How Aggregation Will Destroy Niche Markets for Smart Grid Energy Storage
John Petersen Last week I introduced a new study titled "Energy Storage for the Electricity Grid: Benefits and Potential Market Assessment" that was commissioned by the DOE's Energy Storage Systems Program, identified seventeen discrete storage applications for the electricity grid, discussed the technical requirements of each application and summarized the potential economic benefits. If the Yahoo! message boards are any indication, investors are already jumping to inaccurate and wildly optimistic conclusions because they don't understand that many storage applications are synergistic and every storage system purchaser will try to maximize the value of its investment by capturing...
Saviors and Saboteurs in Alternative Energy
John Petersen Last week Societe Generale published a thematic research report titled "A new world order, when demand overtakes supply" which examines the macro-economic and demographic trends that will transform the global economy over the next 20 years. It mirrored the theme of Jeremy Grantham's April 2011 quarterly letter titled "Time to Wake Up: Days of Abundant Resources and Falling Prices Are Over Forever" and did a great job of summarizing an issue I touched on in "How PHEVs and EVs Will Sabotage America's Drive For Energy Independence." In the words of Societe Generale: "So, while...
Active Power Receives Order from Leading Solar Energy Company
Active Power Inc (ACPW) announced that it has received an order for its new CoolAir DC product from one of the leading producers of photovoltaic modules in Europe. CoolAir DC uses thermal energy and compressed air to provide power, can be cycled regularly without a loss in performance and is environmentally friendly. By using solar energy to heat the thermal storage unit (TSU) and compress air in the storage tanks, energy can be captured and used at a later time. The share price of ACPW has recently retested the trendline and I will be adding to...
Congratulating Chrysler and A123 Systems
On April 6th, Chrysler LLC announced the creation of a strategic alliance whereby A123 Systems, Inc. will become a primary battery supplier for Chrysler's planned line of plug-in electric vehicles. This is a huge step toward rebuilding America's domestic battery manufacturing infrastructure and both companies should be congratulated. The next steps I see in my murky crystal ball are finalization of A123's pending IPO coupled with an announcement that A123's $1.8 billion loan request under the DOE's Advanced Technology Vehicle Manufacturing Program has been approved. If the foundation has been properly laid, it will all come together very quickly....
Graphite Developers Eye Large Growing Market
The post “Integrated Graphene Producers” featured several graphene producers with novel business models that marry captive graphite sources to the technology and knowhow to produce graphene. These are not the only graphite producers. Although not as elegant as graphene with its svelte single-atom profile, the market for graphite has its appeal as well. Graphite has been a staple in steel industry crucibles, foundry molds and automobile brake linings. These days graphite has moved into another even more important place in cars - lithium ion batteries that make electric vehicles viable as replacements for gas guzzling cars and trucks.
Spherical graphite is especially desirable because the graphite anodes hold...
Vinod Khosla on the Future of Lithium-ion Batteries
John Petersen On Monday of this week, the treehugger blog published a guest essay from Vinod Khosla that clarified his stance on the future of next generation lithium-ion batteries. The essay was prompted by "blog chatter" about an article in Earth2Tech where he was quoted as saying that lithium-ion batteries are overhyped. Since the Khosla essay included a link to my article "Why Lead-Carbon Batteries Will Deflate the Li-ion Bubble," I think it's important to tell readers that Mr. Khosla has written his own essay on the subject and encourage them...
Electro Energy Receives U.S. Dept. of Energy Contract to Continue Development of Bipolar Nickel...
Electro Energy Inc (EEEI) announced receipt of a $1,050,000 contract with the U.S. DoE for the further development of its Bipolar Nickel Metal Hydride energy storage battery. These 2nd generation prototype test units, rated from 150 Volts, 20AHr to 500 Volts, 6AHr, will be constructed and tested at EEEI, and subsequently delivered to Sandia for further testing. Units of this size have potential applications for utility, wind, solar and customer side load regulation and back up power. This stock has been in a long term down trend and this contract was a much needed win to...
ZAP Displays Advanced Battery Solutions at CeBIT Digital Technology Trade Show in Germany
ZAP (ZAPZ) is currently exhibiting its unique multi-function portable battery to the global marketplace at the CeBIT trade show in Hannover, Germany, March 10-16, 2005. ZAP's Portable Energy division has developed a flexible, multi-use battery for electronic products that deliver up to four times the power of typical batteries, to charge or power a variety of devices, including cell phones and laptops. ZAP is a worldwide technology leader in efficient transportation, offering gas-powered vehicles such as the Smartcar, as well as electric cars and personal transportation products.
Tesla Vs. Hydrogen
By Jeff Siegel One of Governor Arnold Schwarzenegger's dreams may soon be coming to fruition. During his time as governor, while singing the praises of renewable energy progress in the Golden State, the Terminator would often tell tree-hugging Californians about his dream of building a hydrogen highway that would enable hydrogen-powered vehicles to run from Mexico to Canada via California. Not only did Prius drivers and vegans applaud the governor's dream, but it even got a decent amount of support from former GM Chairman Bob Lutz and President George W. Bush. Since that time, California has managed to build...
Solar & Storage Finance Conference Notes
I attended the Solar & Storage Finance conference hosted in NYC in late October 2018. Presenters included a mix of capital providers & asset managers, private non-profit entities & public agencies, legal, accounting & consulting firms, intermediaries, firms providing risk analysis, ratings & mitigation, & various vendors of energy storage and IT-related services. The tone of the discussions was noteworthy for its near total absence of ideological comments about environmental urgency. Rather, it was a meeting of finance technicians and technocrats focused on the nuts & bolts of accomplishing those ends, with the merits and relevance of mission assumed.
The...
Cost-effective Energy Storage is the Orphan Stepchild of Alternative Energy
In connection with this week’s launch of their new “What Matters” website McKinsey & Company published a pair of essays that should be of particular interest to alternative energy investors. The first essay, “Electron-Democracy,” describes the coming smart grid as a system that will be built outward from a core of centralized power plants, but increasingly be supported and stabilized by incremental energy flows between small producers and consumers that can respond nimbly to market demand with lower capital costs and more robust protection against disruption. Putting the pieces together, the authors suggest that: “. . ....
A123’s Planned IPO Moves to the Front Burner
John Petersen After six months of regulatory silence and $100 million in new funding, A123 Systems amended the SEC registration statement for its proposed IPO on June 23rd. While this latest filing may simply be A123's way demonstrating its ability to raise matching funds for a scaled back ATVM loan request of $1 billion and pending applications for $438 million in direct Federal grants, my sense is that the proposed IPO will probably come to market in early September. Since ATVM loans will require 20% cost sharing and direct Federal grants will require 50% cost...
Axion Power: Is There Light At The End Of The PIPE?
Tom Konrad, CFA A light at the end of the PIPE? Photo by Tom Check In my last article, Axion Power’s Potential For Explosive Growth, I outlined a number of near-term business opportunities for Axion Power International, (OTC:AXPW) any one of which could catapult the company into profitability in 2014, and more than one of which could produce significant revenue growth this year. While I’m quite bullish about Axion’s prospects, I concluded with a skeptical comment about Axion’s stock: f I owned the stock today, I would be a seller at the current...
Hydrogenics: Will Hydrogen Skeptics Be Blown Away?
The hydrogen technology developer Hydrogenics Corporation (HYGS: Nasdaq) is taking on wind energy. The company’s fuel cell power systems for stand-by and site power sources, hydrogen generators for industrial situations, and energy storage and fuel solutions for fleet owners. Hydrogen has gained in popularity because it is a zero-emission fuel source when burned with oxygen. The energy efficiency of hydrogen as a transportation fuel is also enticing. An electric motor powered by hydrogen fuel cell is two to three times more efficient than an internal combustion engine running on gasoline.
Hydrogen is not without its critics. One of the criticisms is that hydrogen is not entirely a carbon-neutral...
Electric Vehicle and Lithium-ion Battery Investing For Imbeciles
John Petersen In their 1969 bestseller "The Peter Principle" Laurence Peter and Raymond Hull quoted a Latin-American student named Caesare Innocente who lamented, "Professor Peter, I'm afraid that what I want to know is not answered by all my studying. I don't know whether the world is run by smart men who are, how you Americans say, putting us on, or by imbeciles who really mean it." After watching the events of the last few weeks, I think most of my regular readers would agree that the imbeciles are clearly steering the ship. Last March I went...
Lead-Carbon Batteries: A Game Changer for Alternative Energy Storage – Part II
I woke up this morning with a dreadful case of writer’s block and feared that I might have to take a week or two off while awaiting the end of the current SEC reporting cycle. Mercifully, one of my readers sent an e-mail message that asked some pointed questions about lead-carbon battery technologies and the relative strengths and weaknesses of the principal lead-carbon battery developers. So instead of dashing off a quick reply, I thought it might be interesting to share both the message and a detailed response. Besides, it seems like a great way to kill two...
