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$300 million incentive to improve battery-powered cars

McCain's offer puts added charge in research

Published July 1, 2008 at 2:30 p.m.

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Matt Keyser, a senior engineer at the National Renewable Energy Laboratory in Golden, lifts a casing off a nickel-metal hydride battery. Keyser and his team are testing various batteries.

Photo by Tim Hussin / The Rocky

Matt Keyser, a senior engineer at the National Renewable Energy Laboratory in Golden, lifts a casing off a nickel-metal hydride battery. Keyser and his team are testing various batteries.

Kurt Jensen, principal scientist at Nilar Inc., unhooks a nickel-metal hydride battery from a Toyota Prius outside the company's battery manufacturing facility in Centennial. Jensen said the company wouldn't comment on Sen. John McCain's incentive offer.

Photo by Tim Hussin / The Rocky

Kurt Jensen, principal scientist at Nilar Inc., unhooks a nickel-metal hydride battery from a Toyota Prius outside the company's battery manufacturing facility in Centennial. Jensen said the company wouldn't comment on Sen. John McCain's incentive offer.

A host of Front Range companies that have been working for years to improve car batteries are intrigued with presidential candidate Sen. John McCain's $300 million offer last month to any developer whose battery leapfrogs the abilities of hybrid and electric cars.

Having cars run on powerful batteries instead of relying on engines would cut gasoline consumption and reduce the nation's dependence on oil that's often imported from unfriendly and unstable countries, experts say.

But the batteries are not cheap. For example, a lithium-ion battery - the latest technology to grab the attention of automakers - costs tens of thousands of dollars, and the technology has yet to make its commercial debut in a vehicle.

Alhough McCain's offer is enticing, local companies say the race was on even before his announcement.

"Whether or not there's a prize, there is enough incentive already to work in this field," said Phil Lyman, CEO of Boundless Corp. "A lot of money already is being put into battery research and development because of the demand for the technology."

The Boulder company, founded in 1995, integrates battery cells with other components such as cooling fans and physical packaging before selling the product to customers such as the U.S. military.

Lyman said he has been deluged with e-mails following McCain's offer and would consider teaming up with another company, possibly one specializing in battery chemicals, to compete for the prize.

In any event, the U.S. must push for more battery research, said Michael Brylawski, vice president at the Rocky Mountain Institute in Snowmass. He emphasized that Korea, China and Japan have sprinted ahead, with the bulk of supply chains based in the Asian nations.

"It doesn't make sense to replace foreign oil with foreign batteries," Brylawski said. "We ought to make (batteries) a strategic national priority . . . China, Japan and Korea have made it a strategic national priority to have the government invest in the sector.

"I'd like to see a $3 billion prize. The market itself is projected to be $10 billion in the next five years for automotive batteries."

From Denver to the world

Colorado has a long history in battery development.

Engineers at Denver's Gates Rubber Co. developed Optima, an advanced battery, in the early 1970s. The battery operation changed hands a couple of times and is now owned by Johnson Controls Inc.

Today, Optima batteries are distributed from Denver to dealers and distributors across the world.

Cars typically use lead acid batteries that provide a temporary surge of current to start an engine. Depending on maintenance and use, a lead acid battery can last the lifetime of the car.

In recent years, automakers such as Toyota have begun using a different battery chemistry called "nickel-metal hydride" in hybrids such as the Prius because it delivers better fuel mileage by switching back and forth between a gas engine and an electric motor.

Nilar Inc. has a factory in Centennial that makes nickel-metal hydride batteries in small quantities. Though it is not an official vendor for Toyota, Nilar's batteries have been used in experimental plug-in Prius cars.

Kurt Jensen, Nilar's principal scientist, said the company won't comment on McCain's offer.

Researchers now are focusing on lithium-ion batteries. The chemistry is not new. Cell phones, BlackBerrys, laptops and cordless power tools already use lithium-ion batteries.

The challenge is to scale them up to be able to run cars.

"Going from a very small scale to large scale, the big issue for manufacturers of lithium-ion batteries is to make them cost-effective," said Ahmad Pesaran, chief of the battery analysis group at the National Renewable Energy Laboratory in Golden.

Currently, the cost of storing power in a lithium-ion battery is, on average, about $1 per watt/hour. That compares with a lead acid battery's 20 cents per watt/hour, Pesaran said.

Researchers are working to cut down the energy storage cost of lithium-ion batteries. Lyman said they could be competitive with gasoline at current prices at 75 cents a watt/hour.

Carmakers already are eyeing lithium-ion batteries for advanced hybrids and plug-in hybrids. General Motors is planning to launch the Chevy Volt, whose prototype has run on a lithium-ion battery. And Toyota has confirmed that its next-generation Prius will have a lithium-ion battery.

"When you buy a lithium-ion battery, it's a bit like paying for all the gasoline you'd use the day you buy a car," Lyman said. "The batteries are expensive, but the electricity to recharge it is very inexpensive."

chakrabartyg@RockyMountainNews.com or 303-954-2976

Colorado's battery presence

National Renewable Energy Laboratory

* Location: Golden

* Employees: Roughly 1,000

* Work: Researches, develops and tests batteries.

Rocky Mountain Institute

* Location: Snowmass

* Employees: About 100

* Work: Researches and consults on batteries.

Nilar Inc.

* Location: Centennial

* Employees: Roughly 25

* Work: Develops nickel- metal hydride batteries.

Boundless Corp.

* Location: Boulder

* Employees: 20

* Work: Integrates battery systems.

Hybrids Plus Inc.

* Location: Boulder

* Employees: 12

* Work: Converts hybrid automobiles into plug-in electric hybrid cars using lithium-ion battery packs.

Comments

  • July 1, 2008

    3:18 p.m.

    Suggest removal

    FlyfishDude52 writes:

    So where does the energy come from to charge these batteries?

    Not coal-fired power plants! Or natural gas-fired power plants! We don't have nuclear plants in Colorado, so that isn't the answer.

    When is everyone going to realize that battery powered cars are OK except that they need to be charged and that takes electricity. And no matter what source the watt is generated from it is still a watt. Whether at 9 volts or at 115,000 volts!

  • July 1, 2008

    3:34 p.m.

    Suggest removal

    FlyfishDude52 writes:

    There should be a caveat that US technology only can apply for prize.

  • July 1, 2008

    4:23 p.m.

    Suggest removal

    Newenergycommie writes:

    There is actually excess power available from the grid at night. Coal plants (we need more) don't operate well at part load. If we built more and operated them at peak efficiency 24 x 7, the batteries would charge while we sleep.

    Believe it or not, solar could also be used as it shines the brightest during the middle of the day. Again cars could be charged while we are at work. Solar is very expensive, except when you compare it to gasoline.

    Charging batteries with natural gas fired generation is nuts. You have a 50% efficiency loss converting NG into electicity, the batteires and drive system on the car would have say a 70% effieincy so you conversion ration would be less than 25%. Burn the natural gas directly in the car's engine and save all these losses.

    But, you are right, the $300 mil should only be awarded if the battery is designed and more importantly made in the USA.

    Drill now, Drill here, and build more Nuke & coal plants while we develop alternatives.

  • July 1, 2008

    4:37 p.m.

    Suggest removal

    SlowWalker writes:

    What's wrong with hydrogen-powered vehicles, like the ones shown by Honda and Toyota?

  • July 1, 2008

    4:39 p.m.

    Suggest removal

    mark79trans writes:

    Trythinking,

    "Drill now, Drill here, and build more Nuke & coal plants while we develop alternatives."

    That would make sense, which is exactly why we won't do it!

  • July 1, 2008

    8:44 p.m.

    Suggest removal

    gr8fun4me writes:

    I wish our leaders of our country had a foresight to lead our country on a course of energy independence. If we don't invent it here in the US someone else will in another part of the world. Our country is falling apart because of high energy prices.
    There are four things that would help tremendously with the energy problem.
    1. A better battery. Obviously to run an electric car because we use 68% of 21 million barrels of oil we burn a day for transportation.
    2. Invest in solar cell efficiency. Use this to charge the battery while it's sitting in the parking lot and generate electricity for the grid.
    3. Superconductivity in wires at room temperature. Canada and Germany governments are investing in this and they are close(silane under extremely high pressure) This would allow the transmission of electricity with low or no resistance. A really tremendous breakthrough.
    4. Tax breaks for installing solar panels on our homes. Our government just suspended all new installations on federal land in the desert(huh) for environmental impact studies for two years!(sounds like a payoff again for whatever reason). Power companies are building large solar power plants in the Southern California desert by law.

    Nature has been demonstrating the power of electricity (lightning) for millions of years. Mankind needs to take the hint and head in that direction.

    I'm glad that someone in government is finally looking toward the future instead of living in the past. If we don't this country won't last another 20 years as all of our money heads overseas.

    They do use lithium-ion batteries in cars (6831 of them) and this is a true sports car.
    http://www.teslamotors.com/
    Check out Jay Leno's link to see him test drive it.

    Link for superconductivity research. Our country should be doing this. Instead we've become a country of followers.
    http://arstechnica.com/news.ars/post/...

  • July 1, 2008

    9:02 p.m.

    Suggest removal

    gr8fun4me writes:

    We don't need any more coal plants. We need solar plants that are built in the southern part of our country where the sun shines. Scientists have already said that a grid of 10 miles X 10 miles would be enough to power the US. People need to quit thinking in the old ways. They use long solar tubes to focus the suns energy on tubes filled with liquid metal(potassium nitrate or sodium nitrate) that heat to 750 degrees fahrenheit. Obviously this is hot enough to boil water which drives the steam turbine which generates electricity. If they can store the super hot liquid in insulated reservoirs for use at night then this would be a tremendous way to get free energy from a source that isn't going to burn out for billions of years and it's something that won't destroy our planet which we are doing at a faster pace. Do you know where the mercury is coming from that is in tuna? Coal burning has mercury in it and that is why the large predator fish have it in them. Coal burning is not the answer unless you work for the mining companies.

  • July 2, 2008

    8:44 a.m.

    Suggest removal

    temurlan writes:

    The prize is interesting but any company that does this is going to make a mint anyway. Also, why just limit it to a better battery?

  • July 2, 2008

    8:52 a.m.

    Suggest removal

    greenleaf writes:

    Trythinking,

    I know this doesn't directly relate to the article at hand, but I wanted to respond to your comment regarding drilling here and drilling now.

    In today's Rocky is an article that could easily be missed regarding Algae based biofuels which are potentially a major part of our energy solutions when combined with cellulose based ethanol'

    http://www.rockymountainnews.com/news...

    As I have mentioned previously, the plants could be built in deserts or beside existing coal plants, soaking up their CO2 while producing glycerol which can be made into liquid fuel.

  • July 2, 2008

    9:36 a.m.

    Suggest removal

    temurlan writes:

    greenleaf, the algae thing is interesting. China just had a huge bloom off its coast:

    http://www.iht.com/articles/2008/06/3...

    What are the unknowns though. I have a feeling the enviornment folks would like to prevent us from tapping that too.

  • July 2, 2008

    10:03 a.m.

    Suggest removal

    greenleaf writes:

    temurian,

    I haven't read any negatives yet, but who knows? This makes a lot more sense than corn ethanol.

  • July 2, 2008

    10:11 a.m.

    Suggest removal

    temurlan writes:

    Couldn't agree more.

  • July 2, 2008

    1:21 p.m.

    Suggest removal

    Newenergycommie writes:

    Greenleaf, I'm all for long term fixes. We also need some short term fixes. I believe that once American commtted to drilling more here the price would drop and we could stop the bleed of capital leaving this country.

    I'd like to see more work on kelp. Large mid sea farms. Kelp and algae are high in lipids (sp?) which make great diesel. The farm equipment required for kelp is an anchored chain. They add a foot of growth per day per plant. Mid Ocean doesn't have the environmental impact as would harvesting in Monterey. No land use issues, no otters, no water issues and you remove CO2 from the world's largest CO2 sink. Aren't their large deadzones in the ocean that have some much CO2 that fish can't live? Once perfected, no one country or cartel could control energy.

    This is out of my area of expertise, but not interest. See "Algae as an energy source". http://en.wikipedia.org/wiki/Algaculture

  • July 2, 2008

    2:55 p.m.

    Suggest removal

    Newenergycommie writes:

    Gene,

    You could also refine a certain type of rock or mineral in a way that "enriches" it. If you then put a lot of this "enriched rock” , say a critical mass of it, together in a bath of water some type of reaction could take place. This would heat the water and making steam. The steam could then be used to turn a turbine coupled to a generator and it could produce power without emissions. We could eventually build 104 of these magic plants and supply 97,400 MW of power. You may need to figure out what to do with the "spent rock" when the process was complete, but I think it could work. You could bury the waste in a mountain in Nevada, where it would be safe for 10,000 years. I know this is a far-fetched idea, how could a magic rock exists that would allow this type of power production? If it works we could even power ships and submarines. What a wonder this magic rock would be.

    I do sarcasm really well, don't you think?

  • July 2, 2008

    3:01 p.m.

    Suggest removal

    greenleaf writes:

    Trythinking,

    No doubt we are going to loosen up and allow more drilling. Market pressures are just to great to prevent it. The question is as to how much. Too much, and the price of oil might drop temporarily until demand exceeds supply and we are mostly "drained". To little and the economy free falls and money for Research in this country dries up. We have to strike a balance somewhere.

    We're on the same wavelength on alternative fuels. Once we can bury corn ethanol once and for all , switch grass and algae look like good bets for the long run. I like the kelp harvest idea, but I thought you might like the algae biodiesel plants to be next to your coal fired power plants. It could be a win for you, environmentalists and the country as a whole. I know what you are thinking: we need energy now and this is probably 10 years out. You know what I'm thinking? We better use our heads and some off the shelf technology to conserve like crazy. We might need to adjust our driving habits as well (not so fast, no idling, watch tire pressure etc.) Then we can combine that concept with a little "drill here, drill now"! - I bet you never thought you would hear me say that!

    As for the rest of you environmentalists: No, I haven't sold out, I'm being realistic!

  • July 2, 2008

    3:11 p.m.

    Suggest removal

    greenleaf writes:

    Trythinking, I just saw your latest post re: sarcasm and nuclear energy.

    As far as nukes go, if you can get around "nimby" and the regulation and investor problems, I say go for it! We could use some new nuclear ( maybe not as much as you suggest, but that's negotiable as far as I'm concerned).

    Sarcasm? Yes you do it very well as I and others have discovered. I do have to point out my friend as a common and long time user of the practice : the mark of great sarcasm is when it actually fools someone and a third party is required to point out that they have been had. Not too long ago, Gene had a fellow conservative believing he was rabidly liberal. The guy pounced on Gene's post and I had the distinct pleasure of pointing out his error! My part was to supply irony. Sweet!

  • July 2, 2008

    3:15 p.m.

    Suggest removal

    Newenergycommie writes:

    CO2 is a perfect gas. Given time it will disperse more or less evenly in the lower atmosphere. Biological capture, i.e. algae will need high efficiency if it every to compete. As a plant guy, would it grow better 1) at a more temperate climate closer to the equator using just the 380 PPM CO2 in the atmosphere or 2) in a colder region that gets less sunlight but with a higher concentration of CO2 (fuel gas from a coal plant)? I don't know which is preferred. Certainly the PR value of putting it next to a power plant would be great, but which process would provide the most efficient production of biomass (tons)/investment ($)?

    My other concern is the water source for a western-based algae farm. The water will evaporate and/or get steadily saltier with time. Algae that use seawater would have an unlimited supply of water. Certainly the best solution would be a coal plant located in Baja. Desert land, lot of sunshine, unlimited useless seawater and the coal plant would be near California’s lucrative power market.

  • July 2, 2008

    3:17 p.m.

    Suggest removal

    greenleaf writes:

    Gene,

    Thanks for the link. I for one will be on the sidelines with my aging Prius watching the "Volts" glide by. GM is desperate, they need the right new product and they need it years ago! The Prius and Toyota's own plug-in are going to be tough competition. If they can perfect the battery, they may have a home run. I fear its more likely it will have teething problems that make GM's position weaker to the point they sell their technology to someone else who will make it work and sell it to us. Personally, I wish them well. It would be nice to recapture some of the world's business for the American auto industry.

  • July 2, 2008

    3:24 p.m.

    Suggest removal

    Newenergycommie writes:

    I know Gene; I’ve enjoyed his posts before. It is no fun using sarcasm on someone that is , how do I say this; "dumb". I had a great time composing my little nuke rant for Gene's benefit. A fair intellectual "fight" is always more fun than debating an unarmed opponent, don't you think?

    As for the rest of you fossil fuel people: No, I haven't sold out, I'm being realistic!

  • July 2, 2008

    7:10 p.m.

    Suggest removal

    greenleaf writes:

    Trythinking,

    I am still undecided as far as the up coming election. My father was of the school of thought that the only serious candidates to consider were Republicans and I'm certain he never voted any other way. This was true of the majority of my farmer relatives as well. My brother is the family maverick and would disown me if he knew that I had voted for some Republicans and independents through the years. As an independent voter, I have to tell you Mc Cain will have to convince me he's dramatically different than "W". I want to hear some environmental sensitivity, mixed with a healthy, pragmatic attitude toward both our environmental and energy problems. I appreciate balance but I hate pandering too dramatically one direction or the other. I also want to hear about fiscal responsibility ( whatever happened to that Republican value?). That is what I appreciated most about the old Republican party. Without that I may assume that Mc Cain is Bush-lite and be one of those people who have "no brain at all" you are referring to who votes for Obama.

    With all due respect my friend, Republicans would be ill advised to ignore the independents this cycle, we are likely to decide this election. By the way, I blame Karl Rove for much of the division in American society today.
    We need more diplomats and fewer reactionary partisans such as Rove. I appreciate the majority of your posts, you know that I do! Maybe that is why I am disappointed by one as astute as you taking cheap shots and painting political opponents with one, broad brush. There are no longer any "typical" Democrats or Republicans ,either, for that matter. What we need are patriots willing to cross divides. I am trying to be one, hard as that sometimes is. I won't surrender core values and wouldn't expect you to either, but I think it is essential to abandon inflammatory partisan rhetoric or we will never get anywhere with our problems. Do you have a better approach?

  • July 2, 2008

    9:19 p.m.

    Suggest removal

    Logical writes:

    Hmmm, a 10 mile x 10 mile solar farm? Who is going to approve that? NIMBY is the factor so many people forget when suggesting "viable" alternatives.

    Nevada won't take nuke waste, even though it will be underground and out of sight. Have you driven past the wind farms in NE Colorado? Or, better yet, sat on a local's porch and tried to enjoy a sunset while looking through all the windmills? Not a pretty sight! We will never have enough windmills to make a significant difference, as they will take up too much space, and have too many negative impacts, just like ethanol.

    It still takes minerals to make solar panels and farms. So, we belch smoke from factories to make all the components of solar farms. And, we put the solar farm in someone's backyard. Will you allow it in your back yard?

    For the time being, coal is still the best answer. Then, getting more domestic oil. All the while, work on a truly viable alternative, or three. Oh, yes, about algae. It still will take alot of fossil fuel to harvest and ship it to where it can be used. Power lines aren't efficient enough to run hundreds of miles from an algae plant, so it would only service a small area.

    Why do we have to pay for the best answer, anyway? People are complaining that other countries may find the answer. So? If they invest their money, and create an answer, we will all gain. It would be a nice feather in our cap to invent a solution, but don't discount the benefits of someone else inventing a solution.

  • July 3, 2008

    6:13 a.m.

    Suggest removal

    greenleaf writes:

    Logical,

    I like your"handle" but I fear you aren't totally living up to it.

    Solar doesn't have to occupy a series of 100 square mile sites. Concentrating solar plants can produce large amounts of energy on sites of 100 acres or less. Also, don't forget we are coming into a time when flexible solar panel technology will allow panels to be roofing tiles. and be mounted on carports, warehouse and building roofs . Solar can be either dispersed, or in plant form or a combination of both. Personally, I have some solar panels on my roof that supply over 80% of my household needs.

    Nuclear waste is an issue that needs to be addressed along with Nimby and regulatory factors.

    Your point about wind farms is harder to dispute. They need high windy ridges and large support structures. However, they can produce energy and still permit the grazing of live stock and growth of crops underneath. They provide farmers and ranchers with dependable additional income and put more jobs in rural areas. I contend that they are still a part of the solution.

    Algae? My friend, you don't understand the concept. It isn't for electrical plant production. It will produce a type of diesel fuel that presumably will be used in the same trucks that haul it to market. It soaks up CO2, so it could be used to offset CO2 production from coal fired plants.

    You make it sound as though we need to dramatically ramp up coal and oil. I believe that some increased production will be necessary and will be demanded by the public. I also believe that conservation technologies as well as techniques (when driving) need to be employed. Algae based biodiesel and switch grass ethanol between them could displace a good percentage of our foreign oil needs.

    http://www.rockymountainnews.com/news...

    http://en.wikipedia.org/wiki/Algaculture

  • July 3, 2008

    6:31 p.m.

    Suggest removal

    teko1995 writes:

    Interesting comments.. I was wondering if anyone else had any thoughts on the "Solar Roadway" idea? I like the idea, and not sure of all the numbers on the website, but really sounds like an interesting concept at the very least.
    http://www.solarroadways.com/

  • July 3, 2008

    7:02 p.m.

    Suggest removal

    greenleaf writes:

    teko,

    Thanks, that's great stuff! My dad always used to say if it sounds too good to be true, it probably is, but I want to believe in this concept. Its very elegant. I wish our resident power engineer was hear to comment on this. Why haven't I heard of this concept?

    I'm going to pass this around to a few people. Thanks again!

  • July 3, 2008

    7:14 p.m.

    Suggest removal

    teko1995 writes:

    Greenleaf,
    I found this site about a month ago, and have looked it over pretty good, I'm very interested in the concept, and would love to hear others opinions on it, especially if they have knowledge in this area to begin with! (Your resident power engineer for one, would be pretty interesting to have their thoughts.) I do not remember where I learned of the site, probably surfing. I like trying to learn about "new green concepts".

  • July 3, 2008

    7:59 p.m.

    Suggest removal

    greenleaf writes:

    Teko,

    The power engineer I mentioned goes by the tag: "Trythinking", if you see him post, give him your link. I will when I see him as well. I would really like to get his input!