Plug-in Vehicles Have Been Weighed in the Balance and Found Wanting
John Petersen A comment from maxkilmachina recently drew my attention to an article in the Proceedings of the National Academy of Sciences titled Valuation of plug-in vehicle life-cycle air emissions and oil displacement benefits. While it costs $10 to download the article and supporting documentation, I believe it's worthwhile for all serious energy storage and electric vehicle investors because the underlying study is the first comprehensive total cost of ownership analysis I've seen that includes both direct end-user costs and identifiable externalities like emissions, military and other indirect costs arising from oil consumption in the US. While all...
Alternative Energy Storage: Cheap is Still Outperforming Cool
John Petersen The next couple months are shaping up as a time of extraordinary change in the energy storage sector. Events that will drive the change include: Press reports indicate that the Department of Energy will be ready to announce it's preliminary decisions on the allocation of $2 billion in ARRA battery manufacturing grants sometime this week; We've seen numerous reports on automaker's plans to begin manufacturing PHEVs and EVs in limited volumes for testing and demonstration purposes; New tailpipe emission standards in Europe and accelerated CAFE standards...
Tax Payer Investment in Advanced Batteries
by Debra Fiakas CFA For better or worse various government agencies in the United States have provided significant financial support for advanced battery development and production. The federal government has a goal of deploying one million plug-in hybrid electric vehicles by the year 2015. The replacement of gas-burning cars and trucks is expected to reduce economic dependence upon foreign oil and reduce carbon emissions that threaten our health and climate. We all understand this line of reasoning. Public funds for battery development have been channeled through a mix of contracts for products and services, research grants, loan...
Lesser Known Battery Chemistries
by Debra Fiakas, CFA
The last post Vanadium Flow Battery Companies, featured several companies bringing vanadium redox flow batteries to the market for large-scale energy storage projects. These highly efficient and long-lived batteries take advantage of the unique properties of vanadium. There are other interesting chemical mixes on the battery market that could yield returns for investors.
Sodium-sulfur
There are at least eight different installations of sodium-sulfur or NaS batteries around the world. One of the largest is the Yerba Buena Energy Storage System owned by Pacific Gas & Electric Company (PCG: NYSE) in California. Rated at 4 megawatts or 24 megawatt hours, the system can provide backup electricity...
DOE Reports That Lithium-ion Batteries Are Still Not Ready For Prime Time
John Petersen Last month the DOE released the 2009 Annual Progress Report for its Energy Storage Research and Development Vehicle Technologies Program. Like the 2008 Annual Progress Report I discussed in a February 2009 article titled DOE Reports That Lithium-ion Batteries Are Not Ready For Prime Time, this new report is a relatively upbeat assessment of lithium-ion battery research and development that once again provides a stark reality check for investors in energy storage stocks. In Section III of the Report, which focuses primarily on meat and potatoes issues like R&D objectives, technical barriers, technical targets and recent...
Hydrogen Fuel Is Not Dead
John Lounsbury With the furor over the potential for hybrid, plug-in hybrid and all-electric cars recently, one might think the hydrogen car was dead. Nothing could be further from the truth. Feasibility at an affordable price appears to be established and market availability of hydrogen powered cars may come sooner than you think. Many issues remain to be addressed and this article will try to cover them. The problems to be overcome are not insurmountable, but are also not trivial. These problems include the economics of hydrogen production, transportation, distribution and...
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...
The Wanxiang Transaction Is Not Necessarily A Permanent Solution For A123’s Problems
John Petersen On Wednesday A123 Systems (AONE) announced the execution of a Non-binding Memorandum of Understanding with the Wanxiang Group that will, if successfully implemented, restore A123 to a sound financial footing. Since the basic deal terms are a good deal more complex than the reports one reads in the mainstream media, I think a drill down into the detail may be helpful for investors who want to understand what a restructured A123 will look like. The critical document for this analysis is the MOU included as Exhibit 99.2 to A123's recent report on Form 8-K. The...
Axion Power is Poised to Dominate Energy Storage for Stop-start Idle Elimination
John Petersen After eight years of rarely speaking above a whisper, Axion Power International (AXPW.OB) has found its voice, taken the scientific wraps off its PbC® battery technology and shown potential customers, competitors and investors that it's carrying a big stick and is poised to dominate energy storage for stop-start idle elimination – a cheap and sensible fuel efficiency and emissions reduction technology that's expected to grow at spectacular rates for the rest of the decade as shown in the following forecast of battery demand in vehicles equipped with stop-start systems. In a new white...
Twelve Hydrogen And Fuel Cell Stocks
Tom Konrad CFA While many people think first about hydrogen when they think of fuel cells, fuel cells are not limited to hydrogen. They are a set of related technologies, many of which can generate electricity from a number of hydrocarbon fuels rather than hydrogen. I limited my recent post on the rapid rise of hydrogen stocks to just US-listed companies involved in the production and use of hydrogen, leaving out foreign stocks and other fuel cell technologies for brevity. In my research for that article, however, I came across fully ten publicly traded companies involved with...
The Graphite Hustle
by Debra Fiakas CFA The Klondike Gold Rush of the 1800s has given way to the Canada Graphite Hustle of the 21st Century. In what may seem to many an interminable series on graphite resources developers we have made note of over a half dozen companies in Canada attempting to bring new supplies of graphite ore out of the earth. The action is not limited to Canada. There are at least a dozen other aspirants with plots in Canada and the rest of North America as well as in Australia and Africa. Piecing together disclosures by the...
Lead-acid Batteries and How Cheap Beat Cool at Google
On April 1st CNET News published a story about a previously secret technology that Google (GOOG) has patented and implemented system-wide. The technology, which Ben Jai of Google reportedly described as their "Manhattan Project," builds a 12-volt battery into each server to provide backup power. The point that fascinates me is Google's choice of small format valve regulated lead-acid batteries to keep its servers running. When an ultra-sophisticated company like Google picks cheap over cool for a mission critical function, I think it speaks volumes about the future direction of the energy storage industry. Stephen Shankland of...
Battery Investing for Beginners, Part II
John PetersenLast Friday I published "Battery Investing for Beginners" as an introductory piece for investors who don't know much about the energy storage sector but are interested in learning more because of the hugely successful initial public offering by A123 Systems (AONE). Since the article was well received and there seems to be a good deal of reader interest, I've decided to continue the theme with a series of articles where I'll try to build a contextual framework for the industry and show where various types of energy storage devices and their manufacturers fit into that framework. Since I...
PHEVs and EVs; Plugging Into a Lump of Coal
John Petersen Since I've stirred up a hornet's nest over the last two weeks first by debunking the mythology that PHEVs and EVs will save their owners money and then by showing how PHEVs and EVs will sabotage America's drive for energy independence, I figured I might as well go for the triple-crown of harsh realities by showing readers that in the U.S., where 70% of electricity comes from burning hydrocarbons, PHEVs and EVs won't make a dent in CO2 emissions. They'll just take distributed CO2 emissions off the roads and centralize them in coal and gas...
Battery Manufacturers, Burger Joints and Secret Sauce
John Petersen In September I received an e-mail from France Innovation Scientifique & Transfert SA advertising their new IP Overview of Lithium Metal Phosphate Batteries - 2010/04. While I don't usually pay attention to e-mail pitches for costly reports, the FIST solicitation caught my eye because the abstract explained that roughly 1,100 patent applications have been filed for lithium metal phosphate chemistry since Dr. Goodenough's key patent issued in 1996. It's enough to give a guy a whole new perspective on this T-shirt from EV World. It also raises a couple critical issues that many...
A123 Increases IPO Price Range
John Petersen This morning, A123 Systems Inc. (AONE) amended its registration statement to increase the price range for its proposed IPO to $10.00 to $11.50. I take this as an indicator that their IPO road show has been well received and the offering will go to market in a timely manner. While I've avoided commenting on A123's prospectus, business or financing plans, there is one point that deserves some attention. Their prospectus summary says: According to A.T. Kearney, the global lithium-ion battery market for automotive application in HEVs, PHEVs, and EVs is estimated to be $31.9...
