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Archive for the ‘Better Place’ Category

photo: GE

I wrote this story for Grist, where it first appeared.

General Electric on Wednesday gave a jump-start to Better Place, the Silicon Valley startup developing an electric car infrastructure in several countries.

Better Place plans to deploy a network of urban charging posts and swapping stations where drivers can exchange depleted company-owned batteries for fresh ones when they need to make trips that exceed their car’s range. GE has agreed to help finance up to 10,000 of those batteries in Better Place’s first two markets: Denmark and Israel. That’s no small matter, given that Better Place faces huge capital outlays for battery purchases.

The global conglomerate will also make its WattStation, a sleek electric car charging post that it unveiled in July in San Francisco, compatible with Better Place’s network.

In addition, GE and Better Place will collaborate on an effort to persuade companies to electrify their vehicle fleets and plug into the electric car charging networks that Better Place plans to build in the San Francisco Bay Area; Ontario, Canada; Australia; and Europe.

It’s not the first time GE has dabbled in the nascent electric car industry. In 2008, the company invested $4 million in Think, the Norwegian electric carmaker.

In yet another deal involving a multinational conglomerate and a California startup, Sharp late Tuesday said it had acquired Recurrent Energy, a San Francisco-based solar developer, for $305 million in cash.

While most people may associate Sharp with televisions and other consumer electronics, the Japanese company is also one of the world’s biggest solar panel makers. Recurrent builds small-scale photovoltaic power plants. It has signed contracts for projects that would generate 330 megawatts, and has another nearly another 1,700 megawatts’ worth of deals in development.

During a conference call on Wednesday, Recurrent’s chief executive, Arno Harris, said Recurrent would retain its name and become a division of Sharp and that he and his team would remain in place.

While the buyout is another sign of the consolidating solar industry, it also indicates that big solar panel makers like Sharp feel pressure from the fast rise of low-cost Chinese manufacturers to diversify their business.

Acquiring Recurrent gives Sharp another source of revenue but it won’t necessarily provide a market for Sharp’s own solar panels. In a telling provision of the acquisition, Harris said Recurrent won’t be compelled to buy Sharp solar panels and can keep its current suppliers. Those include Yingli Green Energy, a Chinese company that captured a third of the California market last year thanks in large part to a big deal with Recurrent.

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photo: Better Place

In The New York Times on Monday, I wrote about the challenges of developing electric car batteries that will match the range of gasoline-powered vehicles:

Silicon Valley may be an epicenter of the nascent electric car industry, but don’t expect the battery revolution to mimic the computer revolution, one of I.B.M.’s top energy storage scientists advises.

“Forget Moore’s Law — it’s nothing like that,” said Winfried Wilcke, senior manager for I.B.M.’s Battery 500 project, referring to the maxim put forward by Gordon Moore, an Intel founder, that computer processing power doubles roughly every two years.

“Lithium ion, which clearly is the best battery technology today, is flat, completely flat since 2003,” Mr. Wilcke said last week at a gathering in San Francisco attended by executives from I.B.M. and Better Place, a Silicon Valley electric car infrastructure company.

Mr. Wilcke’s team at the Almaden Research Center of I.B.M. in San Jose, Calif., is trying to develop a new battery technology called lithium air that could allow a car to go 500 miles on a single charge. Most electric cars coming onto the market this year have a range of around 100 miles.

Such batteries theoretically could pack 10 times the energy density of the lithium ion batteries now used in electric cars because they use air drawn in from outside the battery as a reactant. That means lithium-air storage devices weigh less than lithium-ion batteries, a factor that also improves the performance of electric cars.

“I always compare it to climbing Mount Everest,” Mr. Wilcke said. “In the last two months, we just left base camp — meaning that we actually made some pretty significant breakthroughs.”

He declined to give details but said that his team had shown that lithium-air batteries could be recharged, something that had not been done before.

“It will take many years, if ever, before it can be useful,” he said. “It’s a high-high-risk project.”

He illustrated the challenge of building a battery with the energy density of gasoline by recounting that it took 47 seconds to put 13.6 gallons of gas in his car when he stopped to fill up on the way to San Francisco. That’s the equivalent of 36,000 kilowatts of electricity. An electric car would need to pump 6,000 kilowatts to charge its battery.

“The dream that we have today to have exactly the same car charge up in minutes and drive off hundreds of miles cannot happen,” Mr. Wilcke said. “Or at least not for 50 years.”

Mr. Wilcke and Lawrence Seeff, head of global alliances for Better Place, dismissed the idea that the fast-charging stations being tested in California and elsewhere were a solution to the battery conundrum.

Depending on the battery, high-voltage stations can recharge a battery to 80 percent capacity in 20 to 30 minutes rather than in the 8 to 10 hours it takes with a more conventional charging station.

Allan Schurr, I.B.M.’s vice president for strategy, energy and utilities, noted that the cost to drivers of plugging in to a rapid charging station might be prohibitive, given the demands that the devices place on the electric grid.

“It’s physically possible to have a fast-charge mechanism and a fast-charge outlet, but can the grid support it?” Mr. Seeff said. “And what do we define by fast-charging? Is it 20 minutes, 10 minutes, 30 minutes? Because if you have two people waiting to fast-charge, you could be waiting an hour.”

You can read the rest of the story here.

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photo: Todd Woody

In a story I wrote with Clifford Krauss in Monday’s New York Times, I look at how the San Francisco Bay Area has is scrambling to prepare for the arrival of mass-market electric cars later this year:

SAN FRANCISCO — If electric cars have any future in the United States, this may be the city where they arrive first.

The San Francisco building code will soon be revised to require that new structures be wired for car chargers. Across the street from City Hall, some drivers are already plugging converted hybrids into a row of charging stations.

In nearby Silicon Valley, companies are ordering workplace charging stations in the belief that their employees will be first in line when electric cars begin arriving in showrooms. And at the headquarters of Pacific Gas and Electric, utility executives are preparing “heat maps” of neighborhoods that they fear may overload the power grid in their exuberance for electric cars.

“There is a huge momentum here,” said Andrew Tang, an executive at P.G.& E.

As automakers prepare to introduce the first mass-market electric cars late this year, it is increasingly evident that the cars will get their most serious tryout in just a handful of places. In cities like San Francisco, Portland, Ore., and San Diego, a combination of green consciousness and enthusiasm for new technology seems to be stirring public interest in the cars.

The first wave of electric car buying is expected to begin around December, when Nissan introduces the Leaf, a five-passenger electric car that will have a range of 100 miles on a fully charged battery and be priced for middle-class families.

Several thousand Leafs made in Japan will be delivered to metropolitan areas in California, Arizona, Washington state, Oregon and Tennessee. Around the same time, General Motors will introduce the Chevrolet Volt, a vehicle able to go 40 miles on electricity before its small gasoline engine kicks in.

“This is the game-changer for our industry,” said Carlos Ghosn, Nissan’s president and chief executive. He predicted that 10 percent of the cars sold would be electric vehicles by 2020.

You can read the rest of the story here.

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The ability to fast-charge electric cars is seen as key to the adoption of battery-powered vehicles. But as I wrote in The New York Times on Thursday, utilities are worried such devices will overload the grid:

Think, the Norwegian electric automaker, announced a deal this week with a California company, AeroVironment, a maker of electric vehicle charging stations, to introduce fast-charging stations that can charge its battery-powered City car to 80 percent capacity in as little as 15 minutes.

A conventional charger can take eight or more hours to charge an electric car, depending on the battery.

“The development and deployment of very-fast-charge stations will help speed the electrification of automobiles in the United States and globally,” Richard Canny, Think’s chief executive, said in a statement.

But utilities — concerned that fast-chargers could overload the electricity grid — are more cautious.

Think and AeroVironment did not reveal the voltage of their fast-charger but such devices — known in the industry as “Level 3” chargers — generally average around 440 volts. Most household appliances run on 110 volts.

“It is premature to evaluate the feasibility or safety of Level 3 fast-charging equipment,” wrote Christopher Warner, a lawyer for the utility Pacific Gas and Electric, in a brief filed with the California Public Utilities Commission in October. “Such charging may require large investments in infrastructure and load management constraints in order to prevent ‘mini-peaks’ and localized impacts on grid reliability.”

You can read the rest of the story here.

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photo: Better Place

In The New York Times on Friday, I wrote about the latest developments in California’s efforts to write the rules of the road for an electric car infrastructure:

California officials have indicated they are not inclined to regulate electric car infrastructure companies that plan to sell electricity to drivers through networks of charging stations.

Whether to treat such companies as quasi-utilities has been a contentious issue. The state’s three big utilities have split on the topic, while battery charging start-ups like Better Place and Coulomb Technologies have warned that regulation could stifle innovation and scare off investors.

Now the president of the California Public Utilities Commission, Michael R. Peevey, has signaled he is siding with the companies as the commission moves to put electric car regulations in place.

“Facilities that are solely used to provide electricity as a transportation fuel do not constitute ‘electric plant,’” wrote Mr. Peevey in a recent ruling. “As such, the commission would not have regulatory authority regarding the price that an electric vehicle charging facility operator charges for charging services or other aspects of the operation of such facilities.”

That is not likely to be the final word on the subject. Mr. Peevey, who is overseeing the electric car rule-making process, invited utilities, automakers and charging station companies to file briefs on his proposed interpretation of the law.

With several mass-market electric cars set to hit showrooms by the end of the year, the utilities commission is moving unusually swiftly to resolve a variety of outstanding issues. In his ruling, Mr. Peevey set an April deadline to issue a preliminary decision on the most of them.

You can read the rest of the story here.

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betterplaceplug

photo: Better Place

With electric cars months away from hitting the road, the California Public Utilities Commission has begun the complex task of establishing a regulatory framework for the state’s emerging electric vehicle infrastructure. The biggest fight is likely to be over whether to regulate companies like Better Place, which plans to build an electric car charging network in the state. As I write in The New York Times on Monday:

With electric cars set to hit the mass market next year, a skirmish is breaking out in California over who will control the state’s electric vehicle infrastructure.

The California Public Utilities Commission will write the rules of the electric road and is just starting to grapple with the complex regulatory issues surrounding the integration of battery-powered cars into the state’s electrical grid.

One of the biggest questions is whether to regulate Better Place, Coulomb Technologies and other companies that plan to sell electricity to drivers through a network of battery charging stations.

California’s three big investor-owned utilities have split over the issue.

“The commission should establish its authority to regulate third-party providers of electricity for electric vehicles,” Christopher Warner, an attorney for Pacific Gas & Electric, wrote in a filing with the utilities commission. “Managing the increased electricity consumption and load attributable to electric vehicles in order to avoid adverse impacts on the safety and reliability of the electric grid may be one of the most difficult management challenges that electric utilities will face.”

Southern California Edison, meanwhile, urged the commission to move cautiously, calibrating any regulation to the specific business models of the companies.

San Diego Gas & Electric said the commission does not have the right to regulate companies like Better Place.

You can read the rest of the story here.

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switch station location

photo: Better Place

In today’s New York Times, I write about Better Place’s unveiling of its software platform for managing tens of thousands of electric cars on the road and the grid. Software as much as hardware will be key to making electric cars a mass market phenomenon:

Electric cars may be all about hardware – batteries, drivetrains, charging stations — but companies like Better Place are depending on software to give a niche product mass-market appeal.

At the Frankfurt Motor Show on Tuesday, Better Place, which builds electric vehicle charging networks, is expected to take the wraps off a software platform that tells drivers when and where to charge their batteries, while giving utilities the ability to manage the impact of tens of thousands of vehicles tapping into the power grid.

The company, based in Palo Alto, Calif., has signed deals to roll out networks of charging spots and battery switching stations in Australia, Denmark, California, Canada and Hawaii and Israel.

Better Place will own the car batteries and drivers will buy “miles” (or kilometers) on a subscription plan much like they purchase mobile phone minutes. That means Better Place must track the location and capacity of thousands of batteries at any given moment to properly bill customers and ensure that fresh batteries and charging posts are available when needed.

You can read the rest of the story here.

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malta-smart-grid

Photo: Visit Malta

The Mediterranean island nation of Malta on Wednesday unveiled a deal with IBM to build a “smart utility” system that will digitize the country’s electricity grid and water system.

Granted, Malta is a microstate with a population of 403,500 (smaller than Sacramento; bigger than Iceland). But the world — and utility infrastructure giants like General Electric (GE) — will be watching closely. Not only is Malta the first country to green its national grid but it will also serve as a test case for whether integrating so-called smart technologies into both electricity and water systems can help mitigate the increasing deleterious effects of global warming on the island.

As with other island states, power and water are intricately linked on Malta. All of the archipelago’s electricity is generated from imported fuel oil while the country depends on energy-intensive desalinization plants for half its water supply. Meanwhile, rising sea levels threaten its underground freshwater supplies.

“About 55% of the cost of water on Malta is related to electricity – it’s a pretty staggering amount,” Guido Bartels, general manager of IBM’s Global Energy & Utilities Industry division, told Green Wombat from Malta on Tuesday.

So how can digitizing the grid help? IBM (IBM) and its partners will replace Malta’s 250,000 utility meters with interactive versions that will allow Malta’s electric utility, Enemalta, to monitor electricity use in real-time and set variable rates that reward customers that cut their power consumption.  As part of the $91 million (€70 million) project, a sensor network will be deployed on the grid  –  along transmission lines, substations and other infrastructure – to provide information that will let the utility more efficiently manage electricity distribution and detect potential problems. IBM will provide the software that will aggregate and analyze all that data so Enemalta can identify opportunities to reduce costs – and emissions from Malta’s carbon-intensive power plants. (For an excellent primer on smart grids, see Earth2Tech editor Katie Fehrenbacher’s recent story.)

A sensor network will also be installed on the water system for Malta’s Water Services Corporation. “They’ll indicate where there is water leakage and provide better information about the water network,” says Robert Aguilera, IBM’s lead executive for the Malta project, which is set to be completed in 2012. “The information that will be collected by the system will allow the government to make decisions on how to save money on water and electricity consumption.”

Cutting the volume of water that must be desalinated would, of course, reduce electricity use in the 122-square-mile (316-square-kilometer) nation.

With the U.S. Congress debating an economic stimulus package that includes tens of billions of dollars for greening the power grid, IBM sees smart grid-related technologies as a $126 billion market opportunity in 2009. That’s because what’s happening in Malta today will likely be the future elsewhere – no country is an island when it comes to climate change. Rising electricity prices and water shortages are afflicting regions stretching from Australia to Africa to California.

IBM spokeswoman Emily Horn says Big Blue has not yet publicly identified which companies will be providing the smart meters, software and other services for the Malta grid project.

Malta’s greenhouse gas emissions are expected to rise 62% above 1990 levels by 2012, according to the European Environment Agency, and as a member of the European Union the country will be under pressure to cut its carbon. A smart energy grid will help but Malta, like Hawaii and other island states, will have to start replacing carbon-intensive fuel oil with renewable energy.

The island could present opportunities for other types of smart networks. According to the Maltese government, Malta has the second-highest concentration of cars in the world, with 660 vehicles per square kilometer. That also contributes to the country’s dependence on imported oil and its greenhouse gas emissions.

Given that Silicon Valley company Better Place has described islands as the ideal location to install its electric car charging infrastructure, perhaps CEO Shai Agassi should be looking at adding Malta to the list of countries that have signed deals with the startup.

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b_342

photo: Better Place

Electric cars, eh?

Silicon Valley startup Better Place on Thursday unveiled a deal with the government of Ontario – the Michigan of Canada – to build an electric car charging network in the automaking province. The announcement comes on the heels of agreements Better Place — the electric car infrastructure company founded by former software executive Shai Agassi — has made with governments in Australia, California, Denmark, Hawaii, Israel and Japan.  Better Place is working with the Canadian arm of Sydney-based infrastructure finance giant Macquarie to develop the Ontario electric car network.

“We need to be where the puck is going and in this case bring the puck to Ontario,” said Ontario minister of international trade Pupatello at a press conference in Toronto Thursday morning.

The Canadian deal comes amid turmoil in the nascent electric car industry. While EV companies like Think and Tesla struggle to survive the credit crisis, the big automakers – Ford (F), General Motors (GM), Toyota (TM), Honda (HMC) and Chrysler – have announced they’re accelerating plans to build electric cars and, in GM’s case, a battery-making factory.

On Thursday, the premier of Ontario, Dalton McGuinty, said his government will conduct a study on how to expedite the introduction of electric cars in the province. When the study is released in May, Better Place will detail its plan and investment timeline for building the network of charging posts and battery-swapping stations.

Better Place, said McGuinty,  “is a model with the power to reshape our province. It’s going to create new green jobs, it’s going to make life more convenient for car drivers of the future and it’s going to signal to the world that Ontario is electric-car friendly and will make it a more attractive place to build electric cars.”

Agassi has now committed to raising billions in capital to simultaneously build charging networks in five far-flung countries over the next three years. When Green Wombat talked to Agassi in November after he signed a deal to build a $1 billion San Francisco Bay Area charging network, he insisted the financial crisis would not hamper efforts to raise funding.

Under Better Place’s system, consumers will buy the electric cars while Better Place will own the batteries, charging subscribers to its network a fee per-mile (or kilometer) driven. Renault-Nissan is supplying electric cars for Better Place’s other networks. An electric Nissan SUV – emblazoned with little wind turbines – was parked at the press conference but company spokeswoman Julie Mullins said an electric car supplier had not yet been selected for Ontario. “Ultimately, we expect a wide range of vehicle makes and models to be available to drivers,” she wrote in an e-mail. “We are currently in talks with several car companies.”

Ontario-based Bullfrog Power will provide renewable energy – 80% hydro, 20% wind – for the Better Place network. “We’re going to create a virtual oil field across the province,” said Agassi.

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thinkcity_0122

photo: Think

Think Global, the innovative Norwegian electric car company, has temporarily halted production of its City urban runabout and laid off half its workforce as it considers a sale to survive the credit crisis, Think CEO Richard Canny told Green Wombat Tuesday.

“Think is in a situation where we can’t grow anymore,” Canny said from Think’s Oslo headquarters, where the management team was still working at midnight. “We have started an emergency shutdown to protect our capital and our brand. We’ll need a new and stronger partner, whether that is a 25% owner or a majority owner or someone who buys the company.”

The Norwegian government said on Tuesday that it would not make an equity investment in the automaker but is considering Think’s request to guarantee up to $29 million in short-term loans. “Even a small participation from the Norwegian government will give investors confidence,” Canny said, noting that the company needs to raise $40 million to continue manufacturing its electric car. “The financial crisis has hit at a very critical stage as we’re ramping up production and when external financing is hard to bring into the company and internal funding is limited.”

He said a rescue package might include aid from from the Norwegian government and an infusion of cash from new investors or strategic partners. “We’re putting a hand out. People who would like to work with us should pick up the phone.”

Ford (F) acquired the startup in 1999 and sold it a few years later. Norwegian solar entrepreneur Jan-Olaf Willums and other investors rescued Think from bankruptcy in 2006, aiming to upend a century-old automotive paradigm by changing the way cars are made, sold and driven to create a sustainable auto industry.

As Green Wombat wrote in a 2007 feature story on Think, “Taking a cue from Dell, the company will sell cars online, built to order. It will forgo showrooms and seed the market through car-sharing services like Zipcar. Every car will be Internet-and Wi-Fi-enabled, becoming, according to Willums, a rolling computer that can communicate wirelessly with its driver, other Think owners, and the power grid. In other words, it’s Web 2.0 on wheels. ‘We want to sell mobility,’ Willums says. ‘We don’t want to sell a thing called the Think.’

The company sells the car but leases the battery so buyers don’t have to fork over cash upfront for an electric vehicle’s single most expensive component – an idea subsequently adopted embraced by everyone from Shai Agassi’s Better Place electric car infrastructure company to General Motors (GM).

The failure of the new Think would be a blow at a time when the auto industry desperately needs to reinvent itself. While Think is a niche player and faces formidible competition as Toyota (TM)  and other big automakers go electric, it has pioneered  the idea of a new automotive infrastructure that includes tech companies and utilities like PG&E (PCG).

Whether Think can survive the global financial crisis remains to be seen, but Willums, who stepped aside as CEO recently but remains on the board, is a prodigious networker with deep contacts in Silicon Valley and elsewhere. In little more than a year he raised around $100 million from an A-list of U.S. and European investors that includes General Electric (GE), Keiner Perkins Caulfield & Byers and Rockport Capital Partners – the latter two marquee venture capital firms formed a joint venture with Think to sell the City in North America. Canny said the U.S. expansion plans are now on hold.

The question now is whether Think’s investors, absent a government bailout, will step up to save the company just as it has started to gain a foothold in the market. In a presentation made Monday, Canny, a Ford veteran, said eight to 10 two-seater City cars a day had been rolling off the company’s assembly line outside Oslo.  Think has a blacklog of 550 orders and 150 cars will be delivered by January.  The company was set to begin selling a 2+2 version of the City in mid-2009. (Think had planned to begin selling its next model, a five-seat crossover car called the Think Ox, in 2011.)

“There are limited possibilities of funding working capital through bank credits without extra guarantees in today’s financial market,” Canny said, noting that the company hopes to resume production in the first quarter of 2009. “Think’s automotive suppliers are severely hit by the overall industry crisis, leading to tougher terms of parts delivery to Think.”

Green Wombat will throw out one potential savior of Think: Google (GOOG). Many aspects of Think’s innovative business model were born at a brainstorming session that the search giant hosted in 2006 for Willums at the Googleplex in Mountain View, Calif. Given that Google.org, the company’s philanthropic arm, has poured tens of millions of dollars in green energy companies and electric car research, an investment in Think would be another way to drive progress toward its goal of a carbon-free economy.

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