California’s Perilous Race Against The Electric Car

May 7, 2010

It isn’t hard to argue California is in danger of losing its race against the electric car.

The state will be among the first to see large numbers of battery-powered plug-ins on its roads. But its electrical infrastructure is far from ready, and regulators worry a surge of evening recharging will push peak power use beyond capacity.

Utilities commissioner Dian Grueneich admits to grave concerns about peak power demand

What’s more, officials say paying for necessary upgrades to electrical lines and equipment could push up utility bills at a time when some voters are pushing back against greenhouse gas reduction goals. A ballot initiative written to roll back California’s 33 percent renewable electricity target appears to have qualified for the November ballot.

It is no surprise California is on the vanguard of the electric car movement. Drivers here are expected to snatch up electrics in a surge of green enthusiasm. It also is no surprise California finds itself steering through unfamiliar territory. The state often blazes paths for the rest of the nation to follow.

What’s interesting is how much territory there is to cover. The state’s public utilities commission – the CPUC – is just now preparing its first key regulatory ruling.

The agency’s decision later this month will address the thorny issue of whether electric-car charging services are utilities and therefore subject to commission rules. The alternative is to let the market dictate prices and business conditions.

The importance of the judgment can’t be understated, but it is just the tip of the iceberg. With electric vehicles from Nissan, GM and other makers scheduled to go on sale late this year, the state is still at an early stage of the largest change to public transportation in more than a generation.

Officials and industry executives admit to grave worry. Even utility executives, who vow they will be able to supply the power for recharging, acknowledge their forecasts of electricity demand are changing rapidly. With uncertainty running high, time is running short.

The scale of the challenge is enormous. Thirty-three percent of the state’s greenhouse gas emissions come from transportation and without addressing vehicles California will never meet its goal of returning to 1990 CO2 levels in a decade. To do so means putting 2.5 million plug-in hybrids and electric vehicles in service – one for every 15 people in the state.

With so many unknowns, “we don’t have the answers,“ says CPUC Commissioner Dian Grueneich. “This will be a massive task.”

It is not surprise electric cars such as Nissan Leaf are expected to be big in California. No surprise the state is blazing a trail for others to follow.

During a keynote at the Berkeley-Stanford Cleantech Conference this week, Grueneich said she fears that electric cars will drive up the demand for power during the late afternoons, when air conditioners hum, office lights blaze and car owners arrive home to plug in. It is a time of day when there can be little excess power to spare.

“We are gravely concerned…(electric cars) will drive up our need for peak power,” she said. The commission hopes to use the lure of cheap, off-peak power to delay some of this demand. But it also is rushing to prepare the electrical infrastructure before local power circuits are overwhelmed.

This means building out neighborhood networks that typically handle five to seven homes. Utilities will target communities where electric cars are anticipated in the largest numbers. While there is some guesswork required, these neighborhoods are most likely the ones that first took to hybrid cars.

Regulators hope their gerrymandering is right. If all or a majority of the homeowners in a local community add electric cars – each with the capacity to draw as much power as an additional home – the circuits could buckle. It is a race against time, says Grueneich. Applications from utilities for local upgrades generally take 30 to 50 days to process.

Grueneich estimates the changes to the state’s electrical infrastructure could run to millions, if not billions, of dollars. “To move to a clean economy is going to cost some money,” she admits, suggesting that rate increases are possible.

PG&E’s Saul Zambrano, director of integrated demand side management core products, promises the utility is “on top” of the numerous changes. But he also admits its estimate of electric car adoption is a moving target. When Nissan announced in March it would sell the electric Leaf for $32,780, PG&E was surprised at the affordable sticker. So surprised it lifted its sales forecast. (The utility declined to release the exact figure.)

“We know the electric cars are coming,” says Zambrano. “We used to think 2011. Now we think late 2010.”

PG&E agrees that the new cars are likely to be clustered in certain neighborhoods, underscoring the need to make infrastructure upgrades rapidly.

Another set of concerns comes from carmakers. One of these worries is the need for a standard plug, so drivers don’t get stranded at charging stations without the correct technology, says Marc Tarpenning, a co-founder and former employee of Tesla Motors.

Service stations also need to be allowed to sell electricity. This requirement underscores the need for the CPUC to change its regulations authorizing only utilities to sell electric power, Tarpenning says.

He added that until recently he projected the need for a string of charging stations along the highways that connect California’s cities. He has revised his thinking.

“You could imagine a world where for a period of time we don’t worry about long distance charging,” he says. Drivers will take gasoline-powered cars on lengthy trips and use electrics about town.

But then, he points out, you could imagine too few.


Applied Materials Gets Good News About Its Beleaguered Solar Line

May 6, 2010

Applied Materials’ solar business has been feeling the pressures of late.

The manufacturing equipment supplier appears to be seeing solid sales of machinery to make polysilicon solar cells. Prices of the finished cells have fallen and demand is surging ahead of July cuts in the German feed-in tariffs.

But Applied’s SunFab thin-film gear seems to be flagging. It is high priced, and competitors claim it trails in some key innovations.

The equipment giant received some good news about the troubled business this week and it subsequently suggested the SunFab line is set to capitalize on significant market opportunities.

The product line won a master certification from Underwriters Laboratories, which can streamline a manufacturer’s ability to get its modules into the market. The SunFab equipment produces large panels that measure 5.7 square meters.

In a press release announcing the news, Applied Materials Corporate Vice President Kirk Hasserjian said solar cell production should more than double in two years to 2 GW from 400 MW. The certification is critical to SunFab customers working in this market, he said, suggesting they were poised for expansion.


Electric Car Battery Prices Fall Sharply

May 6, 2010

The prices of lithium ion batteries for electric cars are falling rapidly, but perhaps not as rapidly as some observers believe.

A news report in the Times of London claimed Nissan was able to put a lithium battery in its electric Leaf for $8,600, or at a remarkably low $375 a kWh. If so, this would suggest electric cars well below the $30,000 sticker, since batteries are among the most expensive components in the vehicles.

But according to several electric car executives, battery prices haven’t hit such a rock bottom so soon. “We’re seeing significant reductions in the cost of batteries and it’s accelerating,” says Marques McCammon, chief marketing officer at the electric carmaker Aptera. “The cost of batteries is coming down rapidly.”

“We’re seeing significant reductions in the cost of batteries and it’s accelerating,” says Marques McCammon, chief marketing officer at the electric carmaker Aptera.

But to $375 a kWh? Not exactly.

Today batteries are selling to $1,000 to $1,200 a kWH, says Dan Mosher, chief financial officer at CODA Automotive. In eight years, the prices will be dramatically different. But not yet.

That’s because manufacturers assume a steady 5 percent to 10 percent price decline a year for the next five to 10 years, he said. “The race is on.”

The race he refers to is one for capacity. Industry experts now see a sharp increase in production capacity coming online between 2014 and 2017, especially in Japan and the U.S. This increase will push prices lower as producers compete for sales.

Along with the lower prices will come higher capacities, adds Marc Tarpenning, a co-founder of Tesla Motors who has left the company. The capacity, or energy density, of a lithium ion battery is now double what it was in 2003 and the price is similar. “It is hard to imagine that won’t continue,” he said at Electric Car 2.0, the Berkeley-Stanford Cleantech Conference held in San Francisco on Wednesday.

The recent report of a collapse in battery prices is not the first to sweep the industry. Late last year, a General Motors executive let slip lithium ion prices could reach $500 a kWh by mid 2011. Competitors dismissed it as more hope than reality.

Still, the prospect is exciting. Clearly, battery prices are coming down and it is not unreasonable to assume projections are conservative. With lower prices will come more affordable electric cars and rising consumer interest.

As sales climb, production volumes increase and prices fall all the more – a cycle that could work in everyone’s favor except the battery maker.


Electronics Recycling Is A Big Problem With An Easy Solution

May 5, 2010

E-waste programs have been gathering steam in the past three years. And for good reason.

As estimated 50 million tons of old computers, discarded cell phones, abandoned televisions and homeless electronic gear is disposed of each year – including 30 million computers from the U.S. alone.

Reuses is a useful alternative for abandoned electronics. For instance, PCs are discarded with 60 percent of their expected lifespan remaining.

Much has gone to landfills, though now most major vendors and retailers have programs to recycle and, in some cases, reuse unwanted, out-of-date products. Hewlett-Packard, for instance, has recycling guidelines that date back to 2004 and this year imposed strong restrictions on the export of e-waste to the European Union and developing countries.

In short, with 21 states requiring electronics recycling, e-waste has come a long way. But one critic says it has a long way to go.

“I’m loath to call it a failure,” says Willie Cade, an adjunct professor at the University of Illinois at Urbana-Champaign. But “I don’t think we’ve really tried.”

Cade aims his barbs at one, largely overlooked aspect of electronics recycling: equipment resuse. The average PC is built to last 20,000 hours, but is discarded with about 60 percent of this lifespan remaining. Many cell phones, external hard drives and other electronics products get turned with plenty of life left in them.

Knowing this can make e-waste handling more environmental friendly and responsible, says Cade. He says 20 percent of the waste collected by the company he founded – PC Builders & Recyclers – is reused instead of trashed and picked apart for working components or deposits of platinum, copper and silver.

It is a policy he would like to see others adopt (PS: some do, such as Dell) and states demand. With the volume of discarded electronics on the rise, such a move would make sense. And it could have valuable social benefits for poor, developing nations.


Solar Market Bracing For A Slowdown

May 5, 2010

The solar market appears to be playing out according to plan

The mid year cuts in the German feed-in tariff have been expected to spark a wave of panel buying early in the year ahead of the reduction. Then when the world’s largest market lowers its incentives, a slowdown is to take hold.

This appears to be what is happening, if the financial performance of First Solar is a guide. The world’s largest solar manufacturer said quarterly sales through March grew a healthy 36 percent. But it suggested the German market could see a 25 percent decline after the tariff reduction takes affect in July

That will slow overall growth in Europe to a depressed 25 percent – despite the 60 percent market expansion that should occur outside of Germany, says First Solar CEO Robert Gillettte.

In North America, utilities are showing sizeable interest in large solar power plants, says Gillette. However, China has delayed the fifth stage of its solar rollout.

First Solar believes the market will increase 41 percent this year, but then show slower 22 percent growth next year and 26 percent growth in 2012.

So far, the company is able to sell everything it can make, says Gillette. Price declines have also been moderated because of the strong demand.

Come the second half of the year, the story may change.


The Smart Grid Communications Debate Intensifies

May 4, 2010

The prevailing wisdom is that the current public wireless 3G networks don’t have the capacity for data intensive smart grids.

SmartSynch says meter communciations have been 99.96 percent successful at an early Texas smart meter trial using AT&T's public wireless network

SmartSynch would like to prove the theory wrong. The maker of smart meters and network hardware says that an early stage trial in Texas is experiencing remarkable success transmitting date over the AT&T network.

The Jackson, MS, company said it has measured a “99.96 percent average daily read rate” in the 10,000 meter trial since last fall,

The trial, being conducted with Texas-New Mexico Power, is using the public network for the two-way transmission of energy-use data.

“During the last 10 months, we consistently achieved a near-perfect, uninterrupted read rate regardless of where the smart meter units were deployed,” said Neal Walker, vie president of operations at the Texas-New Mexico Power. “The success of this deployment completely validates using public wireless networks for residential smart metering,” added Stephen Johnston, SmartSynch’s CEO.

Many utilities have shied away from public networks for smart grid pilots, favoring privately managed alternatives or using powerline technology over existing electrical wires. Experts say this may change as 4G public networks are deployed, especially LTE networks.

The pilot has allowed utility technicians to remotely read meters, turn on and off service and obtain immediate notification of outages. The trials will be worth watching as 10,000 meters become hundreds of thousands or millions.


Biofuels Business A Roller Coaster, But Ford Signs Up

May 4, 2010

The United States now produces more ethanol than gasoline refined from Saudi Arabian and Iraqi oil.

This fact is a fitting reminder of the growing prominence of the nation’s biofuels industry. Last year, ethanol production hit a record in the U.S. and new refineries under construction will expand that capacity ten fold.

The Fusion is one of 11 flexible fuel vehicles Ford offers. The company will expand biofuels vehibles 50 percent in two years.

It is no surprise then that some carmakers are showing greater interest in alternative fuel internal combustion engines. On Tuesday, for instance, Ford announced it would to expand its production of flexible-fuel cars and trucks, with 50 percent of vehicles by 2012 able to burn ethanol and other biofuels.

Of course, the biofuels business has been an up and down ride. Biofuels companies plunged into the red during the first half of 2009 as the global recession cut demand for their products. But by the second half of the year, many of the nation’s 170 refineries recovered, with profits returning and production hitting a record.

However, this year will be a little more troublesome again. Expectations are for more modest growth, with production forecast to rise 12 percent to 11.9 million gallons, according to the Renewable Fuels Association, a trade group. The nation will have 189 refineries.

The roller coaster will continue. Refineries under construction will add 1.4 billion gallons of new capacity, with the first wave of cellulosic, or second-generation, producers coming up to commercial levels.

The nation’s biodiesel business has had an even more difficult fate. While the counry’s180 biodiesel plants produced 350 million gallons of biodiesel in 2009, production was down by 50 percent from a year earlier. Part of the explanation is the global recession, which squelched demand. But a European Community anti dumping tariff on U.S. imports added to the woes. Europe has been the largest importer of U.S. biodiesel..

Today U.S. plants are operating at only about 15 percent of capacity.

Still, companies such as Ford aren’t dismayed. The carmaker builds 11 flexible fuel vehicles and has doubled that number since 2006.

This will amount to 370,000 cars and trucks in 2010. “Flexible-fuel vehicles are a great alternative,” says Sue Cischke, a Ford group vice president. If only it could be a better business.


Start-Up Hopes To Upend Complacent Lighting Controller Market

May 3, 2010

A Toronto start-up hopes it has turned the fluorescent lighting controller market on its head

And it boasts that with potential contracts worth hundreds of millions of dollars under negotiation with European utilities, it has its sites set on an IPO inside one and half years.

Cavet Technologies says the low-cost chip-based controller can save 30 percent of enrgy costs

Cavet Technologies believes it has a better way of reducing lighting energy demand. The company on Monday launched its LumiSmart controller , a $2,000 product it says can be installed in 40 minutes. Older controllers are larger and more cumbersome to deploy.

With this greater simplicity, “we are going to piss them off,” says CEO Albert Behr, referring to competitors such as Lutron, Panasonic, Osram and Leviton.

Cavet says the product take a novel approach to power reduction. It inserts on and off pulses in the electrical stream, but never enough to turn off a light, only enough to replace some of the electrons flowing down the wire. The result can be 30 percent energy savings. At the heart of the system is a custom ASIC semiconductor managing the current.

The 12-percon company struck a deal with contract manufacturer Celestica, which made a strategic investment in the company in exchange for exclusive manufacturing rights. No money changed hands.

Behr says Monday’s launch in 15 countries is a line in the sand. “We are bound and determined to be the worldwide standard. It’s one product for all markets.”

Obviously, larger, more powerful rivals will have a different explanation. It will be interesting to see whether big words from Cavet translate into big deeds.


Google Makes First Clean Tech Project Investment

May 3, 2010

Search engine giant Google made good on its promise to invest in clean-technology projects, announcing Monday that it invested $38.8 million in a North Dakota wind farm.

The company has promised for months it would put money behind its advocacy of alternative energy and green development. The investment, completed Friday, is Google’s first in a utility-scale renewable energy project, thought the company has invested in green-tech start-ups.

Google invests $38,8 million in a North Dakota NextEra Energy Resources wind farm

In a blog post, the company said the 169.5 MW project stood out because it uses some of the latest wind turbine technology and control systems to lower the cost of generating renewable power. The turbines on the NextEra Energy Resources farm continuously adjust their blade angles to more efficiently turn wind into electricity, and larger blades sweep an area that is 15 percent bigger than with earlier models.

The farm has 113 turbines that stand 262 feet high.

“We’ve been looking at investments in renewable energy projects, like the one we just signed, that can accelerate the deployment of the latest clean energy technology while providing attractive returns to Google and more capital for developers to build additional projects,” said Rick Needham, green business operations manager in the blog post.

Google has previously invested in clean-tech companies including eSolar and AltaRock.

The news from Google came as NextEra said it sold $190 million in equity in the farm so it could pay down debt.


Biofuel 3.0: A Third Wave Of Biofuels Emerges

May 3, 2010

First came the companies eager to turn corn, soybeans, sugar cane and other edible feedstock into ethanol and other fuels.

North Carolina State University wins $2.7 million federal grant to engineer superbug to create biofuel directly from microorganism

Then a second generation of start-ups began replacing the foodstuffs with cellulosic materials such as wood and grasses. Many are just now building large-scale plants to prove they can turn laboratory experiments into massive commercial production, including Amyris Biotechnologies, Codexis and ZeaChem.

Now a third-generation of biofuel makers is showing progress with novel laboratory work. This new wave is a sharp departure from the ways of the past and has interesting potential. It hopes to simplify manufacturing by avoiding the fermentation step of first and second generation companies and convert organisms directly into fuel using just carbon dioxide and sometimes sunlight.

It is an exciting prospect. Not only could these new ventures remake an industry, they could open the door to new ways to store solar energy (in a fuel!) and help remove CO2 from the atmosphere.

On the leading edge is Joule of Cambridge, MA. That company hopes a genetically engineered microorganism will directly produce fuel on large scale and hopes to demonstrate it with a Texas pilot project this summer. The process requires CO2 and sunlight.

Also pushing the dial is North Carolina State University, which received a Department of Energy ARPA-E grant of $2.7 million. The university’s experimental work makes use of microbial organisms called extremophiles that use CO2 and hydrogen (and no sunlight) to produce complex molecules that are building blocks for biofuels.

The primitive organisms live in hot fresh or salt water (167 to 212 degrees Fahrenheit) and evolved before photosynthesis developed. The lack of sunlight should make their growth cycle easier to manage.

The university plans to genetically engineer a “superbug” that will efficiently produce butanol. The work may take three years or more. But it is a promising side step around the large fermentation plants that define the industry today.


Follow

Get every new post delivered to your Inbox.

Join 31 other followers