Better Place: Cars Running on Renewable Energy

November 3, 2008 | In: Business, Science

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In the face of depletion of oil resources and transportation being one of the biggest contributors to the climate change problem, American-Israeli company Better Place has found a sustainable – and profitable – solution: Electric cars that are powered by renewable energy.

The Hummer, a gas-guzzler with vast consumption of gasoline per kilometer, has become the icon of an environmentally unfriendly car industry. Emissions emanating from private transportation are beyond doubt one of the biggest contributors to climate change. And, surely, more cars like the Hummer will appear in the future.

But with oil prices that have doubled since the beginning of 2007, and with increasing concern over energy security and the future fossil fuel supply, car sales and car demand seems to have moved in the direction of more fuel- and economy-efficient vehicles. This is also visible in the way the most of the world's major automakers are showcasing new and greener cars at auto exhibitions in Detroit, Paris, and everywhere else around the globe. General Motors have even made an HX model that can run on bioethanol.

Now, American- Israeli electric vehicle (EV) company, Better Place, is taking this green surge a step further. Not only will it introduce new cars entirely run by electricity. Better Place also intends to help the world become greener by inducing its energy suppliers to deliver renewable energy.

Rechargeable cars

The electric cars (also called EV - Electric Vehicle) are produced by French and Japanese auto makers Nissan and Renault, with whom Better Place has made partnership deals. The technological evolution making it possible comes from recent improvements in lithium ion batteries. These batteries store energy better and give the cars at least 100 miles of driving capacity (around 160 kilometers).

All that the electric car owner will have to do is to recharge his cars batteries at charging spots that will be placed at home, and in parking lots at work, at the restaurant, or by the shopping mall. Further, the plan is to build battery exchange stations so that the electric car drivers can quickly (three minutes or less) replace depleted batteries with fresh batteries for trips longer than 100 miles.

Like a mobile phone

The business model of Better Place is intended to replicate the one used by mobile phone operators. Like mobile subscribers pay to access cell towers and phone networks, so will drivers pay a subscription fee to access a network of re-charging spots and battery exchange stations. And like many cellular phone users who pay per minute, electric car owners will pay for miles driven.

In that way, Better Place aims to attract car purchasers by appealing to their environmental conscience and to their wallet – as the electric cars are planned to be more economical than any petroleum based car. And in this case, economical also means environmental.

 

Better than fossil fuels

But how do the fossil-free cars benefit the environment if the electricity used to power them comes from coal-fired power stations? Here, Better Place's answer comes in two stages. First, according to Better Place, there are presently around 700 million cars on the worlds' roads, which together produce some 2.8 billion tons of CO2. If these cars were instead all powered by re-chargeable batteries, the amount of carbon emitted would be lowered by 10 % worldwide.

Further, according to Better Place, the recharge process of the batteries will also contribute to generating a new and larger market for renewable types of energy. Since the batteries can and do recharge at any time of the day, it does not matter at which time of the day the electricity is supplied. This means that Better Place can buy the the electricity it needs for its battery stations from wind mills or solar cells that usually produce their electricity in unpredictable patterns that do not necessarily coincide with ‘normal' energy flows of the rest of the economy.

In this way, the energy demand of electric cars fits well with renewable energy production, and this will create incentives for energy suppliers to invest in clean energy. So, maybe some time in the future, all energy consumed by electric cars could in principle be from renewable energy sources.

The future starts in 2011

One of the biggest challenges for Better Place is to help develop a comprehensive infrastructure that supports the launch of a market of electric cars. So far, better Place has joined partnerships in Israel and Denmark to start selling the first EVs in 2011; and on October 22, Better Place announced its new plan to deploy EVs in Australia's east coast by 2012.

And there seems to be growing interest in electric cars elsewhere in Europe too – the latest being France where President Nicolas Sarkozy has now committed to supporting Renault and French utility EDF in building a nationwide electric car recharging network by 2011.

So, if the pilot cases are successful and more countries join in electric car production, the future of infrastructure might be one freed from fossil fuels. As stated by Israeli-American CEO Shai Agassi at the press conference unveiling the project, "This could be the future of transportation."

 

Lasse Skjoldan, Copenhagen Climate Council

 

 

 

 


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