Green Tech

Nissan will begin taking orders for its LEAF EV in Spring 2010.

(Credit: Nissan)

The EV Project, a pilot program to develop a nationwide public charging system for electric vehicles, is expected to give people an opportunity to inspect the Nissan LEAF EV more closely on Thursday and announce expansion plans that include San Diego.

The unveiling will take place at a press conference in San Diego and include representatives from San Diego Gas & Electric, the City of San Diego, the San Diego Association of Governments (SANDAG), and Don Kramer, the president of Ecotality's subsidiary eTec.

Electric-charging station manufacturer Ecotality has received $100 million in stimulus funding from the U.S. Department of Energy and is one of the lead partners on the EV Project which will span 11 U.S. cities in five states: Arizona, California, Oregon, Tennessee, and Washington.

While the company has been partnering with Nissan to make public charging options a reality in the U.S., Ecotality has repeatedly said its stations are designed to fit Society of Automotive Engineers standards so that they'll be compatible with any electric cars built to that standard.

Ecotality announced Wednesday that its CEO Jonathan Read is currently in China as part of a 40-person delegation accompanying U.S. Commerce Secretary Gary Locke. The group is taking part in the China Clean Energy Roundtable as part of President Barack Obama's visit to China.

Obama and Chinese President Hu Jintao announced Wednesday a U.S.-China "Electric Vehicles Initiative" to encourage research and develop joint standards for electric transportation, according to the U.S. Department of Energy.

A group of CEOs on Monday came out favor of a regional roll-out of electric vehicles in up to eight cities to demonstrate the viability of the technology and incubate the fledgling industry.

The Electricifcation Coalition held a press conference in Washington, D.C. and released an Electrification Roadmap, which prescribes the business and policy steps required to ramp up electric vehicle adoption.

There are 13 members of the coalition, including the CEOs of Nissan Motor, FedEx, Pacific Gas & Electric, and battery maker A123 Systems. The coalition was spun out of Securing America's Future Energy, a lobbying group focused on reducing U.S. imports of oil.

Photos: Plug-in vehicles in Motor City

The Electrification Coalition argues that light-duty electric vehicles are the only technology that can cut oil imports and reduce carbon emissions in the near term. Its report (click for link) focuses on what's required to make electric cars available at large scale.

"I think we have the conditions for the mass market. But it's going to take more time," said Carlos Ghosn, the president and CEO of Nissan. "The investments to be made are huge. To make 50,000 batteries is a $250 million investment."

Of all the major automakers, Nissan is the most bullish on electrification. It is releasing an all-electric family sedan called the Leaf in the U.S. and Japan next year. It projects that 10 percent of new cars sales in 2020 will be electric, which is higher than most analysts' projections.

The shift presents challenges to auto makers that are unsure of consumer acceptance. Utilities and municipalities need to prepare in order to make these vehicles more consumer-friendly but they, too, are unsure what the volume of sales will be.

To take some uncertainly out of the picture, the Electrification Coalition advocates a "foothold strategy." Six to eight cities would create a number of incentives for electric vehicles, such as preferential parking and public charging stations. They would apply for government incentives and then test out the system to help bring electric cars to "critical mass," explained David Crane, the president and CEO of power generator NRG Energy.

In the first phase, the plan calls for getting 50,000 to 100,000 light-duty plug-in vehicles on the road per year in certain areas starting next year and then expand to 25 cities. Its report sets a target of having 25 percent of new vehicle sales be plug-ins by 2020, which is 5 million vehicles. A jump to 90 percent of new vehicle sales being plug-ins by 2030 would represent roughly 17 million units, according to data from consulting company PRTM.

For consumers, batteries should be owned and financed separately from the car itself, Crane said. Because batteries are an expensive component that makes it more expensive than a comparably-sized gasoline car, auto makers, including Nissan, are looking at ways to keep monthly car payments roughly the same by leasing batteries.

Governments around the world have established financial incentives for electric vehicles because it improves national security and addresses environmental problems, Nissan's Ghosn said. He noted that France, the U.S., and Japan each have established a tax credit of about $7,500 to consumers who buy an electric car.

In addition to federal tax credits, the coalition endorses incentives for municipalities dedicated to bringing in electric vehicles. Also required is technology to allow consumers to charge at off-peak times.

Speakers at the coalition launch also underscored the economic reasons for which governments are pushing electrification. Reducing oil imports would mean that billions of dollars of U.S. wealth would stop being exported, said Crane.

Government programs to drive investing in electric vehicle manufacturing also help the U.S. auto industry adapt to emerging technologies.

"We can do this. This is something we have the ingenuity for--we have enough innovation. What we need to do is capture that and use that to our advantage to build factories," said David Vieau, the CEO of A123 Systems.

Click for larger image.

(Credit: Electrification Coalition)

BOSTON--If you attached a cost to putting greenhouse gases into the atmosphere, how would the energy business change?

Steven Koonin, the undersecretary for science at the Department of Energy and former chief scientist of BP, has thought this question over. Koonin was the keynote speaker Thursday at the Fifth Annual Conference on Clean Energy here, where he offered a big-picture analysis of how the U.S. should convert to low-carbon energies.

Steven Koonin, undersecretary for science in the U.S. Department of Energy (DOE).

(Credit: DOE)

The main drivers toward cleaner energy are efforts to improve the country's energy security and to cut greenhouse gas emissions. But there are many paths to that destination and we won't get there by only putting a price on carbon, Koonin said.

"Now the economists will tell you that all you need to do (is put a price on carbon emissions) and the market will take care of itself after that," Koonin said. "And that may be true, but as a technologist I have the ability and in fact the responsibility to look ahead and ask what the likely responses will be if there is a carbon price."

Establishing a significant, long-lasting, and universal carbon price would act as a "supply side" signal to the energy industry and favor certain technologies, he said.

One clear implication for the U.S. would be a greater shift toward natural gas, which is significantly less-polluting than coal for making electricity. Recent drilling improvements allow for capturing large amounts of natural gas from shale in the U.S., Koonin said.

Onshore wind is economically competitive in many areas in the U.S. and has the potential to supply 20 percent of the country's electricity by 2030. Another clean source of power is small and medium-size hydro power, which can supply tens of gigawatts from small dams.

Nuclear fission, which now supplies about 20 percent of the electricity in the U.S., is also poised to expand in an economy with a carbon price because there are no emissions during power generation. Carbon capture and storage facilities attached to coal-power plants, too, are needed because existing coal plants will continue to operate, he said.

Finally, increased conservation and efficiency are required in both the transportation field and for heating and power, he said.

Not just about technology
Koonin favors a cap-and-trade system to regulate carbon emissions, a system proposed in the energy and climate legislation now being debated in the Senate. Under cap and trade, heavy polluters such as utilities are given pollution permits and can buy additional permits to stay under a government-set limit on carbon.

But other policies are required, in part because the energy industry by its nature changes very slowly. Koonin specifically mentioned portfolio standards, where utilities need to get a portion of their electricity supply from renewable sources or a "low carbon" portfolio standard.

"One of the most important things we need to do beyond technology is to accelerate energy change," he said. "It takes decades to affect significant changes in the energy system."

It's a mistake to look at the IT industry as a model for how quickly energy can change, Koonin said. Whereas digital technologies evolve very quickly, energy changes slowly because power plants and buildings last decades and even cars last 15 years.

The first hybrid passenger car came to the U.S. in 2001, and even now, eight years later, there are fewer than 1 million sold, out of a total 150 million cars, he noted.

The scale and investments required to adopt different energy technologies is much bigger in than IT, and the energy industry is dominated by incumbents with well-optimized processes, he added.

To accelerate changes in energy, the DOE has established different types of research centers. This year, there will be $25 million a year to fund three "innovation hubs" at universities focused on specific problems, such as advances in nuclear. The DOE also recently awarded grants for ARPA-E, research aimed at breakthrough technologies.

Correction at 2:33 a.m. PDT November 12: This story incorrectly stated the name of the wireless communications technology used by AlertMe. The system uses ZigBee.

The Wi-Fi Alliance has formed a task group to determine what standards need to be modified to ensure Wi-Fi is the tool of choice for smart-grid applications.

The nonprofit industry association that approves devices for the Wi-Fi Certified seal released a report Wednesday called "Wi-Fi for the Smart Grid: Mature, Interoperable, Security-Protected Technology for Advanced Utility Management Communications." The report expounds on all the possibilities for Wi-Fi as a communication tool for smart appliances, home area networks, neighborhood networks, and wide area networks integrating with smart grids. It also details how the standards being set by the U.S. Department of Energy for smart grids might affect Internet Protocol standards for Wi-Fi.

Wi-Fi seems like an obvious choice for electronics and appliances communicating with a wireless, smart grid-integrated system. The low-power, short-range data transmission method is already the dominant standard for digital communications among computers and electronics in wireless home and neighborhood networks.

Both GE and Whirlpool have said they are close to bringing smart appliances to the consumer market. But Whirlpool has said it's still waiting for an "open, global standard for transmitting signals to, and receiving signals from, a home appliance."

Google PowerMeter has already partnered with AlertMe in the U.K. on a do-it-yourself smart-appliance integration system for homes that bypasses the need for a smart meter and it relies on ZigBee not Wi-Fi. AlertMe relays information between a wireless hub that plugs into a home's broadband connection, smart plugs used by appliances throughout the house, and an electric meter monitor. It allows users to observe and regulate electricity use of their home appliances from anywhere in the world via Google's Web-accessible PowerMeter platform.

"Wi-Fi networks can be deployed to meet the Smart Grid requirements for robustness, manageability, performance, and security," according to the report.

But from the contents of the report, the Wi-Fi cognoscente also seem to realize that Wi-Fi device manufacturers will need to step it up if they want to provide the standard for smart-grid-related communications.

Dropped or insecure connections between a laptop and wireless network is one thing. But once Wi-Fi communications can affect appliances and electricity use, device irregularities or shortfalls in cybersecurity won't be tolerated by the U.S. government or consumers.

New Jersey regulators on Tuesday approved a proposal from utility Public Service Electric and Gas to expand its solar loan program by $143 million and 51 megawatts.

The program expansion means a total of $248 million in loans, translating into an estimated 81 megawatts worth of solar systems available to interested homeowners, businesses, and municipalities across the state.

Public Service Electric and Gas already has a program to install 200,000 solar panels from Petra Solar on N.J. utility poles and street lamps.

(Credit: Petra Solar)

Since Public Service Electric and Gas' (PSE&G's) first loan program for installing photovoltaic panels was approved in April 2008, about $105 million in loans, totaling 30 megawatts worth of solar systems, have been applied for by its customers, according to company statistics. While its seen as an expansion, the next round of funding is technically a completely new program approved by the N.J. Board of Public Utilities (BUP) with specific regulations.

The Solar Loan II Program will run on a first-come, first-served basis for the next two years, or until 51 megawatts in solar systems have been installed.

The loans should cover half the cost of a solar system installation, according to BUP estimates. They will be offered as 10-year loans for residential homeowners, and 15-year loans for commercial or municipal customers, which can be repaid in cash or via earned Solar Renewable Energy Certificates (SREC). One SREC is earned for every megawatt hour of solar energy created, according to PSE&G. The BUP also set preliminary monetary rates for SREC credits.

"Initially, the SREC floor price for residential systems is $450; for nonresidential systems up to 150 kw the price is $410; and for systems larger than 150 kw up to 500 kw it is $380. The floor prices offered for SRECs for new loan applications will be reduced by about 3 to 6 percent every 6 months," according to a statement from the BUP.

For the other half of installation costs, the BUP is recommending solar system owners apply for New Jersey Clean Energy Program rebates and federal tax credits.

"There's no question that providing a source of stable, secure capital--especially in our tough economy--has helped boost the number of solar energy systems in New Jersey," Ralph LaRossa, president and COO of PSE&G, said in a statement.

"We're pleased to do our part to make New Jersey a leader in solar energy installations, second only to California," he said.

LaRossa is justified in his assertion. While it can't compare to California, which has huge projects in the 550-megawatt range underway, New Jersey is a leading state for solar installations, as well as clean-tech projects in general.

The greater New York metropolitan area, which includes a large portion of N.J., was recently ranked No. 3 in the country for most clean-tech job activity in the U.S. by a recent report, with the solar sector leading the clean-tech job market overall. It was only lagging behind the greater metropolitan areas of San Francisco and Los Angeles in California, respectively. New Jersey was also ranked 7th by another recent report listing U.S. states doing the most to wean its residents off foreign oil.

In addition to its solar loan program, PSE&G was approved in July for a partnership with Petra Solar to install over 200,000 photovoltaic panels on N.J. utility poles and street lights to tie into the state's electrical grid. It was also approved to install 5 megawatts worth of solar equipment in New Jersey urban enterprise zones, and an another 10 megawatts to be installed on the properties of interested third parties.

U.S. Senator John Kerry said on Tuesday he will try to "outline" a compromise climate control bill before December's international global warming conference and U.N. Secretary-General Ban Ki-moon gave an upbeat assessment of Washington's intentions.

"From what I heard today, there is great support in the Senate for action on climate change," Ban told reporters following a meeting with a small group of senators in the U.S. Capitol to encourage them on.

Ban repeated a prediction that the December 7-18 U.N. global warming summit in Copenhagen will not produce a final deal on a new international regime for severely reducing harmful greenhouse gas emissions.

But he said he held out hope for a "robust" foundation being built in Copenhagen and said further progress by the U.S. Senate on domestic goals for reducing carbon dioxide pollution would send a "strong message" to the assembled 192 countries.

Kerry, a Democrat who is coordinating work on a Senate compromise bill, told reporters: "We are engaged in a process that will hopefully put us in a position to go to Copenhagen with a framework or outline of where the Senate will be heading in legislation."

Kerry added that Ban "made it crystal clear that leadership by the United States of America is critical" to Copenhagen and beyond.

Democrats on a Senate environment committee last week approved a bill to reduce U.S. industry's carbon emission by 20 percent from 2005 levels by 2020.

But that measure does not have enough support to pass the Senate. Kerry is working with Republicans and moderate Democrats on a bill that could reduce the 20 percent target as well as give new incentives for expanding U.S. nuclear power generation and domestic oil and gas production.

Despite the upbeat talk, deep political problems were on display in Washington.

Democratic Senator Max Baucus, who chairs the powerful Senate Finance Committee that will write portions of a climate bill, warned on Tuesday that tough trade protections would have to be part of any legislation.

"We can not allow our manufacturing industries to fade as a result of trade with countries that refuse to negotiate global solutions to global concerns," said Baucus.

Debate over jobs
U.S. moves to protect energy-intensive industries like steel, glass and cement have angered trading partners, including China, and many observers argue such provisions likely would violate international trade rules.

"It may not be what they (China) want to hear, but it isn't anything they don't already know," Dave Hamilton, a global warming expert at the Sierra Club environmental group, said of Baucus' new warnings.

Baucus said a "border measure" would be consistent with Washington's international trade obligations. Such language is seen as key to gaining the votes of moderate senators from industrial states.

Republican Senator Richard Lugar, a moderate who in the past has voiced fears that global warming could lead to conflict and instability in developing countries, had domestic concerns on his mind on Tuesday.

He said the meeting with Ban provided an opportunity to discuss "problems of recession and unemployment in our country." Many lawmakers fear that moving the U.S. away from cheap polluting fossil fuels to cleaner alternative energy will cost jobs and raise consumer prices.

A climate change bill already has passed the House of Representatives, where President Barack Obama's Democrats have a large majority. Although Democrats also control the Senate, it's easier for opponents there to delay legislation using procedural hurdles.

Baucus' Finance Committee held a hearing on Tuesday focusing on the job creation that could flow from a climate bill.

Van Ton-Quinlivan, a director of jobs development at Pacific Gas and Electric Co, a major California-based utility, said designing and creating a U.S. low-carbon energy system could require as many as 150,000 workers by the 2020s.

About 60,000 people will be needed to operate and maintain things like wind and solar farms by 2030, she said.

Margo Thorning, chief economist at the American Council on Capital Formation, said job losses under the House climate change bill may total 80,000 in 2020 and between nearly 1.8 million to more than 2.4 million in 2030.

At that hearing, Kerry shot back at Thorning: "Your studies aren't credible. You don't take into account the cost of inaction."

Story Copyright (c) 2009 Reuters Limited. All rights reserved.

CAMBRIDGE, Mass.--Al Gore, a self-described "wanna-be geek," is on the road talking about solutions to multiple problems.

The former vice president gave a speech at the First Parish Cambridge Unitarian Universalist church here on Saturday to promote his latest book, "Our Choice." Whereas "An Inconvenient Truth" documented the reasons for global warming, his latest book is focused almost entirely on ways to address climate change, Gore said.

But don't expect only a discussion of solar, wind and biofuels. In outlining the contents of "Our Choice" on Saturday, Gore said he consulted hundreds of experts in different fields to develop a comprehensive approach. The book includes discussions on carbon-capturing farming practices, word population projections, social psychology, and the political challenges to cutting fossil fuel use.

Al Gore signing books after his talk at the First Parish Cambridge Unitarian Universalist church in Cambridge, Mass.

(Credit: Martin LaMonica/CNET)

Rather than limit his remarks to climate change, Gore argued there are political and economic reasons to make a transition to a less-polluting society. "There is a common thread running through the discussion of climate, (national) security, and the economic crisis, and that is our ridiculous dependence on foreign oil and coal," he said.

The hundreds of billions of dollars a year the U.S. spends on importing foreign oil is one reason the military remains involved in the Middle East. It also undermines the country's finances, he said.

The economy, too, can be revived by developing emerging industries in the U.S. Among them are products and services to retrofit buildings to be more efficient; solar, wind, and enhanced geothermal power; a "super grid" that's able to transport solar and wind power efficiently; and plug-in electric cars.

"When put together, we have the tools and technologies to solve three or four climate crises," he said. "But the missing element is political will."

He predicted that the U.S. Senate will get a climate and energy bill through committee before the Copenhagen round of international climate negotiations next month. Despite the "odds and the pessimism," he said there is a chance for a binding political agreement from Copenhagen next month and a roadmap for a comprehensive treaty.

Gore said that an Internet-aided grass-roots movement is the way to influence political change on this issue.

People at green-technology companies will likely keep an eye on next month's global climate change negotiations in Copenhagen but they aren't betting their businesses on the outcome.

Research and events company Cleantech Group on Thursday released an analysis called "Why Cop15 Doesn't Matter," referring to the 15th conference of international climate change talks scheduled to start December 7 in Copenhagen.

With numerous political and economic issues complicating the picture, it would be surprising if a major breakthrough pact emerged next month. But whether there is a binding agreement won't have an immediate impact on the adoption of green technologies, according to research analyst Stephen Marcus, who was the principal author.

Instead, any progress in ongoing global negotiations is a more of a "milestone" toward a day when heavy polluters will need to account for the amount of greenhouse gases they emit.

"The private sector is not letting the (United Nations) bureaucracy get in the way of getting things done," said Cleantech group managing director Dallas Kachan during a conference call with reporters on Thursday. "The funds are already flowing."

The Cleantech Group estimates that between $5 billion and $6 billion in venture capital will go to green technologies, a category which received more money than software last quarter.

More significant is the amount of money and political commitment made by national governments around the world. Over the next few years, the United States will spend tens of billions of stimulus dollars to develop clean-energy industries, such as solar, wind, and plug-in vehicles. China, too, has made economic development around clean energy a national priority.

Government programs designed to promote clean-energy technologies, along with growing private-sector financial interest in green tech, will be the primary driver for investment in the short term, according to the Cleantech Group.

Writing on the wall
The U.S. Congress is now considering an energy and climate bill that calls for the creation of a cap-and-trade system to regulate greenhouse gases. Large polluters would be given a certain number of pollution permits and be able to buy and sell them to stay under a government-set cap on emissions.

On Thursday, the U.S. Senate's environment committee passed an energy and climate bill despite a boycott from Republican members. The bill faces an uncertain future as it still needs to pass other Senate committees and be reconciled with an existing House version before being passed into law.

Although one of the most discussed portions of the bill is cap-and-trade legislation, many green-technology investors and entrepreneurs say that other measures in the bill would have a more direct influence on their business plans.

For example, the bill calls for stepped-up efficiency standards and a mandate that utilities use a certain percentage of wind, solar, or geothermal energy in their power generation. By contrast, limits on carbon emissions and trading carbon permits would be phased in over several years with a percentage of the permits given away for free.

Still, there are a number of corporations lobbying for a climate bill because it sends a signal that there will be a cost attached to carbon emissions.

On Wednesday, a varied group of businesses, including large utilities, formed a new group to lobby Congress to quickly pass a climate bill now moving through the Senate. Called American Businesses for Clean Energy, the group was created to garner more public corporate support for a climate and energy bill that would limit greenhouse gases.

The initial companies are pushing for passage of a climate bill in the U.S. because they expect it to spur innovation.

"Many within the business community are urging Congress to adopt meaningful energy and climate legislation, so we can move forward with investments in technologies and infrastructure that will be needed to meet future energy demand, grow our economy, and protect our environment," Tom King, the president of utility National Grid, said in a statement.

WASHINGTON--A key U.S. Senate environment committee approved a Democratic climate change bill on Thursday that would require industry to cut emissions of carbon dioxide and other greenhouse gases 20 percent by 2020 from 2005 levels.

The bill approved by the Environment and Public Works Committee will now become one of several initiatives in the Senate aimed at attacking global warming. But they are unlikely to produce legislation that would be voted on by the full Senate until next year at the earliest.

With Republicans boycotting the environment panel's measure, saying more analysis of the legislation was needed, 10 Democrats approved the bill and one Democrat, Sen. Max Baucus, voted against it.

Sen. John Kerry, who co-authored the bill with fellow Democrat Barbara Boxer, is leading an effort with some Republicans and the White House to draft a compromise.

Democrats in Congress, working on a major plank of President Barack Obama's agenda, have been anxious to show at least some progress on enacting a domestic climate change bill before December 7, when an international global warming summit convenes in Copenhagen.

While there were scores of amendments to the bill that environment committee members wanted to debate and vote on before approving it, they were unable to because of the Republican boycott.

Under committee rules, at least two Republicans had to be present to debate and vote on changing the bill.

Boxer delayed work on the legislation for two days, saying she was giving Republicans the opportunity to collect more information from EPA officials and to offer their own amendments.

But Republicans did not take her up on the offer and by Thursday, Boxer had lost patience with the delay.

She opened Thursday's work session reading from a letter from John Rowe, Chief Executive of Exelon, one of the country's largest utilities.

Calling the bill written by Boxer and Kerry "an excellent starting point," Rowe wrote, "We urge you as chairman, as well as your colleagues, to take the steps necessary to order the bill reported by the committee so that climate legislation can be considered by the full Senate."

Baucus' vote against the bill reflected the difficulties ahead in crafting a measure that would attract the 60 votes needed for passage by the Senate.

As an influential moderate Democrat, Baucus laid out changes he would seek, including a weaker carbon-reduction target. Other Midwestern and Southern senators from states heavily reliant on coal will seek their own changes, which could upset liberals now supporting the bill.

Story Copyright (c) 2009 Reuters Limited. All rights reserved.