Plug-In Hybrids and Electric Cars.

Plug-In Hybrids.

The National Commission on Energy Policy has suggested that renewed attention should be paid to a type of vehicle that the automakers have been avoiding, the “plug-in hybrid.” The hybrids currently on the market recharge the battery internally, and neither need to be, nor can be, plugged in to the electrical network. Given the public’s distaste for electric cars, automakers have found it important to distinguish the new hybrids from the unpopular plug-ins. Iain Carson and Vijay V. Vaitheeswaram, Zoom: The Global Race to Fuel the Car of the Future 269 (2007).

But the Commission pointed out that adding plug-in capability to a modern hybrid increases its energy efficiency:

“Plug-in”hybrids are a logical extension of the current technology. These vehicles would carry more robust battery packs and be capable of being charged using the electricity grid. Since most trips are relatively short, these vehicles could operate using grid-provided electricity much of the time, while retaining the flexibility consumers desire for being able to travel longer distances without the need to recharge. To the extent they would operate more often than conventional hybrids in a pure-electric mode, plug-in hybrids could provide additional oil security and fuel diversity benefits. (National Commission on Energy Policy, Ending the Energy Stalemate 91 (2004)).

Section 706 set up a small grant program to improve technologies for plug-in hybrid or combination hybrid/flexible fuel vehicles that would achieve not less than 250 miles per gallon of petroleum fuel consumption. Under Section 721, grants are available to state and local governments for the purchase of hybrid and advanced diesel vehicles meeting certain requirements.

Tax incentives for purchasers of new products can be strong motivators of consumer behavior. As of 2005, qualifying hybrid vehicles were eligible for a federal "clean fuel" deduction of $2,000 if placed in service by the end of 2005, or $500 if placed in use during 2006. See http://www.fueleconomy.gov/ (a. June 9, 2005). Section 1341 of the Energy Policy Act of 2005 provides a complex formula for tax credits for future years based on the extent to which the vehicle achieves fuel economy.

“With their large, deep-discharge batteries, PHEVs may eventually serve as distributed energy storage units that could support not only the home but the electricity grid as well. Electric Power Research Institute Journal, Plug-In Hybrids, Spring 2008 at 15. The smart infrastructure for such vehicle-to-grid setups would require advanced metering and two-way energy and information exchange, similar to that currently used in home photovoltaic electricity sales to utilities.”

What is a plug-in hybrid?

A regular hybrid with an extension cord. It can be filled up at the gas station, and you can plug it in to any 120-volt outlet. It's like having a second fuel tank that you always use first from a regular outlet, at an equivalent cost of under $1/gallon.

Plug-ins don't need to be plugged in. But when you do, your car essentially becomes an electric vehicle with a gas-tank backup. So you'll have a cleaner, cheaper, quieter car for your local travel, and the gas tank is always there should you need to drive longer distances. If your driving is mostly local, you'd almost never need to gas-up.

Plug-ins cost more mainly because batteries are expensive. But battery technology is improving steadily (especially lithium-ion, with nano-technology versions also looking promising), and in large quantities current options are acceptable.

Interesting Note: Plug-in cars capable of 50 miles per day would meet the needs of 80% of the American driving public. [U.S. Department of Transportation]

Are plug-ins cleaner? Two studies from the Electric Power Research Institute and the National Resources Defense Council found that unlike gasoline cars, plug-ins will get cleaner as they get older because our power grid is getting cleaner. The EPRI study shows that under all nine scenarios for both rates of market penetration of plug-ins and the evolving power grid's characteristics (capacity/carbon intensity), plug-ins will vastly reduce greenhouse gases for the next 40 years. The NRDC study found that, for the next 20 years, even if we still use lots of coal, nationwide air quality for other emissions will also improve.

California Air Resources Board studies show that battery electric vehicles emit at least 67% lower greenhouse gases than gasoline cars -- even more assuming renewables.

Only plug-ins and battery electric cars get cleaner as they get older - because the electric grid gets cleaner every decade. Additionally, more people are installing rooftop solar photovoltaic systems, and clean wind power is vastly expanding nationally (see study by eminent environmentalist Lester Brown). Finally, looking at the non-electric fuel, instead of using gasoline for long-trips, PHEVs could run on bio-diesel, cellulose ethanol, or other bio-fuels to further reduce greenhouse gases.

Plug-ins will generally recharge at night using excess power from plants that can't shut down completely so they don't add to the peak load. Plug-ins could one day actually help reduce the stress on the plants' grids by providing power from parked plug-ins batteries during daytime hours. The nationwide electrical grid is only 3% petroleum-fueled, whereas transportation is almost completely powered by oil -- 60% of which comes from foreign sources (and growing). Adoption of plug-in hybrids will transfer the overwhelming majority of our miles driven to nearly oil-free electricity. If all vehicles were plug-in hybrids we would cut our oil needs by 55%, nearly enough to eliminate foreign sources altogether. The winning combination from an environmental and national-security perspective is the flexible-fuel PHEV -- one that runs on biofuels, cellulosic ethanol, methanol, or alternative liquid fuel in place of gasoline. This will reduce the transportation sector's use of oil to almost zero -- and cut the United States' annual oil needs by 2/3. [http://www.calcars.org/vehicles.html#5]

Availability of Plug-ins

The non-profit company CalCars first performed an aftermarket conversion to a Toyota Pruis into a plug-in in 2004. This was called the Prius+. They and several other third-party companies continue to do these conversions,

Conversions are limited to certain vehicle types. So far, most start as hybrids. The easiest conversions are for 2004-2009 Prius (not 2001-2003 Prius) and the Ford Escape/Mercury Mariner Hybrid. Because of Honda's different architecture (the engine runs whenever the motor runs), aftermarket conversion of Hondas are unlikely.

Mass-Marketed Plug-ins

Toyota has plans to release the 2010 Prius Plug-In. However, the specifics of the car are still somehwat of a mystery. According to Toyota, “When asked about the mpg performance of PHVs – either lithium or nickel battery powered – we have consistently answered that we believe that PHV mileage will vary dramatically, depending on driving style and driving conditions . . . even more dramatically than with a conventional gas-electric hybrid. This is due to the added weight of a large battery that, once depleted by pure-electric drive, will contribute nothing until it is plugged in and re-charged. We have also stated that it is too early to discuss anticipated mileage ranges based on early preliminary testing in Japan by Toyota Motor Corporation engineers. We look forward to getting in-use driving feedback from the 150 lease- fleet customers who will receive our lithium battery-powered Prius PHVs early next year. We anticipate a wide range of fuel efficiency performance numbers.” [http://pressroom.toyota.com/pr/tms/irv-s-sheet--prius-plug-in-mpg-not-yet-available.aspx]

Fisker Karma

The Karma uses Q-DRIVE plug-in hybrid technology, developed exclusively for Fisker Automotive by Quantum Technologies. A fully-charged Karma burns no fuel for the first 50 miles. Venture further and the gasoline engine turns a generator to charge the lithium ion battery. Once the 50-mile electric range has been exceeded, the car operates as a normal hybrid vehicle. This balance of electric and gas range makes it entirely possible that Karma drivers who charge their car overnight and commute less than 50 miles a day will achieve an average fuel economy of 100 mpg per year.

There is a $5,000 deposit required to reserve a Karma for delivery at some point in 2010. The cars cost $87,900. [http://karma.fiskerautomotive.com/pages/karma]

Chevrolet Volt

Powered by lithium-ion batteries, and scheduled for sale in November 2010, it is expected to cost around $40,000, be able to transport a driver as many as 40 miles on battery power alone before it needs to be recharged. Recharging will be a task as simple as plugging into an available outlet. If the power runs out, the Volt has an internal-combustion engine capable of travelling 300 miles on a tank of gas.

GM sees this as “the first generation of an electric vehicle from GM” that will produce successive generations of enhanced Volts, ultimately leading to a car running entirely on electric power in excess of 150 miles

BYD F3DM

I The F3DM is the first mass-produced plug-in hybrid. It was launched domestically in China in December of 2008. It can go about 62 miles on its electric engine, and has a small gasoline engine as back up. It takes nine hours to charge the battery from a regular electric outlook. Price: around $22,000, in line with other Chinese-made mid-sized cars. [http://www.cnbc.com/id/28236421]

The auto division's 3,000-strong research and development team developed a ferrous battery technology that Henry Li, the BYD general manager of BYD Auto, says is superior to the nickel metal hydrate battery used in the Toyota Prius. "For them the gas engine is the main driving mode; for us it's a small engine and a big battery," says Li. Actually, the F3 DM is based on 100 3.3-volt batteries strapped together and stored under the rear seat. Packs are good for about 2,000 recharges or 100,000 miles. The engine is only 1 liter and is capable of recharging the battery when the car is switched to gasoline mode. [http://www.businessweek.com/globalbiz/content/dec2008/gb20081215_913780_page_2.htm]

Electric Cars.

China's Plan to Become Leading Producer of Hybrids and Electric Cars

On January 13, 2009, China cut sales tax on small cars and vowed curbs on steel output in a bid to jumpstart a recovery in the crucial car industry to bolster flagging Chinese economic growth and employment. [http://www.ft.com/cms/s/0/67408f48-e264-11dd-b1dd- 0000779fd2ac.html]

Measures to support this pillar of the Chinese economy were widely expected after Beijing announced it would target the auto industry in its effort to sustain 8% growth this year in spite of the global economic crisis. Beijing’s $585 billion stimulus package will begin taking effect only later this year and has so far done nothing to avert a dramatic slowdown in Chinese car industry growth. [http://www.ft.com/cms/s/0/67408f48-e264-11dd-b1dd-0000779fd2ac.html]

The State Council, the Chinese cabinet, said in a statement that it would halve the sales tax [bringing it down to 5%] on car purchases with engines under 1.6 L capacity. Beijing will also give one-off cash subsidies to owners of high-emission vehicles who trade them in for cleaner ones. [http://www.ft.com/cms/s/0/67408f48-e264-11dd-b1dd-0000779fd2ac.html]

Auto sales in China, the world’s second largest car market, have slumped because of a crisis in consumer confidence in the wake of the global economic slowdown. 2008 has been the worst year for the Chinese car industry in a decade, with passenger car sales growing by only 7.3%, compared with double-digit growth in previous years. [http://www.ft.com/cms/s/0/67408f48- e264-11dd-b1dd-0000779fd2ac.html] China also plans to invest $1.46 billion in electric-car research, but will put most of the subsidies in the hands of consumers, rather than car companies, "otherwise the companies will just fight for subsidies," China's vice minister of finance, Zhang Shaochun said. [http://www.upi.com/Business_News/2009/04/10/China-outlines-electric-car-strategy/UPI- 11601239386722/]

The government also said it would encourage consolidation in the crowded auto industry. China has 45 auto manufacturers, compared with 15 in the US.

Beijing is encouraging its biggest carmakers, Shanghai Automotive Industry CorpSAIC, FAW, Dongfeng and Changan, to lead consolidation of its automobile industry. The state council has also asked the Beijing Automotive Industry, Guangzhou Automobile Group, Chery Automobile and China National Heavy Duty Truck to lead regional consolidation. While the state council called on carmakers to develop their brands and pledged support for cross-border mergers as one possible means of doing that, the plan's focus is clearly on domestic industry consolidation. [http://www.ft.com/cms/s/0/599b732a-1749-11de-9a72-0000779fd2ac.html]

The state council's blueprint said it would seek major progress in restructuring the industry during the next three years and wanted "to create two to three big carmaking groups with output of more than 2m vehicles a year, [and] four to five carmaking groups with output of more than 1m vehicles" by the end of 2011. [http://www.ft.com/cms/s/0/599b732a-1749-11de-9a72- 0000779fd2ac.html]

The Plan

In April, Chinese leaders announced their plan to turn the country into the leading producer of hybrid and all-electric vehicles within three years. [http://www.nytimes.com/2009/04/02/business/global/02electric.html?scp=1&sq=keith%20brads her%20china%20electric%20cars&st=cse]; [http://video.nytimes.com/video/2009/04/01/business/1194839102844/china-s-electric-car- goal.html]

China's vice minister of finance, Zhang Shaochun, says the government's support of electric cars will focus on subsidies for car-buyers. "The fiscal subsidy gives voting rights to the consumer.” [http://www.upi.com/Business_News/2009/04/10/China-outlines-electric-car- strategy/UPI-11601239386722/] Subsidies of up to $8,800 are being offered to taxi fleets and local government agencies in 13 Chinese cities for each hybrid or all-electric vehicle they purchase. The state electricity grid has been ordered to set up electric car charging stations in Beijing, Shanghai and Tianjin. [http://www.nytimes.com/2009/04/02/business/global/02electric.html?scp=1&sq=keith%20brads her%20china%20electric%20cars&st=cse]; [http://video.nytimes.com/video/2009/04/01/business/1194839102844/china-s-electric-car- goal.html]

Further, government research subsidies for electric car designs are increasing rapidly, and an interagency panel is planning tax credits for individual consumers who buy alternative energy vehicles. [http://www.nytimes.com/2009/04/02/business/global/02electric.html?scp=1&sq=keith%20brads her%20china%20electric%20cars&st=cse]; [http://video.nytimes.com/video/2009/04/01/business/1194839102844/china-s-electric-car- goal.html]

China wants to raise its annual production capacity to 500,000 hybrid or all-electric cars and buses by the end of 2011, from 2,100 in 2008, government officials and Chinese auto executives said. By comparison, CSM Worldwide, a consulting firm that does forecasts for automakers, predicts that Japan and South Korea together will be producing 1.1 million hybrid or all-electric light vehicles by then and North America will be making 267,000. [http://www.nytimes.com/2009/04/02/business/global/02electric.html?scp=1&sq=keith%20brads her%20china%20electric%20cars&st=cse]; [http://video.nytimes.com/video/2009/04/01/business/1194839102844/china-s-electric-car- goal.html]

Officials have also said the move to electric cars, which are few in number in the country, included environmental goals. Miao Wei, the vice minister for industry and information technology and a former chairman of Dongfeng Motor, said China needed to overcome problems with pollution, congestion and a reliance on oil imports. "If these three bottlenecks cannot be addressed, the Chinese auto industry cannot grow sustainably," he said. [http://www.upi.com/Business_News/2009/04/10/China-outlines-electric-car-strategy/UPI- 11601239386722/]

Why electric cars have a greater chance for success in China [http://www.nytimes.com/2009/04/02/business/global/02electric.html?scp=1&sq=keith%20brads her%20china%20electric%20cars&st=cse]; [http://video.nytimes.com/video/2009/04/01/business/1194839102844/china-s-electric-car- goal.html]:

In China, intercity driving is rare. Commutes are fairly short and frequently at low speeds because of traffic jams. So the limitations of all-electric cars are less of a problem.

First-time car buyers also make up four-fifths of the Chinese market, and these buyers have not yet grown accustomed to the greater power and range of gasoline-powered cars.

China has the world's largest population and the fastest growing economy, and the rising middle class love the freedom of owning and driving a car. China is one of the most polluted countries in the world and the pressure to improve its environment is the greatest. The electric car in China satisfies consumer demand while relieving the pollution pressure? The answer is electric cars. [http://economistonline.blogspot.com/2009/04/chinas-electric-car-market-battle-is-on.html]

Some regulatory and market characteristics make China one of the most promising markets to experiment with electric cars. The government's regulations and policies for things like building electric-car charging stations can be changed more easily here than in places like the U.S. Most Chinese buyers also are purchasing cars for the first time and have not developed particular preferences. (http://online.wsj.com/article/SB124033688090439773.html)

Obstacles in China [http://www.nytimes.com/2009/04/02/business/global/02electric.html?scp=1&sq=keith%20brads her%20china%20electric%20cars&st=cse]; [http://video.nytimes.com/video/2009/04/01/business/1194839102844/china-s-electric-car- goal.html]:

Most urban Chinese live in apartments, and cannot install recharging devices in driveways, so more public charging centers need to be set up.

Rechargeable lithium-ion batteries also have a poor reputation in China. Counterfeit lithium-ion batteries in cellphones occasionally explode, causing injuries. And Sony had to recall genuine lithium-ion batteries in laptops in 2006 and 2008 after some overheated and caught fire or exploded. These safety problems have been associated with lithium-ion cobalt batteries, however, not the more chemically stable lithium-ion phosphate batteries now being adapted to automotive use. The biggest challenge seems to be that all lithium-ion batteries are expensive, whether made with cobalt or phosphate. When Tianjin-Qingyuan puts its entirely battery-powered Saibao midsize sedan on sale this autumn, the body will come from a sedan that normally sells for $14,600 when equipped with a gasoline engine. But the engine and gas tank will be replaced with a $14,000 battery pack and electric motor, said Wu Zhixin, the company’s general manager.

Why China's Investment Could Be Good for the US

The investment of Chinese government in electric cars will spur global competition in energy- saving technology. At the same time, the size of China's domestic auto market also helps automakers to lower the cost of new technology. One of the obstacles to develop electric cars in the US is automakers worry about the market for electric cars will be too small to make a profit. That is, carmakers cannot take advantage of economies of scale. But with China in the game, automakers will have the option to sell the most-advanced electric cars to China. [http://economistonline.blogspot.com/2009/04/chinas-electric-car-market-battle-is-on.html]

Chinese Electric Vehicles

The battery-powered cars that Chinese companies are showing are intended to be much less expensive than those planned by big foreign companies. Great Wall Motor Co., based in northern China's Hebei province, has planned the GWKulla all-electric car, which will likely be one of China's cheapest battery-powered cars when it hits showrooms as early as next year. Its expected price tag is between about $8,780 to $10,250. The GWKulla, a short, curvy compact, runs on lithium-ion batteries and can go 100 miles when fully charged. (http://online.wsj.com/article/SB124033688090439773.html

DOE Grants for Battery R & D

The US Department of Energy has selected seven cost-shared research projects for the development of advanced batteries for electric drive vehicles. Topics include improved anode materials, improved mechanisms for safety and management, electrode manufacturing, and lithium-sulfur chemistry.

The total DOE investment for these projects is up to $10.96 million over three years, subject to annual appropriations. Private sector contributions will further increase the financial investment for a total of up to $19.36 million. These projects were selected under the battery materials and manufacturing topic area from the 'Vehicle Technologies Program Wide Funding Opportunity Announcement' released early in 2008. In December 2008, DOE announced the initial selection of three battery materials and manufacturing projects for negotiation of award from the FOA, including: 3M Company; BASF Catalyst LLC; and FMC Corporation.

These three initial contracts total up to $13.9 million in cost-shared cooperative agreements with a DOE share of up to $6.85 million, subject to annual appropriations. The new projects selected include, in order of award size:

EnerDel Inc. of Indianapolis, Indiana, has been selected for negotiation of an award for up to $3.3 million for a project to develop a chemical shuttle agent that will eliminate the danger of overcharging lithium-ion batteries developed for plug-in hybrid electric vehicles, hybrid electric vehicles, and electric vehicles.

TIAX LLC of Cambridge, Massachusetts, has been selected for negotiation of an award for up to $2.36 million for a project aimed at understanding and preventing internal short circuits in lithium-ion cells. Results from the proposed program will help develop guidelines to enable development of technologies for safe battery packs, guidelines that will permit original equipment manufacturers to develop their own proprietary technologies for mitigating short- circuit induced safety incidents.

Angstron Materials LLC of Dayton, Ohio, teamed with Applied Sciences Inc. of Cedarville, Ohio; K2 Energy Solutions of Henderson, Nevada; General Motors Corporation of Detroit, Michigan; and HST Auto of Escondido, California; have all been selected for negotiation of a three-year award of up to $3.2 million with a DOE share of up to $1.6 million, project to develop hybrid nano carbon fiber/graphene platelet-based high-capacity anodes for lithium batteries.

North Carolina State University of Raleigh, North Carolina, teamed with American Lithium Energy LLC of San Marcos, California, was been selected for negotiation of an award for up to $1.35 million for a project to develop high-energy composite nanofiber anodes for materials for lithium-ion batteries.

A123Systems, Inc of Watertown, Massachusetts, has been selected for negotiation of an award for up to $1.1 million for a project to develop a high-throughput electrode fabrication process for their lithium-ion battery technology. SION Power Corporation of Tucson, Arizona, has been selected for negotiation of an award for up to $800,000 for a project aimed at demonstrating the viability of their lithium sulfur (Li-S) rechargeable battery chemistry for electric drive vehicles.

MaxPower Inc. of Harleysville, Pennsylvania, has been selected for negotiation of an award for up to $500,000 for a project aimed at adapting MaxPower’s present battery management systems (BMS) for lithium-ion batteries to recognize the imminent appearance of an internal short and to take action to operate the battery in a safe state. [http://www.greencarcongress.com/2009/06/doe-20090616.html#more]