fortu PowerCell’s Delayed Entry

by Varnum’s Battery Law Industry Group

Construction on the fortu PowerCell advanced energy storage manufacturing plant in Muskegon Township has been delayed two years.  Construction will start no sooner than this summer due to European financial uncertainty, and battery production will not start until at least early 2014.  The venture’s new CEO Albert Esser will direct the scale up of the rechargeable lithium ion battery design which is  based on proprietary, non flammable electrolyte technology derived from research and development being tested at a pilot plant in Dormagen, Germany.  The $135 Million in battery credits granted by 2009 Michigan legislation will be reduced by $40 Million since production did not commence by January 2012 as originally anticipated.

Good Things Come to Those Who Wait?

by Bruce Goodman, Energy Lawyer

In May 2011, in front of 40 of Michigan’s top leaders in clean energy manufacturing, Governor Snyder presented the first Reinventing Michigan Award to Energetx Composites. Having waited impatiently for four months, this group of entrepreneurs (ready to unleash their economic gardening skills, resources, and innovation) asked the Governor for his energy policy. Answer: his energy policy would be forthcoming “in the fall”. In August, when Valerie Brader was named the state’s energy policy officer, Mike Finney stated “Energy concerns are at the center of our economic future, whether we are talking about its cost and availability or job creation and new business potential in green energy manufacturing.”  Then word went out that the Governor’s energy policy statement would be pushed to the first quarter of 2012. More waiting for those concerned about: RPS, standby rates, distributed energy, bioenergy, offshore wind, deregulation, customer choice, coal-fired generation, solar manufacturing, and advanced energy storage. The State of the State message last week yielded another setback: energy policy is being pushed off until “this fall”. Michigan has been treading water on energy policy for over a year. We are in a policy twilight zone. Elected officials need to hear from the clean energy manufacturing community now. Policy delayed is policy denied.

Electric Trucks to Use A123 Batteries

by Varnum’s Battery Law Industry Group

A123 Systems  has a new contract with Via Motors, a company that specializes in converting standard vehicles to hybrids.  A123 Systems will provide lithium-ion batteries for the world’s first extended range electric/hybrid trucks, available for consumers in 2013.  The trucks, which are estimated to travel 30-40 miles per charge with another 360 miles on gasoline, are currently featured on Via’s website and include standard, extended, and crew cab versions.  Says Kraig Higginson, CEO of Via Motors, “We selected A123′s nanophosphate lithium ion battery systems because they are able to package higher power into a compact space in the vehicle.”  To see the trucks in person, visit the North American International Auto Show going on now through January 22 in Detroit.

If I Ruled the World (or maybe just the State)

by Bruce Goodman, Energy Lawyer

Five elements to include in an energy policy for Michigan:

BIOMASS ENERGY: Make use of the energy in biomass that is going to waste in this state. The BTU content of the “unused biomass” in the state of Michigan is enormous. 

ENERGY EFFICIENCY/CONSERVATION: Make better use of our existing energy resources. Because our energy costs are so low, citizens and industry are not very aggressive in avoiding the “waste” of electricity and fuels. Increasing the price of energy (a carbon tax would be a start with a redistribution of the revenues to accomplish energy efficiency) is an option that deserves serious consideration.

DEREGULATION/CUSTOMER CHOICE ON ELECTRICITY: Reintroduce competition into the purchase and production of electricity. The deregulation of Michigan’s electric industry which was begun in 2000 was reversed in 2008. Just as competition in the telephone industry drove down prices and fostered innovation, the same competitive effect could drive Michigan’s electric industry.

ENCOURAGE ELECTRIC VEHICLES: Make electric cars work in Michigan. The state has placed a huge bet on the success of the electric vehicle industry; it is time to lead the nation in electric vehicle ownership. State government should fill its fleets with electric vehicles and the infrastructure for electric vehicles needs to be built out. Consider tax incentives for vehicle purchases.

BE A MODEL FOR RENEWABLE ENERGY: Made-in-Michigan renewable products and technology could lead the world. Michigan already is a leader in the solar energy field with Hemlock Semiconductor and  United Solar Ovonics; we need to demonstrate how this technology can be adapted for integration into buildings, the electric grid, and society. Similarly, Michigan has fledgling biofuels, biomass, wind, and geothermal industries and technologies that need to be strongly encouraged, whether with grants, tax incentives, or other assistance. To make Michigan a showcase for the implementation of these technologies, we need a larger renewable portfolio standard (from 10 percent to 25 percent) and the removal of barriers to self generation (i.e.  unreasonably high standby rates and unreasonably expensive interconnection charges).

These may not be the top five, but they deserve to be near the
top of the list.

General Motors to Make an All Electric Vehicle for U.S.

by Varnum’s Battery Law Industry Group

Chevrolet has announced that there is will an all-electric version of the Spark mini-car, the Spark EV.  It will be sold in select U.S. and global markets, including California, beginning in 2013.  General Motors is using feedback from various test markets to finalize the design for the Spark.  There are demonstration fleets in Shanghai testing the Sail EV, in Korea testing the Cruze EV, and India testing the Beat EV.  A123 Systems will supply the advanced nanophosphate lithium-ion battery packs that will power the Spark EV.

Advanced Energy Storage Show Successful in Michigan

by Varnum’s Battery Law Industry Group

The Battery Show moved to Michigan from California this year in recognition of the state’s burgeoning battery manufacturing sector.  The three day show in Novi from October 25-27 had more than 160 exhibitors from around the country and around the world.  While much of the focus was on the seventeen Michigan battery companies working on automotive applications, there were many displays showing the multitude of uses for the battery technology that is rapidly evolving.  The next Battery Show is scheduled to return to Novi on November 13-15, 2012.

Michigan Made Electrolytes (and more)

by Varnum’s Battery Law Industry Group

Dow Chemical Company’s new Dow Energy Materials business has been formed to supply the parts that go into lithium-ion batteries for various markets, including the automotive, marine, military, utility and consumer electronics industries.  The company will produce cathode and anode materials, will make formulated electrolytes with Ube Industries, and is considering entering the separators market.  These account for about 75 percent of the cost of materials for lithium-ion batteries.  Supply contracts with cell manufacturers are in the works, as the cell manufacturers in Michigan are looking for a local supply of electrolytes, which are not an easy product to ship.

Attracting Asian Energy Industries to Michigan

by Bruce Goodman, Energy Lawyer 

Governor Snyder’s recent trade mission to Asia had an alternative energy flavor. Saginaw Future President JoAnn T. Crary went to attract Chinese solar supply chain investors to locate near Hemlock Semiconductor. [In October ground will be broken on a renewable energy park in Thomas Township to be “shovel-ready” for new companies.] Wayne County representatives touted a 1000-acre industrial site in Plymouth and Northville Townships to Japanese, Korean, and Chinese battery suppliers and energy related firms. Japanese investment in Michigan is already high; there are currently 476 Japanese-owned facilities in Michigan with nearly 32,000 employees. Economic development officials from Battle Creek, Midland, and Oakland County were also on the eight-day trip.

JCI and Saft Separate

by Varnum’s Battery Law Industry Group

Johnson Controls-Saft was formed in 2006 for the purpose of developing and manufacturing lithium ion vehicle batteries.  The joint venture assets included a new plant in Holland, Michigan.  Johnson Controls was prohibited from using the battery technology for non-automotive applications.  Johnson Controls has agreed to buy Saft’s joint venture interest for $145 million in cash.  In exchange it gets the Holland facility and an expanded perpetual license to use certain Saft lithium-ion technology in all markets.

Auto Company Investment Creates More Michigan Solar Jobs

 by Bruce Goodman, Energy Lawyer 

General Motors Ventures LLC has invested $7.5 million in Sunlogics PLC. In turn the solar development and installation company has committed to establishing its corporate headquarters and a portion of its manufacturing capacity in Rochester Hills. GM has also signed agreements with Sunlogics for solar charging canopies at 3,000 Chevy Volt dealerships in North America and a power purchase agreement for another large-scale solar array at a GM building. GM has committed to double its worldwide solar energy output from the current 30 MW (including three roof-top solar power installations in the U.S.) to 60 MW by the end of 2015.