Tuesday, October 7, 2008

The Race for The Electric Car

As I was relaxing at home after a busy weekend (my wife, who is 9 months pregnant, had a false alarm Saturday afternoon) I channel surfed my TV until I found an interesting program: "60 Minutes" (CBS 7pm). The lineup for this week's stories: "A Look At Wall Street's Shadow Market" (Trying to explain Wall Street's financial crisis), "Elite Officer Recalls Bin Laden Hunt" (an ex-Delta Force tells the story of how close the US was to killing Mr. Terror himself) AND "THE RACE FOR THE ELECTRIC CAR" (don't watch the segment now, read first, then watch. I provide a link at the bottom of this entry. Thanks!).


I can imagine the editorial meeting for this week's "60 Minutes". "We can't have a full hour of such depressing news!"; "Let's find something people can look forward to" ; "here it is! let's talk about the electric car!". So, in spite of the falling economy and the disaster of the war on terror, The Electric Car takes the stage!


Two things came to mind watching this story:


1- How is the new economic reality going to impact Greentech economics?


On one side, I suppose, the general belief is that Greentech will suffer as the rest of the economy will. Although this may be true, I also believe investments are going to look for new markets and they are going to find that Greentech has gained attractiveness if compared to Real Estate, to Wall Street and to many other current-day options. Therefore, I would not call this downturn "a blessing in disguise" for Greentech, but I would call it a "potential opportunity"


2- Silicon valley vs Detroit. GM's Volt and the Electric Car Business Model


In the "60 minutes" segment the main story is about Tesla Motors. The narrator talks about this company from Silicon Valley that is challenging old-school car manufacturers like Detroit's GM. The story begins with Elon Musk the CEO of Tesla who is a co-founder of PayPal, the reporter asks bluntly who will pay a fortune for these cars ($110,000), Elon response: "It's a deal!". The story then turns to Tesla finally yielding to Detroit. The company that started by challenging Detroit is now massively hiring traditional motor-heads.


[Tesla Roadster]



Something that really caught my eye was the part where they interviewed GM's Vice Chairman of Global Product Development Bob Lutz. My impression of Mr. Lutz was of the Plant Manager recently promoted, with his hands still dirty from the grease and his attitude of constantly dealing with Union workers. Nothing wrong with this, except, if you want to have a radical new product and break away from old vices, then Mr. Lutz may be a liability. He goes as far as to say that global warming is a "Pile of Horse Sh--". His product reflects his personality. The Volt is a car that has been promoted as an electric car for over two years now, and it is supposed to come out to market in 2010. It has a 25 mile range with pure electric charge and a small Engine to charge the battery for longer trips. The design of the Volt is nothing that will turn heads (at least not in my opinion). Just as a comparison point take the much less promoted Mitsubishi i MiEV this car is expected to arrive to market at the end of 2009 and has 100 miles of travel with electric power (four times that of the Volt!). Not to mention that the i MiEV is expected to cost around $28k whereas the Volt had a price of $30 and it was recently announced that it will be more like $35k. If you ask me, GM is no competitor in this race.


[GM's Volt]


Chevrolet GM Volt electric car


[Mitsubishi i MiEV]


image


At the end of the day, the conclusion that I draw from this segment, is that the next breakthrough vehicle will have to come from a traditional car maker using technologies from smaller specialized hi-tech companies. The large car maker has the muscle to assemble and market the vehicle, there are too many barriers to entry to be competitive in that arena. But, they will have to buy or pay royalties to smaller (more agile) companies that will bring the innovation. Mitsubishi partnered with GS Yuasa for their batteries (a young Japanese company established in 2004). The other conclusion (and this one I feel much more confident in) is that the Japanese are better suited for these innovations than Detroit. I am yet unsure about what the Europeans are doing to stay on top of this race (I think they are waiting to see where the market leads, except that they may be running the risk of being too late into the race). Below you may now watch the "60 Minutes" segment. For now I say "SHALOM"


Watch now "60 Minutes"... THE RACE FOR THE ELECTRIC CAR

Wednesday, October 1, 2008

NY Times Week-in-review

Dear Miami Greentech readers:

This week I took the liberty of compiling all the articles (that I could find) related to Greentech that appeared in the NY Times in the last week (from the 23rd to the 29th). I also included one piece of publicity that I found interesting.

Please browse them and let me know if you can find a pattern in this multidimensional web of information, or at least if you think we are moving forward towards a cleaner environment.

One interesting note about this week's articles is that there was a Special Section on "The Business of Green" on Sept 24th.

So without further ado. Here are the articles:

September 23

Chrysler Enters the Race to Introduce Electric Models

After seeming to fall behind in the race for alternative-fuel vehicles, Chrysler said on Tuesday that it would produce an electric car for sale in 2010 and follow it up with a broad lineup of battery-powered vehicles.

September 24

Amid Boom, Concerns at Small Solar Firms

Solar power is in the midst of a boom in the United States. High energy costs are one reason. But what may be more important are generous state and power company incentives and rebates, as well as tax credits that make solar systems affordable to many more people and businesses.

Solar Panels Are Vanishing, Only to Reappear on the Internet

Solar power, with its promise of emissions-free renewable energy, boasts a growing number of fans. Some of them, it turns out, are thieves.

How Powerful Is Your Workout?

THE four stationary bikes look almost like any others, except that they are fitted with an arm crank and are hooked up to a generator. As riders pedal and turn the lever, the movement creates a current that flows to a battery pack. They generate an average of 200 watts, enough to run the stereo, a 37-inch L.C.D. television and a laptop for an hour at this new gym in Portland, Ore.

Saving the Earth, One Road Race at a Time

Race organizers are working to reduce the amount of waste produced at their races.

While competing in a half Ironman triathlon two years ago, Bruce Raynor had an epiphany: this event, so rooted in strength and good health, was actually polluting the planet. This led Mr. Raynor to create Athletes for a Fit Planet, which helps races become a bit greener by installing recycling bins, ridding themselves of plastic bags and offsetting carbon emissions

A Building That Blooms and Grows, Balancing Nature and Civilization

In the California Academy of Sciences an exhibit of architecture under the motto: “humanity is only one part of an endlessly complex universal system”

SPECIAL SECTION: BUSINESS OF GREEN - Sep 24

Pumping Hydrogen

On Santa Monica Boulevard in Los Angeles, a futuristic experiment posing as an ordinary fuel station may be bringing the world one step closer to the hydrogen age.

What should come first — the fuel-cell car or the hydrogen pump? Automakers and oil companies answer is to introduce both cars and new fuel stations, clustering them in urban centers like Los Angeles, Berlin and Tokyo.

Shell’s Santa Monica Boulevard station is part of this strategy. So is Honda’s decision to lease about 200 of its newly developed FCX Clarity cars over the next three years to selected customers in Southern California.

Coal, a Tough Habit to Kick

Coal, the “dark fuel,” may be the most visible villain of global warming, but its use is up and projected to go higher. In fact, the demand for coal is rising faster than the supply. So is the demand for oil.

Cleaner sources of fuel remain more expensive, less available and in shorter supply than an old standby.

Solar Projects Draw New Opposition

WHAT’S not to like about solar power? Sunlight is clean, quiet and abundant. If enough of it were harnessed and turned into electricity, it could be the solution to the energy crisis. But surprisingly, solar power projects are running into mounting opposition — and not from hard-nosed, coal-fired naysayers, but from environmentalists.

The opposition is particularly strong in Southern California. Aside from abundant sunshine and virtually cloudless skies, the California desert has altitude, so there is less atmospheric interference for the sun’s rays, as well as broad swaths of level land for installing equipment, and proximity to large, electricity-hungry cities. But it is also home to the Mojave ground squirrel, the desert tortoise and the burrowing owl, and to human residents who describe themselves as desert survivors

The Alliance for Responsible Energy Policy, an environmental group in Joshua Tree, said: “Our position is that none of this is needed. We support renewable energy, and we support California’s renewable energy targets, but we think it can be done through rooftop solar.”

Reclaiming His Place in the Sun

Arnold J. Goldman, once the world’s undisputed sun king, is back in business with a new company focusing on more efficient solar energy plants.

In 1989, Arnold J. Goldman was the world’s undisputed sun king. His realm was a desolate patch of the Mojave Desert north of Los Angeles, where his company, Luz International, created the world’s largest solar energy installation. At the time, Luz’s plants generated roughly 90 percent of the solar energy on the planet.

Two years later, his reign was over, done in by an uninterested public. While the solar field that Luz built for Southern California Edison still runs today, the company went kaput, unable to compete profitably with the lower costs of companies producing electricity from traditional sources.

After 20 years wandering outside the desert, he is back, with a reconstituted company and a contract from Pacific Gas and Electric Company to purchase up to 900 megawatts of power while creating more efficient solar plants at Ivanpah, Calif., on the Nevada border.

A Cautious Approach to Nuclear Power

Nuclear power plants might seem like part of the solution to global warming, but few reactors are likely to be built soon.

With the federal government offering the nuclear industry $18.5 billion in loan guarantees and billions more in production tax credits and insurance against bureaucratic delays, at least a few new reactors seem certain to be built.

But reactors, it turns out, are not at the top of the list for stopping global warming, at least in the United States, at least not any time soon.

Among the issues are the cost of nuclear power, fears about safety and questions about how to dispose of waste.

Electricity From What Cows Leave Behind

For years, the cows at Green Mountain Dairy here produced only milk and manure. But recently they have generated something else: electricity.

The farm is part of a growing alternative energy program that converts the methane gas from cow manure into electricity that is sold to the power utility’s grid.

The Home Energy Audit Gets an Upgrade

Fuel costs and a drop in the price of special cameras that show where heat escapes from buildings have created a new market for energy auditors.

Kept Out of Landfills and Reborn as a Bag

TerraCycle makes tote bags, pencil cases and other products from juice boxes and candy wrappers, then sells them at some of the country’s biggest retailers.

Founded in 2001, TerraCycle is aiming to make billions by collecting used plastic bags, juice pouches, cookie wrappers and other items that cannot be recycled and fusing them into everyday items like tote bags, pencil cases and messenger bags to be sold at some of the country’s biggest retailers.

September 25

General Motors’ New Plant Will Build Smaller, Fuel-Sipping Engines

General Motors said Thursday that it intended to double its production of gas-sipping, four-cylinder engines by 2011.

To do so, G.M. said that it would invest $370 million in a plant to build its most fuel-efficient engines ever. The factory will open in 2010 and make 1.4-liter engines for two compact cars scheduled to go on sale late that year: the Chevrolet Cruze, which is expected to get about 45 miles a gallon in highway driving, and the Chevrolet Volt, a plug-in vehicle whose engine will start after the battery is depleted.

Europe Toughens Its Auto Emissions Plan

European Union lawmakers proposed tougher-than-expected emissions goals for car makers, dealing a blow to the German automobile industry.

The bill would be the first legally binding carbon emission standard ever for new cars in Europe.

September 26

Nothing to report

September 27

Nothing to report

September 28

Nothing to report

September 29

One More Chance on Energy

Last December, Congress passed a useful energy bill that ratcheted up fuel economy standards for the first time in decades. That seems a long, long time ago. Since then, Congress has gone steadily and sadly backward on energy policy.

Progress on fuel economy standards will remain stalled unless the Senate overcomes its partisan divide over the issue.

PUBLICITY

clip_image002

AFS Trinity Power has developed patent-pending technology that makes it possible for plug-in hybrid electric vehicles to achieve 150 MPG, go 40 miles in all-electric mode, and use gasoline for additional unlimited miles in hybrid mode.

To those of you who celebrated the new year this week:

SHANA TOVAH!

Tuesday, September 23, 2008

A Dialogue

Two friends meet at a coffee shop somewhere in the US and start talking:

Person A: Have you heard all this nonsense about becoming green?

Person B: Yes I have. I don't believe it is nonsense

A: With all this financial turmoil, do you think someone is going to invest some minute of their time or a dollar from their pocket in "saving the planet"?

B: I believe its necessary. Otherwise the window of opportunity to change the fate of the environment will pass and we will have to deal with unimaginable consequences

A: Pleeeeeassseee! Don't tell me you believe in that "global warming" myth!

B: Let's assume I don't. Would you say we are damaging the environment by creating bigger and bigger cities, by dumping more and more stuff into the ground and into our oceans, and by exploiting the resources of nature without any means of regenerating those resources?

A: So?! I believe there are still many more resources available for exploitation, and the more we advance, the more we will be able to make those resources last.

B: And where does it end? How much more can we "stretch the fabric"?

A: Are you telling me I will have to give up my SUV?

B: I believe some changes will be necessary in our day to day routines. But, other countries have started to embrace those changes.

A: Yes sure!. I will NOT sort my garbage into four different containers! I will NOT live with half a glass of ice instead of my full 16oz plastic cup full to the top! I will NOT install those ugly panels in my house's roof nor will I have any type of propeller to generate wind power!

B: Would you buy an electric car if it costs the same (purchase price plus operating costs) as your SUV and has similar features? Would you move your office to a building that costs one third in electricity than your current one, and on top of that uses 75% less water?

A: Perhaps... But those things are not available yet, and if they are the cost is prohibitive

B: In many cases its a "Catch 22" dilemma. The cost is higher than existing technologies simply because the market is smaller and the economies of scale give an unfair advantage to the existing product. That is where I hope government will intervene (he sighs)

A: Don't tell me you also believe in those stories about the shortage of drinking water?!

B: According to The World Bank 80 countries have water shortages, and 40 percent of the world (more than 2 billion people) has no access to clean water or sanitation. Do you think this is a fairy tale?

A: Perhaps not, but what do I care about some forsaken country thousands of miles away?

B: So, you don’t care about the events in 9/11? Or perhaps you don’t give a damn that we are allowing immense amounts of money to escape from our hands and get to oil producing countries, those same countries that finance hatred against the western world?

A: We will overcome those countries using our military strength and I believe McCain is the man for the job!

B: I don’t want to spoil your plans, but I think Obama will be the next president

And so the conversation carries on….

What will happen at the end? Who is right and who is wrong? Only time will tell

Until next week. SHALOM!

Related Posts Plugin for WordPress, Blogger...