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Tesla Motors, Inc. took another step closer to obtaining the manufacturing capacity to build electric vehicles, closing on a $465 loan from the Department of Energy last week. Plans are to use the Southern California plant, which will be located in Palo Alto, to build the model S electric sedan. The plant will also manufacture battery packs, electric motors and vehicle control equipment for Tesla’s vehicles and for sale to other auto manufacturers. Tesla plans to begin volume production of the model S in 2012, and says it will be capable of producing 20,000 vehicles per day by the end of 2013.

The model S is expected to get between 160 miles and 300 miles on a single charge. Of course, the vehicle’s success will hinge on the number of charging stations on the highways. The Web site evchargernews lists 15 Tesla charger stations in California.

Thursday’s loan arrangement is the second from the DOE to a vehicle manufacturer. In September 2009, the DOE signed its first loan agreement for $5.9 billion to the Ford Motor Co.  It has also signed conditional commitments with Nissan North America, Inc. and Fisker Automotive. Nissan plans to build electric cars and battery packs at the company’s Smyrna, Tenn. manufacturing complex, while Fisker has announced plans to build plug-in hybrid electric vehicles by reopening a shuttered GM plant in Wilmington, Del.

Struggling carmakers have put some marketing muscle behind fuel-efficient vehicles this year. One visible sign: the parade of electric vehicles showcased on “Electric Avenue” at the North American International Auto Show in Detroit. And, as noted by the American Council for an Energy-Efficient Economy, the first full-function all-electric vehicles are coming our way in more than a decade. Today the ACEEE released its environmental ratings for model year 2010 vehicles. The annual ranking assigns a “green score” to vehicles, which incorporates tailpipe emissions, fuel consumption and emissions of gases that contribute to global warming.

According to ACEEE vehicle analyst Shruti Vaidyanathan, advanced technologies exemplified by the Chevrolet Volt and Nissan Leaf, both of which are scheduled for make an appearance in the latter half of 2010, has intensified interest in electric vehicles among car manufacturers. Nonetheless, the eco-winners were hybrids and smaller conventional vehicles. Just missing the cleanest list are the diesel-powered Volkswagen Jetta and Jetta Sportswagen, two “clean diesels” introduced in the United States last year. While the diesels performed well in the group’s annual evaluations, high prices of the vehicles and diesel fuel have held back sales.

Topping the list of greenest cars this year is the Honda natural-gas powered Civic GX, followed by the Toyota Prius and Honda Civic Hybrid, in that order. new arrivals to the greenest list are the Honda Insight, Ford Fusion/Mercury Milan Hybrid and the Hyundai Accent Blue. The list is rounded out by three fuel-efficient conventional vehicles: Smart Fortwo, Chevrolet Cobalt XFE and Pontiac XFE.

And just for fun, here is a list of the “meanest” vehicles (led by the Lamborghini Murcielago) and a list of “greener” vehicles, a selection of widely available models in each vehicle class.

Canadian utility Hydro-Québec and Mitsubishi Motor Sales of Canada Inc. have signed an agreement that will lead to the launch of Canada’s largest all-electric vehicle pilot project this coming fall.

i-MiEV electirc car. Source: Mitsubishi

In collaboration with Boucherville, Quebec, the utility will test the performance of up to 50 all-electric Mitsubishi i‑MiEV electric vehicles on the road under a variety of circumstances, notably winter conditions. The project, which will cost $4.5 million, will evaluate study the vehicles’ charging behavior, the driving experience and overall driver satisfaction.

Thierry Vandal, Hydro-Québec’s president and CEO, said the test  “will allow us to advance our knowledge of the technology and its integration into our grid, which in turn, will help us plan the necessary charging infrastructure for homes, offices and public places.” Boucherville is located near Hydro-Québec’s IREQ research institute and a local Mitsubishi dealership that will oversee the i-MiEVs’ maintenance.

The i-MiEV, which stands for Mitsubishi Innovative Electric Vehicle, is an all-electric, highway-capable, charge-at-home commuter car. In June Mitsubishi said it planned to lease 1,400 i-MiEV vehicles to corporations and to begin selling them to individuals in April 2010.

Source: University of Washington

There’s the LEED system for rating sustainable buildings and Energy Star for appliances. Now there’s a rating system for highways and roads, which account for $80 billion annually in U.S. construction projects.

University of Washington researchers and engineering firm CH2M Hill today unveiled Greenroads, a rating system for sustainable road design and construction. Environmental, economic and social impacts are included. The system outlines minimum requirements to qualify as a green roadway, including plans for noise mitigation plan, storm-water management and waste management. It allows up to 118 points for voluntary actions such as minimizing light pollution, using recycled materials, incorporating quiet pavement and accommodating non-motorized transportation.

“The LEED [Leadership in Energy and Environmental Design] system has been really successful and has achieved a lot,” said lead author Steve Muench, a UW assistant professor of civil and environmental engineering. “Roads are a big chunk of the construction industry that has an opportunity to participate more fully in sustainability practices. I think there’s a lot of opportunity there.”

The rating system was developed during the past three years. Greenroads’ aims are to recognize companies already using sustainable methods; to provide a catalog of ideas for greener practices; and to offer an incentive for agencies and companies to build more environmentally friendly roads. The system can be used either for new road projects or for upgrades on existing roads.

“This helps our industry become more sustainable and shows the public that we can deliver sustainable roadways,” said Tim Bevan, west region technology manager at CH2M Hill. “To some, it has not been perceived to be that important, but more and more we’re finding the public is concerned about the environmental impacts of roadways.”

Oregon’s Department of Transportation and the British Columbia Ministry of Transportation and Highways have expressed interest.

Fisker Automotive reached an deal with battery maker A123 Systems today to provide lithium-ion batteries for the Karma plug-in hybrid car. The announcement came one day after Fisker broke off with battery supplier Ener1. The Karma will have a range of 50 full-electric miles on a charge of A123′s lithium-ion battery system and a total range of 300 miles with an on-board generator turned by a traditional  four-cylinder gasoline engine. The Karma features 403 hp and is designed to go from 0 to 60 mph in about six seconds, reaching a top speed of 125 mph.

A123 plans to manufacture the cells and systems at its Livonia, Mich. facility with production slated to commence later this year. A123 also announced its intent to invest up to $23 million in Fisker Automotive’s current funding round, consisting of $13 million in cash and $10 million in A123 common stock. A123 announced today that it has begun to make investments in its 300,000 square foot plant in Livonia to expand the final cell assembly capacity.

Fisker Automotive's Karma electric vehicle. Source: Fisker Automotive

Ener1, the lithium-ion battery supplier, reportedly has dropped its bid to supply batteries for the Karma, Fisker Automotive’s luxury plug-in hybrid electric vehicle. According to the Detroit Free Press, Henrik Fisker, CEO of Fisker, said talks were dropped because the EnerDel unit of Ener1, would not be able to meet the automaker’s production requirements for the Karma. The announcement was made jointly by Fisker and Charles Gassenheimer, CEO of Ener1, at the Automotive News World Congress in Detroit. Fisker said he would announce another battery supplier for the vehicle by the end of this week. EnerDel signed a letter of intent to supply the lithium-ion batteries for the Karma in May of last year. At the time Fisker announced plans to build 15,000 vehicles per year.

Ener1 continues to be involved in the electric vehicle market. In September it teamed up with Volvo to provide lithium-ion batteries for the Volvo C30 Battery Electric Vehicle prototype. The battery supplier also collaborated with Volvo on the plug-in hybrid V70 demonstration vehicles that have been road-tested in Europe. Ener1 also holds an equity stake in the Norwegian electric vehicle producer Think Global and has a long-term battery supply agreement with that automaker.

Prices of petroleum, natural gas and coal are set to increase after declines during 2009, according to the U.S. Energy Information Agency’s Short-Term Energy Outlook released yesterday. Here are some of the highlights from the report, which is the first to include monthly forecasts through December 2011. A PDF file of the complete report is here.

Global Crude: Global oil demand declined in 2009 for the second consecutive year. The world oil market demand should gradually tighten in 2010 and 2011, in line with the global economic recovery. Non-OPEC oil supply increased in 2009 due to increased production in the U.S., Brazil and the former Soviet Union. The largest source of non-OPEC growth was Brazil, the result of rising offshore and biofuels production. However, these gains were offset by declines in production in the North Sea. OPEC crude oil production will remain high, increasing to 42% of market share in 2011 from 40% last year.

U.S. Liquid Fuels: In the U.S., liquid fuels consumption declined by 4.2% in 2009, with the exception of motor gasoline, which remained the same. Petroleum consumption will rise in 2010 and 2011. Domestic production of ethanol will continue to grow to meet the volume requirements of the Renewable Fuel Standard. For consumers, pump prices for gasoline will pass $3 per gallon this spring and summer. Highway diesel fuel prices, which averaged $2.46 per gallon in 2009, will average $2.98 per gallon in 2010 and $3.14 per gallon in 2011.

Natural Gas: Natural gas usage fell by 1.5% in 2009 due to the recession. Overall natural gas use will be unchanged in 2010, and will grow in 2011 and 2011. Natural gas prices will rise in 2010.

Electricity: U.S. electricity consumption will grow by 1.9% in 2010, driven by an increase in the residential and industrial sector sales. Improving economic conditions in the industrial sector will drive electricity consumption growth in 2010 and 2011 by 2.2% and 2.5%, respectively. Wind, nuclear and coal-fired generation will supply most of this demand growth. Many utilities have made downward fuel cost adjustments recently as a result of lower fuel costs in 2009.  These adjustments have been offset somewhat by the need to increase revenues to cover the capital costs of expanding renewable energy generation.  Overall, forecast residential electricity prices fall by 0.9% in 2010 and increase by 1.4% in 2011.

Coal: Estimated coal consumption by the electric power sector fell by nearly 10% in 2009.  Lower total electricity generation combined with increases in generation from natural gas and hydropower led to the decline in coal consumption.  Anticipated increases in electricity demand and higher natural gas prices will contribute to growth in coal-fired generation in 2010 and 2011.  Forecast coal consumption in the electric power sector increases by almost 4% in 2010.

Carbon Dioxide Emissions: CO₂ emissions from fossil fuels fell by an estimated 6.1% in 2009.  Emissions from coal led the drop in 2009 CO₂ emissions, falling by nearly 11%.  Declines in energy consumption in the industrial sector, a result of the weak economy, and changes in electricity generation sources are the primary reasons for the decline in CO₂ emissions.  Looking forward, projected improvements in the economy contribute to an expected 1.5% increase in CO₂ emissions in 2010.  Increased use of coal in the electric-power sector and continued economic growth, along with the expansion of travel-related petroleum consumption, lead to a 1.7% increase in CO₂ emissions in 2011.  However, even with increases in 2010 and 2011, projected CO₂ emissions in 2011 are still expected to be lower than annual emissions from 1999 through 2008.

Department of Energy Secretary Steven Chu announced $187 million to improve the fuel efficiency of heavy-duty trucks and passenger vehicles. The funding includes about $100 million from the American Recovery and Reinvestment Act, and with a private cost share of 50%, will support about $375 million in research, development projects. The companies have stated that their projects will create about 500 new jobs to develop the new technologies.

The award covers funding for nine projects. Three will focus on cost-effective measures to improve the efficiency of Class 8 long-haul freight trucks by 50%. The projects will include $115 million to develop and demonstrate fuel-efficicncy technologies by 2015, including improved aerodynamics, waste heat recovery, advanced combustion and powertrain hybridization. The remaining six projects, totaling about $71 million, will support increased fuel economy for passenger vehicles and powertrain systems. The goal is to develop engine technologies that will improve fuel economy by 25% to 40% by 2015.

Most of the funds are targeted to companies located in Michigan and Indiana. Here are the details.

• Cummins Inc., Columbus, Ind., $38.8 million. Develop and demonstrate a highly efficient and clean diesel engine, an advanced waste heat recovery system, an aerodynamic Peterbilt tractor and trailer combination, and a fuel cell auxiliary power unit to reduce engine idling.
• Daimler Trucks North America, LLC, Portland, Ore., $39.6 million. Develop and demonstrate technologies including engine downsizing, electrification of auxiliary systems such as oil and water pumps, waste heat recovery, improved aerodynamics and hybridization.
• Navistar, Inc., Fort Wayne, Ind., $37.3 million. Develop and demonstrate technologies to improve truck and trailer aerodynamics, combustion efficiency, waste heat recovery, hybridization, idle reduction, and reduced rolling resistance tires.
• Chrysler Group LLC, Auburn Hills, Mich., $14.5 million. Develop a flexible combustion system for their minivan platform based on a downsized, turbocharged engine that uses direct gasoline injection, recirculation of exhaust gases, and flexible intake air control to reduce emissions.
• Cummins Inc., $15 million. Develop a fuel-efficient, low emissions diesel engine that achieves a 40 percent fuel economy improvement over conventional gasoline technology and significantly exceeds 2010 EPA emissions requirements.
• Delphi Automotive Systems LLC, Troy, Mich., $7.5 million. Develop a novel low-temperature combustion system, coupled with technologies such as continuously variable valve control and engine downspeeding, to improve fuel economy by at least 25%.
• Ford Motor Co., Dearborn, Mich., $15 million. Achieve a 25% fuel economy improvement with a gasoline engine in a 2010 mid- to large-size sedan using technologies including engine downsizing, turbo-charging, direct injection and a novel exhaust aftertreatment system.
• General Motors Co., Pontiac, Mich., $7.7. Develop an engine that uses lean combustion and active heat management, as well as a novel emissions control system, to improve the fuel economy of a 2010 Malibu demonstration vehicle by 25%.
• Robert Bosch, Farmington Hills, Mich., $12 million. Demonstrate a high-compression, turbo-charged engine based on homogenous charge compression ignition technology (a combustion technology that allows for lower emissions and higher efficiency)  to achieve up to 30 percent fuel economy improvement in a gasoline-fueled light-duty vehicle.

Up to 16% of new vehicles bought by New Yorkers could be electric by 2015, according to a report released today by the Mayor Michael R. Bloomberg. The study, developed with McKinsey & Co., found that a potentially large group of New Yorkers in all five boroughs are willing to embrace the idea of driving electric vehicles and become “early adopters.” Here is a PDF of the study, “Exploring Electric Vehicle Adoption in New York City.”

“Before we pursue a transportation strategy that embraces electric vehicles, we need to see data on who would use them, and how,” said Mayor Bloomberg. “We now know for the first time what the electric vehicle market in New York City looks like–from the supply side and the demand side. Now we can make informed choices that will help us reduce emissions in the most efficient way.”  Transportation emissions now account for 22% of the city’s greenhouse gas emissions.

According to the report, of the new car buyers willing to acquire an electric vehicle, 9% would opt for plug-in hybrids, 6% would choose shorter range electric “city” cars and the rest would drive full range electric cars. The demand would mean that electric vehicles would account for 2.5% of the city’s total vehicle population by 2015, or 50,000 vehicles in total.

The report notes that nine major automakers have promised to introduce 12 electric vehicle models in the next three years. Battery prices will decline between 6% and 8% every year, removing a price barrier for many consumers. An uptick in demand for electric vehicles will put extra demands on the electric grid, especially is “clustering” of adoption increases the electric load in small areas. Demand spikes could be moderated by “smart charging” that allows electric vehicles during hours of lower overall demand.

Not only was 2009 a low point for the U.S. economy, it also marked the end of the steady increase in the number of cars on U.S. highways. Lester R. Brown, president of the Earth Policy Institute, noted yesterday that the 14 million cars scrapped last year exceeded the 10 million new cars sold. As a result, the U.S. fleet is smaller by 4 million vehicles, shrinking nearly 2% in a year’s time.

Brown believes this could be the start of a long downward march on the number of cars on the road in this country. The number of cars scrapped in 2009 exceeded new car sales for the first time since World War II. In 2008 the number of cars on the road in this country hit an all-time high of 250 million vehicles. The fleet stood at 246 million vehicles at the end of last year. Citing a number of factors, he thinks that scrappage will continue to outpace sales through at least 2020.

Here’s a rundown of the most important trends:

• Market saturation. There are now five registered vehicles for every four licensed drivers. In Japan, annual car sales have declined by 21% since 1990. The Texas Transportation Institute has reported that traffic congestion costs soared from $17 billion in 1982 to $87 billion in 2007.
• Four out of five Americans now live in cities, and many mayors have tried to improve public transportation systems and creating pedestrian-friendly streets. Washington, D.C., has rewritten codes to cut the number of parking spaces required for new residential and commercial buildings.
• Economic uncertainty. With many consumers swimming in debt, fewer people are willing or able to take on car loans.
• Uncertainty about gas prices.
• Cultural shifts. There is a declining interest in cars among young people. The number of teenagers with licenses now stands at 10 million, down from a peak of 12 million in 1978. This despite the fact there are more teenagers among us today than ever.

These factors may well hold new car sales to between 10 million and 14 million per year, well down from the 17 million cars sold annually between 1999 and 2007, Brown says. In addition, many of the cars sold during the boom years between 1999 and 2007 are reaching their end of life and will head for the scrap yards.