Batteries In A Green Economy

The Role of Batteriesin the Green Economy

March 16th, 2009

Christina Lampe-Onnerud

What is a green economy?

It’s the economics of the real world—the world of work, human needs, theEarth’s materials, and how they meshtogether most harmoniously.

It’s about “use-value”, not “exchange-value” or money. It is about quality,not quantity for the sake of it. It isabout regeneration---of individuals,

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about regeneration---of individuals,communities and ecosystems---notabout accumulation, of either money ormaterial.

It is to operate within the ecologicalconstraints of earth's natural resources.

It is a rapidly growing billion-dollarsector that includes renewable energysources, organic produce and products,green buildings, alternative fuelvehicles, and more.

Energy storage: protecting theenvironment and saving the economy

Multibillion dollar global industryat a crossroads

– Insatiable demand

– Strong growth rates

– Mobility a requirement versus a luxury

– Enabling clean tech and transportation


– Enabling clean tech and transportation

Battery industry opportunity onmultiple levels

– Performance and safety

– Empowering existing and new markets

– Environmental sustainability

– Environmental accreditation

Global Warming

Global Warming Definition

The increase in the average

temperature of the Earth's :

- near-surface air and


- near-surface air and

- oceans

since the mid-20th century and

its projected continuation.

Risks and Impacts of Global Warming


Higher risk of irreversible transitions

Higher total economic and ecological impact

More global distribution and balance of impacts

More frequency and more severity of extreme climate events

Higher risk to unique and threatened systems

2075

2050

2025

Global Warming – Risk Timeline


2025

Higher risk of irreversible transitions

Higher total economic and ecological impact

More global distribution and balance of impacts

More frequency and more severity of extreme climate events

Higher risk to unique and threatened systems

19902025

The effect of climate change

Stern Review estimates the overall costsand risks of climate change:

large worldwide economic losses will beequivalent to

- at least 5% GDP annually in the short term


- at least 5% GDP annually in the short term

- may increase to 20%loss of GDP per year

points out the extensive risks of worldeconomy also have implications on world peace

provides prescriptions includingenvironmental taxes to minimize the economicand social disruptions.

How do we get a truly green economy?

Government/political networks

– In order to distinguish and regulate truly green products and services, thegovernments must take action. The main problem facing consumers is a lack ofeasily recognized accreditation. There is a lack of qualifiers imposed uponcompanies that make the green product claim. The only way to avoid false claimsis by mandating that companies seek third party certification acknowledged byand promoted by our governments.

Business


– Businesses need to drive to sustainable products and will be greatly helped bythird party organizations. The regulatory framework gives businesses the longterm commitment that green counts. And that there will be payback if all is greenand penalties if not. This will stimulate economic growth. Capital will continue toflow into new green markets increasing innovation and collaboration.

Consumers

– or “the people” . . . We are ultimately the real winners of true green. Many of uswant to do the right thing and support honest companies. Third party regulationswill empower and stimulate conscientious consumers, who will have confidencethat the products they purchase are what they claim to be.

Political threats

Changing political atmosphere in 2008-2009, US and European governmentsare demoting green policies.

First, the global economic crisis has demoted green policies nearer to the bottom ofthe political agenda. Saving the economy and creating jobs take priority now.

Second, disillusionment with the failed Kyoto Protocol has turned utopian thinkinginto sobriety. After all, most of the Kyoto signatories failed to reduce their CO2emissions during the last 10 years. There are also growing doubts about the long-term


emissions during the last 10 years. There are also growing doubts about the long-termviability of the EU's Emissions Trading Scheme. The price of carbon credits hascollapsed as a result of the financial crisis. The drop in demand and the recession arelikely to depress carbon prices for years to come

Third, a number of countries have experienced a political backlash over theirrenewable energy schemes. Tens of billions of euros of taxpayers' money havebeen pumped into projects that depend on endless government handouts. Each of the35,000 solar jobs in Germany, for instance, is subsidized to the tune of €130,000.According to estimates by the Rhine-Westphalia Institute for Economic Research, greensubsidies will cost German electricity consumers nearly €27 billion in the next twoyears.

Copenhagen 2009, next Kyoto protocol


2009 is a crucial year in the international effort to address climate change,culminating in the United Nations Climate Change Conference inCopenhagen, 7-18 December.

The Working Group under the Kyoto Protocol and the Working Group on Long-term Cooperative Action under the Convention will operate in full negotiatingmode in 2009.

Road to Copenhagen

The Road to Copenhagen is an interactive initiative aimed at giving business,parliamentarians, NGOs and individual citizens a voice.

From Road to Copenhagen protocol to UN Climate negotiators in Poznan2008:

“Clean technologies have a huge potential in terms of job creation andimproving economic and social prosperity. We need more research,development and supporting structures to enhance the diffusion of existing


development and supporting structures to enhance the diffusion of existingpatented and retrofitted technologies.’”

Threat of green washing– how do consumers know?

Threat: Over-touting in order to win points with consumers – someare real, but which ones?

Opportunity: Conscientious consumers will play an important role inensuring that the truly environmentally sustainable products remaindistinguished from those merely leveraging the empty promises


NGOs apply market pressure to be Green


The market will decide on green- but needs help from accreditationThe market can make the decision withhelp of accreditation, which isstandardized and government sponsored

Private and public procurement involveshuge amount of money, which, if putthrough the right channels, can drive thesuppliers toward clean production andsustainable development


sustainable development

Chinese government does 40% greenprocurement today and want to increasethis number

There are only two (as of Dec 2008)that give eco-label for rechargeablelithium-ion batteries

The Nordic Ecolabel

The Chinese Ecolabel

What does it mean to have an Eco-label?

Ecolabel certification available for Li-ion batteries

– the logo demonstrates that a product is a goodenvironmental choice

– checks that products fulfill certain criteria using methodssuch as samples from independent laboratories, certificatesand control visits

– ensures that a product meets rigorous, science-basedenvironmental leadership standards, which gives


– ensures that a product meets rigorous, science-basedenvironmental leadership standards, which givesmanufacturers the assurance to back up their claims andpurchasers confidence that certified products are better forhuman health and the environment

– is usually valid for a certain amount of years, after whichthe criteria are revised and the company must reapply for alicense

– the goal is to achieve a more sustainable world bypromoting environmentally responsible production,purchasing, and products

Eco-label requirement for Li-ion

Chemical requirement

– Mercury must not exceed 0.1 ppm.

– Arsenic must not exceed 20 ppm

– Lead must not exceed 20 ppm

– Cadmium must not exceed 20 ppm

– Packaging with no PVC or other chlorinated plastics


Li-ion battery product and production requirements

– long cycle life guarantee

– full traceability of cells and chemicals

– visible eco-labeling on outside of cell

– auditing of manufacturing and supply chain

Green jobs in a green economy

Clean technologies have a huge potential in terms of job creation and


Clean technologies have a huge potential in terms of job creation andimproving economic and social prosperity. We need more research,development and supporting structures to enhance the diffusion ofexisting patented and retrofitted technologies.

Obama promises to spend $150 billion over 10 years to create 5million new green-collar jobs. (Time May 2008)

Green technology is emerging

HP Enviro Series Notebook Batteries (Lithium-ionSustainable Life Notebook Battery)

“Allows you to work on the go and provides thecustomer with the added assurance of a 3 yearwarranty, which helps the customer reduce their


warranty, which helps the customer reduce theirenvironmental footprint by consuming fewerbatteries over time. The batteries utilize Boston-Power Sonata battery cells which are uniquelydesigned with sustainable life in mind.”

Energy storage based on Li-ion

Whole-system batteryapproach = applicable to avast range of endapplications

– Portable power will continue toevolve and will require morecustomized battery solutions


customized battery solutions

– High-energy density and highpower energy storage enablesclean teach energy solutionstaking load off our grid

– Evolving transportation marketwill require strong collaborationbetween car and batteryindustry

Environmental challenges andincrease of public's mobility

•Growing petroleum consumption•Global climate change•Urban pollution

Leads to new innovation

Transition to Next-Generation Power Trains


Leads to new innovation•IC engines and transmissions•Emission control technologies•Alternative power trains•New battery solutions•Tailored power cycle•High safety•Excellent predictability

Reducing Environmental Impactin a Green Economy Commit to products that work

– Fewer replacements

– Higher functionality

– High brand loyalty

Focus on less use of resources

– Energy and materials efficiencies

– Promote recycling programs


– Produce locally

Actively provide leadership

– Participate in accreditation

– Advocate recycling programs

– Empower green electronics, emerging transportation, and provide energy storage foralternative energy solutions

– Commit to Corporate Social Responsibility

– Be active in National and Worldwide policymaking to enforce total cost considerations

‘There is still time to avoid the worstimpacts of climate change, if we takestrong action now.’

‘The benefits of strong and early


‘The benefits of strong and earlyaction far outweigh the economiccosts of not acting.’

Lord Stern

Batteries In A Green Economy

Business

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