BOARD MEETING DATE: April 10, 1998 AGENDA NO. 8




PROPOSAL:

Execute Contract to Conduct a Market Feasibility Study of Zinc-Air Battery Technology

SYNOPSIS:

Electric Power Research Institute (EPRI) and Arcadis have jointly proposed to conduct a market feasibility study of mechanically rechargeable zinc-air (MRZA) battery technology, especially with respect to medium-duty and heavy-duty vehicle applications. Low-energy densities of conventional batteries tend to restrict the range of such vehicles. MRZA technology, developed by Electric Fuel, Ltd., has significantly higher energy density and has the potential for overcoming such barriers in delivery vans, transit buses and trucks. The total cost of this project is $95,000, with AQMD cost-share not to exceed $25,000.

COMMITTEE:

Technology, March 27, 1998, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Executive Officer to execute a contract with EPRI or Arcadis (depending on the final outcome of the contractual agreement between the funding partners) to co-sponsor a market feasibility study of mechanically rechargeable zinc-air battery technology, for an amount not to exceed $25,000.

Barry R. Wallerstein, D.Env.
Acting Executive Officer


Background

The AQMP calls for the accelerated introduction of zero-emission EVs as an air quality attainment strategy. In 1990, the ARB adopted a regulation, modified in March 1996, requiring the seven largest vehicle manufacturers to offer for sale a specified percentage of light-duty passenger cars and trucks as ZEVs beginning in 2003.

There are active efforts to increase the range and energy storage capacity of batteries being designed for EVs. The United States Advanced Battery Consortium (USABC) is supporting the development of several new batteries made of high-energy materials such as nickel and lithium. In addition, the Advanced Lead-Acid Battery Consortium (ALABC) and others are developing improved lead-acid batteries. Currently, however, these batteries suffer a common drawback--most have low energy density which restricts the range and increases the vehicle weight, and thus, are generally unsuitable for many medium-duty and heavy-duty vehicle applications.

Electric Fuel, Ltd., (EFL) has developed the mechanically rechargeable zinc-air (MRZA) technology, a battery with much higher energy storage density than traditional batteries. Unique characteristic of MRZA technology is that, unlike most battery technologies, the "refueling" process is mechanical, whereby spent batteries or anodes are physically removed from the vehicle and replaced with new, fresh ones. This contrasts with conventional battery recharging, in which the battery packs are recharged by being "plugged" into an electrical source. The zinc anodes which are removed from used batteries are recharged in a regeneration process and reformed into new anodes, which are then placed back into the vehicles.

Currently, EFL has a program with the German Government’s postal service to convert mail vans to run on MRZA technology. In addition, Bechtel is conducting a technology and economic analysis of zinc regeneration plants at different sizes and operating conditions. The proposed EPRI study would expand the scope of the Bechtel study to include market feasibility analysis.

Proposal

EPRI has proposed to conduct a market feasibility study to evaluate the potential of MRZA technology in fleets. The proposed project would include the following main tasks:

(a) analysis of vehicles used in fleets, vehicle operating conditions, and developing the criteria to determine the potential for MRZA technology in fleets;

(b) assessment of existing federal, state and local regulations/incentives for feet vehicles in regard to clean fuels;

(c) assessment of MRZA with respect to fleet market economics;

(d) assessment of purchasing requirements of fleets with best potential for MRZA; and

(e) development of marketing approaches to target fleets with such potential.

EPRI has proposed to hire Arcadis/Geraghty and Miller (previously known as Acurex Environmental) to conduct this study. EPRI, ARB, New York Power Authority and AQMD will be partners in cosponsoring this project.

This project is included in the Technology Advancement Plan for the Clean Fuels Program under Project 97M2-7, "Advancement of Batteries and Energy Storage Devices for Electric Vehicles." The proposed project would improve the viability of developing zero-emission battery technologies with high energy density, and facilitate the deployment of medium-duty and heavy-duty EVs that run on zinc-air technology.

Sole-Source Justification

Section VIII(B)(2) of the Procurement Policy and Procedure identifies four major provisions under which a sole-source award may be justified. This request for sole source award is made under provisions B.2.c.(1): the unique experience and capabilities of the proposed contractor or contracting team; and B.2.d (1), other circumstances exist which in the determination of the Executive Officer require such waiver in the best interests of the AQMD; specifically, projects involving cost-sharing by multiple sponsors.

The following contracting partners for this project represent a unique technical, administrative and cost-sharing team:

EPRI is the national research, development and demonstration arm of the electric utilities. EPRI has been intimately involved with electric vehicles and electric vehicle infrastructure for the last 20 years. EPRI is a funding cosponsor of the United States Advanced Battery Consortium (USABC), and has assisted the USABC in the development of a range of technical protocols for testing and measuring battery performance. Dr. Fritz Kalhammer, the principal participant in this project, was co-chair of the ARB's Battery Evaluation panel which assessed and made key recommendations on current and emerging battery technologies in regard to ARB's ZEV mandate. Dr. Kalhammer is currently serving on the ARB's Fuel Cell Evaluation panel.

Arcadis/Geraghty and Miller (formerly Acurex Environmental) has been involved in the engineering and technical aspects of alternatively fueled vehicles since the late 1970s. The firm has managed a range of demonstration projects from light-duty-vehicles, to refueling infrastructure, to heavy-duty vehicle applications for methanol and natural gas fuels. The firm has analyzed technology status, costs, benefits and deployment strategies for low-emission vehicles. Since the 1990s, the firm has worked on battery-electric, hybrid-electric and fuel-cell projects, and has strong expertise in working with fuel providers, fleet operators and vehicle manufacturers.

For these reasons, it is in the best interest of the AQMD to award a sole-source contract to EPRI or Arcadis (depending on the final outcome of the contractual agreement between the funding partners).

Resource Impacts

The total cost of this project is $95,000 with AQMD cost-share not to exceed $25,000. The breakdown of the co-sponsors and support are as follows:

 
  Cash
EPRI $ 25,000
ARB 25,000
New York Power Authority 20,000
AQMD 25,000
Total $ 95,000

Sufficient funds will be available in the Fiscal Year 1998-1999 Budget, pending Governing Board approval of the Budget, from revenues received from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile and stationary sources to support projects to increase the utilization of clean fuels in both sectors, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

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