Important: PHEV Consortium Interview in EV World
Sep 20, 2005 (From the CalCars-News archive)

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http://www.evworld.com/view.cfm?section=article&storyid=892
Inside the PHEV Consortium
By Bill Moore
Part one of two part interview with members of the new Plug-In Hybrid
Electric Vehicle Consortium.
September 08, 2005

The newly formed Plug-In Hybrid Electric Vehicle (PHEV) Consortium has set
itself a pair of ambitious goals, according to David West, the director of
marketing for Raser Technologies. It wants to insure that plug-in hybrid
technology costs no more than current automobiles and that consumers don’t
have to compromise on performance.

How they plan to accomplish both objectives will be interesting to watch,
but by virtue of the fact that the four companies, which include Raser,
Pacific Gas & Electric, Electrovaya and Maxwell Technologies, have
established the consortium signals an important watershed in the PHEV movement.

Although no one has yet settled on a good marketing handle for the
technology, the term "plug-in" seems to best describe how the vehicle is
powered, at least partly. Current hybrids use gasoline and kinetic energy
to keep their relatively small battery packs recharged. Plug-in or
grid-chargeable hybrids utilize a much larger battery pack that is charged
from the local electric power grid. That energy is used to propel the
vehicle from 20-60 miles depending on the size and type of the battery
used. Only a relative handful have actually been built, some by private
owners and entrepreneurs and others by U.C. Davis students under the
guidance of Dr. Andy Frank. Beyond the 20 or 60 mile electric-only range,
the hybrid’s normal gasoline engine kicks in and the car reverts to normal
gasoline-electric hybrid performance.

What the Consortium is seeking to do is move the concept to the next level
of development by combining the key technologies provided by each
consortium member. Raser Technologies would provide its high-power electric
motor, while Canadian-based Electrovaya would team up with Maxwell to
develop an ultracapacitor-lithium polymer hybrid battery.

Robert Tressler, with Maxwell, said that his company is excited about
joining the consortium because it will enable his firm to provide "cutting
edge" technology, as well as help influence how that technology finds its
way into plug-in hybrids. In fact, all three manufacturers are offering
state-of-the-arts products and designs which have only surfaced in the past
several years.

"The imperatives in the consortium of providing both a cost-effective
solution, as well as bridging the gap between theory and practicality is
really critical in the long term", Tressler stated.

"Obviously, with the rise in fossil fuel cost and everyone paying north of
$65-70 a barrel for oil, the sensitivity and the ability for us to come to
the marketplace with real options for consumers that don’t effect them in a
dramatic way in the pocketbook, but rather gives them some relief, is
really exciting for us".

Speaking for Electrovaya, which did not have a representative available for
the conference call, David West explained that its Superpolymer ® lithium
battery technology offers the potential to provide both the energy (range)
and power (acceleration) needed to power plug-in hybrids, especially when
paired with supercapacitors such as those manufactured by Maxwell.

Brian Stokes, representing PG&E, one of California’s largest utilities,
explained why his company joined the Consortium by noting that it’s been
active in various electric drive programs for some 15 years. It has a fleet
of 13,000 vehicles and has implemented an environmental policy that
requires it to "walk the talk". He believes in the need to offer consumers
a no-cost or low-cost option that will help the utility’s service area
improve its air quality.

While there are only four members in the consortium, at the moment, West
explaine69 0at it will be open to other EV-centric technology developers
including other motor, electronics and battery manufacturers. The
consortium also wants to eventually include automotive OEMs in what West
calls Phase Two.

"The success of the consortium depends on the participating and leadership
of an OEM. But our first task at hand is to make sure that we take to the
table off-the-shelf, or available technologies that can get this car built,
and demonstrate that they are ready to be built, in that the product is
feasible.

"So, the first phase of the consortium is for the component suppliers to
get together, make sure that we have enough components of what we call
off-the-shelf or available already to be put into a proof-of-concept car…
And get a lot of the work done to show that this is feasible and, thereby,
attract OEMs to participate either with that design or take on some of the
components that are presented through the consortium into their own designs
to help accelerate that process".

West sees OEM participation as "critical and key" and he hopes that it will
be only "a few short months" until one or more can be brought into the
consortium.

Breaking the Mileage BarrierIf and when a major OEM does decide to join the
consortium, it will mark a major turn-around in automaker attitude, which
has largely dismissed for years the concept of electric-motor dominate
hybrids, along pure battery electric vehicles, which they tend to lump into
the same uneconomic niche.

But what projects like those initiated by Energy CS and CalCars demonstrate
-- not to mention the disappointing mileage numbers for the current batch
of hybrids, the latest of which show virtually no improvement in fuel
efficiency -- is that in order to break the current fuel economy barrier of
40-60 mpg (5.8 to 3.9 liters/100km), more of the vehicle’s energy has to
come from electricity.

The reason is simply.

An internal combustion engine is only 24-30 percent efficient, depending on
whether its gasoline or diesel-fueled. In contrast, electric motors can be
over 90% efficient. Batteries can have similar efficiencies. Even the
oldest coal-fired electric power generator has an operating efficiency of
30-35 percent, while new, combined cycle gas turbines are 60 percent
efficient. More of the primary energy generated through the electric power
grid reaches the wheels than does that from gasoline or diesel fuel.

This is why the handful of plug-in prototypes on the road today can claim
to get the equivalent of 120-160 mpg for the first 20-to-60 miles. Since 50
percent of Americans drive only about 25 miles a day, even a 20-mile range
PHEV means they will be burning virtually no gasoline during the week,
while operating for pennies per mile on electricity, which comes from
domestic energy sources, not imported oil.

"The only way to get to these numbers", West stated, "is to get past the
combustion engine, to get towards electric motor-dominate solutions…"

What he sees for Phase One of the project is an e-motor dominate hybrid
with an electric-only range of 20 miles, followed by one with a 50 mile
battery range. The latter number would cover virtually 80 percent of all
daily driving needs in America, while the former number would take care of
half of all Americans, he said, referring to U.S. government data. The
precise nature of the underlying hybrid architecture will be determined by
the consortium.

Equivalent to 24 Cents Gallon
"What we think is very, very important about taking this next step is we go
from very ethereal benefits, in order words a number on a mileage sticker
on a car that claims 25 or 28, 30 or 40 miles per gallon to a car that
actually doesn’t turn on the combustion engine perhaps five days a week or
seven days a week for many drivers… that allows them to drive without going
to the gas station... It allows them… most significantly… to operate right
here in Utah at 24 cents per equivalent gallon or in California [for] maybe
50 cents per equivalent gallon.

"In light of $3-and-rising liquid fuel costs, the ability to get a lot of
your driving done at 24 and 50 cents per equivalent gallon is a tremendous
incentive, and we think it’s perhaps the catalyst or critical mass that
will allow consumers to really adopt hybrid cars in a broad way.

Both Stokes and West took pains to explain that the consortium isn’t
interested in creating an alternative car, but simply providing the
components, either individually or as an integrated drive system that
automakers can adapt to their product lines. The decision of what gets used
and how rests with the OEM. The consortium wants to proves it’s feasible
and affordable to do.

"It provides a sensible transition from where we are now to where we need
to be. That’s really one of the things that’s been missing from the plans
here in the U.S. is how do we get to fuel cell vehicles? How do we get
there from here? It’s a realistic transition that makes economic sense,
that gets us to a commercial or production-worth design," West explained.

He added that its entirely possible that multiple vehicles may emerge from
the consortium, each one demonstrating a different architecture -- series,
parallel or a combination of both -- depending on OEM needs. He envisions
the possibility of one carmaker using the consortium-developed drive
system, while another uses only selected components. Above all, he believes
the technology needs to adapt to consumer needs, not consumers adapt to the
technology. He wants the free market to work its magic, letting consumers
decide which approach works best.

Given there are hundreds of millions of cars and trucks on the road today,
I asked if the consortium had given any thought to also investigating ways
to create retrofit solutions that could be used to improve the fuel
efficiency of the current fleet.

West responded that it’s entirely possibly that such solutions could
emerge. He noted that it’s possible today to install an electric motor in a
vehicle’s differential, as well as equipping small four cylinder cars with
belt-driven starter-alternators to give the vehicle at least automatic
stop/start capability to help save fuel wasted while idling.

He also added that the consortium wants to work with other organizations
such as the California Cars Initiative, as well as with various leading
academic institutions such as U.C. Davis and the University of Wisconsin at
Madison, both of which have been actively involved for a decade in
developing advanced e-drive components and systems.

http://www.evworld.com/view.cfm?section=article&storyid=895
Inside the PHEV Consortium - Part 2
By Bill Moore
Conclusion of interview with representatives of the new Plug-in Hybrid
Electric Vehicle Consortium.
September 16, 2005

Raser Technologies' David West was the original driving force behind the
consortium, approaching ultracapacitor-maker Maxwell Technologies with the
idea to work cooperatively to develop both individual components and
systems that could work together in future hybrid vehicles, thereby making
it easier to get the larger OEMs to adapt the resulting products.

Maxwell's Robert Tressler explained that from his company's perspective,
the consortium, "enables technology to get into the mainstream and out of
laboratories and on the road.. Allowing people the opportunity to benefit
from the vision that David (West) is… establishing as he forms the consortium".

As West explained, the catalyst for forming the core group began at the
EDTA's summer legislative conference in Washington, D.C., when West,
Stokes, and Maxwell's Richard Smith got together and discovered they shared
common goals, as well as common problems. They agreed that component
suppliers needed to work together more closely, "so that our technologies
could be designed correctly to work together, and also to reduce
development costs and development time". They also thought that by forming
a united effort, they could also reduce some of the frustrations carmakers
were experiencing in developing state-of-the-art electric-drive systems
that weren't prohibitively expensive.

"I think all of us have been looking for this opportunity for a long time
to see how we can solve these problems, and this became the sensible way to
do it", West commented.

Pacific Gas & Electric's (PG&E) Brian Stokes explained it's his wish that
within a year the consortium will have a prototype system ready to show to
carmakers, using it as a means of opening dialog into the needs and
concerns of the OEMs. The approach certainly has logic to it. Carmakers,
historically, have been highly skeptical of the grid-connected
hybrid-electric car concept, questioning everything from its engineering
feasibility to marketability. They have often dismissed it as just a ploy
by power companies to sell more American-made electricity, as if that were
worse than oil companies selling drivers more imported petroleum.

Assuming in a year's time the consortium is able to begin serious
discussions with OEMs, it typically takes at least three years for an idea
to find its finally expression on the production line. So, a true plug-in
hybrid with an initial 20 miles of electric-only driving range, after which
the internal combustion engine would start running and burning liquid fuel,
wouldn't makes it debut until at least 2009.

West added that the consortium's first goal is to increase its membership
beyond the original core companies: Raser, Maxwell, Electrovaya, and PG&E.
Companies interested in joining the consortium should have compatible
technologies that can help the program reach its stated objectives.

The consortium's second goal is to develop a feasible design that has been
jointly developed with OEM input.

"The critical thing here is to have a system integrator that looks at this
and makes those hard decisions: balance between performance and the costs
between components… how much to give to the ultracaps and how much to give
to the battery, etc.".

West sees the consortium members bringing the project to the point that the
member OEM can then do the final system design. As a interim step, Raser's
Chief Technology Officer, Tim Fehr -- a former senior vice president with
Boeing Engineering -- will serve as the temporary system integrator, while
the consortium looks for someone to assume the role, full time.

According to West, that person's task will be to "make sure the proposed
design does make sense scientifically and economically. From there, each
participating OEM can adapt components designed to their needs. The
ultimate goal from there is to get a physical car driving that meets these
goals within a year, or what seems reasonable to the participating OEMs.

In addition to each consortium member providing funding and expertise, the
group will also seek federal funding as part of an effort to "fast track"
the program, which West characterizes as a Boeing "Phantom Works" project,
in which Raser's Fehr oversaw the development of the Boeing 777, among
other projects.

"We plan to make this a fast track, commercial objective that may present
alternatives to FreedomCAR. It may present alternatives to OEMs that they
can adapt quickly without disrupting the current FreedomCAR project or
funding", West stated. He added that ultimately, he sees this technology
being applied to fuel cell vehicles that also offer the ability to use
energy from the power grid.

Beyond the 20-mile battery range prototype, the next phase of the project
is creation of a 50-mile range demonstrator.

West also clarified what he means by "off-the-shelf" saying that it means
the demonstration car is built out of technology that can be immediately
put into production.

"If the OEMs decide that they want to run with this design, they don't have
to wait five years to solve a price goal. They can take this battery, take
this ultracap, take this electric motor and go to work with it. It is a
realistic design that can be mass produced immediately".

Stokes interjected that PG&E also sees this as a way to better utilize
existing, nighttime, surplus power capacity, because plug-in hybrid owners
would be encouraged to recharge their vehicles during cheaper, "off-peak"
rate periods. This is surplus energy that is currently being under-utilized
and wasted.

Tressler picked up the thread regarding OEM's concerns about the cost of
any new technology. He said this is the central issue in any dialog and
that they presume the supplier understands that safety, reliability and
durability are givens. He is further confident that given discussions with
current FreedomCAR sponsors, that OEMs will be open to talks with the
consortium.

"It's really a question of education, dialog, discussion and then setting
parameters that make sense for them to put their emblem on a vehicle and to
distribute that vehicle in mass quantities to the world", Tressler said.

"This is an important difference", West emphasized, picking up on
Tressler‘s remarks, "because organizations like CalCars, and others, which
are very valuable and important to this cause have a little bit different
goal. CalCars seeks to create a retrofit program, which is important. This
organization seeks to create the tools that are necessary to go into mass
production by the OEM's themselves, rather than a side project for them".

He explained that Raser's technology offers OEMs the ability to buy
low-cost, AC induction motors that don't rely on expensive rare earth
materials like those found in permanent magnet motors. He noted that
Emerson builds 150,000 low-cost AC induction motors daily, motors which
could be made even smaller and more compact, as well as more powerful using
Raser's proprietary science and engineering.

"Being able to use these plants to make high volume, low cost motors that
don't require rare earth materials is a very important part of this mix. If
we can show them that this is a technology that can last them 25 to 30
years, that doesn't cost them more so they can mass produce, these are
important things for them to understand".

West stressed that he wants carmakers to understand that it doesn't have to
cost them more to build hybrid cars.

"To be realistic, by the time we get the car done and you add batteries to
it, the batteries… may make a significant increase in that cost. That's why
the consortium is also looking at political arenas to help offset the cost
of batteries in the initial or low-volume phases".

West said that Raser, which is located in Utah, is working with Senator
Orrin Hatch, a powerful Republican member of Congress on these issues. He's
hoping that other consortium members that join will also be able to work
with their respective political officials so that the additional cost of
the batteries can be offset through tax credits as a bridge to high-volume.

"When we get to high-volume, then the total car cost can be commercial and
sustainable at its true cost rather than subsidized cost", West explained.

The consortium isn't just interested in grid-to-vehicle charging, but also
in vehicle-to-grid or what Stokes calls "mobile distributed generation" in
which the car can provide power back into the grid. He calls it an
"interesting concept" from the utilities perspective, in particular its
power management and safety aspects.

He could envision, for example a mass transit system with parking lots full
of plug-in hybrids that could provide power to keep the system running in
event of an outage, the owners being financially compensated by the utility
for this service.

"If we can add generation to complement the current infrastructure our
ratepayers have invested in, we can find ways to take advantage of cleaning
the air while providing a generation resource that reduces the cost of
providing electric service to our customers".

Stokes sees this as a way to help mitigate some of the potential higher
vehicle cost initially.

Alternative fuels are likely to also be a part of the concept, giving
owners the "freedom" to choose which energy source they prefer to use:
off-peak electricity, petroleum or biofuels.

"They can choose a liquid fuel at $3 a gallon or more if they need it. And
if alternative fuels are available, and we believe they will be, we want to
make sure that we are available to take advantage of that". He is hopefully
that OEMs will more widely adapt alternative fuels like E85.

Stokes added that California is currently working on a petroleum dependency
reduction plan that he expects to be presented in the legislature in 2006.
It would seek to reduce petroleum usage throughout the state by 20-30%.

"I believe that it will be imperative that a menu of fuels will be
available to consumers to help meet those goals" he said.

This will obviously require carmakers to make much wider use of flexible
fuels technology along the lines of what is being done in Brazil where
virtually all new cars can run on a broad blend of petroleum and
alcohol-based fuels.

Both West and Stokes noted that the generating efficiency of central power
plants is at least twice that of an internal combustion engine and for a
combine cycle gas turbine, its closer to five times more efficient -- 11%
at-the-wheel efficiency for a internal combustion engine compared to nearly
60% for combined cycle gas turbines.

Editor's Note: Obviously, there will be some transmission line losses (10%)
as well electric drive system losses, but overall, the system is
significantly more efficient and generates less CO2 than our predominately
petroleum-based system today .

The reason this is important, from their perspective is because today's
current crop of hybrids use $3 a gallon gasoline to keep their batteries
recharged -- as well as a small percentage that comes from regenerative
braking. Plug-in hybrids offer their owners the opportunity to recharge at
a fraction of the cost, depending on local utility rates, as low as the
equivalent of 50 cents a gallon. Offered the choice, they believe consumers
will choose the plug-in option, especially if it doesn't involve
unacceptable compromises in performance.

A key element in accomplishing that objective is the melding of
Electrovaya's Superpolymer lithium ion batteries and Maxwell's
ultracapacitors into a energy storage package that takes advantage of the
strengths of each. West sees this as extremely important to the success of
their initiative. Ultracapacitors have extraordinary power density and
durability to the tune of hundreds of thousands of cycles. Lithium has high
energy density but like any battery, overtime it weakens if cycled too
frequently and too deeply. The ideal solution for any electric-drive
vehicle, be it pure electric, hybrid or hydrogen fuel cell would be the
mating of these two chemistries.

Maxwell's Tressler put it this way, "It's pretty obvious that most of the
people that have an appreciation both for batteries, as well as
ultracapacitors, see that there's a sweet marriage that can exist.
Obviously, batteries provide great energy over continuous demand for that
energy, whereas ultracapacitors can provide the power requirements for
those short bursts or for the opportunity for regen braking. Because of
their efficiency, normally anywhere between 95 and 97 percent of what you
put in you‘re going to get back out again".

He noted that this offers the opportunity to develop entirely new energy
storage architectures, especially for advanced energy batteries that can
now be optimized for energy density, instead of trying to engineer their
chemistry for both energy and power density.

"That presents some interesting combinations that currently don't exist in
the marketplace", he stated. "There will be some innovation and some
technological advances that I think the consortium will provide, not just
in theory, but in practicality in being able to put it on the road and in
the street and that' where everyone will get the bang for the buck".