.

Since launching LeSage Consulting in January of this year, the game has changed for me. I’ve learned much more about where companies and organizations are heading in the next few years, and how my skillset and resources are perceived. I understand that for key stakeholders in automotive and transportation, it’s about much more than deciding what alternative fuel vehicle to build or buy. The landscape will be changing radically in the next 20 years, driven by growing concern over traffic congestion, emissions, safety, and what types of jobs will be available as the technology changes.

Clean transportation involves electric vehicles, hybrids, fuel cell, and other alternative fuel vehicles, and the charging and fueling infrastructure that drives it. There’s also the question of producing fuel-efficient vehicles that will meet federal mandates; and building them in environmentally sustainable factories. Advanced vehicle technology is the baseline, and is leading toward autonomous vehicles in the not-too-distant future. The theme of urban mobility is also another deciding factor, which several automakers are preparing for, in the context of carsharing and ridesharing, parking, and other aspects of making ground transportation work in a fast-changing, crowded world.

When I returned from Plug-In 2014, I revised my mission statement and service offering descriptions to get more clear about all of it, and to articulate that to colleagues. Here’s the latest…..

Mission Statement: LeSage Consulting creates content, marketing communications, and market intelligence serving stakeholders in clean transportation, advanced and autonomous vehicles, and urban mobility. Content channels include the Green Auto Market weekly e-newsletter and through an alliance with Automotive Digest.

How it works:

Content creation:

Feature articles
Newsletters
Websites and blogs
Webinars and speaking engagements
Video and audio
Green Auto Market and Green Auto Market Extended Edition
Information products including white papers, reports, and e-books

Marketing communications:

Promotional content such as coverage of company news, product launches, and special events
Social media placement
Multiple content channels including articles, newsletters, press releases, video, audio, and webinars
Direct marketing through postal and email
Public information and marketing campaigns
Green Auto Market and Extended Edition sponsorships and event promotions

Market intelligence:

Surveys
In-depth interviews with stakeholders
Analytical reports focusing on emerging trends, vehicle acquisitions, technology innovations, legislative and regulatory environment, and global markets
Consulting and research services to clients with sustainability targets
Industry metrics including hybrid and EV sales; alternative fuel prices; stock market performance for companies in clean transportation; US charging and fueling stations; and green vehicle specifications and incentives.

Thanks very much for the questions and perplexed looks. I realized that it had to start with me getting clear on my purpose. Some of the main reasons I chose clean, advanced transportation as my main focus in recent years has been passion for the topic; seeing its integration with environmental and economic issues; and facing big changes in the media landscape. I’ve truly enjoyed connecting with several of you during conversations on these topics. That’s driven me in starting and building LeSage Consulting – supporting people who are passionate and committed to their mission statements in clean, advanced transportation.

Car rental a new market for microGreen oil filter as fleets face cost and carbon challenges

Car rental companies, like other fleet operators, face two core challenges: cost containment and carbon reduction. As experienced by the automotive and transportation industries, taking a multi-tiered approach is required to hit those targets – involving more than the vehicle acquisition process. Abrams Consulting Group, Inc. (ACG), the leading specialized consulting and research firm serving the global vehicle rental and lease industries for over three decades, and SOMS Technologies LLC (SOMS), the manufacturer of the microGreen® Extended Performance Oil Filter, are working together to bring a vehicle maintenance solution to new market segments.

The two companies have announced a collaborative effort to introduce the microGreen filter into the car rental and fleet management industry sectors. The two-in-one filter design combines a high-quality full-flow filter with a patented microfilter system to maintain oil quality over time. The difference with traditional oil filters is huge – the microGreen oil filter program allows the vehicle owner to replace engine oil every 30,000 miles as compared to a more standard 3,000-7,000 miles, depending on normal practice and manufacturer guidelines. The filter fits most light- and medium-duty vehicles, and is installed and removed like a conventional oil filter.

Car rental companies stay on top of maintenance – their vehicles are extensively used and add mileage faster than other fleets. “The car rental industry is one where…. vehicle maintenance, including oil, filters, and labor, is a significant expense, and there is mounting pressure to improve the environmental profile and reduce the carbon footprint,” said Miles Flamenbaum, president of SOMS. The microGreen filter “can significantly reduce oil and filter maintenance costs while helping to protect the environment.”

Neil Abrams, ACG founder and president, has worked with car rental companies and suppliers on cost containment – and in more recent years on environmental sustainability goals. “Over our 32 year history, it has been extremely rare that ACG would work with a product manufacturer of a mundane, after-market replacement part such as an oil filter,” Abrams said. “However, after reviewing the success already achieved by the microGreen filter with tens of millions of miles of testing and hundreds of millions of miles of usage in commercial fleets, as well as undertaking an analysis of the benefits to be derived by rental and fleet operators, the value proposition was obvious and compelling. There are potential annual savings of 10s or 100s of thousands of dollars — millions of dollars in some cases — depending on the size of the fleet.”

SOMS has been working with fleets since 2009 – police departments, limos and taxis, school buses, carsharing, and telecommunications companies, among others. “The fleet manager is looking at rising costs in vehicle acquisition and maintenance,” Flamenbaum said. “When oil prices go up, that goes into engine oil. Fleets need to keep their costs down.”

Carbon credits are being looked at more carefully these days by fleets, Flamenbaum said. But for fleets, the microGreen filter offers a more direct approach – just like LED light bulbs offer with energy efficiency. “They look at low-hanging fruit,” he said. “It’s a small piece of the puzzle, but an easy part, based on efficiency.”

Bill Ford shares ideas on the transformation of automakers into personal-mobility companies

“With a growing global population and greater prosperity, the number of vehicles on the road could exceed two billion by midcentury. Combine this with a continuing population shift toward cities, with a projected 54% of the global population in cities by 2050, and it becomes clear that our current transportation model is not sustainable. Our infrastructure cannot support such a large volume of vehicles without creating massive congestion that would have serious consequences for our environment, health, economic progress and quality of life.” — Bill Ford, Executive Chairman, Ford Motor Co.

Bill Ford’s comments, which you’ve just read, were featured recently in The Wall Street Journal’s 125^th anniversary issue where leaders were asked to predict what’s coming up. Ford is in a unique position in the auto industry – being the great-grandson of Henry Ford, who “redefined mobility for average people,” along with articulating bold, forward-thinking ideas on where automakers need to go in the next 20 years. Bill Ford understands the inner working and challenges faced by global automakers in moving forward, along with the market dynamics that will likely cause automakers to transform their identities.

Ford Motor Co. has been on the front lines with these issues – whether that be through having to clean up another miles-per-gallon overstatement, or producing lightweight aluminum-body pickup trucks and selling more hybrids and plug-in hybrids. Bill Ford sees the landscape changing overall for the global auto industry in addressing these potential solutions………

Space-efficient vehicles that run on gasoline or alternative energy sources.
Beyond the energy fueling the vehicles, Ford says that using materials and manufacturing processes committed to sustainability are very important. Aluminum is a good example, as is carbon fiber, in approaching the life-cycle supply chain from a new perspective.
Rethinking the role of vehicles in transportation – making them “smarter and more integrated into the overall transportation system.” OEMs will no longer be just car and truck makers, but will redefine themselves as “personal-mobility companies.”
Cars will need to be able to interact with each other in a city’s infrastructure, networking with other transportation modes like trains, buses, and bikes.
Ridesharing and carsharing companies like Lyft, Uber, and Zipcar symbolize a major shift in thinking – from individual ownership to transportation alternatives.
Bill Ford is a believer in connectivity – with “wireless communication, infotainment systems and limited functions for automated driving and parking” being of much importance.
Autonomous driving is becoming possible, and is already starting to show up in technology features making cars safer and easier to drive. Beyond completely driverless cars, Ford says that some entrepreneurs are looking into the feasibility of flying cars.
The auto industry has entered a new phase in its history. “The next 20 years will see a radical transformation of our industry, and will present many new ways of ensuring that my great-grandfather’s dream of opening the highways for all mankind will remain alive and well in the 21st century and beyond,” Ford wrote.

Earthgarage Certified Dealer program offers a way to reach greenest consumers

For those of you reaching out to consumers (and fleets) with interest in “green” issues like air quality, fuel efficiency, recycling, and protecting natural resources, you may want to consider the Earthgarage Certified Dealer program. The Shelton Group, a market research firm, has reported that the greenest consumers make up 24% of Americans. They make for a very desirable target audience – affluent, early adopters, and the most brand-loyal segment. They prefer to purchase greener products from greener companies.

Green Automotive Alliance yesterday announced the Earthgarage Certified Dealerprogram, which helps independent repair shops and tire dealers service the environmentally-savvy driver – and provides them with a good opportunity to stand out in the marketplace. It’s a win-win for customers – selecting repair shops that have joined the Earthgarage Certified Dealer program can offer consumers a lineup of aftermarket parts and services that have a lower impact on the environment and save money on routine maintenance.

The program includes branding, marketing support, and staff training. “We’re changing the way drivers think about maintaining their car,” said Bob Inzitari, Store Manager at Karl Auto Service in Greenwich, Conn., “being green also means you can save money, too.”

Customers also have the option of choosing environmentally responsible products to service their vehicles. One of them is G-Oil, the first bio-based motor oil; it’s synthetic oil with carbon emissions two-thirds lower than conventional motor oil. Another aftermarket product being offered is the micoGreen oil filter that extends oil change intervals out to 30,000 miles; it comes with a patented filter technology that makes for cleaner, longer lasting oil.

Green Automotive Alliance recently revamped its website, Earthgarage.com. The site offers pertinent information on products and resources that help motorists improve gas mileage, reduce emissions and lower the environmental impact of their vehicle.

The revised website also includes a store locator for participating Earthgarage Certified Dealers. “The Earthgarage Certified Dealer program allows independent shops to stand out in a crowded marketplace,” added Bob Leonard, CEO of Green Automotive Alliance, the marketing company that developed the program.

Check out the “Give Water a Brake!” campaign on the Earthgarage website, which seeks to ban copper in automotive brake pads. Every time a driver steps on the brake pedal while driving, copper in the form of brake dust is worn off the pads. This eventually winds up in the environment, contaminating our precious water resources. As Colors on Parade has discovered, choosing environmentally responsible standards and practices is paying off with customers and regulatory agencies such as the US Environmental Protection Agency. Regulatory compliance gets companies to save money by switching over from solvents to waterborne auto paints. Offering clean waterborne paint, and making the process more efficient than it had been in the past, is gaining a lot of traction, the company said. Consumers and fleets like to stay informed on these issues, so the Earthgarage Certified Dealer program may meet their financial goals and could be inspiring for many of them concerned about eliminating copper that wears off brake pads and damages the environment.

Big Picture: Tesla becoming a top job creator, and Gigafactories could lead to hundreds of plant openings

With Toyota Motor Corp. announcing its plan to shut down at its US headquarters in Torrance, Calif., and then moving to Texas by 2017, Tesla Motors will become the largest auto industry employer in California. Tesla now employs more than 6,000 people in the state, mainly at its production plant in Fremont. Tesla will add at least 500 more workers by year’s end in California, according to a company spokesman……. Tesla CEO Elon Musk received more media attention last week on where “gigafactories” are headed. Speaking at the World Energy Innovation Forum, Musk said the need for lower-cost batteries for autos and power storage will bring hundreds of these advanced lithium battery plants like the one Tesla is planning with fellow investors. Musk thinks cost will be reduced for these lithium-ion cells initially by 30%, but that will only get better. In other news, Tesla is getting a perhaps temporary break in the state of Missouri in the franchised dealers vs. Tesla online sales battle. Legislators have put a bill on hold until its reintroduced next year.

And in other clean transportation news…….

Japanese automakers have formed a consortium similar to what’s been implemented in Europe – taking a big step forward in fuel-efficient powertrains. Toyota, Nissan, Honda, Mazda, Mitsubishi, Daihatsu, Suzuki, and Fuji Heavy Industries (which makes Subaru vehicles) have pooled resources to jointly produce gasoline and diesel engines that are 30% more fuel efficient by 2020. It’s taking place through a newly created organization, Research Association of Automotive Internal Combustion Engines. The Japanese government is putting up half the budget, which combined totals out to 1 billion yen ($9.9 million).
Check out “Forty One New Models Coming,” an Automotive Digest video featuring AOL Automotive’s Steve Sturm, at the thinkLA, Automotive Breakfast 2014. Sturm thinks that hydrogen fuel cell vehicles rolling out in the next year will have a role to play in new vehicle sales.
Fisker Automotive will be assembling its cars in the US and maybe eventually in China, said Lu Guanqiu, chairman and founder of Fisker’s post-bankruptcy owner, major Chinese auto parts maker Wanxiang Group Corp. The Fisker Karmas out on the roads today were built at an assembly plant in Finland. Lu sounds very serious about building the next wave of Fisker plug-in hybrids. “I’ll put every cent that Wanxiang earns into making electric vehicles,” Lu said. “I’ll burn as much cash as it takes to succeed, or until Wanxiang goes bust.”
Last year’s controversy has subsided over Terry McAuliffe’s GreenTech Automotive company being the subject of a Securities and Exchange Commission for promises made by the electric carmaker while soliciting overseas investors. Its merger with VL Automotive is helping GreenTech Automotive to express optimism about delivery of electric city cars to the Chinese market. McAuliffe, now serving as governor of Virginia, started up GreenTech about five years ago. GreenTech President and CEO Charles Wang last year became embroiled in the governor’s race about the deal making McAuliffe had been part of.
In this day of five million General Motors recalls being announced, 276 Nissan Leafs is a mere pittance. Nissan is recalling 211 vehicles in the US and 65 in Canada to check for a problem with its front structural member assembly. The risk of injury during a crash goes up for these models as the assembly may be missing welds, which affects structural integrity during a crash. Nissan is notifying customers and their dealers to bring in their Leafs for inspection.
Lobbying for higher blends of ethanol at the national and state level is continuing. Legislators in Illinois have heard from a racing celebrity who supports the alternative fuel. NASCAR driver Kenny Wallace. “I’m here to let everyone know not to worry about it,” Wallace said. “I’ve got a lot of knowledge and it’s a clean-burning fuel. It’s good for the environment and it cuts down on emissions.” Wallace has been working with the Illinois Corn Growers Association to advocate blended fuels. Illinois currently provides tax credits for fuel with a 10% ethanol blend; the association wants to see the credit carry over to fuels with a 15% blend.
The 2015 Chevy Spark EV will have an entirely new battery pack. General Motors will bring assembly of the electric Spark’s battery in-house to the Brownstown, Michigan, plant that already builds batteries for the Chevrolet Volt, Opel/Vauxhall Ampera, and Cadillac ELR. The first 1,000-plus batteries were assembled by Compact Power Inc. at a different Michigan plant, then shipped to South Korea for installation in the Spark EV.
AT&T has deployed its 8,000th compressed natural gas (CNG) vehicle; the company is more than half way there to fulfill its 10-year, $565 million commitment to add approximately 15,000 alternative fuel vehicles to its fleet by end of year 2018. The 8,000th CNG vehicle – a 2014 Chevy Express van manufactured in Wentzville, Missouri – was delivered to a work center in St. Louis, Missouri, and will be used to provide entertainment and communications services in the St. Louis metropolitan area.
IHS Automotive sees EV sales performing stronger than early hybrids: IHS Automotive has become the leading market analyst on auto industry trends through its acquisition of Polk and all of Polk’s vehicle registration data. A new report by IHS Automotive says that despite the limitations that electric vehicles (EVs) have faced in its early development and market availability, these models have still sold better than hybrids did in the early years starting in 2001 with the Toyota Prius and Honda Civic and Insight. “Most EV drivers still own their first-generation electric vehicles,” said IHS Automotive analyst Ben Scott. “Furthermore, there have been insufficient product offerings to effectively legitimize the market and show to consumers that EVs and plug-in hybrid electric vehicles (PHEVs) represent the way of the future.” The IHS Automotive study also says that early expectations and perceptions for EVs may been too lofty, which had a negative impact. It’s lead some people to think of early EVs as failures for not meeting their inflated expectations despite these models’ relative sales success in the global market.

Green Auto Market – Extended Edition offers market data and analysis on this new and growing industry

Here’s a summary of an article that was just published in Green Auto Market – Extended Edition………

Reaching more fleets and other stakeholders at clean transportation conferences
No doubt, ACT Expo 2014 was a success – with increased attendance and excellent keynote speakers and workshops. The challenge is reaching more fleets that need a lot more information, hands-on experience, and time with knowledgeable peers who can help them bring the right clean vehicles and fuels to their workplaces. Here are my thoughts on what could help events reach more stakeholders.

I invite you to take a look at another issue of the monthly subscription version of this newsletter – Green Auto Market – Extended Edition. This newsletter offers market data and analysis on this emerging global industry.

Topics/issues covered in Extended Edition include:

Monthly sales numbers for hybrids and electric vehicles.
Stock market performance on green transportation publicly traded companies.
Fuel prices on gasoline and diesel with comparisons to alternative fuels.
Infrastructure: US fueling and charging stations.
Government policies impacting the industry.
Introduction of car and truck offerings in EV, hybrid, fuel cell, natural gas, propane autogas, and other emerging alternative fuels and technologies.
Marketing campaigns that are reaching decision makers in consumer, business, and NPO segments.
Deployment of green vehicles and fueling/charging infrastructure networks.
Capital investments from public and private entities.
Developments in international marketplaces impacting clean transportation.
Smart transportation — including autonomous/driverless vehicles, telematics, carsharing, ridesharing, and connected cars.

It’s $75 per year for a subscription. Got to this page for more information, and the PayPal subscription link.

NAFA and CALSTART launch Sustainable Fleet Standard Program

During its annual conference last week, the NAFA fleet management association launched the Sustainable Fleet Standard Program in collaboration with CALSTART. It a first-of-its-kind “best practices” program supporting fleets in increasing efficiency and reducing emissions and fuel consumption for their vehicles. “The importance of sustainable practices becomes more evident each day,” said NAFA President Claude Masters. “By becoming more energy independent and efficient, our members will extend benefits to their bottom line and their customer base.”

The Sustainable Fleet Standard Program will be complimentary to existing federal programs, but also sets a standard by which fleets can assess their progress. The program has two purposes – to encourage and make it easy for fleets to take first steps toward clean transportation; while also setting a strong framework to reward those fleets already taking real action. Member organizations will be assisted in assessing their practices to decrease fuel dependence and emissions; and to increase vehicle efficiency, improve performance, and reduce harmful pollutants. In recent years, many fleets have been learning the win-win scenario clean transportation brings in reducing emissions and operating costs.

CALSTART has been working with NAFA for several years on providing educational resources to fleets on advanced and clean vehicle technologies. The non-profit organization has more than 150 member companies and works with industry and government partners to support growth in the industry. “NAFA’s central role in the fleet industry will help this program create a tipping point for sustainable transportation,” said John Boesel, president and CEO of CALSTART. “We’re working with NAFA to make sure the standard is strong, but easy to use by any fleet, whether just starting out or far down the road on sustainable operations.”

The timing of this launch has been quite relevant. NAFA says that developing and launching this new program coincided with a speech given by President Barack Obama in February 2014 supporting a national vehicle sustainability initiative. “By applying this standard to fleets and vehicles of all sizes, NAFA is engineering a program that has the power to shift vehicle sustainability standards on a universal level,” NAFA’s press release says. You can also learn more and stay informed on the program as it approaches implementation, at NAFASustainable.org.

Big Picture: Northern California AltCar Expo starts up, Intertek working with DOE on AFV data collection for petroleum use reduction

AltCar Expo is continuing to expand beyond Santa Monica, Calif., with the first Northern California AltCar Expo held at Richmond’s Craneway Pavilion on Friday and Saturday. Plug-in vehicle readiness and deployment of alternative fuel infrastructure tools for local government agencies were explored in speaker panels, and electric vehicles, hybrids, and vehicles powered by hydrogen, natural gas, and propane were available for test drives. AltCar Expo Texas will host its fifth annual meeting March 28-29 at the Irving Convention Center; it’s taking place in coordination with the Propane Engine Fuel Summit on March 27.

The free two-day event in Richmond, Calif., kicked off Friday morning with remarks from Mayor Gayle McLaughlin, Contra Costa County Supervisor John Gioia, and Randall Winston, special assistant to the executive secretary office of Gov. Jerry Brown. Scheduled speakers on Friday included Jon Coleman of Ford, Steve Ellis of Honda, Jeannie Lam of Nissan, and Christine Kehoe of the California Plug-In Electric Vehicle Collaborative. “Plug-In Electric Vehicle Readiness Plan for Local Governments & Industry,” was hosted by the Association of Bay Area Governments, the Bay Area Air Quality Management District, and the Metropolitan Transportation Commission. The session focused on suggested actions elected officials can take in their communities to support electric vehicle deployment. “Best Practices for Deployment of Alternative Fuels Infrastructure-Tools for Local Government Agencies” was hosted by the Bay Area Air Quality Management District, and the San Francisco, East Bay, and Silicon Valley Clean Cities Coalitions. It focused on best practices for the sighting and permitting of natural gas and hydrogen infrastructure.

The daylong Propane Engine Fuel Summit in Texas will feature Texas schools and businesses using propane autogas. Presentations from the City of Fort Worth, CleanFUEL USA, Dallas County Schools, Dallas-Fort Worth Clean Cities, and Northwest Propane Gas Co., will cover topics such as refueling infrastructure, economic and environmental factors, and propane industry equipment. Santa Monica’s flagship AltCar Expo, the ninth annual, will be held September 19-20 at the Santa Monica Civic Center in Santa Monica, Calif.

And in other clean transportation news……..

Intertek is working with US Department of Energy (DOE) and several national laboratories to collect data on alternative fuel vehicle street performance and reduction of petroleum consumption. Testing includes vehicle performance, durability, and operational costs. Intertek has a lot of experience in this space, being a leading provider of global testing, quality, and safety solutions. Most battery electric and plug-in hybrid models have been included in the study, along with hybrids, the Honda Civic Natural Gas, and the Volkswagen Jetta TDI. Vehicle performance data is being collected through Intertek’s data logging systems at a closed course test track. Fleets are also involved in the data collection – as the test models are driven daily for nearly 200,000 miles over three years. Each car is equipped with Intertek’s data loggers, which use Wi-Fi to automatically upload the operational data.

Coda Automotive has gone away, but its new identity – Coda Energy – is up and running. Coda Energy has installed about 20 of its “CODA Core” Tower systems at commercial and industrial sites across California. Fortress Investment Group, which picked up Coda’s assets last year in June for $25 million during Coda Automotive’s bankruptcy, will be providing financial backing for a total of 100 systems over the next few months. Fortress is investing about $64,000 for each 30-kilowatt, 40-kilowatt hour lithium-ion battery based unit. Coda’s new combined system received Underwriters Laboratories (UL) 1973 safety standard certification last month. Coda’s customers for this grid battery system will pay only 50% of whatever savings the systems provide to annual utility bills. Reducing demand charges is the primary economic driver for these battery systems – and these types of battery storage systems are expected to become more important going forward as a way to retain renewable energy for electricity.

Hyundai Motor Co. is entering the battery-powered vehicle market in 2016 through its Kia Motors subsidiary. An electric version of the Soul compact will start being built in Korea next month, eventually ending up at destinations in the US and Europe. The battery electric Soul is expected to run 92 miles per charge; the global sales target for this year is 5,000 Soul EVs. In other news, Hyundai has another MPG problem – the automaker is restating the mileage rating on another one of its vehicles – the 2014 Sonata sees its rating drop from 29.6 mpg to 28.4 mpg. In 2012, Hyundai and Kia had an investigation by the US Environmental Protection Agency and acknowledged that its original stated mileage on cars like the Hyundai Elantra and Kia Soul had been inflated somewhere between one and six miles per gallon.

Biofuels will continue to see growth, but at a much slower pace than originally expected, according to a Lux Research study. The industry is expected to grow to 60.4 billion gallons a year between 2013 and 2017, a 3.2% annual growth rate – but far less than the 19.6% annual growth rate experienced between 2005 and 2013. The “food vs. fuel” debate and imminent blend limits for biodiesel and ethanol by the US Environmental Protection Agency have created impediments. Next-generation feedstocks like waste oils and cellulosic biomass are not tied up in the food supply and could unlock significant economic advantages; and next-gen biofuels – such as renewable diesel and butanol – can offer higher blends, but are not quite mature, according to the report.

Volkswagen is testing out lithium-air battery technology that could triple storage capacity. The new battery could hold much more power than its size would indicate – a 24.2 kWh battery perhaps holding 80 kWh of energy; its range could skyrocket up to 300 miles per charge. VW is keeping it under wraps for now – including when it might be installed in one of its cars.

Walmart is testing out a “WAVE” vehicle in its fleet – Walmart Advanced Vehicle Experience – which will be 20% more aerodynamic than counterparts because it’s being made out of carbon fiber; its micro-turbine hybrid powertrain can run on a variety of fuels. There’s also an electric motor and battery storage system being tested out. The carbon fiber body would cut out 4,000 pounds from the truck; it’s 53 feet long – the first time sheets that large have been manufactured. The goal here for Walmart is to double its fleet fuel efficiency by 2015, which the company says it’s 80% on the way to meeting.

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

Heavy 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.

I Betcha: My take on clean transportation trends to watch in 2014

Luxury extended range cars: Extended range, plug-in hybrids will see their next luxury models hit the market next year. The Fisker Karma was the first one, but those sporty luxury cars have been out of production for quite a while now. The two models to watch in 2014 will be the Cadillac ELR and the BMW i8. The 2015 Cadillac ELR will start showing up in January at dealer lots and will start at $75,955. The 2014 BMW i8 will go for $135,625, including a $925 destination charge, when it shows up in the US during the spring season. They’ll be competing with the Tesla Model S, BMW i3, and later in the year, Tesla Model X crossover, all of which are battery electric vehicles. The extended range models are pricy even after federal tax credits and state incentives but offer the benefit Fisker has been selling – reduced range anxiety. Their production volumes will be limited, but GM and BMW have a lot of experience in successfully making and marketing luxury models.

Pricing: MSRP pricing for electric vehicles dropped in the first half of 2013 to the extent that the “price war” label could be applied for the first time. I would expect to see more of that happen including the cost of buying a Level 2 charger and having it installed in your garage. Multi-unit Level 2 chargers installed in parking garages, condos, and workplaces, are becoming a little bit more cost competitive, too. Converting business vehicles over to natural gas or propane may take a while to see a significant price drop – it’s still small in transaction numbers. Perhaps seeing more pickup trucks from the Big 3 with those alternative fuel options will push the cost down in a more competitive marketplace.

Connectivity: Seamless and simple connectivity between the smartphone and dashboard is expected by car owners today and has huge potential for improving the driving experience – such as not getting lost and making the trip more fuel efficient. It also has a lot to do with finding the right charging stations and alternative fuel spots – ones that actually work and will accept your payment method.

Responding to a crisis as an opportunity: Check out this blog post by Roger Lanctot, associate director, automotive practice, at Strategy Analytics. He makes the point that Tesla’s software update after its Model S battery fires tells a story about the issues automakers are facing on responding to customer perceptions and working with their dealer networks. Tesla was able to announce a software update to raise the speed at which the car automatically lowers itself by an inch for better aerodynamics. Other automakers, including Chrysler and Toyota, can provide their customers with software updates via smartphones for app updates and installation. This has happened despite dealer resistance. Lanctot, who led a speaker panel in November at Connected Car Expo, makes the point that GM (and OnStar) and other OEMs could do well to learn something from Tesla’s solution for software updates and the marketing points the automaker can score (and, I would say, customer retention). I would also say that turning problems into opportunities is there for every clean transportation technology – finding enough alternative fueling and charging stations, lithium battery durability, range anxiety concerns, dependability of the engine while using the alternative fuel, bringing a new fuel or powertrain into the fleet, and justifying the investment.

Lightweighting: For automakers in the US and Europe to meet ambitious government mandates on fuel efficiency and carbon emissions, ligthweighting the vehicles is being tried out – bringing in more magnesium alloys (BMW), aluminum (Ford in the next F-150 pickup), and using more plastics (every OEM) being clear examples. The biggest concern has been safety – metal might be heavier than its alternative, but it’s more likely to retain its structure during a collision or once the vehicle is weighted down with a lot of cargo. Government safety standards are more stringent these days, but there needs to be more confidence in the testing procedures.

Infrastructure: It’s the classic quandary in clean transportation. Will people really buy enough of these green vehicles to turn a profit? Is there enough alternative fueling and charging infrastructure to alleviate their range anxiety? The numbers are getting better (as readers of the monthly Green Auto Market Extended Edition can confirm – where stats on charging and fueling stations are reported each month). One of the ways this is seeing improvement is through local market alliances, many times organized by Clean Cities coordinators. Infrastructure suppliers play a key role, too. In this Green Auto Market interview, Schneider Electric’s Mike Calise talked about an alliance bringing together stakeholders such as employers, a carshare service, Schneider Electric, and Toyota to set up train stations with EV charging, carsharing, and bike stands. The concerns of community stakeholders have to be addressed and integrated within the infrastructure planning to get the necessary buy-in.

A few other points to make. Don’t write off biofuels in the wake of the EPA’s Renewable Fuel Standard decision. Or with concern over the economic viability of the fuel, or whether environmental concerns offset their advantages. Check out Biofuels Digest – you may be astonished at how big advanced biofuels are becoming as an industry and what investors think about it. A lot of it has been going on outside of transportation, but that’s starting to change. Carsharing and van pooling are starting to take off in the US – Zipcar, City CarShare, Enterprise CarShare, Hertz 24/7, and Car2go (a Daimler subsidiary) are expanding in several markets, and I’m starting to see a lot more van pooling services out on the roads. Fleet managers are extremely important stakeholders and decision makers to follow. Pay attention to what Claude Masters, NAFA’s president, is up to including organizing workshops with CALSTART. Fleet management companies (such as ARI, PHH Arval, GE Capital Fleet Services, Wheels, Enterprise Fleet Services, and Donlen) are offering fleets more services in sustainability, clean transportation, and alternative fuel vehicles.