U.S. awards $600 million in car battery grants

By Reuters


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Companies working with Ford Motor Co, Chrysler Group and General Motors Corp received more than $600 million to further development of batteries for hybrids and electric cars.

The awards were part of $2.4 billion in grants being announced by the Obama administration as part of its "green" economy vision and efforts to enhance U.S. energy independence.

The grants represent the nation's largest-ever investment in battery technology for clean-energy cars, Obama said while visiting a plant in Wakarusa, Indiana, owned by Navistar International Corp.

The funding will "develop the next generation of fuel-efficient cars and trucks, powered by the next generation of battery technologies — all made right here in America," said Obama, adding that he wants the United States to become a world leader in clean-energy vehicles.

Almost all battery manufacturing for advanced technology vehicles is currently based in Asia.

"I don't want to just reduce our dependence on foreign oil and then end up being dependent on their foreign innovations," Obama said. "I don't want to have to import a hybrid car. I want to be able to build a hybrid car here."

White House economic and Energy Department officials said 48 projects in 25 states would receive money under a deal that requires winners to match the federal investment.

U.S.-based companies will receive $1.5 billion to produce batteries and components and expand battery recycling capabilities.

An additional $500 million will go to produce electric motors and other drive train components.

The final $400 million will pay for testing plug-in hybrids and all-electric vehicles.

Michigan, hit hard by the dramatic contraction of U.S. auto production, led all states with 11 grants. Indiana was second with seven, officials said. Academic interests, utilities and research cooperatives also applied for funding.

Obama said the funds would help create "tens of thousands of jobs," particularly in the depressed manufacturing sector.

Navistar received $39 million to make electric trucks, allowing the company to rehire some laid-off staff, he said.

"The company estimates that this investment will help create or save hundreds of jobs in the area," Obama said.

Compact Power Inc, on behalf of South Korea's LG Chem Ltd, received $151 million to produce battery cells for GM's highly touted Chevrolet Volt plug-in, due out in 2010.

Johnson Controls Inc and France's Saft Groupe SA will supply a complete battery system for Ford's first plug-in hybrid, due in 2012. Johnson Controls received $299 million.

A123 Systems, which is working with Chrysler, received $249 million.

Delphi Automotive Systems will receive $89 million to expand existing electric drive components for passenger and commercial vehicles.

KD Advanced Battery Group, a venture that includes Dow Chemical Co, Kokam America Inc and Townsend Ventures LLC, received $161 million.

GM received an additional $105 million to produce an electric rear-wheel-drive system, and Ford received $62 million for a related transmission project.

The battery grants are separate from Energy Department loans aimed at helping U.S. automakers retool factories for making more fuel-efficient vehicles.

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Planning for our electricity future should be led by an independent body

Nova Scotia Integrated Resource Plan evaluates NSPI supply options, UARB oversight, Muskrat Falls imports, coal retirements, wind and biomass expansion, transmission upgrades, storage, and least-cost pathways to decarbonize the grid for ratepayers.

 

Key Points

A 25-year roadmap assessing supply, imports, costs, and emissions to guide least-cost decarbonization for Nova Scotia.

✅ Compares wind, biomass, gas, imports, and storage costs

✅ Addresses coal retirements, emissions caps, and reliability

✅ Recommends transmission upgrades and Muskrat Falls utilization

 

Maintaining a viable electricity network requires good long-term planning and, as a recent grid operations report notes, ongoing operational improvements. The existing stock of generating assets can become obsolete through aging, changes in fuel prices or environmental considerations. Future changes in demand must be anticipated.

Periodically, an integrated resource plan is created to predict how all this will add up during the ensuing 25 years. That process is currently underway and is led by Nova Scotia Power Inc. (NSPI) and will be submitted for approval to the Utilities and Review Board (UARB).

Coal-fired plants are still the largest single source of electricity in Nova Scotia. They need to be replaced with more environmentally friendly sources when they reach the end of their useful lives. Other sources include wind, hydroelectricity from rivers, biomass, as seen in increased biomass use by NS Power, natural gas and imports from other jurisdictions.

Imports are used sparingly today but will be an important source when the electricity from Muskrat Falls comes on stream. That project has big capacity. It can produce all the power needed in Newfoundland and Labrador (NL), where Quebec's power ambitions influence regional flows, plus the amount already committed to Nova Scotia, and still have a lot left over.

Some sources of electricity are more valuable than others. The daily amount of power from wind and solar cannot be controlled. Fuel-based sources and hydro can.

Utilities make their profits by providing the capital necessary to build infrastructure. Most of the money is borrowed but a portion, typically 30 per cent, usually comes from NSPI or a sister company. On that they receive a rate of return of nine per cent. Nova Scotia can borrow money today at less than two per cent.

The largest single investment of that type is the $1.577-billion Maritime Link connecting power from Newfoundland to Nova Scotia. It continues through to the New Brunswick border to facilitate exports to the United States. NSPI’s sister company, NSP Maritime Link Inc. (NSPML), is making nine per cent on $473 million of the cost.

There is little unexploited hydro capacity in Nova Scotia and there will not be any new coal-fired plants. Large-scale solar is not competitive in Nova Scotia’s climate. Nova Scotia’s needs would not accommodate the amount of nuclear capacity needed to be cost-effective, even as New Brunswick explores small reactors in its strategy.

So the candidates for future generating resources are wind, natural gas, biomass (though biomass criticism remains) and imports from other jurisdictions. Tidal is a promising opportunity but is still searching for a commercially viable technology. 

NSPI is commendably transparent about its process (irp.nspower.ca). At this stage there is little indication of the conclusions they are reaching but that will presumably appear in due course.

The mountains of detail might obscure the fact that NSPI is not an unbiased arbiter of choices for the future.

It is reported that they want to prematurely close the Trenton 5 coal plant in 2023-25. It is valued at $88.5 million. If it is closed early, ratepayers will still have to pay off the remaining value even though the plant will be idle. NSPI wants to plan a decommissioning of five of its other seven plants. There is a federal emissions constraint but retiring coal plants earlier than needed will cost ratepayers a lot.

Whenever those plants are closed, there will be a need for new sources of power. NSPI is proposing to plan for new investments in new transmission infrastructure to facilitate imports. Other possibilities would be additional wind farms, consistent with the shift to more wind and solar projects, thermal plants that burn natural gas or biomass, or storage for excess wind power that arrives before it can be used. The investment in storage could be anywhere from $20 million to $200 million.

These will add to the asset burden funded by ratepayers, even as industrial customers seek discounts while still paying for shuttered coal infrastructure.

External sources of new power will not provide NSPI the same opportunity: wind power by independent producers might be less expensive because they are willing to settle for less than nine per cent or because they are more efficient. Buying more power from Muskrat Falls will use transmission infrastructure we are already paying for. If a successful tidal technology is found, it will not be owned by NSPI or a sister company, which are no longer trying to perfect the technology.

This is not to suggest that NSPI would misrepresent the alternatives. But they can tilt the discussion in their favour. How tough will they be negotiating for additional Muskrat Falls power when it hurts their profits? Arguing for premature coal retirement on environmental grounds is fair game but whether the cost should be accepted is a political choice. 

NSPI is in a conflict of interest. We need a different process. An independent body should author the integrated resource plan. They should be fully informed about NSPI’s views.

They should communicate directly with Newfoundland and Labrador for Muskrat power, with independent wind producers, and with tidal power companies. The UARB cannot do any of these things.

The resulting plan should undergo the same UARB review that NSPI’s version would. This enhances the likelihood that Nova Scotians will get the least-cost alternative.

 

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Power industry may ask staff to live on site as Coronavirus outbreak worsens

Power plant staff sequestration isolates essential operators on-site at plants and control centers, safeguarding critical infrastructure and grid reliability during the COVID-19 pandemic under DHS CISA guidance, with social distancing, offset shifts, and stockpiled supplies.

 

Key Points

A protocol isolating essential grid workers on-site to maintain operations at plants and control centers.

✅ Ensures grid reliability and continuity of critical infrastructure

✅ Implements social distancing, offset shifts, and isolation protocols

✅ Stockpiles food, beds, PPE, and sanitation for essential crews

 

The U.S. electric industry may ask essential staff to live on site at power plants and control centers to keep operations running if the coronavirus outbreak worsens, after a U.S. grid warning from the overseer, and has been stockpiling beds, blankets, and food for them, according to industry trade groups and electric cooperatives.

The contingency plans, if enacted, would mark an unprecedented step by power providers to keep their highly-skilled workers healthy as both private industry and governments scramble to minimize the impact of the global pandemic that has infected more than 227,000 people worldwide, with some utilities such as BC Hydro at Site C reporting COVID-19 updates as the situation evolves.

“The focus needs to be on things that keep the lights on and the gas flowing,” said Scott Aaronson, vice president of security and preparedness at the Edison Electric Institute (EEI), the nation’s biggest power industry association. He said that some “companies are already either sequestering a healthy group of their essential employees or are considering doing that and are identifying appropriate protocols to do that.”

Maria Korsnick, president of the Nuclear Energy Institute, said that some of the nation’s nearly 60 nuclear power plants are also “considering measures to isolate a core group to run the plant, stockpiling ready-to-eat meals and disposable tableware, laundry supplies and personal care items.”

Neither group identified specific companies, though nuclear worker concerns have been raised in some cases.

Electric power plants, oil and gas infrastructure and nuclear reactors are considered “critical infrastructure” by the federal government, and utilities continue to emphasize safety near downed lines even during emergencies. The U.S. Department of Homeland Security is charged with coordinating plans to keep them operational during an emergency.

A DHS spokesperson said that its Cybersecurity and Infrastructure Security Agency had issued guidance to local governments and businesses on Thursday asking them to implement policies to protect their critical staff from the virus, even as an EPA telework policy emerged during the pandemic.

“When continuous remote work is not possible, businesses should enlist strategies to reduce the likelihood of spreading the disease,” the guidance stated. “This includes, but is not necessarily limited to, separating staff by off-setting shift hours or days and/or social distancing.”

Public health officials have urged the public to practice social distancing as a preventative measure to slow the spread of the virus, and as more people work from home, rising residential electricity use is being observed alongside daily routines. If workers who are deemed essential still leave, go to work and return to their homes, it puts the people they live with at risk of exposure. 

California has imposed a statewide shutdown, asking all citizens who do not work in those critical infrastructure industries not to leave their homes, a shift that may raise household electricity bills for consumers. Similar actions have been put in place in cities across America.

 

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US January power generation jumps 9.3% on year: EIA

US January power generation climbed to 373.2 TWh, EIA data shows, with coal edging natural gas, record wind output, record nuclear generation, rising hydro, and stable utility-scale solar amid higher Henry Hub prices.

 

Key Points

US January power generation hit 373.2 TWh; coal led gas, wind and nuclear set records, with solar edging higher.

✅ Coal 31.8% share; gas 29.4%; coal output 118.7 TWh, gas 109.6 TWh.

✅ Wind hit record 26.8 TWh; nuclear record 74.6 TWh.

✅ Total generation 373.2 TWh, highest January since 2014.

 

The US generated 373.2 TWh of power in January, up 7.9% from 345.9 TWh in December and 9.3% higher than the same month in 2017, Energy Information Administration data shows.

The monthly total was the highest amount in January since 377.3 TWh was generated in January 2014.

Coal generation totaled 118.7 TWh in January, up 11.4% from 106.58 TWh in December and up 2.8% from the year-ago month, consistent with projections of a coal-fired generation increase for the first time since 2014. It was also the highest amount generated in January since 132.4 TWh in 2015.

For the second straight month, more power was generated from coal than natural gas, as 109.6 TWh came from gas, up 3.3% from 106.14 TWh in December and up 19.9% on the year.

However, the 118.7 TWh generated from coal was down 9.6% from the five-year average for the month, due to the higher usage of gas and renewables and a rising share of non-fossil generation in the overall mix.

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Coal made up 31.8% of the total US power generation in January, up from 30.8% in December but down from 33.8% in January 2017.

Gas` generation share was at 29.4% in the latest month, with momentum from record gas-fired electricity earlier in the period, down from 30.7% in December but up from 26.8% in the year-ago month.

In January, the NYMEX Henry Hub gas futures price averaged $3.16/MMBtu, up 13.9% from $2.78/MMBtu averaged in December but down 4% from $3.29/MMBtu averaged in the year-ago month.

 

WIND, NUCLEAR GENERATION AT RECORD HIGHS

Wind generation was at a record-high 26.8 TWh in January, up 29.3% from 22.8 TWh in December and the highest amount on record, according to EIA data going back to January 2001. Wind generated 7.2% of the nation`s power in January, as an EIA summer outlook anticipates larger wind and solar contributions, up from 6.6% in December and 6.1% in the year-ago month.

Utility-scale solar generated 3.3 TWh in January, up 1.3% from 3.1 TWh in December and up 51.6% on the year. In January, utility-scale solar generation made up 0.9% of US power generation, during a period when solar and wind supplied 10% of US electricity in early 2018, flat from December but up from 0.6% in January 2017.

Nuclear generation was also at a record-high 74.6 TWh in January, up 1.3% month on month and the highest monthly total since the EIA started tracking it in January 2001, eclipsing the previous record of 74.3 TWh set in July 2008. Nuclear generation made up 20% of the US power in January, down from 21.3% in December and 21.4% in the year-ago month.

Hydro power totaled 25.4 TWh in January, making up 6.8% of US power generation during the month, up from 6.5% in December but down from 8.2% in January 2017.

 

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Are Norwegian energy firms ‘best in class’ for environmental management?

CO2 Tax for UK Offshore Energy Efficiency can accelerate adoption of aero-derivative gas turbines, flare gas recovery, and combined cycle power, reducing emissions on platforms like Equinor's Mariner and supporting net zero goals.

 

Key Points

A carbon price pushing operators to adopt efficient turbines, flare recovery, and combined cycle to cut emissions.

✅ Aero-derivative turbines beat industrial units on efficiency

✅ Flare gas recovery cuts routine flaring and fuel waste

✅ Combined cycle raises efficiency and lowers emissions

 

By Tom Baxter

The recent Energy Voice article from the Equinor chairman concerning the Mariner project heralding a ‘significant point of reference’ for growth highlighted the energy efficiency achievements associated with the platform.

I view energy efficiency as a key enabler to net zero, and alongside this the UK must start large-scale storage to meet system needs; it is a topic I have been involved with for many years.

As part of my energy efficiency work, I investigated Norwegian practices and compared them with the UK.

There were many differences, here are three;


1. Power for offshore installations is usually supplied from gas turbines burning fuel from the oil and gas processing plant, and even as the UK's offshore wind supply accelerates, installations convert that to electricity or couple the gas turbine to a machine such as a gas compressor.

There are two main generic types of gas turbine – aero-derivative and industrial. As the name implies aero-derivatives are aviation engines used in a static environment. Aero-derivative turbines are designed to be energy efficient as that is very import for the aviation industry.

Not so with industrial type gas turbines; they are typically 5-10% less efficient than a comparable aero-derivative.

Industrial machines do have some advantages – they can be cheaper, require less frequent maintenance, they have a wide fuel composition tolerance and they can be procured within a shorter time frame.

My comparison showed that aero-derivative machines prevailed in Norway because of the energy efficiency advantages – not the case in the UK where there are many more offshore industrial gas turbines.

Tom Baxter is visiting professor of chemical engineering at Strathclyde University and a retired technical director at Genesis Oil and Gas Consultants


2. Offshore gas flaring is probably the most obvious source of inefficient use of energy with consequent greenhouse gas emissions.

On UK installations gas is always flared due to the design of the oil and gas processing plant.

Though not a large quantity of gas, a continuous flow of gas is routinely sent to flare from some of the process plant.

In addition the flare requires pilot flames to be maintained burning at all times and, while Europe explores electricity storage in gas pipes, a purge of hydrocarbon gas is introduced into the pipes to prevent unsafe air ingress that could lead to an explosive mixture.

On many Norwegian installations the flare system is designed differently. Flare gas recovery systems are deployed which results in no flaring during continuous operations.

Flare gas recovery systems improve energy efficiency but they are costly and add additional operational complexity.


3. Returning to gas turbines, all UK offshore gas turbines are open cycle – gas is burned to produce energy and the very hot exhaust gases are vented to the atmosphere. Around 60 -70% of the energy is lost in the exhaust gases.

Some UK fields use this hot gas as a heat source for some of the oil and gas treatment operations hence improving energy efficiency.

There is another option for gas turbines that will significantly improve energy efficiency – combined cycle, and in parallel plans for nuclear power under the green industrial revolution aim to decarbonise supply.

Here the exhaust gases from an open cycle machine are taken to a separate turbine. This additional turbine utilises exhaust heat to produce steam with the steam used to drive a second turbine to generate supplementary electricity. It is the system used in most UK power stations, even as UK low-carbon generation stalled in 2019 across the grid.

Open cycle gas turbines are around 30 – 40% efficient whereas combined cycle turbines are typically 50 – 60%. Clearly deploying a combined cycle will result in a huge greenhouse gas saving.

I have worked on the development of many UK oil and gas fields and combined cycle has rarely been considered.

The reason being is that, despite the clear energy saving, they are too costly and complex to justify deploying offshore.

However that is not the case in Norway where combined cycle is used on Oseberg, Snorre and Eldfisk.

What makes the improved Norwegian energy efficiency practices different from the UK – the answer is clear; the Norwegian CO2 tax.

A tax that makes CO2 a significant part of offshore operating costs.

The consequence being that deploying energy efficient technology is much easier to justify in Norway when compared to the UK.

Do we need a CO2 tax in the UK to meet net zero – I am convinced we do. I am in good company. BP, Shell, ExxonMobil and Total are supporting a carbon tax.

Not without justification there has been much criticism of Labour’s recent oil tax plans, alongside proposals for state-owned electricity generation that aim to reshape the power market.

To my mind Labour’s laudable aims to tackle the Climate Emergency would be much better served by supporting a CO2 tax that complements the UK's coal-free energy record by strengthening renewable investment.

 

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Brazil government considers emergency Coronavirus loans for power sector

Brazil Energy Emergency Loan Package aims to bolster utilities via BNDES as coronavirus curbs electricity demand. Aneel and the Mines and Energy Ministry weigh measures while Eletrobras privatization and auctions face delays.

 

Key Points

An emergency plan supporting Brazilian utilities via BNDES and banks during coronavirus demand slumps and payment risks.

✅ Modeled on 2014-2015 sector loans via BNDES and private banks

✅ Addresses cash flow from lower demand and bill nonpayment

✅ Auctions and Eletrobras privatization delayed amid outbreak

 

Brazil’s government is considering an emergency loan package for energy distributors struggling with lower energy use and facing lost revenues because of the coronavirus outbreak, echoing strains seen elsewhere such as Germany's utility troubles during the energy crisis, an industry group told Reuters.

Marcos Madureira, president of Brazilian energy distributors association Abradee, said the package being negotiated by companies and the government could involve loans from state development bank BNDES or a pool of banks, but that the value of the loans and other details was not yet settled.

Also, Brazil’s Mines and Energy Ministry is indefinitely postponing projects to auction off energy transmission and generation assets planned for this year because of the coronavirus, even as the need for electricity during COVID-19 remained critical, it said in the Official Gazette.

The coronavirus outbreak will also delay the privatization of state-owned utility Eletrobras, its chief executive officer said on Monday.

The potential loan package under discussion would resemble a similar measure in 2014 and 2015 that offered about 22 billion reais ($4.2 billion) in loans to the sector as Brazil was entering its deepest recession on record, and drawing comparisons to a proposed Texas market bailout after a winter storm, Madureira said.

Public and private banks including BNDES, Caixa Economica Federal, Itau Unibanco and Banco Bradesco participated in those loans.

Three sources involved in the discussions said on condition of anonymity that the Mines and Energy Ministry and energy regulator Aneel were considering the matter.

Aneel declined to comment. The Mines and Energy Ministry and BNDES did not immediately respond to requests for comment.

Energy distributors worry that reduced electricity demand during COVID-19 could result in deep revenue losses.

The coronavirus has led to widespread lockdowns of non-essential businesses in Brazil, while citizens are being told to stay home. That is causing lost income for many hourly and informal workers in Brazil, who could be unable to pay their electricity bills, raising risks of pandemic power shut-offs for vulnerable households.

The government sees a loan package as a way to stave off a potential chain of defaults in the sector, a move discussed alongside measures such as a Brazil tax strategy on energy prices, one of the sources said.

On a conference call with investors about the company’s latest earnings, Eletrobras CEO Wilson Ferreira Jr. said privatization would be delayed, without giving any more details on the projected time scale.

The largest investors in Brazil’s energy distribution sector include Italy’s Enel, Spain’s Iberdrola via its subsidiary Neoenergia and China’s State Grid via CPFL Energia, with Chinese interest also evidenced by CTG's bid for EDP, as well as local players Energisa e Equatorial Energia. 

 

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British Columbia Halts Further Expansion of Self-Driving Vehicles

BC Autonomous Vehicle Ban freezes new driverless testing and deployment as BC develops a regulatory framework, prioritizing safety, liability clarity, and road sharing with pedestrians and cyclists while existing pilot projects continue.

 

Key Points

A moratorium pausing new driverless testing until a safety-first regulatory framework and clear liability rules exist.

✅ Freezes new AV testing and deployment provincewide

✅ Current pilot shuttles continue under existing approvals

✅ Focus on safety, liability, and road-user integration

 

British Columbia has halted the expansion of fully autonomous vehicles on its roads. The province has announced it will not approve any new applications for testing or deployment of vehicles that operate without a human driver until it develops a new regulatory framework, even as it expands EV charging across the province.


Safety Concerns and Public Questions

The decision follows concerns about the safety of self-driving vehicles and questions about who would be liable in the event of an accident. The BC government emphasizes the need for robust regulations to ensure that self-driving cars and trucks can safely share the road with traditional vehicles, pedestrians, and cyclists, and to plan for infrastructure and power supply challenges associated with electrified fleets.

"We want to make sure that British Columbians are safe on our roads, and that means putting the proper safety guidelines in place," said Rob Fleming, Minister of Transportation and Infrastructure. "As technology evolves, we're committed to developing a comprehensive framework to address the issues surrounding self-driving technology."


What Does the Ban Mean?

The ban does not affect current pilot projects involving self-driving vehicles that already operate in BC, such as limited shuttle services and segments of the province's Electric Highway that support charging and operations.


Industry Reaction

The response from industry players working on autonomous vehicle technology has been mixed, amid warnings of a potential EV demand bottleneck as adoption ramps up. While some acknowledge the need for clear regulations, others express concern that the ban could stifle innovation in the province.

"We understand the government's desire to ensure safety, but a blanket ban risks putting British Columbia behind in the development of this important technology," says a spokesperson for a self-driving vehicle start-up.


Debate Over Self-Driving Technology

The BC ban highlights a larger debate about the future of autonomous vehicles. While proponents point to potential benefits such as improved safety, reduced traffic congestion, and increased accessibility, and national policies like Canada's EV goals aim to accelerate adoption, critics raise concerns about liability, potential job losses in the transportation sector, and the ability of self-driving technology to handle complex driving situations.


BC Not Alone

British Columbia is not the only jurisdiction grappling with the regulation of self-driving vehicles. Several other provinces and states in both Canada and the U.S. are also working to develop clear legal and regulatory frameworks for this rapidly evolving technology, even as studies suggest B.C. may need to double its power output to fully electrify road transport.


The Road Ahead

The path forward for fully autonomous vehicles in BC depends on the government's ability to create a regulatory framework that balances safety considerations with fostering innovation, and align with clean-fuel investments like the province's hydrogen project to support zero-emission mobility.  When and how that framework will materialize remains unclear, leaving the future of self-driving cars in the province temporarily uncertain.

 

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