General Motors embraces electrics as oil slips away

Both the SMH and The Age lead today's editions with a front page article quoting the head of General Motors saying that peak oil has occurred and the time to switch electric cars is upon us. I wonder if he has watched the movie "Who Killed The Electric Car ?" ?

THE world's biggest car maker, General Motors, believes the global oil supply has peaked and a switch to electric cars is inevitable.

In a stunning announcement at the opening of the Detroit Motor Show yesterday, GM's chairman and chief executive officer, Rick Wagoner, said ethanol was an important interim solution to the demand for oil, until battery technology gave electric cars the range of petrol-powered cars.

GM is working on an electric car, the Volt — due in showrooms in 2010 — but delays in battery technology have slowed its development.

Mr Wagoner cited US Department of Energy figures that showed the world was using about 1000 barrels of oil every second and demand was likely to increase by 70% in the next 20 years.

"There is no doubt demand for oil is outpacing supply at a rapid pace, and has been for some time now," Mr Wagoner said. "As a business necessity and an obligation to society we need to develop alternate sources of propulsion.

"So, are electrically driven vehicles the answer for the mid- and long-term? Yes, for sure. But we need something else to significantly reduce our reliance on petroleum in the interim."

GM has signed an agreement with a supplier who claims to have come up with a way of producing ethanol more cheaply and efficiently than refining oil. It has formed a partnership with a company that claims it can produce ethanol from materials such as agriculture and municipal waste, discarded plastics and old tyres.

The car industry has had a love-hate relationship with ethanol, which is most commonly derived from grain-based crops such as corn, wheat and sugar cane. At first, car makers criticised ethanol-blended fuel because most vehicles were not compatible with it. Then they embraced ethanol-blended fuel after retuning engines.

Most recently, ethanol has fallen out of favour with scientists and sustainability experts who have found that processing grain-based ethanol is not much more energy-efficient than refining crude oil.

There is also a catch in GM's grand vision. Ethanol is about 30% less efficient than petrol (gasoline).

Last year, a Sydney test found a car on a mix of 85% ethanol and 15% unleaded petrol travelled half the distance that a car on regular unleaded would.

The head of GM powertrains, Tom Stephens, admitted that ethanol was less efficient than petrol.

But he said: "Hopefully, the price of ethanol-blended fuel would reflect that, and be cheaper than regular petrol."

Senior GM executive and engineer Denny Mooney (the former boss of Holden) said: "We need a range of alternatives and ethanol is a step that will get us to the electric car.

"Once we get to the electric car, we can then make truly big gains with the environment by improving how the electricity is generated," Mr Mooney, who returned to Detroit last year, said.

The weird thing is, only Australia seems to be reporting this story. I haven't seen it from any other source.

The tiny size of the US EV fleet:

To put this in perspective, I cropped the image to show only the AFV fleet for 2005, giving an image height of 1.4" for 600K vehicles. To illustrate the size of the ca. 135 million vehicles used for commuting in the US would require a bar 26.25 feet (8 meters) long.

Admittedly a rough figure, and a lot of people do carpool/use MT etc. Still! There are 243 million registered vehicles in the US total.

The Wagoner video I saw contained nothing about peak oil.

I don't think there is anything in the Aussie articles in quotation marks about it either.

However, if one counts "demand outpacing supply", that was what Total's CEO gave as his definition. Wagoner is quoted as saying that. But that's pushing it, for sure.

Hmmm - looks like the journalist was getting a little over-enthusiastic...

Electric vehicles are quite feasible, but not as long-distance highway cars. Their logical niche is for low speed (35mph/55kph), short distance (15-25m/25-40k radius) trips. The size of battery to move a small, lightweight vehicle these distances and speeds is small enough to keep the cost of the vehicle reasonably affordable. If you are looking for the future of private passenger automobiles, you have just seen it, this is it.

The good news is that "affordable" looks pretty good: That US$2500 Tata would probably be something closer to at least US$5K with an electric motor and battery pack, maybe more. The best selling NEV in the US right now is selling in the range of US$6K base to US$12K (typical package). Compare with the typical new compact car selling around US$18-20K or more -- plus the premium expense of petrol instead of electricity over the life of the car.

Such small EVs will do for short commutes to a nearby workplace or MT station, to drop off or pick up kids from a neighborhood school, and for the usual weekly shopping trips. People with longer commutes need some sort of MT solution. For communities where electrified rail MT is not feasible, at the very least they could create "park and ride" aggregation nodes for commuters to transfer to buses for the trip to their workplace. Employers located off the main routes may have to invest in a shuttle bus service to get their employees back and forth between their facility and the nearest transit node -- if they want to continue to have any employees that can actually report to work, that is.

How are the EVs to be recharged? For those employees whose commute is within their EV's maximum radius, or those who drive their EV to a transit node, there is an elegant solution: erect PV panels in the parking lots, and install metered recharging station. This matches peak daily insolation with demand, assuring that commuters have a fully charged vehicle waiting for them at the end of their work day. It also answers the question about where to find the space to locate large PV arrays. Metering the recharging station creates a cash flow to finance the cost of the PV panels. By erecting PV panels to recharge the EVs, there is no increase in demand on the existing grid and its installed generating capacity.

What do people do when they need to get somewhere farther away, but a bit off the beaten path as far as mass passenger transport options are concerned? They need to rent/hire an automobile with the capacity to go the longer distances. Most people only need to make such trips occasionally; why drive a vehicle with the capacity for such trips all the time when one is not making such trips all the time? The same logic applies for those needing a small truck/lorry to transport large or bulky items. An implication of this is that the existing network of locations where one can rent/hire a vehicle will have to expand considerably over the next decade or two, so that hardly anyone in or near a town or city is more than a few mliles/km from one.

Thanks for keeping this story alive. So far no play on US MSM.
Wagoner video link

(Crossposted from DrumBeat)

Here's Wagoner's statement from the North American International Auto Show 2008:

Earlier this month, the price of oil hit a hundred dollars a barrel, as demand for energy around the world is growing faster than supply. And that's not just a cyclical phenomenon; it's structural, given the growth in emerging economies, which we fully expect to continue.

Wagoner is quoted in the Royal Oak, MI Daily Tribune (15 Jan. 2008) saying:

As we look at the global energy and environmental picture today and consider the future of the automobile, one fact stands out above all others: the auto industry can no longer rely almost exclusively on oil to supply the world's future automotive energy requirements.

CNET is running an interview with Wagoner that took place just before the auto show and was published today (15 Jan. 2008):

Can this CEO paint GM green?

CNET: How do the petroleum companies feel about some of the things that General Motors is doing to shift the auto industry away from petroleum?

Wagoner: To be honest, I haven't really had direct conversations with them. It's a fairly broad-based issue. We're not saying that we don't see our sector continuing to use petroleum. But with the cost of petroleum these days and broader sensitivity and ever increasing demand for it, alternatives have to be developed. I note with interest a number of the oil companies talk about their positions as energy providers, rather then just oil companies. I'm not in that business, that's the way to think about the future.

...

CNET: Is the relatively high price of crude oil causing different planning in General Motors than ordinarily is the case. Are you now feeling a certain urgency to provide these alternative vehicles?

Wagoner: My sense is there's a fundamental change here and simply stated it's the growth of the emerging markets in places like China, which are huge consumers of energy and I don't see anything which is going to diminish that over time.

Thanks Laurence.

Its good to see Wagoner making sensible comments. Hopefully the oil companies start talking more about being "energy companies" soon too - its not like they don't have plenty of free cash to be invested in alternatives...

The battery technology keeps getting better and better. I think that weight, storage, and range issues are likely to look a lot better in ten years. In the meantime, we have PHEVs. Hopefully we'll seen them sooner rather than later. One Chinese automaker -- BYD -- has made the outrageous claim that it will produce a PHEV with an all electric range of 62 miles by 2008. Though I'll believe it when I see it, I think it is at least evidence that the heat is on to produce these things.

I think the electric vehicle is coming back -- with a vengeance.

Lithium Iron Phosphate cells
Morgan LaMoore wrote:
> I don't think that anyone has yet purchased an affordable set of
> Lithium batteries for a full EV. Just these past few months we've been
> talking about new, cheaper manufacturers, though.
>
SteveS wrote:
Actually I didn't mention affordable; though of course that is
important. I would just like to narrow my focus down to companies that
are actually delivering product. I'm looking at an EM too, so it is a
little more affordable. The weight issue is even more important. I've
been building up a spreadsheet to compare options. So far ($ is for 2KW
system) I have not personally checked out all of the actual availability
and prices; they were gleaned from web sites and postings.

Headway - cheapest, but available? - $1250
A123 -available, but very expensive (looking at the experimenter
packs) - $4750
Thundersky - next cheapest, but evidently not reliable - $1515
Dewalt packs (A123) - available, can either be broken apart or kept as
is - $3115
K2 - prices seem good, pre-built packs, but available? - $2430 (using packs)
Valence - available, expensive, but have built-in BMS - $2500

I would like to make Lithium Iron Phosphate cells batteries myself to do this In the u.s. for the u.s. market and to use glass rather then plastic for shell