“Each year, the world demands more and more energy, with no end point in sight. And each year, it is more and more evident that the extraordinary machine we have built to supply that demand cannot sustain itself in present form. Not a day goes by without some new disclosure, some new bit of headline evidence that our brilliant energy success comes at great cost – air pollution and toxic waste sites, blackouts and price spikes, fraud and corruption, and even war. The industrial-strength confidence that was a by-product of our global energy economy for most of the twentieth century has slowly been replaced by anxiety.”
The end of oil: on the edge of a perilous new world, Paul Roberts
“It’s a lack of leadership. It’s a lack of being able to take on the oil industry and the automobile industry, and recognising that they’re not Uncle Sam. Uncle Sam has to be Uncle Sam, and Uncle Sam is acting like General Motors.”
S. David Freeman, Energy Adviser (Carter Administration)
“And here we have a serious problem: America is addicted to oil.”
George Bush, State of the Union address, 2006
“Every country must have an industrial base. The only way you can do that is by building new industries of great value that make a difference in the world, and that can provide better jobs. I think that’s a very necessary social resolve for what we’re doing, and that’s why we say we are changing the world for the better.”
Stanford R Ovshinsky, Developer of EV1 battery, Co-founder of Cleantech Group and Founder of Ovinshky Innovation
ECINYA COMMENT
We’ve all heard of the Toyota Prius or the Honda Insight – trendy hybrid cars that not only save the planet and your pocket, but have seen the likes of Cameron Diaz and Jack Nicholson swap their Italiano sports cars to step out on the red carpet from a green vehicle. BMW and Mercedes shortly followed suit to ensure they didn’t miss out on market share.
Less talk and celebrity-fuelled publicity has arisen about the electric car, a vehicle that is even more environmentally friendly and energy efficient, requires less maintenance, operates quietly and smoothly, and, in fact, was first introduced in the 20th century. Despite its advantages, the electric vehicle (EV) was drowned out by its competitor, the petrol car, due to mass production and cheaper oil. The EV has its drawbacks; the battery packs do not last the distance that petrol cars do and take longer to recharge than the 5 minutes it takes to fill up a petrol tank. These pitfalls are being investigated further by scientists in order to produce a car that can meet consumers’ expectations, the biggest inconvenience being the ability to go the distance. Mass produced EV’s are not available in Australia but this may change in 2010-11. Currently, a top-performing EV costs $130,000-$150,000, shipped from the US, with a waiting period of about 2 years. Alternatively it is possible to convert your current petrol vehicle to an EV for approximately $15,000. Unfortunately, no government rebate is available for this conversion.
If these operational disadvantages are overcome, however, will we see an increase in EV owners? The average consumer may bear a heightened awareness of climate change and fuel cost efficiencies, but it is unlikely that the ‘powers that be’ will welcome such a dramatic shift of economic dependence. One of the greatest advantages of an increasing market in EV’s is a decreasing dependence on foreign oil. The energy source is domestically produced (even if the electricity is sourced from coal powered plants, the environmental impact is drastically reduced), but fuel companies obviously have a strong incentive to deter growing independence from oil.
Oil has played king of commodities, economies and policies. Over the past week, Dubai has announced that it is struggling with debt repayments, yet global market anxiety has eased and there is an expectation that Abu Dhabi will come to its neighbour’s aid if worse comes to worst. The oil sheikhs will step in and save the day. Saudi Arabia has about one fifth of the world’s oil reserves and is the biggest crude oil producer. We have seen oil sky-rocket to just under $140 in June last year, before trading in its current range ~45% below this high. The commodity has a lucrative earning potential. However, oil can only remain profitable if alternative fuels are not a viable option.
Furthermore ex-heavy weights from the energy and motor corporations have been in top positions in the White House, such as Condoleezza Rice, who was also a director of Chevron Corporation. California toyed with the idea of an electric car mandate, pushing for an increase in zero emission vehicles, and this, along with a push for mass-produced electric vehicles, has been swept under the carpet.
LPG fuelled vehicles have gained interest, emitting lower emissions than petrol or diesel engines. Australia has a large supply of gas from Bass Strait, offering less reliance on the Middle East. Bass Strait LPG is also a major export earner to countries including China. Rebates on the intallation of LPG to existing petrol & diesel engined vehicles and for new vehicles fitted with LPG are available from the Australian Government as a "green" incentive.
The International Energy Agency, OECD, predicts that by 2030 Petroleum Fuels will account for 80% of worldwide fuel usage; Biofuels will account for 12%; Electricity 6%; and Natural Gas 2%. OPEC’s forecasts are similar in nature as there are no major assumptions concerning future shifts in demand for oil. India is the biggest importer of oil and developing countries’ need for the fuel only points towards an increasing demand. However, the automobile industry is the largest consumer of oil and alternative vehicles can weaken dependence and addiction. Thus the electric car has the potential to transform the global economy, affecting trade not only in oil, but in steel, chemicals and nonferrous metals as well as electricity generation and distribution.
Additionally, Sherry Boschert, author of Plug-in Hybrids: The Cars That Will Recharge America, conducted studies demonstrating that the use of EV’s would reduce carbon dioxide (CO2) emissions by 0-59% when compared to petrol cars, even if using electricity produced by coal. If the electricity were to be produced by solar or wind power, emissions would be completely eliminated. Yet as the debate over emissions and their potential impact upon the environment and the economy reaches boiling point, politicians are entangled in a power struggle, whilst Australia’s consideration of the EV remains deficient.
In Denmark the government has agreed to remove its 180% tax on EV’s and Israel will reduce tax from 72% to 10% on zero-emission vehicles. Tax incentives help accelerate the adoption of EV’s and Nissan Motor Co. Chief Executive, Carlos Ghosn, believes that high fuel prices will further spur demand for alternative-energy fuelled cars in coming years. Therefore could government support of EV’s become a viable alternative to an emissions trading scheme (ETS) as an attempt at fighting climate change? An investment in such an industry, poised to become the way of the future, is as yet virtually non-existent in Australia. Such an undertaking makes more sense than the $43 billion national broadband network, the largest single investment in infrastructure in Australia’s history, for which no cost-benefit analysis was undertaken.
The development of an EV industry would no doubt come with its own set of difficulties and criticisms, but the environmental benefits would be undeniable and job creation a positive outcome. Moreover a key component of many electric cars is the lithium-ion battery and in the 2009 US Geological Survey Australia was listed amongst the world’s top six lithium producers, with approximately 23% of the world’s broad base lithium reserves, suggesting the opportunity for growth in exports should the EV market continue to grow worldwide.
Thus, this ‘little’ car should not be ignored. More than just a quiet ride, it has potential benefits for the environment and economy worldwide. Keep an eye on it.
By Nicole Loewensohn and Emily Stewart