Major power and gas company E.ON splitting in two; focusing on renewables, spinning off conventional power generation

1 December 2014

Düsseldorf, Germany-base E.ON, one of the world’s largest investor-owned power and gas companies, is adopting a new strategic direction under which is will split itself in two. E.ON itself will focus on renewables, distribution networks, and customer solutions. The existing conventional generation, global energy trading, and exploration and production businesses will be combined in a new, independent company (“New Company”), a majority of which will be spun off to E.ON SE shareholders. In 2015, E.ON will take necessary preparatory steps for the New Company’s public listing.

E.ON SE will have three core businesses: renewables, distribution networks, and customer solutions. About 40,000 employees will be assigned to the distinctly focused company. In its new setup, E.ON will take new approaches to further developing each of its three core businesses. For this purpose E.ON will increase its investments already for the next year by about €0.5 billion (US$0.62 billion) compared to the previously planned 2015 capex of €4.3 billion (US$5.4 billion).

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E.ON will place a particular emphasis on expanding its wind business in Europe and in other selected target markets. It will also strengthen its solar business. It will upgrade its energy distribution networks in its European markets and also in Turkey and make them smarter so that customers can take advantage of new products and services in areas such as energy efficiency and distributed generation.

We are convinced that it’s necessary to respond to dramatically altered global energy markets, technical innovation, and more diverse customer expectations with a bold new beginning. E.ON’s existing broad business model can no longer properly address these new challenges. Therefore, we want to set up our business significantly different. E.ON will tap the growth potential created by the transformation of the energy world. Alongside it we’re going to create a solid, independent company that will safeguard security of supply for the transformation. These two missions are so fundamentally different that two separate, distinctly focused companies offer the best prospects for the future.

Conventional energy. Over the past decade, E.ON has established leading positions in conventional power generation in Europe and Russia. In recent years E.ON has systematically optimized its generation fleet and production costs, laying the foundation for sustainable profitability.

A strong natural gas portfolio—which encompasses exploration and production, gas transport pipelines to Europe, long-term gas procurement contracts, and substantial storage capacity in Germany—makes E.ON one of the leading players in the natural gas business. These power and gas activities will continue to have E.ON’s well-established trading unit as their interface with global commodity markets and European trading platforms.

The New Company will have its headquarters in Germany’s Rhine-Ruhr region and will have about 20,000 employees. Teyssen said that the New Company’s clear focus will put it in an excellent position to lead the necessary consolidation of power generation in Europe and to offer attractive services for the system needs of the future.

The clear separation of power and gas production and trading from end-customer businesses will make both even more transparent for regulators, the company said. The new setup will enable E.ON to accelerate the deployment of new technologies and at the same time make a significant contribution to supply security.

The first step of the spinoff will involve E.ON transferring a majority of New Company’s capital stock to its shareholders, with the result that New Company will be deconsolidated. E.ON intends—over the medium term and in a way that puts minimum pressure on the stock price—to sell the shares of its remaining minority. This will enhance E.ON’s financial flexibility for future growth investments.

E.ON’s financial flexibility is further enhanced by the divestment of its entire businesses in Spain and Portugal, which it has agreed to sell to Macquarie, an Australian investment firm, for an enterprise value of €2.5 billion (US$3.1 billion). The new owner will operate and further develop E.ON’s conventional and renewable operations in both countries and be the future partner for its distribution and retail customers there.

Existing provisions for the dismantling and disposal of nuclear and conventional assets will be fully covered in New Company’s balance sheet. Because it will not have any of the Group’s existing capital-market liabilities and thanks to its solid financing, the publicly listed New Company will be financially robust.

E.ON and New Company’s respective business portfolios will differ considerably in terms of growth, risk, innovation tempo, and cash flow profile. Each company will face different strategic challenges and will therefore have different requirements for capital. The new setup will create another attractive stock, the company suggests. The two publicly listed companies will appeal to different investor groups.

• E.ON SE is positioned as offering its investors attractive earnings with low volatility and clear growth opportunities.

• New Company’s investors will benefit from the cash flow from its current business portfolio in Europe and Russia and from additional opportunities created by the anticipated restructuring of generation markets in Europe.

E.ON says that the new setup will offer E.ON’s current shareholders additional value potential.

New setup to be implemented by 2016. The New Company’s business units do not yet constitute a corporation. In 2014 and 2015 E.ON will therefore take the necessary legal steps to combine these units. To ensure reporting continuity, E.ON’s current reporting units will, for the time being, remain unchanged.

The implementation of the new setup will be accompanied by certain costs and taxes, the details of which cannot be clarified until preparatory work is conducted in the coming year. E.ON does not anticipate a lasting increase to its cost base, since new costs will be offset by the reduced requirements of the two companies’ simpler organizational setup.

E.ON expects to carry out the spinoff after approval by the E.ON Shareholders Meeting in 2016.

Start-up Eco-Motive developing dual-fuel “H” engine; parallel, independently fueled piston banks

1 December 2014

The H-engine—basically two separate engines housed within the same engine block—comprises two switchable parallel piston banks, independently fueled by gasoline and CNG. Click to enlarge.

Startup Eco-Motive has developed what it calls the first dual-fuel “H” engine; it recently received a patent (#8807098) on the design. The H-shaped engine comprises parallel left-side and right-side vertical inline piston banks, each having a crankshaft and pistons, a cylinder head, and individual fuel feeds, but sharing a common power transmission system. Each piston bank operates independently of the other but is housed within the same engine block and has separate lubrication systems.

The Eco-Motive H-motor—basically two separate engines housed within the same engine block—can be powered by either gasoline or compressed natural gas (CNG), at the driver’s decision. The chosen engine is mechanically or electrically selected via an engine bank selector box using a selector control which selects the fuel type and engages a drive gear on the crankshaft of the selected engine, and transfers power to the transmission. The selector control actuates a transfer system that prevents simultaneous operation of both engines. The vehicle stays in that fuel mode until changed by the driver.

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Click to enlarge.
 
Click to enlarge.

The crankshafts for each bank are centrally and longitudinally located below the respective banks. The left-side fly wheel and the right-side fly wheel (or other suitable equivalent) permit balancing of the left-side crankshaft and the right-side crankshaft respectively. The first flywheel and the second flywheel may be offset, such that a forward and a reverse sliding gear may engage either a left-side crankshaft or a right side crankshaft to the transmission.

The selector control is able to slideably direct-engage the first flywheel to the input shaft of the transmission. Other gearing, balancing, power transmission means and the like may be employed, according to the patent.

The H-motor is fed by dual gas tanks on either side of the drive shaft. A fuel inlet for each tank can be located on the side of the car where its tank will reside. Exact specifications may vary depending upon the OEM.

The engine was invented by Herns Louis, veteran of more than 30 years in the parts manufacturing industry ranging from automotive to aerospace, specializing in computerized parts machining. This twin-bank engine is a result of Louis’s experience, along with his vision to help meet an emerging market need for more efficient, lower-exhaust CNG engines.

An OEM can adopt our idea to any internal combustion engine with an even number of cylinders to any truck, SUV or car they currently build, regardless of its transmission or configuration. The technology can be easily adapted to existing engines, making the implementation very cost effective.

Calls for an international 48V electrical standard for vehicles; looming WLTP implementation

1 December 2014

At the 2^nd International Conference Automotive 48 V Power Supply Systems, held last week in Düsseldorf, Germany, Controlled Power Technologies (CPT), a major sponsor of the event, together with leading car makers and Tier 1 suppliers, argued the need for an internationally agreed 48V electrical standard. Such a standard will be necessary for the global automotive industry to achieve the economies of scale demanded by original equipment manufacturers.

CPT, together with other sponsors of the event, including AVL and Ricardo, is in the vanguard of 48V mild hybrid developments intended to address the ever-tightening European CO₂ regulations and potentially a new and more aggressive test cycle—i.e., the Worldwide harmonized Light vehicles Test Procedures (WLTP).

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The EU goal is to introduce the WLTP by 2017 if possible and no later than 2020 to coincide with the 95 g/km requirement. The WLTP defines a global harmonized standard for determining the levels of pollutants and CO₂ emissions, fuel or energy consumption, and electric range from passenger cars and light-duty commercial vehicles—therefore it becomes even more important for the industry to agree beforehand a global electrical standard for the 48V mild hybridization of its vehicles.

One of the issues for the industry to confront in moving away from the NEDC test is that the WLTP typically halves the measurement of CO₂ reduction gained from first generation stop-start systems, which characteristically reduce CO₂ emissions on the NEDC by 5%. This reduces to 2.5% when measuring the same vehicle on the WLTP.

The WLTP cycle will be much more challenging than the NEDC and the CO₂ effect of a simple stop-start system will be halved. Car makers will have to further optimize their control system strategy, which can be aided by a B-ISG [belt-integrated starter generator] with a fast transient response to maximise the recuperation and boosting potential over the WLTP test cycle, or under real world driving conditions. Moreover, any electric boosting using energy recuperated, rather than lost in friction from the brakes, not only reduces CO₂ and NO_x emissions, but can also have a positive impact on vehicle performance and drivability. The WLTP is significantly more dynamic with faster acceleration rates. This means that in addition the power demand is more difficult to achieve with engine downsizing and transmission down-speeding alone.

Thermal management of the electrical machine is another critical factor, because the duration of the boosting and energy recovery operating modes directly impacts fuel economy and emissions. Hence the trend towards liquid cooling of electrical machines, which can be achieved by tapping into the engine coolant system, ensuring their performance including any integrated electronics is independent of ambient temperature.

Stable thermal characteristics achieved through liquid cooling allows better utilisation of torque assist and longer recuperation opportunities, since both modes generate heat. It is how we manage to deliver peak recuperation in excess of 12 kW and peak torque assist in excess of 8 kW for extended durations of typically 20 seconds or more. The recuperation potential in the NEDC test cycle allows use of electric assistance in accelerations up to 30 km/h [18.6 mph] and potentially to provide torque assist at other road speeds including during engine-off coasting.

The bottom line of course is that cost is the most critical factor when setting out to achieve CO₂ compliance, particularly in the high volume sector of the market. Until we have a really significant breakthrough with battery chemistry or fuel-cell technology, the high voltage approach to hybridization and pure battery electric vehicles will remain too expensive for universal application across high volume vehicle platforms. Low voltage hybridization on the other hand, for a new class of 48V hybrid vehicle, provides an affordable compromise between efficiency and cost. And it’s cost-effective because it’s an evolution of existing powertrain architecture rather than a completely new propulsion system.

The Advanced Diesel-Electric Powertrain (ADEPT) prototype (earlier post) incorporates a 48V electrical architecture, a CPT SpeedStart 10kW (later to be upgraded to 12.5kW) B-ISG and CPT TIGERS turbine integrated exhaust gas energy recovery system, both being switched reluctance machines, and an advanced lead carbon battery pack provided by EALABC. Click to enlarge.

The conference. The three-day conference showcased technological advances being achieved by the European industry in the development of 48V mild hybrids.

Keynote speaker Florian Kühnlenz, responsible for series development of low voltage energy systems at Volkswagen AG, set the scene with a presentation of the electric and electronic architecture requirements of dual voltage power supplies in vehicles at 12 volts and 48 volts; initial steps have already having been taken for the adoption of the proposed LV148 standard suggested by Audi, BMW, Daimler, Porsche and Volkswagen. (Earlier post.)

Kühnlenz’ outlook is that the introduction of a second, 48V system addresses new challenges for automotive electrical and electronic systems, but that most issues have now been identified with preliminary solutions already developed for introduction during the ramp up to the 95 g/km CO₂ requirement by 2020. The displacement of high wattage loads to a more efficient 48 volt network is expected to be the next step in the development of a new generation of low voltage mild hybrid vehicles.

Commenting on the need expressed by Tier 1 suppliers for an international standard when introducing low voltage hybrids and their note of caution should this not happen, Paul Bloore, product validation manager for CPT’s hybrid product group said:

It makes sense to have a common global standard, because 48V hybrids are currently the most cost-effective way of meeting stringent CO₂ emissions being introduced in 2020, compounded potentially by a shift from the current NEDC test to the more aggressive WLTP test, with further 25% reductions anticipated in 2025 and 2030. Moreover, a consensus of global forecasts suggests that 48V hybrids will soon come to dominate the market, so clearly that’s what the vehicle manufacturers are expecting to happen. A common international 48V standard would be a smart move.

Dr. Salah Benhassine, a specialist in electromagnetic compatibility (EMC) at PSA Peugeot Citroën, set out the French carmaker’s approach to 48V mild hybridization by focusing on one of the specific technical challenges. He similarly concluded that collaboration between automotive industry and suppliers is essential.

Robert Eriksson, senior technical leader for electric propulsion architecture at Volvo Cars, concluded that there were several opportunities for building scalable and modular solutions with different attributes in the mild hybrid category, commenting on the recuperation possibilities with expanded 48V architecture, thereby achieving the goal of less than 95 g/km of CO₂ levels after 2020.

Ulf Stenzel, lead engineer for new battery technologies, hybrid and electric powertrain systems at AVL Schrick GmbH, which is heavily involved with CPT and the European Advanced Lead-Acid Battery Consortium (EALABC) in the development of the ‘LC Super Hybrid’ gasoline powertrain (earlier post), discussed the development by Hyundai and Kia of a 48V mild hybrid diesel powertrain (earlier post), commenting that its combination with an electric supercharger offered “realistic potential in terms of performance increase and further fuel consumption reduction.”

Honda begins sales of new Grace Hybrid in Japan; 4WD option

1 December 2014

Honda Motor Co., Ltd. has begun sales of the all-new Grace hybrid sedan at dealerships across Japan. The Grace is equipped with Honda’s Sport Hybrid i-DCD one-motor hybrid system that enables the driver to start in EV mode and realizes fuel economy of 34.4 km/L (81 mpg US or 2.9 l/100 km) under the JC 08 mode—best among all hybrid sedan models in the Japanese market. The Sport Hybrid i-DCD is also applied in the Fit and Vezel hybrids, and earlier had been the subject of three recalls due to separate problems with its -speed DCT. (Earlier post.)

Also, for the first time as a compact hybrid sedan in this size category, the all-new Grace offers a 4WD version in its lineup. Honda’s monthly sales target in Japan is 3,000 units.

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Honda Grace. Click to enlarge.

The SPORT HYBRID i-DCD system combines a 1.5L Atkinson cycle DOHC i-VTEC engine, 7-speed DCT with built-in high-output motor and the IPU with a built-in lithium-ion battery.

The all-new Grace features the Advanced Compatibility Engineering (ACE) body that applies Honda’s original G-Force Control Technology (G-CON) to enhance self-protection and make it less aggressive to other vehicles in the event of a collision. The Grace also features the Pedestrian Injury Mitigation Body structure to absorb the impact of a collision in the front part of the body, which is at the highest risk of causing a pedestrian injury in the event of a collision.

In the area of active safety, with the goal to prevent an accident before it happens, the all-new Grace features the Vehicle Stability Assist (VSA) system; a Hill-Start Assist function; as well as the Emergency Stop Signal (ESS) system that warns vehicles following behind of a sudden stop. These active safety functions are featured as standard equipments on all types.

The “safety package” that combines the City-Brake Active system that is designed to help drivers avoid rear-end collisions while driving at the speed of below 30 km/h (18.6 mph), with a side curtain airbag system and a front seat i-side airbag system (variable capacity type) is available on certain types.

Pricing starts at ¥1,950,000 ($16,436).

Imergy Power Systems’ vanadium flow batteries selected for Navy/California Energy Commission microgrid demonstration project

1 December 2014

Foresight Renewable Solutions has selected Imergy’s ESP30 series vanadium-based flow batteries (earlier post) for a Smart Microgrid project sponsored by the California Energy Commission (CEC) and hosted by the US Navy.

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To be deployed at the Navy’s Mobile Utilities Support Equipment (MUSE) Facility in Port Hueneme, California, the Smart Microgrid project will focus on developing applications and use-case scenarios to optimize power consumption at military bases, college campuses, industrial parks and other institutions. The project will include:

• Demand charge management: The project will demonstrate how well the system can release short bursts of energy when demand peaks occur, enabling users to reduce their electricity bills by lowering their utility demand charges.

• Load shifting: The project will prove how well the system can shift load from higher cost times of day to lower cost times of day, enabling users to reduce their electricity bills by shifting load to times when electricity prices are lower.

• Solar firming and ramp rate control: The project will show how well batteries can smooth out the jagged nature of solar power production, helping solar power systems provide more consistent power throughout the day.

• Island mode: The project will demonstrate how well a photovoltaic (PV) solar system and battery storage, disconnected from the grid, can provide energy for a user’s critical loads during a given time period, enabling similar systems to be securely deployed at remote, mission critical facilities.

Three Imergy ESP30 series vanadium-based flow batteries will be incorporated into the project, which will also feature a 50 kW PV solar panel system and GELI’s Energy Operating System (EOS) to automate the multiple applications. The ESP30 series has a capacity of up to 50 kW and can store up to 200 kWh of electricity.

Imergy produces its high-performance flow batteries using recycled vanadium from environmental waste, which is helping the company deliver the best performance and price points in the industry. Imergy says that it delivers the lowest Levelized Cost of Stored Energy (LCOSE) of any competitor in the market.

The Navy and US military have been at the forefront in the development of advanced energy technologies. The Navy currently produces 12% of its total annual energy needs from renewable sources. Microgrids at military bases could help the military lower energy costs, expand their use of renewable energy, and reduce their dependence on diesel and grid connectivity for mission critical assignments.

The California Public Utilities Commission (CPUC) has mandated that the state’s three largest investor-owned utilities add a minimum of 1.3 GW of energy storage of energy storage infrastructure by the end of the decade. Worldwide revenue from energy storage for the grid and ancillary services is expected to grow from $675 million annually in 2014 to $15.6 billion in 2024, according to a report from Navigant Research.

Daimler investing ~€100M in Deutsche ACCUmotive to expand lithium-ion battery system production; stationary storage

1 December 2014

Daimler AG is expanding its production capacities for lithium-ion battery systems with investments of around €100 million (US$125 million) in its Deutsche ACCUmotive subsidiary in coming years. Currently, a new building to be completed by mid-2015 is under construction in Kamenz, Germany. With the completion of the third construction phase Deutsche ACCUmotive will have nearly 20,000 m² of production and logistics space at its disposal—four times the area since the start of production in the year 2011.

Deutsche ACCUmotive’s product range currently includes three lithium-ion battery systems for different models. This includes the current smart fortwo electric drive and the Mercedes-Benz Models S 300 BlueTEC HYBRID, S 400 HYBRID, E 300 BlueTEC HYBRID, E 400 HYBRID and C 300 BlueTEC HYBRID. The company has delivered more than 50,000 lithium-ion battery systems to date. Earlier this month, Daimler said it would cease production of Li-ion battery cells at its LiTec subsidiary, with the intention of sourcing cells for the packs from outside the company. (Earlier post.)

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Deutsche ACCUmotive was founded in 2009 for the development and production of lithium-ion battery systems for vehicles; the company is a wholly-owned subsidiary of Daimler AG. The research and development activities of Deutsche ACCUmotive are located in Nabern in the Stuttgart area and the production takes place in the Saxon city of Kamenz. Series production started in the year 2011.

We are looking forward to continuous growth in the demand for Deutsche ACCUmotive batteries. Deutsche ACCUmotive will be producing the lithium-ion batteries for the upcoming electric versions of the smart fortwo and forfour from 2016 as well as for future hybrid models of Mercedes-Benz. The development and production of our lithium-ion batteries is competitive in every respect. We are in the black at Deutsche ACCUmotive

Systematic hybridization is a fixed element of Daimler’s powertrain strategy. In the current year, Mercedes-Benz has sold more hybrid-driven vehicles than all other German manufacturers combined, the company said.

Additional growth opportunities outside the automotive industry also arise for Deutsche ACCUmotive through the entry into the business with stationary applications, where the vehicle batteries serve as the technological foundation for the development of stationary energy storage units.

The scalability of the storage systems enables the use of the lithium-ion batteries for network stabilization and smoothing of peak loads (peak shaving) for energy producers as well as private households, for example, in conjunction with photo-voltaic installations.

Blome said the company has already completed its first customer contracts.