Monday, October 27, 2008

Better Place: an expanded model of electric transport


http://www.sciam.com/blog/60-second-science/post.cfm?id=electrifying-cars-down-under-2008-10-23

http://www.betterplace.com/

The business model for automobiles and cellular phones don't seem very similar at first, but that will change if entrepreneur and former SAP software engineer Shai Agassi has his way. His CA start-up called "Better Place" is pitching a new electric automobile network, and companies/nations have been so impressed already that he's garnered a billion dollars in venture capital, even in this tight economic climate. He already has contracts with Denmark and Israel, and Australia (the most carbon-spewing nation per capita, even more than the US/China) recently signed on as well.

His innovative approach centers on paying for the miles you drive instead of the actual car, like cell phone plans with minutes included and the phone comes free (or heavily discounted). If all works well and his system reaches a sufficient scale for efficiency, he even makes the audacious claim that customers will get their cars for free. Deutsche Bank analysts have studied this possibility and concluded that it's feasible. Renault-Nissan have developed the prototype vehicle for Better Place's network, and unveiled at an Israeli auto show in January. It uses an advanced litium-ion battery (like personal electronics) and has a range of about 100 miles with peak horsepower of 91. Sure it's not a Corvette, but it's not an Insight either. It's performance is comparable to a 1.6 L vehicle and looks like a typical compact 4-door sedan (see below). 500,000 units are supposed to hit showrooms, starting in 2011 for the first customers Denmark and Israel.

With a projected 2.5 charging stations per EV on the road, customers shouldn't have to worry about running out of power, especially when most urban residents drive less than 40 miles per trip. Using current technologies, 1 mile of normal driving power will take 1 min to charge, so it won't be an all-day ordeal. On-board GPS will locate the most convenient charging locations. Israel estimates that 1/6 of its parking spots could be converted into charging stations to make this work. There will also be automated battery replacement stations that operate similar to car washes (see simulation video below). This way, you can just get a fresh power supply without much delay if you're taking a cross-country trip. Small nations like Denmark and Israel may not need it, but for Aussies driving across the Outback (or potentially Californians commuting from SF to LA), it will help a lot. So in order to be accepted by the consumers, EV charging mustn't be more inconvenient than our current system of refueling at gas stations and taking your car in for regular oil changes/tune-ups (which EVs won't need).

http://www.youtube.com/watch?v=f9bc4vNccL0

So Better Place will make it's money on mileage/power plans for its customer network. I am not sure how much it will cost to drive a mile, but again, it has to be affordable vs. gasoline to gain acceptance. The up-front infrastructure costs will be huge, but hopefully governments will contribute in return for the benefits of less pollution and oil dependence. Especially for nations like Israel and Denmark with abundant renewable power (wind in Europe, sun in the Middle East), nature will literally power human transport. Though this model may not work for rural peoples, who could get gasoline credits or hybrid subsidies instead. Of course this plan is quite radical, and may encounter stiff resistance from more conservative oil and auto interests, who still refuse to stop marketing SUVs. Aircraft, buses, and freight trucks will still need to rely on fossil fuels, but alleviating the passenger vehicle sector will do wonders for our oil consumption. Though another concern is where the electricity will come from. It doesn't do much good to power electric cards from coal or petroleum-fired plants, so the power sector has to evolve in parallel for their plan to be successful. Hence Better Place's partnerships with power companies like Australia's AGL Energy, in order to build wind farms of sufficient scale to power their auto grid.

But the sad reality of all of this is, "If the 700 million cars on the road today were powered by re-chargeable batteries, our carbon footprint would be reduced by 10%," according to BetterPlace.com. A lot of effort for just 10% savings, but maybe weaning us off gasoline automobiles from an energy security standpoint is the larger benefit. Though on a separate page in Better Place's website, they estimate carbon savings of 40%. So not sure which figure is more accurate, but every bit helps.

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