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Alternative fuels and vehicles: Good news on all fronts

If we’re going to replace the gasoline in our tanks, we’re going to need help from all kinds of directions. None of the alternatives is likely to do the whole job by itself, but every little bit helps.

That’s why it’s so encouraging that there was good news on all fronts this week, and why each little success gets us closer to having legitimate alternatives to take the place of gasoline.

Here’s a sampling of some of the news:

Batteries. A team at Stanford University announced it had developed a high-performance battery out of aluminum. This is important because aluminum is much cheaper than lithium, the current favorite among battery-makers. Aluminum has been used to make batteries, but the problem has always been keeping the voltage high after repeated charging and recharging. Now the Stanford team believes is has found the answer.

“We have developed a rechargeable aluminum battery that may replace existing storage devices, such as alkaline batteries, which are bad for the environment, and lithium-ion batteries, which occasionally burst into flames,” said Hongjie Dai, professor of chemistry who headed the team. “People have tried different kinds of materials for the cathode. We accidentally discovered that a simple solution is to use graphite, which is basically carbon. In our study, we identified a few types of graphite material that give us very good performance.”

This raises the question of whether Elon Musk can substitute aluminum batteries in his Gigafactory, a work in progress that is set to build lithium batteries for the new Tesla.

Hydrogen. Hydrogen cars are clean, producing only warm water for exhaust. But the problem is getting the hydrogen. The only known methods to date have been electrolysis of water, which is expensive and energy intensive, and “reforming” natural gas, which produces carbon dioxide and makes hydrogen just another fossil fuel. But now a team of scientists at Virginia Tech has come up with a catalyst the can make hydrogen quickly and cheaply from biomass.

“Researchers from Virginia Tech have developed a way to drastically cut the time and money necessary to produce hydrogen fuel,” reports The Christian Science Monitor. “By using discarded corn cobs, stalks, and husks, they have improved on previous methods deemed too inefficient by energy experts. Their research, which was funded in part by Shell, was published today in Proceedings of the National Academy of Sciences.”

Using genetic algorithms, Percival Zhang and Joe Rollin developed an “enzymatic pathway” that speeds up the reduction of hydrogen from biomass. By including two simple plant sugars, glucose and xylose, they were able to increase the rate of hydrogen production while emitting an “extremely low amount” of carbon dioxide.

“Cost effective and productive in volume, this method could breathe new life into the hydrogen car,” says the CSM.

Biofuels. And speaking of enzymes, another team of researchers working for the Department of Energy has come up with a bacterium that efficiently breaks down biomass without pretreatment. The team has been using the system to extract ethanol from switchgrass, a fast-growing weed that has long been a favorite of biofuels enthusiasts. The strategy, called consolidated bioprocessing, uses the Caldicullulosiruptor beseii bacteria to split cellulose and then ferments it into ethanol. The strategy eliminates the very expensive pretreatment that requires heat and more enzymes. Several facilities are now trying to break down cellulose and convert it into ethanol, but this one-stop process would be a huge saving.

EVs. A study at the Stockholm Environment Institute says that electric vehicles may be coming into their own much faster than everyone thought. This is because the price of batteries is coming down faster than anticipated. EV batteries now cost approximately $300 per kilowatt-hour. They weren’t expected to fall much lower than that over the next five years. But the authors Bjorn Nykvist and Mans Nilsson say that recent developments have brought the price down as low as $150 per kilowatt-hour, which could make electric vehicles appealing for a much wider range of customers. Since the batteries normally make up at least half the price of the vehicle, it could reduce costs significantly. Or manufacturers might use the new low price to load up on batteries, increasing the range of the electric vehicle. Either way, the package becomes more attractive.

And that doesn’t even include the possibility that the aluminum battery developed at Stanford could be making batteries more efficient and lowering prices even further.

There’s a tremendous synergy going on in these fields, as researchers pursue numerous pathways in exploring alternative vehicles. One way or another, it means that alternatives to foreign oil are soon going to be making their way into the customer’s field of vision very soon.

Is Tesla really all that disruptive?

Elon Musk’s dream of revolutionizing the auto industry seemed to lose some of its luster last week as the fledgling electric car company ran into a few roadblocks in getting its new models into consumer hands.

The $35,000 Model X is scheduled to be leaking out to a few early customers late this year. Then full-scale production will begin in 2016. But already there is talk of delays and missed deadlines, so there might be an asterisk attached to those numbers soon.

The ultimate goal is selling 50,000 Model X’s by 2017, which still seems way over the horizon. A lot of those sales were supposed to come from China, and that’s developing into a problem. Musk was in China last week talking things over with Zhao Kuiming, head of Tesla’s China sales division, but Musk has already decided to “reboot.” It appears that Chinese buyers are still spooked by the lack of recharging stations, even though there have been a few grand openings around Beijing. Tesla was hoping to sell between 4,000 and 8,000 models in China in 2015, but only 120 cars were sold in January. Musk has cut the China staff from 600 to 420 and is recalculating just what can be expected from the Middle Kingdom. The tastes of the few Chinese millionaires who could be counted on to purchase the Tesla as a status symbol aren’t going to get him very far.

All this has spooked investors as well. They’ve driven the price of Tesla stock down nearly 20 percent since the start of the year. Once the highest flyer on the market, Tesla peaked at $293 a share last September, but it’s been a long descent ever since. Prices lingered around $180 per share last week. Even then, Tesla is trading at 232 times its expected earnings for 2015. The average stock on the NASDAQ, where it trades, is 21 times earnings. All this has lifted the short interest on Tesla stock to 27 percent of floating shares. The average on the NASDAQ, once again, is only 5 percent.

Nevertheless, all this could turn around quickly. Tesla already has 20,000 pre-orders on the Model X, and there is every reason to think its release could revolutionize the industry, much as Musk says. As it is emerging, the Tesla is going to be a device much more attuned to electronics and Silicon Valley as it is to Detroit and the auto industry. Musk is already introducing over-the-air (OTA) updates of the car’s software in a model, much more like an iPad than a Ford Focus. All those features you see advertised by the major automakers — rearview cameras, automatic emergency braking — will be standard in the Tesla. Musk is already talking about an automatic driving feature that will allow drivers to guide the car hands-free on Interstate highways. Of course, there are lots of state regulations that will have to be satisfied before this feature can go into effect. California, Nevada, Michigan, Florida and Washington, D.C., already have laws allowing driverless vehicles driving, but it’s unclear how Tesla’s system will be judged under these statutes.

Also decided at the state level is the question of whether Tesla can sell directly to customers or must work through established car dealerships. These laws are generally put into effect at the behest of local dealers to prevent the major auto companies from setting up their own shops. But Tesla has run afoul of the law in many states. The company just won a major victory when New Jersey Gov. Chris Christie came down in favor of Tesla. Georgia has also opened its doors to direct sales at five stores. But West Virginia has gone in the opposite direction, banning sales of Tesla altogether. There probably aren’t that many potential Tesla customers in West Virginia anyway.

Perhaps the unkindest cut came from Wall Street Journal columnist Holman Jenkins, who wrote a piece titled “Tesla: Just Another Car Company.” If you wanted to insult Elon Musk, you could hardly do better. “Elon Musk has proved that a market exists for electric cars, despite their many inconveniences, especially if they come wrapped in taxpayer subsidies,” Jenkins wrote. “But he hasn’t proved he can make a profit.”

Jenkins sees the Tesla operating in a niche market, in which a small percentage of customers are willing to ignore the problems in order to be “green.” Once this niche is filled, however, the market will thin out quickly. “Uber is disruptive,” he writes. “Tesla isn’t. Tesla is disruptive mostly of a driver’s confidence that he’s going to reach his destination without needing a tow.”

Yet this perspective is probably too negative of Tesla, and electric cars in general. There are people whose driving needs it fits perfectly. “I own a Tesla. It is beyond spectacular,” wrote one of the commenters to Jenkins’ piece. “The car has Di Minimus maintenance as there is nothing to break.” “That is why I bought a Tesla,” says another. “At 270 miles to start with, range anxiety is not my problem, yet. I rarely drive over 100 miles in any given day, and if I needed to, my Chevy Tahoe is still in the garage.” I have friends in Baltimore who bought a Nissan Leaf as a second car to tool around the city and love it.

So Tesla may just be filling a niche, but it is still a sizable one. Infrastructures can change a lot faster than we anticipate, especially where there is a demand for it. Tesla’s stock may be overvalued and due for another nosedive. But the company is still making big changes in the way we power our cars.