Editor’s Note: This is part four of an exclusive sit down I had with Hideaki Watanabe, Nissan’s Division Manager of their Global Zero Emission Business Unit, at last week’s U.S. debut of the LEAF in Los Angeles. Part one is devoted to battery swapping, part two to battery leasing, and part three to the quietness and safety of EVs.

During the Frankfurt Motor Show in September, Renault invited Gas 2.0’s own UK-based Chris Milton to an exclusive event detailing the company’s electric car strategy. The event introduced some rather quirky (and quirkily named) electric cars, including the Twizy, the Kangoo, and the Zoe. These aren’t just concept cars, they are cars that Renault intends to build and sell—some by next year.

Based on those releases—and the fact that Nissan hasn’t invested anything in battery swapping while Renault has jumped in head first—it started to seem that the Renault-Nissan Alliance was taking two completely different paths on the road to EV world domination. On the one hand you have Nissan with the rather mainstream-looking LEAF and plans for a luxury Infiniti electric car. And on the other you have… the Twizy.

In my recent sit down with Hideaki Watanabe, Nissan’s Division Manager of their Global Zero Emission Business Unit, I asked him to explain why Nissan and Renault were apparently moving in opposite directions.

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The moment sustainable motoring has waited for has finally arrived: a full range of all-electric cars.

Renault has launched the world’s first range of purely electric cars at the IAA Frankfurt Motor Show 2009.  Designed to cater for everyone from a single traveller to local commerce, via 2.5 kids family cars, it’s a revolution in three important ways:

• the range is designed from scratch as a complete set of electric cars — not gas-fueled cars with an electric motor retro-fitted to give the manufacturer green kudos;
• the cars will be priced without an “electric premium,” allowing them to compete alongside gas-based engines on a like-for-like basis for the first time ever;
• most importantly, they’re real. Presented as concept cars, the Kangoo ZE is already in an advanced prototype stage, and I was lucky enough to drive it at Frankfurt.

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Project Better Place, the brainchild of entrepreneur and CEO Shai Agassi, in partnership with French automaker Renault, is an increasingly popular electric car service model that looks to the “service station” concept for electric cars. By developing an infrastructure of “swap stations,” drivers can swap discharged batteries in their electric cars in little more than five minutes, and be on their way. Pilot projects are already underway across the globe, including Denmark, Israel, Japan, Hawaii, California, and Australia.

Renault and Better Place announced this week plans sell up to 160,000 electric cars annually throughout Denmark and Israel starting in 2011.

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As the Nissan-Renault Alliance works feverishly towards the goal of launching an entire lineup of electric cars in the next few years, they have begun to set their sights on the nitty gritty of supplying parts for the endeavor. And when you’re talking about Nissan’s electric cars, the most important part that comes to mind is, of course, the advanced lithium-ion battery.

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Renault has announced plans to showcase a trio of electric cars at this September’s Frankfurt motor show, including all-electric versions of the Megane saloon and the Kangoo (on sale 2011), as well as an all-new concept EV.

At this stage, Renault is keeping tight-lipped about the details of its concept car, revealing only that it will be a four-metre, five-door hatchback that will go on sale in 2012.

According to Renault C-Segment Development Chief Christian Steyer, all of the company’s new EV offerings will feature noticeable styling, but nothing too radical. He told reporters, “We want a real signature for our electric range, so when people see one in the street they will know it is a Renault electric car. The key is to do this without frightening customers away. Customers must be tempted, and not rushed too fast.”

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With one of Nissan’s senior EV project engineers sitting next to me, it felt like I was being expectantly doted on by a protective parent as I drove Nissan’s EV-02 electric test car around a closed course Monday. Given that the EV-02 is only one of two such cars in the world, the reaction was perhaps understandably warranted.

Earlier in the day Nissan had held a joint press conference with Oregon Governor Ted Kulongoski, Portland Mayor Sam Adams, and representatives from Portland General Electric, to further affirm Oregon’s burgeoning relationship with Nissan to be one of the first and premier locations for the company’s late 2010 electric car launch.

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India’s leading two-wheeler maker, Bajaj Auto Ltd., is planning to launch a small car in 2011 which it promises would be very affordable and world’s most fuel efficient car running on gasoline. Bajaj Auto has partnered with Nissan and Renault as it seeks to compete with the recently launched Tata Nano.

During an interview given to CNBC-TV18, Bajaj Auto’s Managing Director, Rajiv Bajaj, said that the project was on schedule and was not suffering from any financial constraints. He also said that the company is utilizing its experience in manufacturing two-wheelers in this project which has made the project highly cost-efficient.

Rajiv Bajaj refused to give out a specific date for the launch of the car but shared some specifics regarding the car’s mileage and carbon output. 

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In his keynote address at the 2008 LA Auto Show today, Carlos Ghosn, the CEO of Nissan-Renault, announced a wide-ranging partnership to develop electric cars and an electric car charging network with the State of Oregon.

Citing Oregon’s environmental leadership in developing the transportation infrastructure of tomorrow, Ghosn also said that Nissan would be releasing their first electric car for the US market in Oregon in 2010. After releasing electric cars in Oregon in 2010, Ghosn then affirmed that Nissan-Renault will bring an “entire lineup” of zero emission electric cars to the worldwide market by 2012.

I was in the overflow room watching Ghosn on a big screen when he announced all this, so nobody was clapping, but this is definitely some of the biggest news to come out of the LA Auto Show this year — if not the biggest.

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Speaking at the Paris Motor Show, President Nicolas Sarkozy said the investment is destined “exclusively for the research and development of non-polluting vehicles.” His comments follow earlier announcements from French carmakers Renault SA and PSA Peugeot Citroen of separate agreements with energy company Electricite de France (EdF) to develop and market green vehicles.

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Texas oilman T. Boone Pickens has received a glut of media attention recently for his plan to develop the largest wind power project in the world. Now the New York Times suggests that Pickens might have a visionary counterpart in Shai Agassi, an Israeli software entrepreneur obsessed with making Israel the world leader in electric cars.

Agassi, along with his company Better Place, have an Israeli government-backed plan to create an electric car program that will give subscribers access to a car, a battery, and outlets across Israel. Subscribers will also be able to swap dead batteries for fresh ones in designated garages.

Better Place will run the smart grid that charges the electric cars. The company is also currently contracting for enough solar energy energy to power the whole fleet, which will roll out next year with 500 cars built by Renault.

But Agassi’s vision doesn’t end with Israeli electric cars.

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Over 40,000 electric vehicles (EV) are currently used in the United States. Most are used in fleet applications, from maintenance to checking parking meters; these EVs are mostly limited to 25 mph speed and 20 mile range. A growing number of fleet EVs, however, are early trails of a new generation of freeway-speed EVs that will be available to the mass consumer market in 2010.

Mitsubishi is on target to sell its electric vehicle in the U.S. in 2010. The i-EV is a friendly looking sub-compact which easily handles freeway speeds. It’s expected 100 mile-plus range per charge will meet the needs of urban dwellers and most in suburbia. The drive system uses three permanent magnetic synchronous motors which receive power from a 16kWh lithium battery stack. Tokyo Electric Power is currently testing ten i-EV

Nissan’s and Renault’s famous CEO, Carlos Ghosn, plans to be selling electric vehicles in the U.S. market in 2010. He anticipates more cities following London’s model of expensive congestion fees, with fee exemptions and preferred parking for zero-emission vehicles. In many markets, Nissan will offer electric vehicles with permanently installed lithium batteries that will be trickle charged. Nissan owns 51% of Automotive Energy Supply Corporation, which plans to be producing lithium batteries for 10,000 vehicles annually by 2010. Plant expansion has begun to produce lithium batteries for 60,000 electric vehicles annually.

By 2012, Ghosn plans to have a Renault-Nissan alliance offering a wide range of electric vehicles in many major markets, charging ahead of all competition. Economist Article

In Israel and Denmark, Renault and Nissan will partner with Project Better Place. to sell electric vehicles without batteries. Project Better Place will lease batteries that can be quickly exchanged at many locations. The exchange will take no longer than a traditional gasoline fill-up, appealing to motorists needing extended range. The battery lease will cost a fraction of what most now spend on gasoline.

Popular in Europe, Think will bring its electric vehicle to the U.S. Think city reaches a top speed of 65 miles per hour and can drive up to 110 miles on a single charge. Think city meets all European and US federal motor vehicle safety requirements. At the Geneva Motorshow earlier this year, Think announced a strategic partnership with energy giant General Electric, also an investor in Think. By 2011 look for a larger TH!NK Ox. Think has also established partnerships in the US with battery suppliers A123 and EnerDel. Think has established a U.S. headquarters and will begin sales in the U.S. before 2010. A123 Technology Review Article

In 2009, the smart ev may be available in the U.S. The cars 70/70 specs are appealing for city drivers: 70 mile range, 70 mile per hour freeway speed. Daimler’s smart ev is in trail in the UK with the Energy Saving Trust, Islington and Coventry Councils, Lloyds Pharmacy, EDF Energy, BT, and other fleets. To achieve a range of 72 miles, it is using the Zebra sodium-nickel-chloride battery which has caused maintenance difficulties in some U.S. fleets.

The cityZENN is planned for a top speed of 80 mph and a range of 250 miles. Powered by EEStor barium-titanate ceramic ultracapacitors, the cityZENN will be rechargeable in less than 5 minutes! Venture capitalists are betting that stealth EEStor is real. On Friday, May 30, ZENN Motor Company announced that it had raised another $15 million dollars.

Most major auto makers continue to believe that most U.S. customers will insist on ranges exceeding 250 miles and a national infrastructure of fuel refilling (or recharging) in five minutes. Even as GM announces factory closings and plummeting sales, CEO Richard Wagner states that GM is committed to bring the plug-in hybrid Chevy Volt to market by the end of 2010. If it can deliver at under $30,000, the vehicle will offer tough competition to some of the smaller EV players.

As Toyota solidifies its number one global market share leadership, it also remains on target to deliver a plug-in hybrid to the U.S. market by the end of 2010. It is likely to have an all-electric range of 40 miles and a gasoline range 10X that amount. Watch Toyota use an expanded line of hybrid vehicles to unset GM, making Toyota the market leader is the U.S.

May rained on every auto maker’s parade in the U.S., except Honda, which set sales records with its fuel efficient Civic. Honda is passing Chrysler to become the #4 seller in the U.S. Honda is rumored to be bringing a new hybrid to the U.S. next year priced in the mid-teens. This will give hybrids a big boost in market share from the current 3% of total vehicle sales.

While I was giving a speech at the Fuel Cell 2008 , Honda announced that it would lease 200 Clarity FCX hydrogen fuel cell cars for $600 per month, including maintenance. In June, it will start selecting from 50,000 who have expressed interest in the 270-mile range four-door sedan. The FCX Clarity is aerodynamic and beautifully styled. Honda’s new hybrid is likely to have a similar body style.

Some critics have dismissed electric vehicles as golf carts for retirees and sport car toys for millionaires. These critics have missed a fundamental market shift that started with the success of hybrid-electric cars, light electric vehicles, and with e-scooters. Customer enthusiasm for electric vehicles is the result of many factors:

• Oil Prices
• ZEV Cities & Congestion Tax
• Electronic drive simplifies auto design
• Vehicle weight reduction with electric accessories and components
• Reduced maintenance because of few mechanical components
• GHG Regulation
• Battery technology advances that reduce cost and weight
• Increased battery safety
• Success of hybrid-electrics

At the FRA Renewable Energy Investor Conference (my presentation handouts), I led a panel discussion about electric vehicles and plug-in hybrids. Major private equity and project finance investors were optimistic in sessions about electric vehicles, solar power, wind power, and carbon trading. Many expressed discouragement in the biofuels sessions, but at the same time saw increased opportunities with bioenergy and bio-methane from landfills.

In a few years, millions will be driving full-featured freeway-speed four-door sedan electric vehicles. Look for a shift away from foreign oil to riding on local renewable energy.

John Addison publishes the Clean Fleet Report and speaks at transportation and energy conferences.

Kangoo Zero Emissions Concept

The Kangoo ZE is the lynchpin of Renault’s ambitions to dominate the European electric car market.

They reason, quite rationally, that a large proportion of light commercial vehicles operate within a limited area which varies little from day to day or week to week. Florists have the same catchment area, and so do plumbers and electricians.

And the Postal Service. The French Postal Service, La Poste, already uses the Renault Kangoo and the partnership has proved so popular that models of Kangoo LaPoste postal vans are now a collectors item.

More importantly, LaPoste has committed to phasing in the electric Kangoo ZE model once it is available. Ontop of this, according to Thierry Koskas, Renault’s Director of Electric Vehicles, Renault has agreements in place with other European businesses but he declined to comment on specifics when asked.

Test Driving the Renault Kangoo

The best thing about the Renault Kangoo ZE is that is actually exists. The Kangoo ZE BeBop prototype was available to drive at the Frankfurt Motor Show, and Gas 2.0 was honoured to be invited to jump in and give it a go.

At this point I could wax poetic about how wonderful it was; about how it’s so quiet we drove behind a horse without the horse hearing us, or how we went onto a divided highway and the vehicle got from zero to 40 mph in less than a hundred yards.

But the real point is that this prototype not only exists, but has been manufactured to meets Europe’s stringent safety specifications to allow it to be driven on the open highway. I drove it on real roads, mucked in with commuter and commercial traffic on a divided highway.

I drove a car, this car, on the highway. And it was normal. I didn’t feel like a freak and there was no “green electric hippie sign” flashing above the car as I cornered suburban streets. In fact, to be honest, it was pretty boring.

Wow!

So many prototypes exist to show that a certain technical innovation can work, or that a certain styling looks as good in real life as it does on paper. Usually journalists get to drive them on a test track, but rarely on the open road.

Renault’s Kangoo ZE BeBop prototype is, on the other hand, A Real Car. It shows that electric vehicles are ready for mass production. Nothing more, but certainly nothing less.

The Renault Kangoo ZE will be available to buy in 2011. In my opinion, the sooner, the better.

Turn the page for more info on the Renault Twizy…

Twizy Zero Emissions Concept

The Twizy is the smallest and the most innovative of Renault’s electric car range. In fact, to call it a car is to miss the point… it’s more a four-wheeled motorbike.

Designed to compete with a 125cc motorbike, the car is one seat wide with the passenger sitting directly behind the driver.

It’s aimed at a single person who has up to 30 miles to travel to work every day and features a battery which can be fully recharged in 3.5 hours from any 220V mains outlet.

In fact it reinvents the idea of a car, and once you’ve got your head around the idea, you can start to appreciate all the Renault Twizy has to offer.

For the single person, going to work or going shopping, it’s ideal. And every family, perhaps, will end up with one in their garage for low-emission personal journeys or shopping trips.

Thierry Koskas, Director of Electric Vehicles, said “The Twizy will enable individuals to move around in the most environmentally responsible way possible: this could be an individual’s mode of transport for the future”.

The Renault Twizy ZE will be available to buy in 2011.

Turn to the last page for info on the Renault Zoe and Fluence…

Zoe Zero Emissions Concept

Fluence Zero Emissions Concept

The Zoe and Fluence concept electric cars are Renault’s competition for the existing four and five door car market. Technically there is little to differentiate them, but their presentation and added extras ensure they appeal to different market sectors.

The Zoe is a four seat, four scissor-door electric car whose back seats can be folded down to provide additional side loading boot capacity. It incorporates a unique triple climate control system, developed in partnership with L’Oreal, which Renault claim will leave occupants “more relaxed, just like after a spa treatment” after each journey.

The Fluence, on the other hand, is a five door, five seat electric car which Renault unashamedly proclaim is for “the single-car family father who would use the car every day to go to the office, but who would also want to take his wife and children to the country at the weekend”.

Where the Zoe is feminine in it’s presentation, the Fluence is unashamedly male: it’s a technology laden dream which includes an inbuilt mobile phone, the ability to download and use in-car music and films from the internet and touch-screen satellite navigation systems.

Thierry Koskas, Director of Electric Vehicles, said these cars “give unparalleled opportunity for urban families to go about their day-to-day life in a much more environmentally friendly way than is currently possible, while their cost base remains the same”.

The Renault Zoe ZE will be available to buy in 2011, the Renault Fluence ZE in 2012.

^{* double / triple battery charging system.}