“We keep hoping for a technological breakthrough that will save us from ourselves.”
Noting that there multiple technologies for hybrid plug-in vehicles in development, that comment by the senior fellow for automotive strategies at the Environmental Defense Fund, John DiCecco, highlighted a discussion of “recharging Michigan” at the third TechKnow forum in Ann Arbor’s Power Center Thursday.
His comment underscored the key factor in the small and emerging field of plug-in hybrids -- cost.
From the lead keynote speaker, David Cole, chairman of the Center for Automotive Research, on through virtually every panelist and speaker, the audiences of several hundred leaned that “economics play the central role in the development all parts of technology development for hybrids.”
Speakers from General Motors Corp., Ford Motor Co., Toyota, the University of Michigan and other groups all noted the primary issues to be resolved related to hybrid vehicle development.
They include batteries that are too large, high cost, long recharge times, and vehicle performance related to a battery’s state of charge.
“Plug in vehicles are big for the future,” Cole said. "But lots of answers have to evolve."
Speakers also said that the overall cost savings of driving a plug-in hybrid electric vehicle outweigh the initial cost for consumers.
"We see a cost savings of $1,200 to $1,700 per year because the cost per mile to drive a standard car is about 12 cents where driving a PHEV is about 2 cents per mile,” said John J. Lauckner, vice president of global program management at GM.
The other major issue of discussion was how our energy companies will manage to power all these electrified cars.
Knut A. Simonson, senior vice president at DTE Energy Resources and president of DTE Energy Ventures, said that during off-peak hours, "we can handle the increase in power usage without any upgrades, but during peak hours we would need a substantial investment to be able to withstand the surge.”
The end result: another cost issue.
John Denniston, a partner in Kleiner Perkins, an investment firm with a strong interest in environmental investing, said that "greentech is a jobs creations engine that can create millions of jobs and we are at a perfect storm of opportunity.” He said there's world-class talent moving into the United States to take advantage of the green tech businesses being developed, and a growing sense of urgency to create an industry where growth can bolster the economy.
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