Green Car Congress

Report: Volkswagen Changing Strategy for Hybrids

Germany’s Automobilewoche reports that with the change in Volkswagen’s top management is coming a change in strategy for hybrids.

Martin Winterkorn, who formerly headed the company’s Audi AG unit, became CEO after Bernd Pischetsrieder resigned at the end of 2006. Pischetsrieder had brought in Wolfgang Bernhard from DaimlerChrysler to run the Volkswagen unit. Berhard has now left (as of today), and Winterkorn will personally oversee the VW brand for the time being.

Now, rather than target a mild hybrid Jetta for sale into the California market in 2008 as described by Pischetsrieder, Volkswagen will focus first on a full hybrid Touareg SUV. VW has announced a 50-state compliant (Tier 2 Bin 5) diesel Jetta will go on sale in the US in 2008. (Earlier post.)

The additional cost of the compact hybrid or of a hybrid drivetrain applied in a Touran van didn’t make sense for management, given price-sensitivity of the consumers, and a negligible gain in fuel efficiency compared to a diesel powertrain. VW was exploring the use of the Continental mild hybrid system in those applications. (Earlier post.)

Now, Volkswagen will concentrate on developing a hybrid application of the Touareg (along with Porsche with its Cayenne) for the end of 2008, with Bosch providing the full hybrid system, according to the report. (Earlier post.)

Survey: Canadians Support Higher Fuel Economy Standards as Top Measure to Counter Global Warming

Globe and Mail. A Strategic Counsel survey for Canada’s The Globe and Mail and CTV found that higher fuel-economy standards and forcing consumers and industry to switch to alternative fuels rank No. 1 (86%) and No. 2 (80%) in terms of what Canadians are most likely to support to counter global warming.

Only 31% voiced support for charging significantly higher prices for gasoline and home heating fuel, but 72% were willing to pay more for a fuel-efficient car.

The survey, which polled 1,000 Canadians, also found that 62% of those polled said Canadians would be willing to have the economy grow at a “significantly slower rate” to reduce global warming.

The dramatic rise in production from Alberta’s oil sands has played a key role in Canada’s economic strength in recent years, but the survey suggests a willingness to give up some of that growth.

When asked if Canadians would support slowing or reducing the development of the tar sands in Northern Alberta, 48 per cent said there would be support and 32 per cent predicted opposition to the idea.

The survey was taken between Jan. 11 and 14 and is accurate to within three percentage points, 19 times out of 20.

Survey: Which of these measures would you support to reduce carbon emissions?
Raising fuel standards for vehicles and appliances	86%
Consumers and industry switching to alternative fuels	80%
Banning coal fueled electrical generating facilities	62%
Setting limits on fossil fuel consumption	56%
Reducing development of Alberta’s oil sands	48%
Higher prices for gasoline and home heating fuel	31%

(A hat-tip to Bob!)

Resources:

• State of Canadian Public Opinion: The Greening of Canada

GM Urges Feds to Fund Major Battery Research and Development Effort

In testimony before the US Senate Committee on Energy and Natural Resources today, GM Vice President for Environment and Energy Beth Lowery urged the government to fund a major effort to strengthen domestic advanced battery capabilities—specifically lithium-ion batteries.

Her stance was echoed during the hearing by statements from other witnesses, including John German, Manager, Environmental and Energy Analyses from Honda and Dr. Menahem Anderman, President, Advanced Automotive Batteries.

In her testimony, Lowery argued for the development of a range of alternative sources of energy and propulsion, the better to mitigate many of the issues surrounding energy availability.

...the fact of the matter is that it is highly unlikely that oil alone is going to supply all of the world’s rapidly growing automotive energy requirements. For the global auto industry, this means that we must—as a business necessity—develop alternative sources of propulsion, based on alternative sources of energy in order to meet the world’s growing demand for our products. The key is energy diversity, which can help us displace substantial quantities of oil that are consumed by US vehicles today.

Lowery suggested five steps the government could take to help:

• Fund domestic advanced battery capabilities. “Advanced lithium-ion batteries are a key enabler to a number of advanced vehicle technologies—including plug-in hybrids. Government funding should increase R&D in this area and develop new support for domestic manufacturing of advanced batteries.”

• Expand biofuels production and infrastructure. “Government should continue incentives for: the manufacture of biofuel-capable flex fuel vehicles; increases in biofuels production; increases for R&D into cellulosic ethanol; and increased support for broad-based infrastructure conversion.”

• Continue support for the development and demonstration of hydrogen and fuel cells. “Funding should continue for hydrogen and fuel cell R&D and demonstration activities at DOE. The government should also commit to early purchases by government fleets and support for early refueling infrastructure in targeted locals in the 2010-2015 timeframe.”

• Set a purchasing example. “The government should continue to purchase flex fuel vehicles; demand maximum utilization of E85 in the government flex fuel fleets; use federal fueling to stimulate publicly accessible pumps; provide funding to permit purchase of electric, plug-in and fuel cell vehicles into federal fleets as soon as technology is available.”

• Provide further incentives for advanced technology. “Consumer tax credits should be focused on technologies that have the greatest potential to actually reduce petroleum consumption and provide support for manufacturers/suppliers to build/convert facilities that provide advanced technologies.”

John German from Honda agreed on the need for diversity of solutions, and for more emphasis on advanced battery research and development.

By far the most important action the government can take is research into improved energy storage...With respect to hybrids and, especially, plug-in hybrids, the most important factor is to reduce the cost, size, and weight of the battery pack.

The success of electric drive technologies, including hybrids, plug-in hybrids, and fuel cells, depends on our ability to build less expensive, lighter and more robust energy storage devices.

However, German also reiterated Honda’s position on the benefit of performance-based incentives.

As Honda has previously announced, we believe it is time for the Federal government to take action to improve vehicle economy. Given the rapid changes in technology, performance-based incentives are the best way to move the ball forward. It is impossible to predict the pace of technology development and when breakthroughs will or will not occur. Accordingly, technology-specific mandates cannot get us where we need to go. In fact, previous attempts to mandate specific technologies have a poor track record, such as the attempts in the 1990s to promote methanol and the California electric vehicle mandate.

The primary effect of technology-specific mandates is to divert precious resources from other development programs that likely are much more promising. If there are to be mandates, they should be stated in terms of performance requirements, with incentives and supported by research and development.

One example would be to increase the CAFE standards. The NHTSA already has the authority to regulate vehicle efficiency and Honda has called upon the agency to increase the stringency of the fuel economy requirements and has supported efforts to reform the passenger car standards. At the same time, Congress should develop a program of broad, performance-based incentives to stimulate demand in the marketplace to purchase vehicles that meet the new requirements.

Resources:

• Lowery Testimony

• German Testimony

• Anderman Testimony

Washington State Considering Measure to Support 25% Cut in Petroleum Use

Washington state legislators are considering a “Clean Air, Clean Fuels” bill (HB #1303) that would provide funding to support a 25% cut in the petroleum use of the state's fleets via a range of initiatives including support for biodiesel and cellulosic ethanol, development of new technologies such as plug-in hybrids, and reducing fossil fuel consumption.

A hearing on the measure is scheduled for tomorrow in the state’s House Committee on Agriculture and Natural Resources.

SatCon Wins Naval Propulsion Motor Technology SBIR Contract

SatCon Technology Corporation, a developer and supplier of power management and system architecture solutions for the alternative energy and distributed power markets, has been awarded a Phase I Small Business Innovative Research (SBIR) contract with the US Navy to develop insulation technology for advanced propulsion motor designs for future all-electric ships.

The results of this research will have direct commercial applicability to SatCon’s electric drive and generation systems wherever power density and efficiency of the electromechanical power conversion process is a key driver. This includes hybrid and electric vehicle traction drives, mobile generator sets, and aerospace electric propulsion and power generation systems, according to the company.

New motor winding insulation techniques are necessary to balance the increasing voltage and thermal stresses associated with the drive to higher power application of pulse width modulation (PWM) driven electric machinery, particularly with permanent magnet machinery.

As a result of this research, the Company expects to develop new motor design solutions that will enable higher power density, affordable manufacturing capability, and increased reliability compared with current practices.

This award follows a December 2006 award for another Phase I SBIR contract with the US Navy to develop a bi-directional universal input/output Multiverter.

The bi-directional converter builds on technology developed for the Army Research Laboratory and can become a versatile distributed generation interface for linking shipboard energy sources such as fuel cells, batteries and energy storage sources, to the ship’s electrical distribution system, enabling more efficient operation and saving fuel.

The results of this research will also have applicability to other all-electric vehicle programs and alternative energy markets, including Plug-in Hybrid-Electric Vehicle (PHEV) vehicle applications. DC input from photovoltaic arrays, or AC input from wind or hydro generators, or stored energy from batteries can be used to provide AC output to a load or utility and in reverse the utility can be used to recharge batteries.

Oil Production at Cantarell Declines 25% in 2006

Production from the PEMEX Cantarell complex in 2006. Click to enlarge.

Oil production from Mexico’s giant Cantarell offshore complex, which now accounts for 50% of PEMEX’s total output, declined 25% during the course of 2006, according to statistics from the Energy Ministry available on the Sistema de Información Energética.

Total Cantarell output dropped from 1.978 million barrels per day in January to 1.493 million barrels per day in December. The Akal-Nohoch field—the main component of Cantarell—declined from 1.920 million barrels per day to 1.439.

Although the sharp decline was partially offset by production from other fields, Mexico’s total petroleum production dropped 12% from 3.371 million barrels per day in January to 2.978 million barrels per day in December.

The decline is more rapid than PEMEX has projected. In testimony before the Energy Committee of the Mexican Senate in November 2006, PEMEX CEO Luis Ramirez Corzo said that production at Cantarell would decline by an average of 14% per year between 2007 and 2015. (Earlier post.)

In August 2005, PEMEX forecast that Cantarell production in 2006 would average 1.905 million bpd—a forecast volume 6% lower as compared to 2005 production of 2.032 million bpd.

The data, however, show an average realized production of 1.788 million bpd in 2006, representing a 12% annual decline from 2005 to 2006—double the forecast.

Cantarell’s production peaked in 2004 at 2.125 million barrels per day, according to PEMEX. In 1997, PEMEX began nitrogen injection to maintain reservoir pressure. The injection regimen supported increasing crude oil production from 1.082 million barrels per day in 1996 to the peak in 2004. (Earlier post.)

The US imports about 1.6 million barrels per day of crude from Mexico—about 12% of the total—making Mexico the number two source of imported crude behind Canada. Saudi Arabia and Venezuela contend for the third spot, according to data from the Energy Information Administration.

BMW Delivers Waste-Water-Free Production at Steyr Engine Plant

BMW has developed a new recycling process in its engine plant in Steyr (Austria) that has resulted in the elimination of waste water.

Using a new combination of various membrane technologies, all manufacturing waste water in the plant is treated and fed back into the production system for an annual savings of around 30 million liters (7.9 million gallons US) of water. BMW has closed the mains drainage connection at the plant.

In engine manufacturing, water is used to create an emulsion with coolants for milling and turning, and for washing or rinsing during the finishing of cylinder heads, crank cases, crank shafts and connecting rods.

BMW first introduced a waste water treatment system using nanofiltration technology at Steyr in 2003. The results from that system were so successful that BMW determined it could introduce a completely enclosed water cycle for production, according to Franz Hornbachner, responsible for planning “fluid technology.”

The waste water goes through three stages. First, oil residues are removed from the waste water by ultrafiltration. Then heavy metals and low-volatility lipophilic substances—i.e. surfactants (surface-active substances)—are removed from the water by nanofiltration. In the third stage of the waste water treatment, dissolved salts and short-chain organic compounds are removed by reverse osmosis. The process only uses these physical methods, without the addition of any chemicals.

The BMW Group has invested around €1.5 million (US$1.9 million) in these technologies over the last three years.

Nissan Prices the Altima Hybrid

Nissan has priced the 2007 Nissan Altima Hybrid (earlier post) starting at $24,400. The new hybrid sedan is on sale now at Nissan retailers in the eight states that have adopted California emissions regulations: California, Connecticut, Maine, Massachusetts, New Jersey, New York, Rhode Island and Vermont.

Altima Hybrid’s EPA fuel economy is estimated at 42 mpg City and 36 mpg Highway. It is rated as an Advanced Technology-Partial Zero Emissions Vehicle (AT-PZEV) and emits almost no evaporative emissions.

The Altima Hybrid has been certified by the Internal Revenue Service as meeting the requirements for the Alternative Motor Vehicle Credit, thereby qualifying for a tax credit of $2,350.

Arkansas Considers Bills to Support Biodiesel Development

The Arkansas state legislature is considering the Arkansas Alternative Fuels Development Act, a measure that would provide up to $4 million in incentives for biodiesel production and infrastructure in state.

A funding bill would appropriate also $2 million to the University of Arkansas agriculture department for research, and up to $4 million for matching federal grants for research.

Sen. Robert Thompson, D-Paragould, said Monday he also is working on legislation that would require all service stations in the state to sell only biodiesel fuel when production in Arkansas reaches a certain level.

Maxwell Receives Large Order for Ultracapacitor Electrode Material From Licensee in China

Maxwell Technologies has received a purchase order for 100,000 square meters of its proprietary ultracapacitor electrode material from Shanghai Sanjiu Electric Equipment Company, Ltd. (Sanjiu). Sanjiu is preparing to introduce a line of ultracapacitor products based on Maxwell’s cell architecture and high-performance electrodes for the Chinese transportation, electric utility and industrial markets, with a specific focus on Shanghai.

Sanjiu already has produced and delivered a variety of prototype electric and hybrid buses, trucks and other vehicles powered by drive systems employing a combination of batteries and Maxwell BOOSTCAP ultracapacitors for energy storage and regenerative braking.

We have identified substantial and immediate demand for ultracapacitor-based energy storage and power delivery systems for a broad range of transportation, industrial and utility applications.

—Hong Yuan Shuai, Chairman and Chief Executive Officer of the Ruihua Group

The order is to be filled over the balance of 2007, based on Sanjiu’s planned production of 100,000 large cell 3,000 farad ultracapacitors cells for the year.

The order was placed under the terms of an April 2006 ultracapacitor technology license and exclusive electrode material supply agreement between Maxwell and Sanjiu’s joint venture parent companies, Shanghai Urban Electric Power Investment Development Corporation (SUEP) and the Ruihua Group.

Maxwell has provided training and technical support and documentation for Sanjiu personnel in cell and module assembly at Maxwell’s facility in San Diego, and at Sanjiu’s new plant in Shanghai.

Maxwell will continue to manufacture its proprietary ultracapacitor electrode material internally. The licenses and technology transfer arrangements with Sanjiu specifically exclude Maxwell’s carbon film electrode technology.

Maxwell is also establishing separate manufacturing facilities and its own sales and distribution organization to market ultracapacitor products in China.

The financial resources of Ruihua and SUEP and their networks of affiliated power utility and manufacturing companies and distribution channels will enable Sanjiu to expand ultracapacitor sales in China more broadly and rapidly than Maxwell could on its own. In addition to generating high-volume sales of our electrode material, this relationship may also provide an additional future option for offshore ultracapacitor assembly capacity to meet growing worldwide demand for our BOOSTCAP products.

—Dr. Richard Balanson, Maxwell’s President and Chief Executive Officer