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Silent Running: FCEVs in California
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Silent Running: FCEVs in California

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Presentation by Chris White at Green California Summit in Sacramento on April 19, 2013 as part of ZEV Action Plan panel session.

Presentation by Chris White at Green California Summit in Sacramento on April 19, 2013 as part of ZEV Action Plan panel session.

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  • Last week, I attended Social Media Marketing World, a two-day conference about Facebook, Twitter, LinkedIn and other forms of social media. It was an awesome conference about a new world in marketing, and most of the attendees talked about a lack of understanding from their bosses—Facebook is a fad. No one really uses this stuff, do they? It made me think of 1941 when Bolivia paid NBC $9 to show the face of a watch for 15 seconds. TV was just a fad, too.
  • In 1875, the US Congress decided that horseless carriages would never work. Careening through the streets at 14-20 miles an hour was reckless and dangerous. The vehicles carried explosive fuel that was too expensive to produce. A Michigan banker laughed at Henry Ford’s lawyer, who ignored the advice and bought $5000 in Ford stock that he later sold for $12.5 million. In 1909, a respected magazine said that cars are as good as they will ever get.
  • Here we are today, just more than 100 years after Scientific American said we’ve gone as fer as we can go.But, we went a little farther…doors, windows, windshield wipers, better combustion engines, improved batteries and fuel cells.
  • Hydrogen fuel cell electric vehicles (FCEVs) are real and ready for market launch in California. Customers are driving FCEVs and fueling at public hydrogen stations today. These are full-size, all-electric drive vehicles that have zero tailpipe emissions. Customers drive 200-400 miles before refueling, and they refuel in less than 5 minutes. Customers love these “no compromise” zero-emission vehicles. The only thing they need is more hydrogen stations.
  • Everyone in alternative fuels hears about the chicken and egg…
  • For years, we’ve been working with station owners, who are independent business people, not oil companies. They are interested in adding hydrogen, but want to cover the high start-up costs associated with a new product and sell a fuel that can stand on it’s own without subsidies.We engaged Energy Independence Now and Caliber Consulting to develop a financial model that shows station owners the business potential of hydrogen.
  • Just recently, we published a roadmap for fuel cell buses, too. It calls for two Centers of Excellence, each operating 40 fuel cell buses and a hydrogen station. The buses in operation have already proven they can meet transit agencies’ requirements for performance, with larger production numbers that the Center provide, FCEBs can prove their cost competitiveness, too. As with other technologies, success in a transit bus moves into other heavy-duty vehicles.
  • For the most part, hydrogen is added to existing gas stations, which are small businesses. The plan includes important elements that will help station owners see the business case for hydrogen. Where a city could permit a dozen gas stations or 100 BEV chargers, a city will likely be asked to permit one hydrogen station in the next few years. Other actions will provide models and guides to AHJs. At the social media conference last week, the speakers often reminded us that Facebook and Twitter are tools for talking to people. PEOPLE is the important word in that sentence. I sometimes get wrapped up in the “how” of bringing FCEVs to market…or the “why” it’s important for the future. When I get lost in that, my friend Jaimie reminds me of the “who.” He commutes on the AC Transit fuel cell bus and sends me pictures from his phone…
  • Packed with people on the way to Berkeley and it seems like the whole world is chattering away on a million and one subjects. The steady noise of this marvelous social interaction is clearly facilitated by the smooth all-electric fuel cell bus. 
  • On FC 16 packed to the gills with commuters and students. The stillness of tired students on their way to early morning classes is almost deafening. Only on a fuel cell bus. Silent running.
  • The high school students on Jaimie’s bus have never known a world without Google, smart phones, flat screen TVs, text messaging and iPods. Can you image the risk that companies took when they started developing apps before the iPhone came out? Five years ago, would you think that people could make a living as a LinkedIn consultant?We are lucky to be at the beginning of a shift in technology that will bring millions of zero-emission vehicles to the roads. And fortunate to be in a state that is committed to our collective future.

Silent Running: FCEVs in California Presentation Transcript

  • 1. Silent runningFCEVs in CaliforniaLast week, I attended Social Media Marketing World, a two-dayconference about Facebook, Twitter, LinkedIn and other forms ofsocial media. It was an awesome conference about a new world inmarketing, and most of the attendees talked about a lack ofunderstanding from their bosses—Facebook is a fad. No one reallyuses this stuff, do they? It made me think of 1941 when Boliviapaid NBC $9 to show the face of a watch for 15 seconds. TV wasjust a fad, too.
  • 2. It will never work…Gasoline…would constitute a fire and explosive hazard of the first rank.Horseless carriages propelled by gasoline might attain speeds of 14 oreven 20 miles per hour. The menace of vehicles of this type hurtlingthrough our streets and along our roads would call for prompt legislativeaction. [T]he cost of producing [gasoline] is far beyond the financialcapacity of private industry.- U. S. Congressional Record, 1875The horse is here to stay, but the automobile is only a novelty—a fad.- Advice from a president of the Michigan Savings Bankto Henry Fords lawyer Horace RackhamThat the automobile has practically reached the limit of its developmentis suggested by the fact that during the past year no improvements of aradical nature have been introduced.- Scientific American, Jan. 2, 1909
  • 3. 1909—As far as we can goHere we are today, just more than 100 years after ScientificAmerican said we’ve gone as far as we can go.But, we went a little farther…doors, windows, windshield wipers,better combustion engines, improved batteries and fuel cells.
  • 4. Real and readyHydrogen fuel cell electric vehicles(FCEVs) are real and ready for marketlaunch in California. Customers aredriving FCEVs and fueling at publichydrogen stations today. The only thingthey need is more hydrogen stations.
  • 5. 5• 200-400 mile range• 10-15 year durability• 50-70 mpge• 0-60 under 6 seconds• Minutes to fill the tank• Passenger & cargo capacityThese are full-size, all-electric drive vehicles that havezero tailpipe emissions. Customers drive 200-400 milesbefore refueling, and they refuel in less than 5 minutes.Customers love these “no compromise” zero-emissionvehicles.
  • 6. Everyone in alternative fuels hears about the chickenand egg…
  • 7. But with hydrogen, it’s more like chickens and chicken feed. Theautomakers have the chickens…and one station can provide food to manyat a time. We just need enough stations….
  • 8. Building a statewide networkOur roadmap, introduced last year, calls for stations in earlymarket areas—very similar to the spread of today’s 11,000gas stations and other alternative fuels. 68 hydrogenstations will start the market, meaning that people drivingvehicles will feel confident that they can get fuel. At 100,stations, we believe that the balance of vehicles andstations will be enough that station owners can see abusiness case.
  • 9. Working with station owners“Am I going to make a million-dollar mistake by offering—or notoffering—a new fuel?”“How is this different from theway I operate now?”“What’s the ROI for hydrogen?”“How can it exist withoutsubsidies? Can it stand on it’sown?”For years, we’ve been working with station owners,who are independent business people, not oilcompanies. They are interested in addinghydrogen, but want to cover the high start-up costsassociated with a new product and sell a fuel thatcan stand on it’s own without subsidies.We engaged Energy Independence Now andCaliber Consulting to develop a financial model thatshows station owners the business potential ofhydrogen.
  • 10. H2 station funding• Up 70% capital costs via AB 118• SB 11 & AB 8 to extend AB 118» $20M annually for hydrogen for three years ($60Mtotal)» Additional funding to be allocated to match marketdemand for H2 stations until California has 100stations» Removes Clean Fuels Outlet regulation• Diverse stakeholder groups support• Committee hearings now
  • 11. Fuel cell busesJust recently, we published a roadmap for fuel cell buses, too. It calls for two Centers of Excellence, each operating40 fuel cell buses and a hydrogen station. The buses in operation have already proven they can meet transitagencies’ requirements for performance, with larger production numbers that the Center provide, FCEBs can provetheir cost competitiveness, too. As with other technologies, success in a transit bus moves into other heavy-dutyvehicles.
  • 12. ZEV Action Plan• Model codes and standards, zoning policies• Sell hydrogen as fuel• Incentives and credits• Education and trainingFor the most part, hydrogen is added to existing gas stations, which are smallbusinesses. The plan includes important elements that will help station ownerssee the business case for hydrogen.Where a city could permit a dozen gas stations or 100 BEV chargers, a city willlikely be asked to permit one hydrogen station in the next few years. Otheractions will provide models and guides to AHJs.It’s easy to get wrapped up in the “how” of bringing FCEVs to market…or the
  • 13. Packed with people on the way to Berkeley and it seems like the whole world ischattering away on a million and one subjects. The steady noise of thismarvelous social interaction is clearly facilitated by the smooth all-electric fuelcell bus.
  • 14. On FC 16 packed to the gills with commuters and students. The stillness oftired students on their way to early morning classes is almost deafening.Only on a fuel cell bus. Silent running.
  • 15. Questions or comments?Chris White@cafcpLinkedIn.com/in/CaFCPChrisThe high school students on Jaimie’s bus have never known a world without Google, smart phones, flat screen TVs,text messaging and iPods. Can you image the risk that companies took when they started developing apps beforethe iPhone came out? Five years ago, would you think that people could make a living as a LinkedIn consultant?We are lucky to be at the beginning of a shift in technology that will bring millions of zero-emission vehicles to theroads. And fortunate to be in a state that is committed to our collective future.