http://www.cbsnews.com/stories/2008/12/05/tech/livinggreen/main4650457.shtml

Energy Guru To Carmakers: Time To Bet Big

Dec. 5, 2008 
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(CNET) Amory Lovins, a renowned author and big thinker on energy, specializes 
in making the impossible real. 

His 4,000-square-foot Colorado home has no furnace, uses a few dollars' worth 
of electricity a month, and features an indoor tropical garden with banana 
trees and papaya plants. In conversation, he's quick to pull out his iPhone to 
show a car prototype inspired by the Hypercar, which is three to five times 
more efficient than conventional cars.  [I wonder what his negawatt mansion 
cost to build?  AG]

He's the chief scientist and co-founder of nonprofit advisory firm Rocky 
Mountain Institute, which develops environmentally friendly solutions using 
business as a lever. Among the organizations it advises are Ford Motor, 
Wal-Mart, and the Pentagon. 

On Tuesday, Lovins spoke to investors and entrepreneurs at a forum on clean 
tech organized by Xconomy, where he was interviewed by venture capitalist Paul 
Maeder about energy and the environment. (On Wednesday, he spoke at Harvard 
University.) 

With the U.S. automakers' financial woes and an incoming president high on 
everyone's minds, Lovins offered his trademark unconventional thinking 
bolstered by a blizzard of data. 

The biggest danger to cash-strapped U.S. auto companies is making incremental 
changes to their product lines, he argued. Instead, they need to make radically 
more efficient cars by adopting several technologies aimed at efficiency. 
(Lovins coined the term "negawatts," which refers to watts that are not used.) 

"Right now they view accelerated transformation as a risk and a distraction. I 
think it's actually a low-risk strategy. When your competitors new and old all 
around the world are coming up with radically more efficient, safe, (and) 
durable cars, you can't afford incrementalism," Lovins said in an interview 
after his talk. 

"It would be tragic to bail out the industry now and see it go under in another 
five years as competitors' faster innovation takes hold," he said. 

Pinning incumbent automakers' turnaround on electric powertrains through 
plug-in electric cars is a myopic view of the available technologies. 

Cars can be made half as heavy as they are today by using composite materials 
such as light but strong carbon fiber, a choice that gives manufacturers more 
flexibility and reduces costs in production. "Lightweighting" lowers the 
engineering bar for alternative powertrain technologies as well, he argues. 
With less weight to haul around, expensive batteries can be smaller and fuel 
cell vehicles become feasible.  [Detroit tried the carbon fiber approach in the 
90's, the last time the Feds wrote them a blank check.  What emerged from the 
other end of the pipe was the Partnership for No Generation of Vehicles.  Too 
expensive and a waste of taxpayer dollars.  Fuel cells?  AG]

The other technology changes required to set automakers on the right path are 
aerodynamics and software for remote diagnostics and other tasks. 

"Whatever your advanced powertrain is, especially if it's all-electric, it will 
be a great deal smaller and cheaper and lighter if you first get the platform 
physics right--making the car light and slippery," he said. "If you don't do 
that and your competitors do, you're toast." [Just where does Dr. Love In think 
the electricity to run all those 40-mile driving range cars is going to come 
from?  Pulverized coal fired power plants perhaps?  AG]

Many businesses fail to make high-performing products because they don't 
practice what he calls "integrative design," or making design choices to 
optimize the entire vehicle rather than individual components. In the case of 
U.S. auto companies, there's a cultural bias toward powertrain engineering. 

Carbon pricing or negawatts? 
In buildings, too, existing practices and delay-ridden business processes slow 
down adoption of efficient home energy systems. 

In its projects, the Rocky Mountain Institute has found that building owners 
can get energy savings of 60 percent with a three-year payback for 
energy-efficiency retrofits. The group found that new green building 
constructions can be done for lower capital costs than traditional methods, 
contrary to the prevailing view. 

When asked what words of advice he offers President-elect Barack Obama, Lovins 
said the new administration needs to coordinate efforts between the Department 
of Energy and any climate initiatives. 

Many investors and consumers expect that putting a price on carbon 
emissions--through a cap-and-trade system or tax--will make many clean 
technologies more economical. Lovins thinks carbon pricing is a good idea but 
it's not essential. 

"You could make lots of money off of efficiency with zero carbon price. We know 
how to save half the oil and gas and three quarters of the electricity in this 
country," he said. There are, however, "institutional barriers" that block 
adoption of energy efficiency practices, he said, apparently referring to 
incumbent fuel and energy companies. 

Longer term, he said it's not clear that carbon prices will remain high enough 
to drive emissions reductions as intended. 

Policy and geoengineering 
On specific policy levers, he offered two ideas: "decoupling" in the electric 
utility industry and a "feebate" structure in transportation, even if they are 
both implemented first at the state level. 

Regulations in about 40 states are structured so that utilities make more money 
by selling more electricity to consumers. With decoupling, utilities are 
incented to introduce more efficiency. 

The per-capita electricity usage in the state of California, for example, has 
held steady since the 1970s, while its economy has grown, he noted. 

The goal of a feebate--combining the words "fee" and "rebate"--is to incent 
consumers and automakers to value efficient vehicles. 

When consumers purchase cars, there is a sliding scale where they receive a 
rebate for purchasing the most-efficient vehicles and a fee for the 
least-efficient.  [People have been programmed, brainwashed, whatever to 
believe that bigger is better, faster is fabulous and they will simply opt to 
pay more for the big cars.  As long as big is an option, it will be chosen.  AG]

"It widens the price spread between the most- and least-efficient models 
and...automakers can make more money because there is more technology content 
in the cars." 

With his emphasis on energy efficiency and practical solutions, it's probably 
not surprising that he, like many other scientists, are wary of geoengineering 
ideas, such as putting sulfur particles in the air to cool the earth or seed 
the ocean with iron to stimulate carbon-sequestering algae blooms. 

"Geoengineering is pretty scary. We really don't know what we are doing," 
Lovins said. "On climate science, there's a whole lot we don't know and most of 
the surprises are bad surprises...When you've got one planet and you've got to 
keep living there, you don't want to try anything irreversible."  
[Irreversible?  Go pick some bananas Amory.  AG]



By Martin LaMonica 
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