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Tesla Motors, Inc.’s Demand Is Growing Faster Than Production

Tesla’s (NASDAQ: TSLA ) Model S has been an enormous success. Not only has the all-electric luxury sedan been outselling all comparably priced cars in North America in 2013, but Tesla is expecting sales to increase by more than 50% this year. Most surprising of all, however, is that Tesla is achieving this without spending any money on advertising. How long can this trend continue?

 

Electric Cars: The Next Smartphone?

What if a clever business model could lower the retail price of a Tesla compact sedan to less than $20,000, or make an extended range option like BMW’s i3 attainable for under $30,000? Could such pricing make electric vehicle adoption a no-brainer for a larger group of drivers? The business model that helped make the smartphone widely indispensable may offer a clue.

Garage filling stations — are we getting close?

One of the greatest appeals of switching to an alternative-fuel vehicle — electric, compressed natural gas or hydrogen — is saving money and freeing yourself from the clutches of foreign oil. But another is being able to supply your own fuel from a garage filling station where you may even be able to generate some of it yourself.

All this takes on a certain air of necessity when you realize that most of the infrastructure for recharging or refilling is not yet in place. In many cases, the garage may be the best option right now. So let’s run down some of the different options available and see how they stack up as being economical and practical.

Let’s start with the easiest one — electric cars. There are three types of chargers available to owners of a Prius, Leaf or Chevy Volt. The first is a Level 1 “trickle” charger, which is just a basic 120-volt line that plugs into any three-pronged outlet. This is the standard plug-in for all EVs. The problem is the amount of time it takes for a complete charge. For the Leaf, it takes close to 21 hours, which means that you can’t even do it overnight. For hybrids there’s some leeway since you can always revert to the gas motor and do some brake recharging as well. But if you’re planning to rely completely on a home outlet, you’d better have a second car.

More favorable is a Level 2 240-volt circuit. If you have an electric clothes dryer in your house, you’re already equipped. If you don’t have a 240-volt system at home, installation is easy enough. It will require a 40-amp circuit breaker, which may need a permit from the local building department, but the job is simple enough. Recharging time will be cut to less than eight hours, enough for an overnight. Plugincars.com puts the price at $600 -$700, although vendors such as ClipperCreek lists some for less.

If you really want to go really high-tech, you can move up to a Level 3 480-volt power supply that can give you an 80 percent charge in half an hour. The whole package costs $30,000, but with federal tax breaks and some help from the car companies, you can get it down to $10,000. Nissan offers a unit for $9,900. You could probably recoup some of the costs by recharging EVs for your neighbors, but you might need a zoning variance.

So how about compressed natural gas? What are the options there?

The Honda Civic is the only CNG passenger vehicle being sold in the United States. (Most of the progress has been with delivery trucks and long-haul trailers.) There are currently 1,000 CNG filling stations across the country, but half of them belong to companies that are using them for their fleets. Only about 500 are available to the public. So, unless you’re traveling along an Interstate and can make it to one of Clean Energy Fuels’ new truck stops, you’re going to have a hard time.

Refilling at home, however, isn’t all that impractical. More than half the residences in the country are equipped with natural gas for home heating, cooking or hot water. The trick is to get a device that can compress this household gas to be used in your car.

Honda originally offered a home refueling kit, the Phill, which costs $4,500 and could do a refill overnight. Honda stopped making the offer after 2012; however, due to concerns about the widely varying quality of non-commercial gas and the possibility of home devices allowing moisture to collect in the fuel system. For those willing to take the chance, the Phill is still available from its manufacturer, BRC FuelMaker. The question is, “Why is it so expensive when the same pump would cost 10% if it filled air bottles?” There is a regulatory review needed to reduce the cost.

Seeking to promote the technology, the Department of Energy (DoE) handed out grants a few years ago to encourage companies to develop affordable home systems. Now one of them may have come through. The Eaton Corporation of Cleveland, already prominent in the field of electrical charging stations, announced in 2012 that it plans to market a CNG home refueling device by 2015. “The system will use liquid to act as a piston in compressing the gas,” says Chris Roche, vice president at Eaton’s Innovation Center. “We have also developed an innovative heat exchange technology that will improve efficiency and cut costs dramatically.” Eaton is aiming at production costs of $500, which means the device could sell for less than $1,000. GoNatural, a Salt Lake City company, has also promised to have a product available by 2015. “It could be a game changer,” said New York Times reporter Paul Stenquist, in profiling CNG home compressors last October.

So, what about hydrogen? Is there anything available there? Hydrogen is very difficult to deal with. It is the smallest atom and will leak through just about anything. It’s hard to store and transport and must be kept under high pressure.

The upside, however, is the possibility of generating your own hydrogen, particularly from renewable resources. This can be done with simple electrolysis of water, which only requires an electric current. If you can generate that current with wind or solar energy, then you are essentially powering your car for free.

Making it happen is probably a long way off, although people are working on it. HyperSolar, Inc., a Santa Barbara company, has announced “proof of concept” of a method for generating solar hydrogen. “Using our self-contained particle in a low cost plastic bag, we have successfully demonstrated our ability to mimic photosynthesis to produce renewable hydrogen from virtually any source of water using the power of the Sun,” said CEO Tim Young while making the announcement. Horizon Fuel Cells, a Singapore company, released a “desktop” hydrogen generator in 2010 that generates hydrogen through electrolysis from any power source. It sells for $250 on Amazon. Although the company is targeting much smaller fuel-cell devices, it could eventually scale up to handle quantities needed to run a hydrogen fuel cell car

Altogether for cutting loose from the local gas station, electric vehicles are the best bet for now. But natural gas in its many forms — including methanol — are moving up and renewable hydrogen may be on the horizon. With home-generating devices proliferating, it is not hard to see all this eventually making a dent in our consumption of fossil fuels.

Can supercapacitors replace batteries?

The electric car depends on batteries, and before EVs become a large chunk of our automotive fleet, there are probably going to be some changes.

Right now, Elon Musk is betting he can produce millions of small lithium-ion batteries not much bigger than the ones you put in your flashlight and string them together to power a $35,000 Tesla Model E over a range of 200 miles at speeds of up to 70-80 mph. The Model E also will also need an infrastructure of roadside “filling stations” and home chargers, although the best superchargers still take more than 20 minutes to achieve 80 percent capacity.

But there is another way to store electricity, long familiar to the designers of electrical circuits. It’s the capacitor, a device that stores a small current by static electricity rather than a chemical reaction. Capacitors sit in all of your electrical devices, from radio circuits to the most sophisticated laptops, and are essential to providing the steady electric current needed to run such electronics. But what if the concept of capacitors could be scaled up to the point where they could help power something as big as an electric vehicle? Granted, it’s a long, long way from the 1.5-volt capacitor in your iPad and powering a 4,500-pound Tesla along the Interstate, but researchers are out there probing and are already thinking in terms of a breakthrough.

Right now there’s a huge separation between the things that batteries can do and the things that capacitors can do. In a way they are complementary — the strengths of one are the weaknesses of the other. But researchers are working toward a convergence — or perhaps just a way of using them in tandem.

A battery employs chemistry by splitting ions in the electrolyte so that the negative ones gather on the cathode and the positive on the anode, building up a voltage potential. When they are connected externally an electric current flows. Batteries have a lot of energy density. They can store electricity up into the megawatt range and release a flow of electricity over long periods of time. The process can also be reversed, but, because the reaction is (once again) chemical, it can take a long time.

Capacitors store electrons as static electricity. A thundercloud is a great big capacitor with zillions of electrons clinging to the almost infinite surface area of individual raindrops. And as everyone knows, this huge stored capacity can be released in a “bolt of lightening.” Capacitors can be recharged almost instantly but also they release their energy almost instantly, rather than the even flow of a battery. One of their major uses is in flash photography. But their capacity for storing power is also limited. On a pound-for-pound basis, the best capacitors can only store one-fifth to one-tenth the equivalent of a chemical battery. On the other hand, batteries can start to wear out after five years, while supercapacitors last at least three times as long.

Back in the 1950s, engineers at General Electric, and later at Standard Oil, invented what have come to be called “supercapacitors.” Basically, a supercapacitor changes the surface material and adds another layer of insulating dielectric in order to increase storage capacity. Surface area is the key and engineers discovered that powdery, activated charcoal vastly increased the capacity of the storage plates. Dielectrics were also reduced to ultra-thin layers of carbon, paper or plastic, since the closer the plates can be brought together, the more intense the charge. Since then they have begun experimenting with graphene and other advanced materials that may be able to increase surface area by orders of magnitude. All of this means that much more electricity can be stored in a much smaller space.

But the problem of low energy density remains. Even supercapacitors can only operate at about 2.5 volts, which means they must be strung together in series in vast numbers in order to reach voltage levels required to power something like an electric car. This creates problems in maintaining voltage balance. Still, some supercapacitors are already being employed in gas-electric hybrids and electric buses in order to store the power siphoned off from braking.

Researchers in the field now see some possibility for convergence. Most exhilarating is the idea that the frame of the car itself could be transformed into a supercapacitor. Last month, researchers from Vanderbilt University published an online paper entitled, “A Multifunctional Load-Bearing Solid-State Supercapacitor,” in which they suggested that load-bearing materials such as the chassis of a car or even the walls of your house could be transformed into supercapacitors to store massive amounts of electricity on-site. Combined with advances in evening the flow of electrons from supercapacitors, this opens up whole new avenues of approach to the electric car.

All of these developments are a long way off, of course. Still, supercapacitors support the possibility of pulling out of your driveway in the morning and returning at night in your EV without needing to gas up with foreign oil at your nearest filling station.

Can graphene, the wonder material, build better batteries?

In 1962, German researcher Hanns-Peter Boehm suggested the versatile carbon atom, which can form long chains, might be configured into a chicken-wire pattern to create a stable molecule one atom thick.

The idea remained a theoretical construct without even a name until 1987, when researchers started calling it “graphene.” Basically, graphene is two-dimensional graphite, the pure carbon material that makes up “lead” pencils. The term was also used to describe the carbon nanotubes that were beginning to attract attention for their ultra-solid properties. For a while there was talk of elevators reaching up into space until it became clear that creating nanotubes without impurities that degrade their properties was currently out of the reach of mass production.

Then in 2004, Andre Geim and Kostya Novoselov, two researchers at The University of Manchester, came up with something a little more prosaic. They applied Scotch tape – yes, ordinary Scotch tape – to pure graphite and found they could peel off the single layer of carbon in the chicken-wire pattern that Boehm had described. They called this substance “graphene” and were awarded the Nobel Prize in 2010.

The discovery of single-layer graphene has set off a stampede into research of its properties. Carbon is, after all, a versatile element, the basic building block of life that can also be packed into a material as hard as a diamond, which is also pure carbon. When stretched out into lattices a million times thinner than a human hair, however, it has the following remarkable properties:

  • It is the strongest material ever discovered, 300 times stronger than steel.
  • It is the most electrically conductive material ever discovered, 1,000 times more conductive than silicon.
  • It is the most thermally conductive material ever discovered.
  • It is bendable, shapeable and foldable.
  • It is completely transparent, although it does filter some light.

In short, graphene is now being touted as “material of the 21st century,” the substance that could bring us into an entirely new world of consumer products, such as cell phones that could be sewn into our clothes.

All this still remained somewhat theoretical, since no one had been able to produce graphene in dimensions larger than single tiny crystals. When these crystals were joined together, they lost most of their properties. Two weeks ago, however, Samsung announced that it has been able to grow a graphene crystal to the size of a wafer, somewhat on the same dimensions as the silicon wafers that produce computer chips. Thus, the first step toward a new world of electronics may be upon us. Graphene cannot be used as a semiconductor, since it is always “on” in conducing electricity, but combined with other substances it may be able to replace silicon, which is many researches believe is currently reaching its physical limits.

So what does this mean for the world of transportation, where we are always looking for new ways to construct automobiles and find alternative power sources to substitute for our gas tanks? Well, plenty.

Most obvious is the possibility of making cars out of much lighter-weight materials to reduce the power burden on engines. Chinese researchers recently came up with a graphene aerogel that is seven times lighter than air. A layer spread across 28 football fields would weigh only one ounce and a cubic inch of the material would balance on a blade of grass. All this would occur while it still retained its 300-times-stronger-than-steel properties. Graphene itself would not be used to construct cars, but it could be layered with other materials.

But the most promising aspect of graphene may be in the improvement of batteries. Lithium-ion batteries achieve an energy density of 200 Watt-hours-per-kilogram, which is five times the 40-Wh/k density of traditionally lead-acid batteries. That has won it the prime role in consumer electronics. But Li-ion batteries degrade over time, which is not a problem for a cell phone, but becomes prohibitive when the battery must undergo more than 1,000 charge cycles and is half the price of the car.

Lithium-sulfur batteries have long been thought to hold promise but they, too, deteriorate quickly, sometimes after only a few dozen charges. But recently, researchers at Lawrence Berkeley Labs in California modified a lithium sulfur battery by adding sandwiched layers of a graphene. The result is a battery that achieves 400 Wh/k – double the density of plain lithium-ion – and has gone through 1,500 charging cycles without deterioration. This would give an electric car a range of more than 300 miles, which is in the lower range of what can be achieved with the internal combustion engine.

And so the effort to improve electric vehicles is moving forward, sometimes on things coming out of left field. If graphene really proves to be a miracle substance, look for Elon Musk to be discussing its wonders as he prepares to build that “megafactory” that is supposed to produce lithium-ion batteries capable of powering an affordable new version of the Tesla.

Is butanol the next big thing in biofuels?

Fuel Freedom recently learned about a man named David Ramey who drove his 1992 Buick Park Avenue from Blacklick, Ohio to San Diego using 100 percent butanol, without making any adjustments to his engine.

Ordinarily this wouldn’t be big news. But with the EPA now considering cutbacks in the 2014 biofuels mandate, some producers of ethanol are starting to turn to butanol as a way of getting around the limitations of the 10 percent “blend wall” that is threatening to limit ethanol consumption. This could be another breakthrough in our efforts to limit foreign oil.

Butanol is the alcohol form of butane gas, which has four carbons. Because it has a longer hydrocarbon chain, butane is fairly non-polar and more similar to gasoline than either methanol or ethanol. The fuel has been demonstrated to work in gasoline engines without any modification to the fuel chain or software.

Since the 1950s, most butanol in the United States has been manufactured from fossil fuels. But butanol can also be produced by fermentation, and that’s where another opportunity for reducing our dependence on fossil fuels exists.

The key is a bacterial strain called Clostridium acetobutylicum, also named the Weizmann organism for pioneering biological researcher Chaim Weizmann, who first used it to produce acetone from starch in 1916. The main use for the acetone was producing Cordite for gunpowder, but the butanol, a byproduct, eventually became more important.

Once set loose on almost any substratum, Clostridium acetobutylicum will produce significant amounts of butanol. Anything used to produce ethanol — sugar beets, sugar cane, corn grain, wheat and cassava, plus non-food crops such as switchgrass and guayule and even agricultural byproducts such as bagasse, straw and corn stalks — can all be turned into butanol. (Of course, not all of these are economical yet.)

Given the modern-day techniques of genetic engineering, researchers are now hard at work trying to improve the biological process. In 2011, scientists at Tulane University announced they had discovered a new strain of Clostridium that can convert almost any form of cellulose into butanol and is the only known bacterium that can do it in the presence of oxygen. They discovered this new bacterium in, of all places, the fecal matter of the plains zebra in the New Orleans Zoo.

DuPont and BP are planning to make butanol the first product of their joint effort to develop next-generation biofuels. In Europe, the Swiss company Butalco is developing genetically modified yeasts from the production of biobutanol from cellulosic material. Gourmet Butanol, a U.S. company, is developing a process that utilizes fungi for the same purpose. Almost every month, plans for a new butanol production plant are announced somewhere in the world. Many refineries that formerly produced bioethanol are now being retrofitted to produce biobutanol instead. DuPont says the conversion is very easy.

What are the possible drawbacks? Well, to match the combustion characteristics of gasoline, butanol will require slight fuel-flow increases, although not as great as those required for ethanol and methanol. Butanol also may not be compatible with some fuel system components. It can also create slight gas-gauge misreadings.

While ethanol and methanol have lower energy density than butanol, both have a higher octane rating. This means butanol would not be able to function as an octane-boosting additive, as ethanol and methanol are now doing. There have been proposals; however, the proposals are for a fuel that is 85 percent ethanol and 15 percent butanol (E85B), which eliminate the fossil fuels from ethanol mixes altogether.

The only other objection that has been raised is that consumers may object to butanol’s banana-like smell. Other than that, the only problem is cost. Production of butanol from a given substratum of organic material is slightly lower than ethanol, although the increased energy content more than makes up for the difference.

Ironically, the EPA’s decision to cut back on the biofuels mandate for 2014 is now driving some refiners to convert to butanol, since its greater energy density will help it overcome the 10 percent “blend wall.”

“Michael McAdams, president of the Advanced Biofuels Association, an industry group, said butanol was a ‘drop-in’ fuel, able to be used with existing gasoline pipelines and other equipment because it does not have a tendency to take up water, as ethanol does,” The New York Times reported last October. “‘It’s more fungible in the existing infrastructure,’ he said. ‘You could blend it with gasoline and put it in a pipeline — no problem.’

“Butanol would also help producers get around the so-called blend wall, Mr. McAdams said…With the 10 percent limitation, ‘you don’t have enough gasoline to put the ethanol in,’ he said. ‘You don’t have that problem with butanol.’”

So here’s to butanol. It will be yet another big step in reducing our dependence in foreign fuels.

Take me shopping for eggs, copper and corn starch

Good news for a world often filled with bad news has recently been generated by two major U.S. universities, both in regards to the efficacy of alternative fuels. Maybe the announcements will lend confidence that America can find a way to balance economic growth with environmental concerns. Increasing success over time will mean that (paraphrasing in part, the late Sen. Robert Kennedy) the nation will not have to accept “what is” with respect to the dominance of gasoline as a fuel, but can consider “what could be” concerning the use of alternative, cleaner, safer, environmental-better and cheaper fuels.

Stanford University professors, in a paper co-authored by Dr. Matthew Kanan, assistant professor of chemistry, announced that they have developed a copper catalyst that can efficiently convert carbon monoxide and water into ethanol. Quoting from a recent MIT Technology Review (April 2014), “while the work is still experimental, it’s significant because the group was able to synthesize ethanol and other desired products with so little energy input.” The Stanford researchers envision a “two-step process in which carbon dioxide is first converted into carbon monoxide using either existing processes or more energy-efficient ones that are currently under development. Then, the carbon monoxide would be converted to ethanol or other carbon-based compounds electrochemically. The key to the new catalyst is preparing the copper in a novel way that changes its molecular structure.”

How long will it take to get from idea to market? If the copper-based process survives further lab tests and evaluations, and if it is then converted into a prototype that is able to produce ethanol fuel, a big push to convert the prototype to real-world status from both the private sector and government would be warranted.

Stanford’s “breakthrough” — if the process becomes marketable and can generate lower-priced, environmentally-safe ethanol that is capable of fueling flex-fuel vehicles (FFVs) and older, converted FFVs — will be significant, even perhaps a disruptive technology. With the proper support, hopefully in the not-too-distant future, increased use of the copper catalyst will minimize and maybe even end the food vs. fuel and land-use allocation fights, as well as help resolve GHG emissions and other pollutant issues that have sometimes frustrated the use of corn-based ethanol and muted receptivity to natural-gas-based ethanol. Technological improvements concerning production reflected in recent life-cycle analysis of corn-based ethanol and reasonable assumptions concerning the cost and environmental benefits of natural-gas-based ethanol, combined with the success of Stanford’s copper catalyst approach, could offer owners of FFVs (both converted and new vehicles) a wider variety of alternatives to secure ethanol that, clearly, will be cheaper, safer and better for the environment.

Stanford’s good news was matched by Cornell’s. Dr. Yingchao You and Dr. Hao Chen announced that they had discovered that a component of corn starch and the yolk shell structure of eggs improve the durability and performance of lithium batteries. In this context, they note that lithium-sulfur batteries are a very solid alternative to lithium-ion batteries. Stabilization problems related to its capacity can be resolved by using amylopectin, a polysaccharide (mainly good old corn starch).

Enveloping the battery’s lithium sulfur cathodes, with an encasing resembling the shell of an egg yolk (sulfur coated with an inexpensive polymer) also apparently improves the battery’s durability and performance.

Cornell has initiated a startup company to take the new and improved starch, egg-yolk shell battery to market. Maybe sometime soon, moderate and middle-income owners of electric cars that are less expensive than what is now available will be able to reduce their fear of driving long distances and feel confident about the life and efficiency of the batteries in their vehicles.

I avoided chemistry, physics and engineering in college. I knew I was not destined to become neither city planner nor designer at MIT when my first student-planned bridge went under water instead of over it. While my efforts were applauded by the Malthusians among my colleagues, they were not regarded highly by professors. Since graduation, unless supported by respected colleagues with a background in relevant sciences and engineering, I have been hesitant to suggest approval of science-driven energy innovations. I am a policy and program person. However, after review and discussions with trusted experts, I believe the Stanford and Cornell initiatives have a good chance to see the light of day, or, more appropriate, see the light in the market place. If one or both do, we will all be better off and the number of feasible alternative transportation fuels available to the consumer will grow. Hooray for copper, starch and eggs.

Of myths, oil companies and a competitive fuel market

I do not wish to join the intense dialogue concerning whether or not the government should allow exports of crude oil. Others are already doing a good job of confusing and obscuring the pros and cons of selling increased amounts of America’s growing oil resources overseas.

What I do want to do is just focus on the logic of one of the oil industry’s major arguments for extending the permitting of exports — again, not on the wisdom of exporting policy. Permit me to do so in the context of the industry’s long-standing argument concerning the pricing of gasoline to U.S. consumers. The argument is that more oil drilling in the U.S. will lower the price of gas and put America on the path to oil “independence.”

In somewhat of circuitous manner, oil companies are using the opposite of their domestic advocacy for “drill, baby, drill” policy as a way to keep prices lower at the pump. Their yin is that producing more oil in the U.S. and sending significant amounts overseas, combined with declining vehicular fuel demand, will lower gas prices. Economist Adam Smith would applaud the simplicity if he were alive and well. Their yang presents a bit more complicated set of “ifs.” That is, the industry presumes that fulfillment of the yen (excuse another pun) to export will result in more U.S. oil being drilled because of increased world demand generated by the assumed ability of the U.S. to produce oil at less costs than the world price for oil. It will also help foster infrastructure development in the U.S. to break up current log jams concerning oil transportation. Finally, it will facilitate more efficient refineries, allowing them to specialize in different types of oil. The yin and yang will result in (marginally) lower prices of gasoline — so goes the rhetoric and oil-industry-paid-for studies.

Paraphrasing Dr. Pangloss in “Candide,” the oil companies hope for the “best of all possible worlds.” But, before Americans run out and buy stock, note the price of gasoline does not directly reflect oil production volume. Indeed, gas prices, despite increased supplies, have gyrated significantly and now hover nationally over $4 a gallon. Generally, oil and gas prices relate to international prices, tension in the Middle East and investor and banker speculation — not always or directly domestic costs. Stockholders and executives of oil companies function not on patriotism but on profit and to the extent that the law permits, they will sell overseas to get the best price — in effect, the best dollar over payment for a barrel of oil. Consumers, I suspect, are rarely a significant part of their opportunity costing.

Unfortunately, lack of strong empirical evidence tempers the company’s argument that increased world demand will stimulate good things like refinery efficiency and log-jam-ending infrastructure. Maybe if the price per barrel is right (clearly, higher than it is now) and seems predictable for more than a small period of time, refinery and infrastructure developments will be positive. But, the costs to the consumer, in this context, will be higher. It will also be higher because shale oil is tight oil and more risky and costly to drill.

Oil independence is a myth suggested by oil industry and a non-analytical media. Certainly, the oil boom and less vehicular demand have generated less imports and less dependency. But we still buy nearly 300 billion dollars’ worth of oil every year to respond to need and we still produce far less than demand.

Somewhere in the dark labyrinth of each major oil company is a pumped-up (another pun), never-used, secret justification for franchise agreements impeding the sale of alternative fuels in their retail outlets. To alleviate guilt, it may go something like this: “Monopolies at the pump will allow us to make larger profits. You know we will someday soon want to give back some of the profits to consumers by lowering the price of gasoline.” If you believe this still-secret beneficence, let me sell you the Brooklyn Bridge.

There is another way to steady the gasoline market and lower consumer costs. Inexpensive conversions to allow older vehicles to use safe, cheaper and environmentally better alternative fuels (as opposed to gasoline), combined with expanded use by flex-fuel owners of alternative fuels, would add competition to the fuel market and likely reduce prices for consumers. Natural-gas-based ethanol is on the horizon and methanol, once the EPA approves, will follow, hopefully shortly thereafter. Electric cars, once costs are lower and distance on single charges is higher, will be a welcome addition to the competitive mix.