Block’s Indicator of Sustainable Growth

by Ray Block

Barack Obama, with his Energy Secretary, the Nobel Prize winning physicist Steven Chu, is committing US$2.4 billion to 48 companies to ensure that the US becomes the dominant producer of electric cars and components.

Electric cars, with zero emissions would eliminate 19 per cent of total US greenhouse gases, once the gas gugglers go the scrapheap.

The choice of grant recipients has been criticised, because of the size of grants to General Motors, and the location of plants in congressional districts, critical to Democrat Party success in the November 2010 elections. 

However, there is a lot more at stake.

$1.5 billion goes to US-based companies to make advanced batteries and battery components, $500 million in grants for companies to build electric-drive vehicles, and $400 million in grants to buy and test electric vehicles, install charging stations and train workers for electric transportation.

Nissan of Japan, the Renault affiliate, which on August 1 2009 announced that it would be releasing its electric hatchback, emission-free Leaf in 2010, initially in Japan and the US, has a role to play in the Obama version of the electric car  revolution.

The Leaf, powered  by an 80 kW electric motor and rechargeable lithium-ion battery is seen By Nissan head, Carlos Ghosn, as the first electric mass market car,  and  not a mere niche player. The production rate in 2012 is expected at 200,000 vehicles, which if it eventuates will be a sign of great confidence.

Importantly, the car, which can travel 16okm (100 miles) on a full charge can be recharged as to per cent capacity in 30 minutes, using a high powered quick charger.  Nissan is seeking to have installed the charger in a proposed line up of battery charging stations, which will make electric car driving more attractive to the general public.

Nissan and its US partner, the Electric Transportation Engineering Corp (ETEC) of Phoenix  will receive in Obama government grants $99.8 million to develop and build charging stations and demonstrate the use of 5,000 of Nissan’s new electric cars.  11 charging stations are initially planned for the test runs.

In June, Nissan received a $1.6 billion low interest loan from the US Government to retool the Smyma plant in Tennessee for electric car production, and the Leaf will be assembled for North American consumers from there.

And what of the other electric car, the hydrogen fuel cell vehicle.  Like the electric car, the hydrogen car has a lithium-ion battery to start it. But its real power source is the hydrogen fuel cell. The dream of a hydrogen fuel cell car, once a favourite under Bush, is now a wall flower, since the 2010 Budget cut $100 million in US funding for hydrogen fuel cell research.

Congress has now voted to restore the research grants, which could be increased to $160 million.

Steven Chu has four concerns about hydrogen. One  is that under current production methods, hydrogen is derived from reforming natural gas, and hence is wasteful to the use of such a valuable fuel.

A second concern is that there isn’t currently a good storage mechanism for hydrogen. “We haven’t figured out how to store it with high density”, says Chu. Fuel cells is a third concern, and the distribution infrastructure is only in its infancy.

There is a nascent  road infrastructure slowly being created with hydrogen filling stations in California and New York. Shell Oil has about 30 hydrogen filling stations in California, and another 40 are needed to service the growing number of vehicles on the road. 

The Scandinavian Hydrogen Highway Partnership (SHHP) extending from Norway to Denmark and Sweden is an ambitious undertaking. And equally ambitious is the proposed British Columbia Hydrogen Highway on Canada’s western seaboard, which has links with SHHP.

Toyoto, the world’s biggest car company is not planning to launch a hydrogen car until 2015, but the lead here is with Honda ‘s FCX Clarity, which first saw the light of day at the Tokyo Motor Show in 2005.

GM tested its fuel cell concept car, the SUV Provoq in 2008, giving 40 experienced customers vehicles for road testing. The performance was impressive- 71.5 km per kg of compressed gas, equivalent to a gallon of gasoline, and no emissions. GM also has a Chevrolet Silverado fuel cell pick up for the US Army.

In June 2009, the UK Riversimple group launched its two seater hydrogen fuel cell car, which it is said will be in production in 2013. Fuel economy again impressive, the concept car has achieved 390km (240 miles) on one small tank of hydrogen weighing 1 kg (2.2 lbs.)

The hydrids and the plug in electric cars are destined to be mass market vehicles, with the hydrogen fuel cell cars for people who want to be first movers and willing to pay high leasing costs.