calstart electric utility fleet managers conference

Climate Change, Carbon FootprintHow Fleets Can Prepare for and Prosper from Change

Clean Transportation Solutions SM

Advanced Transportation Technologies

Bill Van AmburgSenior Vice President

EUFMC Conference – Williamsburg, VAJune 23, 2009

Copyright CALSTART 2009

Don’t Blink: the World is Rapidly Changing

“…the first car driven by a child born today could be powered by hydrogen, and pollution-free.” President Bush, 2003

"We asked ourselves, 'Is it likely in the next 10 or 15, 20 years that we will covert to a hydrogen car economy?' The answer, we felt, was 'no.'" Energy Secty Chu, 2009

• Same challenges, different conclusions


Plan Beyond the Roller Coaster

• Fuel prices are increasing over time and it is unlikely we will “go back”

$2.70


Start with the Basics

• Keep these thoughts in your mind:– Burning one gallon of diesel releases more

than 22 pounds of CO2 into the atmosphere– Burning one gallon of gasoline releases nearly

20 pounds of CO2 into the atmosphere


Find Combination Strategies

Air QualityAir Quality

ClimateClimate ChangeChangeEnergy SecurityEnergy Security

We must find solutions that

address all three

competing needs

Integrated Solutions Needed

There is no one “Silver Bullet” solution


Agenda

• Recent Activities and Opportunities in Transportation

• Trends & Drivers of Change in Transportation

• The Fuel, Emissions and Climate Challenge – and Opportunity

• Your “Fuel” Footprint is Your Carbon Footprint – Addressing Your Fleet– The Four Steps

• Biofuel Questions and Status• Technology & Fuel Options

• Summary


Mission Statement

CALSTART is a unique national, non-profit, member-supported organization dedicated to the growth of an advanced transportation technologies industry that will:

• Create high-quality jobs;• Clean the air;• Reduce dependence on foreign oil; and• Prevent global warming


CALSTART: A Strategic Broker for Advanced Transportation

National and International in Project Areas

2009130+ Worldwide Member

Network

4 Offices in US

Four focus areas:Tech CommercializationFleet, Port ConsultingIndustry ServicesPolicy Development


Unified Hybrid Industry in DC

• CALSTART, HTUF and 9 major companies – including all truck makers - outline status, benefits and needs of hybrid trucks

• Joint call for federal assistance for:

– Purchase incentives

– Broader fleet demonstrations and

– Long term R&D investment


Briefing on Status, Benefits and Needs of Industry

Rep. Roscoe Bartlett (MD)Rep. Charlie Dent (PA)

from left:Bill Van Amburg, CALSTARTPaul Skalny, US Army-NACVictoria Mills, Environmental Defense FundJohn Formisano, FedEx ExpressMarcy Lowe, Duke University CGGC


Duke Study Finds “Strategic US Opportunity” in Hybrid Tech

• Hybrid technology represents a competitive advantage to the US

• Other countries have worked on the technology – the pace of change and momentum is currently highest in US

• The hybrid truck supply chain now represents a growing national industry – touching jobs in more than 30 states

• Duke study shows there are regional “hot spots” for technology manufacturers and their suppliers – can benefit regions hurt by economy

• Industry shows great promise for creating green energy jobs

• Further commercialization requires government support, partnership to assist truck purchase and develop next technologies


Duke Hybrid Industry Map


Hybrid Truck & Bus Voucher Incentive Program (HVIP)

• Under AQIP 09/10 funds, CARB proposing a simplified purchase voucher for hybrids

• $25M in funds• Fleets would qualify

for voucher via purchase order; paid on delivery of and payment for truck(s)

• Voucher reduces purchase price of hybrid (no waiting)

• Reduces incremental cost by ~50%


• CARB staff worked to craft extremely simple program – incentive targets half the incremental cost of today’s hybrids

• If successful, plans are for multi-year program but incentive may drop in future years

• CARB Board approved April 24

Hybrid Truck & Bus Voucher Incentive Program (HVIP)


Federal Hybrid Truck Tax Credit Extension Proposal - DRAFT

Vehicle Weight

Demonstrated Fuel Economy Gain

10% 15% 20% 30% 40% 50%10,001 – 14,000 lb

$10,000

$15,000

$20,000

14,001 – 33,000 lb

$20,000

$25,000

$30,000

33,000 – 66,000 lb

$25,000 $30,000 $35,000

>66,001 lb truck

$35,000

$40,000

$45,000

*Tax Credit capped at 20,000 per Original Equipment Manufacturer over life of the creditMore valuable credits offered to less vehicles to drive early adoptionLarger amounts at heaviest weights because of great difficulty of reaching these efficiency levels; fuel efficiency beyond aerodynamics and tires

Amounts correspond to roughly half the incremental cost of current tech

Provisional: Recommended by Incentives WG – being discussed with policy makers


Stimulus/Recovery Bill Targets $1.5B+ for Clean Vehicles, Fuels

• Major funding for clean transportation in bill – most in a generation!

• CALSTART and HTUF have recommended language to encourage rapid use of funds for deployments

• Funding for transportation includes:– $300M for Diesel Emission Reduction

(DERA) activities through EPA– $300M for Alternative Fuel Vehicles,

Infrastructure through Clean Cities/DOE– $400M for electric drive demonstrations – $300M for fed govt clean fleet purchase – Additional $3.2B for Energy Efficiency projects that may include

transportation– Additional $2B for advanced energy storage manufacturing


Trends & Drivers of Change• ENERGY SECURITY: FUEL SUPPLY AND COSTS –

Traditional fuel supplies/refining capacity barely meeting current demand– The need for biofuels is increasing but so are questions about their impacts/benefits– RFS2 rules at federal level – Biofuels grow as fuel blends; 2nd gen biofuels emerging– Rise of non-traditional hydrocarbons possible – but have serious impacts– Regional fuel variation and choice becoming more prevalent– Alternatives becoming economically competitive with petroleum but have own costs

• GLOBAL WARMING – Push to reduce GHGs intensifying and pushing fuel economy – focus and urgency increasing in 2009

– EPA now says GHG is a health danger – can regulate under clean air act– California CO2 tailpipe rules likely to be approved by new EPA– CAFÉ revised to match CA CO2 rules: CAFÉ for med & heavy trucks under study– States/communities remain GHG leaders – Calif AB 32 increases momentum– Several climate change bills now in Congress (Summer 2009) – law in 2010?– Energy efficiency reduces GHG impact; Fuel switching and blending reduces GHG

impact; Modal split (transit and rail) has long term role• EMISSIONS REDUCTIONS – World population increasingly urban

and world emission standards increasingly move to CA/Euro standards– EU and US may align in 2012-2015 timeline– Fine particulates (nano particles) will be of increasing concern from combustion– Diesel fuel still challenged in dirtiest regions (ports, Southern California)


Peak Oil Advocates : ‘Cheap Gas Won’t Last’

• Despite declining prices and rising inventories, peak oil advocates warn the relief is temporary– EIA predicted a 4% drop in

US consumption for 2008– Energy experts* suggest a

substantial run up in prices around 2015• Demand in growing economies threatens to exceed the

location of new reserves• Some experts think non-OPEC production is peaking now• Excess production capability has dropped from 10 million

bbl/day in the 1980s to around 2 million bbl/day in 2008-2009

Graphic: Energy Tribune

* Including Peter Wells (who consults with Toyota) and Charley Maxwell (senior energy analyist at Weeden & Co.)Energy Tribune, 11/26/08 http://www.energytribune.com/articles.cfm?aid=1032


Sources of GHG

• Transportation is biggest GHG source in CA, but it is also one third of all US emissions


Magnitude of California’s Challenge to 2020 and Beyond

ARB Emissions Inventory

0

100

200

300

400

500

600

700

1990 2000 2004 2020 2050Year

Mill

ion

Met

ric T

ons

(CO

2 Eq

uiva

lent

)

1990 Emission Baseline

~173 MMT CO2e Reduction

80% Reduction ~341 MMT

CO2e

80% Reduction ~341 MMT CO2e


EPA Ready to Regulate Carbon

• Health Endangerment finding has been made:– “In both magnitude and probability, climate change is an

enormous problem. The greenhouse gases that are responsible for it endanger public health and welfare within the meaning of the Clean Air Act.”

• Gases to be regulated: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride

• Conclusions:– Concentrations of these gases are at unprecedented

levels as a result of human emissions– Gases are very likely the cause of the increase in average

temperatures and other changes in our climate • The Administrator is further proposing to find that the

combined emissions of CO2, CH4, N2O, and HFCs from new motor vehicles and motor vehicle engines contribute to the atmospheric concentrations of these key greenhouse gases and hence to the threat of climate change. This is referred to as the cause or contribute finding.

http://epa.gov/climatechange/endangerment.html

EPA Administrator Lisa Jackson

http://www.epa.gov/


Federal Auto Standards

May 19, 2009: President Obama announces national fuel efficiency policy modeled after CA Pavley standards

Photo: New York Times• Light duty standards for MY 2012-2016: 250 gCO2/mile by 2016 (roughly 35.5 mpg)

• Win for the environment: national standard will lead to greater emission reductions than CA waiver

• Win for industry: single standard preferable to patchwork of standards


EPA’s Light Duty GHG Standard Average of 250 g CO2/mile by 2016

•Standards have same endpoint as CA Pavley standards.

•5% annual rate of improvement

•Still higher than limits in many other developed countries.


EU to Cut Auto Emissions 18% by 2015

• In December, EU representatives agreed to require cutting auto GHG emissions – Change from voluntary

compliance to EU-wide mandate is very significant

– Target is reduction of 18% by 2015

– New maximum standard = 130g CO2/km by 2012

– Fines for non-compliance consideredstiff, up to $119 per vehicle

– Environmentalists disappointed by automaker influence, affectingtimeline, emission requirements

• Plan must pass Euro Parliament vote

Returers, 12/02/08


Reductions Beyond Pavley Needed in Ground Transportation

Pavley bill (AB 1493 in 2002)

helps reduce rate of growth

0

50

100

150

200

250

300

1990 2000 2010 2020 2030 2040 2050

GH

G M

MT

(CO

2 e)

2050 GHG Goal 80% Below 1990

Pavley Reductions

Alternative Fuel Reductions

AB 32 Allowable GHG Emissions

2050 GHG Emissions Expected - IEPR


EPA Proposing Changes to Federal Renewable Fuel Standard (RFS)

• RFS2 increases renewable fuel mandate to 36 billion gallons by 2022

• Expands RFS to include diesel and non-road fuels• Establishes new renewable fuel categories and GHG reduction

thresholds:– Renewable fuel: 20% GHG reduction from 2005 baseline– Advanced biofuel: 50% (or possibly as low as 40%)– Biomass-based diesel: 50%– Cellulosic biofuel: 60%

• 15B gallons/year of corn ethanol in 2012-2022• 21B gallons of “advanced biofuels” by 2022


Low Carbon Fuel Standard

• California approves measure that will require reduction in “carbon intensity” of fuels

• Requires reduction in carbon levels in fuel by 10% over next decade– Reduce levels in fuel by blending,

formulation, selling other fuels• 16 other states may follow rule; federal

government considering similar measure• First generation biofuels (biodiesel,

ethanol) have raised big questions due to “indirect” emissions – emissions from changes in land cover world wide to produce them

• Regulators expect new generation of fuels to come from feedstocks such as algae, wood, agricultural waste, switchgrass, and even from municipal solid waste


Where Are Biofuels Headed?

• Still very much an active debate• Today’s biofuels are stepping stones to next

generation fuels and feedstocks – we believe you must start somewhere to make progress!

• Biofuels in future that do not compete with food and wilderness for fertile land can avoid indirect GHG emissions (Alex Farrell, UC Berkeley Energy & Resources Group)– Wastes and residues, agriculture seasonal mix,

wastelands crops – more R&D


The Fuel Landscape is Changing

• Broader look at full impacts on well-to-wheels basis underway, including indirect, food competition and land use impacts

Renewable and Appropriate Energy Lab, UC Berkeley


Graphical Depiction of Indirect Emissions

Source: Alex Farrell, UC Berkeley


Adjusted Carbon Intensity Values for Gasoline & Substitutes

Fuel Pathway Direct ILUC

EER

Total

Gasoline (3 pathways) 95.86 – 96.09

0 1 95.86 -96.09

Ethanol from corn (11 pathways, both midwest and CA)

47.44 – 75.10

30 1 77.40 – 105.10

Ethanol from Sugarcane (1 pathway – Brazilian)

27.40 47 1 73.40

Electricity (2 pathways – CA average and renewable mix)

104.70 – 124.10

0 3 34.90 - 41.37

Hydrogen (4 pathways – liquid & compressed, various feedstocks)

76.10 – 142.20

0 2.3 33.09 – 61.83

Carbon intensity values are measured in grams CO2e/MJ21 pathways completed


Adjusted Carbon Intensity Values for Diesel & Substitutes

Fuel Pathway Direct ILUC

EER

Total

Diesel (1 pathway: average ULSD)

94.71 0 1 94.71

Compressed Natural Gas (CA and N. American, compressed in CA)

67.70 – 68.0

0 0.9 75.22 – 75.56

Compressed Natural Gas (landfill gas, or biomethane)

11.26 0 0.9 12.51

Electricity (2 pathways – CA average and renewable mix)

104.70 - 124.10

0 2.7 38.78 – 45.96

Hydrogen (4 pathways – liquid & compressed, various feedstocks)

76.10 – 142.20

0 1.9 40.05 – 70.84

Carbon intensity values are measured in grams CO2e/MJ10 pathways completed


Energy Economy Ratios from CARB’s Proposed Regulation

Source: California Air Resources Board

2.7


Climate Change Bills are Moving Ahead

• Climate Change and Energy bills moving – though Senate signals a desire to slow pace

• Bills moving in committee– House Energy Chair Henry

Waxman targets Memorial Day for energy, GHG bills

– Barbara Boxer is leading climate change legislation on the Senate side

– Speaker Pelosi advocates an ‘all-in-one’ approach that handles energy issues and global warming concerns in comprehensive legislation – Senate so far separates issues

Photo: Syracuse.com

US News & World Report, 03/11/09, http://www.usnews.com/articles/news/energy/2009/03/11/on-climate-change-henry-waxman-wants-congress-to-act-now.html


Reducing Your Footprint for Independence, Carbon and Savings

• Step 1: Baseline your fleet• Step 2: Learn your options for reduction• Step 3: Compare your options to your

fleet mix, fleet geography, operational profile

• Step 4: Outline your reduction plan pathways – your shift in fleet technology, fuel and operations over several years


Your Fuel and Carbon Footprint

• Step 1: Baseline your fleet– You need to know your starting point– Keep it simple: Easiest way to do that is to

measure your yearly fuel burn– 22 pounds of CO2 for every gallon of diesel

burned; 20 pounds for every gallon of gasoline; do the math!

– Consider joining a climate registry to document your progress



• Step 2: Know your options for reduction– Reduce your fuel burn

• Increased efficiency: hybrids; cylinder on demand • Eliminate idling• Downsize vehicle platform sizes where possible

– Reduce your fuel carbon intensity• Fuel switching: biofuel blends; natural gas

– Fuel world is changing and feedstock and process for the fuel matter

– Change your operations• Take vehicles off the road (electronic meter reading)• Dispatch best-suited vehicles to job• Reduce vehicle miles traveled (VMT)



• Step 3: Compare your options to your fleet mix, fleet geography, operational profile– E85 may be a great option in Midwest, propane

better in Texas, natural gas in California – look for match with growing infrastructure and production

– Place the correct technology and fuel into the best use in your fleet; fine tune your fleet

– Be aware of regional air quality needs – not all fuels work everywhere

– Look for funding that can support your strategy in your different regions

• EPA; air districts; DERA; Clean Cities; state and regional incentives



• Step 4: Outline your reduction plan pathways – your shift in fleet technology, fuel and operations over several years– Look for solutions where expansion of capacity

and/or improvements will take place– Vehicle fuel economy, hybrids just at beginning of

improvements– Despite shake up in biofuels today, indicators are

that present-day ethanol – while imperfect – will be a stepping stone to more efficient alcohol production

– Biodiesel production will broaden to renewable diesel blends, broader feedstocks

– Direct fuel replacement also possible (bio-derived gasoline) but it is still in infancy


Options LandscapeExamples

Fuels TechnologiesEthanol: avail now; regional; process and feedstock improving; small CO2 gain now but growingPropane: vehicle models available; special fueling; small CO2 gains

Biodiesel: production growing; feedstock concerns; CO2 gains; NOx issueRenewable diesel: emerging option

Plug-in hybrid: retrofit in LD; first LD products 09/10; first pilot products in M/HD now; business case still uncertain based on fuel prices; strong policy support

Hydrogen: longer term option; transit; blending

Electric: small vehicle niche; LD products possible 10/11; MD products emerging for delivery/ urban niche

Fuel Cell: still early demos; limited testing 09-11; time to products?

Hybrid: models expanding in LD; first OEM production in MD/HD; 20-50% carbon/fuel reduction

Strategies

Platform/engine size reduction: “right-sizing”

Dispatch changes, work changes to reduce vehicle use

Routing efficiencies: VMT reduction

Natural gas: limited infrastructure but building around niches; CO2 benefits up to 21%; Biomethane for green NG; HCNG blending

Adv. Engine: cylinder on demand; improved combustion; start-stop; turbocharging


Ethanol• Significant growth in production slowing due to fuel price,

economy – but can off set oil today• Clear limits seen on corn-based production• Questions growing: land impact; energy use; limits • Other feedstocks and advanced production (such as cellulosic)

are in active development – second generation production methods have already started

• Lower in energy than gasoline but can be priced competitively – though its cost rising too

• Lower GHG impact than gasoline; lower for most emissions – low % blends a concern in some areas

• Infrastructure growing quickly but still limited; most flex fuel vehicles still do not use E-85!


Natural Gas• Re-emergence of natural gas – port locations big

promoters for clean air• Increasing production in medium and heavy-duty

(Kenworth, Freightliner, Mack), new and advanced engines out

• Mostly domestic and a lower carbon alternative – particularly biomethane

• Also increasing in cost; may become increasingly imported

• Niches remain strong: transit, refuse, now ports • Infrastructure still key barrier for many, though fuel

partners available; strongest growth in regions with good infrastructure

• Light-duty OEM: Honda Civic GX in US; Can get natural gas upfits for several light and medium duty vehicles; low volume manufacturers still producing vehicles and kits


VW Shows Turbo/Super Charged CNG Concept Vehicle

• Touran TSI EcoFuel debuts at Geneva Motor Show– Features dual charging via

turbocharger and supercharger– When paired with a standard

6-speed transmission, fuel consumption is 4.8 kilograms of natural gas per 100 kilometers

– CO2 is approximately 129g/km• Meets Euro-5 standards

– Has four natural gas tanks and an auxiliary gasoline tank

• Range of 370 kms using natural gas fuel only, and a maximum range of 520 kms

Photo: Media.Photobucket.com

CALSTART NewsNotes, 03/03/09


New NG Engines, Trucks Available

• California Air Resources Board (CARB) and U.S. Environmental Protection Agency (EPA) certified Westport’s High Pressure Direct Injection (HPDI) technology adapted to the 2007 Cummins ISX heavy-duty engine

• Kenworth expands to LNG vehicles with T800 LBG trucks– Mfg at Renton WA in 2009– Trucks to feature Cummins ISX, Westport’s HPDI

fuel systems• Freightliner producing CNG version of its

Business Class M2 106 truck– To contain Cummins Westport 8.9 -liter L Gas Plus

engine• Mack bring natural gas refuse truck back

to market– Use Cummins Westport ISL G natural gas engine


AT&T’s Push Has Big Impact for CNG

• As part of AT&T’s ambitious plan to expand the company’s alt fuel fleet, CNG vehicles will be a big part of that expansion– Out of $565 million, $350 million

is estimated for CNG vehicles– Out of 15,000 alt fuel vehicles,

8,000 are anticipated to be CNG vehicles• AT&T’s alt fuel fleet is expected to include more than 15,000

vehicles by 2019– The alternative-fuel vehicles are expected to offer

• Up to nearly 40% improvement in fuel economy and • Up to 29% in greenhouse gas emission reductions

Photo: Examiner.com

http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=26598






UPS Expands CNG Fleet with 300 New Trucks

• With the addition of 300 new CNG trucks, UPS has the largest private fleet of alternative fuel vehicles– 1,819 alt fuel fleet covers

1,100 CNG fueled vehicles, including 800 trucks

– Alt fuel trucks reduce petroleum consumption, reduce fuel costs

– Newest CNG trucks expected to reduce emissions by 20 percent compared to cleanest diesel engines currently available


Photo: UPS


First Trucks to Run on Biomethane In California

• In 2009 Hilarides Dairy powers trucks on renewable biomethane from dairy operation

• Has potential to generate 650 diesel gallon equivalents (DGEs) from farm

• CALSTART prepared a federal stimulus and AB 118 proposal to jump-start the biomethane industry

CBG Truck In Tulare

Tulare Covered Lagoon Producing CBG


Biodiesel and Renewable Diesel• Volumes still low but growing – some impact

from feedstock switching to produce ethanol• Unintended consequences: feedstock matters –

some bio-oil production is damaging, raises questions about benefits

• Most OEMs accepting increased biodiesel use – fuel spec has now been developed for B1-B20 levels

• Fuel quality improving but varies greatly – about 90% of biodiesel meets specs (diversity of feedstock & processes)

• Little or no performance drop off from conventional diesel; some operating concerns (such as cold weather)

• Reduced greenhouse gases and particulates from diesel, but questions over increased NOx for biodiesel; more research needed


Solazyme, Chevron Work on Biofuels from Algae

• Chevron announces partnership with company that extracts oils from algae, San Francisco-based Solazyme

• Solazyme also unveils what it says is first-of-its-kind algae-derived biodiesel, “Soladiesel”

• Says Soladiesel has successfully been roadtested in “factory standard automobile for long distances”

• Solazyme has developed an industrial scale fermentation process currently capable of producing thousands of gallons of algal oil using standard industrial equipment

• Solazyme plans to dramatically expand production in 2008

Mercedes Benz C320 runs on algae-derived biodiesel Source: Solazyme

http://www.solazyme.com/


Electric Technology

• Possible re-emergence of Electric Vehicles!• No US OEM passenger car product YET – though Nissan

and Mitsubishi say 2010 for EV, Daimler may produce and now GM and Chrysler announce products

• Also: medium-duty all-electric trucks becoming available in North America from two UK companies: Smith Trucks and Modec; others entering space for light/medium duty trucks

• Improving battery technology partly thanks to hybrids (NiMH, lithium ion)

• Still expensive, range limited: but energy storage costs dropping steadily

• Increased petroleum prices makes an improving business case

• Criteria and GHG emissions very low; varies depending on fuel source of power plants, but very good in California


EVs: Several Possible

• GM Volt EREV: Extended Range Electric Vehicle - Pre-production model unveiled Sept 16, 2008

• On track to late 2010 first sales?• Combines battery-electric drive system

(goal: 40 mile EV range) with a small gasoline engine generator that runs when batteries get low to power car

• Chrysler surprises industry, announces will produce electric vehicle(s) by 2010

• Showcases several potential models using current and new platforms

• Nissan looking at 2010 EVs using lithium-ion• Mitsubishi Motors working on an EV with

PSA Peugeot Citroen; plans for iMEV by 2010


VW, Toshiba Team on EV

02/18/09 Environmental Leaderhttp://www.environmentalleader.com/2009/02/18/volkswagen-teams-with-toshiba-to-sell-electric-car-by-2012/

• Volkswagen AG signs with Toshiba to develop new EV technology – High-density battery

systems will be the focus of the partnership

– VW and Toshiba also have relationships with Sanyo focusing on nickel-metal hydride

– New partnership focused on lithium-ion path• VW’s drive train experience will be complemented by

Toshiba’s battery and system expertise

Photo: FuelEfficientVehicles.org


Smith to Build More Electric Vans, Trucks in US

• Smith Electric Vehicles launches new production facility in US in Kansas City region

• Smith also unveils the US version of the Newton, which has a top speed of 50, range of over 100 miles and a payload capacity of up to 16,280 lbs and is available in US truck Classes 5 through 7

• Unveils first all-electric utility bucket truck based on Newton at EUFMC 2009 in partnership with Altec, testing with PG&E

• Will also build electric Ford Transit Connect vehicle in Kansas City


Electric Delivery Vans Deployed by FedEx in UK

• Electric propulsion systems can work in selected niches in truck market

• Cost of batteries remains a challenge


E-Trucks Headed to Port of LA

• Delivery of heavy-duty all-electric trucks begins at Los Angeles port

• Partnership with the Port of Los Angeles, South Coast Air Quality Management District and a small manufacturer, Balqon Corp.

• Nautilus E30 all-battery electric vehicle for work within the port, and for short hauls outside– Range of 40-60 miles per charge, depending on load– Charging time of three hours on 230v/480v chargers

• Unique partnership involved R&D funding from the port, and future royalty arrangement paid to port

Photo: Los Angeles Times

02/25/09 Los Angeles Times, http://www.latimes.com/business/la-fi-electric-truck25-2009feb25,0,6411132.story


Hybrid Technology

• Perfect storm for hybrids? Incremental cost in cars dropping as fuel price rises – but fuel cost roller coaster, economy slowing market

• 10-years experience in cars: decent and now accelerating market penetration (3%) but still dominated by two automakers (Toyota and Honda); GM presence growing

• First products entering market for medium- and heavy-duty vehicles

• First focus is urban work trucks: Class 4-8 refuse, utility, delivery

• Class 8 drayage, line-haul and construction equipment are in prototype or near pre-production

• Hybrids can multiply benefits when combined with low carbon fuels (biofuels, NG, electricity – plug-in)


Small Hybrids: Heating Up

• With Honda expanding its activity in hybrids, Toyota announces new models– Honda’s new entry, the small

Insight hybrid, is tallying up brisk sales in Japan with a $20,000 price point

• A hybrid version of the smaller Fit compact is planned– Toyota announces a small hybrid based on the Yaris, to

expand its’ hybrid range downward into smaller, more affordable vehicles

• Technology from the company’s flagship Prius vehicle has been migrating upline, into larger and more expensive vehicles

• Market date for new Yaris hybrid uncertain, possibly for the 2011 lineup

Automotive News, 03/25/09, http://www.autonews.com/article/20090325/ANA02/903259986

Honda Insight Photo: Jalopnik.com

Toyota Yaris Photo: AutoChannel.com


• What is the status of medium and heavy duty hybrids?

Hybrid Truck Technology is Here


Hybrid Truck Technology is Critical to the U.S.

• Hybridization provides significant immediate benefits– ENERGY SECURITY: Reduced fuel

consumption (30-50%)– EMISSIONS/CLIMATE: Reduced

criteria (NOx) and GHG emissions (10-60%)

• One of few strategies to improve on 2010 emissions reductions

– ECONOMY: North American leadership in technology, manufacturing Fuel consumption reduction from HTUF field testing data

Reductions come just from hybrid system, no additional after-treatment

CO2 reductions closely tracked fuel reduction percentages

Emissions/fuel reduction from HTUF dyno testing data performed at SwRI


Hybrid Truck Users Forum (HTUF)

• Successful CALSTART program with U.S. Army, DOE, fleet users, truck makers and industry partners has spurred rapid, early demonstration and production of truck hybrids

• User driven process involving > 80 fleets with > 1 million trucks– Highly unique model has focused on developing user

demand (market pull)

All Major Truck Makers and System Suppliers involved

(partial list)

http://www.maxwell.com/index.asp

http://www.emp-corp.com/

http://www.litens.com/main.cfm

http://www.cobasys.com/

http://www.avinc.com/


HTUF National Conference 2008

• World’s biggest hybrid truck and bus ride and driveWorld’s biggest hybrid truck and bus ride and drive• Vehicles from Navistar, Freightliner, FCCC, Kenworth, Peterbilt, Azure

Dynamics, Bosch Rexroth, Eaton, Dueco-Odyne, Hino, E-One, Arvin Meritor, Crane Carrier, NABI, JAMMA vehicle


Timeline to Commercialization: Hybrid Trucks Now Entering Market

DevelopmentPre-Production

Production IntentEarly Production

Test prototypes and systems

Field pilot assessments (10-50 vehicles)

Assembly line builds up to 100+

Initial commercial volumes – still high incremental cost

TOO

LS:

R&D Support

Pre-Production Deployment Support (HTUF)

Purchase Incentives

Hybrid introduction 10 years behind cars but industry is real, momentum growing


Hybrid Medium Duty Trucks Expand to Both New & Heavier Applications

• Navistar extends weight class from 23,500 to 37,000 lbs (into Class 8 range)– 6 engine horsepower/ torque

combinations– Showcases hybrids for tree-

trimming, wrecker, dump, crane and beverage

• Peterbilt adds dump truck variant to cargo and utility body

• Freightliner shows M2 delivery and beverage bodies, new bus and RV platforms

• Posi Plus shows tandem axle utility truck to 40,000 lbs


Hybrid Tractors Emerging for Regional Heavy Applications

• Kenworth unveils Class 7/8 hybrid tractor: 54,500 lbs GCVW

• Peterbilt has similar model – also continuing to test larger Class 8 heavy-duty OTR tractor

• Navistar unveils Class 7/8 hybrid tractor targeting beverage trailer applications

• Freightliner announces will pilot build a hybrid tractor Dec 08 Above: Kenworth Class 8 tractor;

Below: Navistar Class 7/8 tractor

Left: Freightliner Class 7/8 tractor pilot; right, Peterbilt Class 7/8 tractor


Wal-Mart Class 8 Demo

• ArvinMeritor – Navistar deliver unique dual-mode hybrid design for testing

• Electric drive at lower speeds (up to 48 mph), blended mode at higher speeds

• Can greatly reduce fuel use, cut idle and give zero emission at ports, urban driving

• Wal-Mart testing this truck and several Peterbilt-Eaton trucks in line-haul and regional heavy haul applications

• Wal-Mart committed to doubling its fleet fuel efficiency by 2015

•


Electric “Reefer” Units Emerging with Hybrid Systems

• Navistar, Freightliner and Azure show electric refrigeration units – “reefers” and cold plates - combined with hybrids or energy storage

• Further reduces fuel burn, eliminates additional engine, cuts criteria and carbon emissions


Class 4/5 Offerings Expanding

• Azure Dynamics expands to multiple body offerings from base Ford E-Series hybrid chassis

• Adds relationships with nine truck body companies for shuttle bus, panel van and other applications

• Adding “LEEP” Lift system to Class 4/5 pick-up chassis

Engine off lift operation via stored energy

Can charge while drivingElectric AC optional


Hydraulic Hybrid Vehicles

• Extremely promising technology• Benefits: possible lower cost than electric

technology; excellent at high power, demanding duty cycles; robust component base

• Weight, system integration and control are key issues; farther behind in development curve

• Most focus is on medium and heavy-duty vehicles

• Major US manufacturers are leaders in this technology


Freightliner CC, Parker Hannifin Show Hydraulic Hybrid

• Team of Freightliner and Parker Hannifin introduce a new hydraulic hybrid platform

• Features Cummins ISB 2007 engine, a Parker hydraulic-propulsion system, no transmission needed

• Available in limited volume for now• Power recovery is critical

– Hydraulic hybrid recovers and reuses up to 70% of energy during the braking process

Photo: Freightliner Custom Chassis

CALSTART NewsNote 03/05/09 For more information, visit www.freightlinerchassis.com


Pre-Production – Hydraulic Refuse Truck

• Peterbilt - Eaton in final stages of field pilot testing of hydraulic hybrid refuse truck (63,000 pound GVWR)

• Pre-production in 2007/2008 – Production in 2009

• Eaton to use same pump/accumulator design for hydraulic shuttle bus

• Fuel savings in 10-30% range – carbon reductions track fuel reductions closely

Peterbilt Hybrid Refuse Chassis


Hydraulic Competition Expands

• Crane Carrier shows refuse collection truck with Bosch Rexroth HRB parallel hydraulic hybrid system

• Will enter testing with NY City Sanitation as part of HTUF Refuse Working Group deployment May 2009

• Bosch also shows “series” hydraulic hybrid system in advanced military prototype now entering testing

Left: Bosch Rexroth Hydrostatic Regenerative Braking (HRB) system for

refuse and heavy applicationsRight: Bosch Rexroth series hydraulic

military truck prototype


Hybrid Trucks: at “Tipping Point” but Need Help to Speed Early Market

• Hybrid truck production volumes are still too low in early market to realize price reductions– Current payback period too long even with big fuel/maintenance

savings• However: modest volumes can move prices to within

business cases needs: Need 3,000 - 5,000 unit sales/year– Incentives can provide big kick-start to this number by

helping drive volume up in targeted effort• Federal, state level

• Need correct incentives to bridge gap between today’s price and prices at higher volumes– Federal tax credits well-intentioned but not best tool for commercial

fleets: too low, doesn’t help most fleets

Hybrids moving from development to production


Plug-in Hybrid Electric Vehicles

• Lots of attention and interest in PHEVs among policy makers, environmentalists

• All current PHEVs are conversions from small firms – very few on road

• No OEM production dates set – though increasingly “hinted at”: GM 2009 for Saturn, 2010 for Volt?

• Benefits: increased fuel economy, GHG reductions, possible zero emission driving

• Cost and life cycle of energy storage (batteries) are prime limiter, along with infrastructure network (can plug at home)

• Most focus is on passenger cars – however while trucks offer additional challenges, there may be possible business case benefits before cars


Toyota vs. GM vs. Ford: Working on Plug-In Hybrid Electric Vehicles

• Toyota Motor Company is testing plug-in hybrid electric vehicles, first Japanese automaker to research and road test the technology

• General Motors has taken the lead in developing rechargeable vehicles – “Volt” pre-production car unveiled Sept 08; possible for 2010

• GM may have Saturn Vue PHEV by late 2009

• Ford in PHEV testing partnership with Southern California Edison

• Ford continues to study a PHEV concept “Extend,” seeks trademark

Ford PHEV Escape


Bright Plug-in Van Prototype Shown

• “IDEA” prototype from Bright Automotive brings together light-weight body/chassis with hybrid driveline, plug in battery pack

• 30 miles possible all-electric; blended mode can see 100 mpg in urban delivery duty

• Front conventional engine, rear electric drive axle; 10 kwh Li-ion batteries in proof of concept unit


Plug in Hybrid Trucks Emerge: Several Utility Industry Variants

• Commercial work trucks show potential for PHEV functionality before cars

• Extra energy storage boosts idle reduction/work site engine-off ops

• Diesel fuel costs cause rapid review of potential business case– Energy Storage costs still high

• Dueco-Odyne first into market– Plug-in hybrid utility bucket trucks – PHEV “digger-derrick” version 6/08, a

higher power-demand work truck– Trucks carry 35 kwh of energy storage

(lead-acid, 3000 pounds) for long work site ops

– PHEV underground compressor truck • Eaton has two prototypes

– Class 6/7 variant based on production truck, system

– Class 5 “Superduty” prototype with EPRI

Dueco-Odyne plug-in “material handler” (above), “digger-derrick” (middle), compressor truck (bottom).

Plug-in port

Eaton PHEV utility trucks


Plug-in Energy Storage Bodies

• New variant of an older idea – uses stored energy to operate lift, tools at work site

• Separate from and does not change conventional driveline

• Fuel savings and idle reduction benefits


Hydrogen / Fuel Cell Technology

• Longer term technology development effort• US DOE halts all vehicle-based fuel cell development funding –

focuses on stationary applications• California legislature proposing to eliminate funding for

hydrogen refueling infrastructure• A few hundred vehicles worldwide for technical assessment to

date• Original launch dates (2010) no longer on table• Will likely see in heavy transit buses before passenger cars• Costs still extremely high, though significant technical

advancement has occurred• Significant benefit in near term from blending with natural gas

(NOx reductions)• In medium term, stationary/distributed generation; fork lifts;

Auxiliary power units (APUs) for system power, idle reduction, range extension on some vehicles/equipment

• Longer term, possible primary power for centrally refueled vehicles/equipment


Nissan Testing Next-Gen FCV

• New Nissan FC stack is smaller, more powerful than previous technology– 25% smaller – 1.4 times power output –

130kw from 90kw• Fuel cell vehicle began cold-weather testing in Feb.• Smaller fuel cell will use 50 percent less platinum, cutting

manufacturing costs significantly• Previous generation (announced August 2008) touted 35

percent reduction in platinum



Develop a Reduction PlanTe

chno

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/ Fue

l/ O

pera

tiona

l

Application/ RegionLD Urban Support

LD RegionalVehicle

Reduce vehicle count through process improvement

Right size platforms to job needs

NEVs for on-site transport

Mix of natural gas or propane vehicles in regions with infrastructure

Hybrids for urban driving Some hybrids for

stop and go driving

E85/Flexfuel for longer distance if fuel available

Right size platforms to job needs

MD WorkVehicle - Urban

Mix of hybrids for urban, stop-go or high idle work

Right size platforms dispatched for job needs

Natural gas or propane vehicles in cities with infrastructure

Biodiesel blends (check spec and source)

MD WorkVehicle - Rural

Right size platforms dispatched for job needs

Biodiesel blends (check spec and source)

Chassis energy storage for work site idle

Natural gas or propane vehicles in cities with infrastructure


Summary: Fleets, Climate Change

• Don’t Blink• Plan Beyond the Roller Coaster• Start with the Basics• Find Combination Strategies• No more “one size fits all” answers• Should establish multi-year reduction plans• Best simple metric is petroleum use – how much do you

use now, and how can you reduce it?• Tools:

– Low carbon fuels – this is a moving target– More efficient vehicles (many ways to achieve)– More efficient operations and systems– LOOK FOR COMBINATION STRATEGIES

(efficiency+fuels+operations)

Clean Transportation Solutions SM

www.calstart.org

For info contact:

Bill Van Amburg(626) [email protected]

www.htuf.org

Advanced Transportation Technologies SM

mailto:[email protected]