Category Archives: Electric Cars

News and reviews of the latest electric cars (full electrics and plug-in hybrids).

Now that California is banning gasoline cars, the EV race has begin

California just started the clock on a future that a few years ago would’ve been unthinkable: dealerships full of nothing but zero-emissions cars.

On Wednesday, Gov. Gavin Newsom, D, ordered regulators to phase out the internal combustion engine and ban the sale of all new gasoline-fueled cars after 2035. With that, California became the first state in America to impose such a prohibition and delivered the biggest jolt yet to automakers already under pressure to give up fossil fuels and deliver a new generation of electric vehicles.

While for now the industry depends on gasoline-powered SUVs and pickups for most of its profit, traditional automakers are investing billions of dollars in electrification and announcing new EV models — with start-ups such as Rivian Automotive and Lucid Motors Inc. right on their heels. California’s ban ups the ante.

“There’s an arms race going on here,” said Mary Nichols, chair of the powerful California Air Resources Board that regulates the emissions of everything from oil refineries to power plants to cars.

Newsom’s announcement adds to worldwide momentum this week in the fight against climate change, coming less than a day after China pledged to go carbon neutral by 2060 — a bold move from the world’s largest polluter that, while still 40 years out, caught environmentalists by surprise. California is joining more than a dozen countries, including the U.K., France and Canada, that are phasing out the internal combustion engine, BloombergNEF data show. The U.K. is actually considering whether to push forward its ban to 2035.

What California wants would be a huge leap for the auto industry. Less than 8% of new vehicles registered in California through the first half of the year were electric ones. And in 2035, BNEF projects about half of U.S. passenger vehicle sales will be battery and plug-in hybrid electric vehicles in 2035.

The target is “aggressive,” but it has the potential to speed the pace of EV adoption among automakers, said Stephanie Brinley, a principal automotive analyst for IHS Markit.

“If it actually happens, it does create a reason and impetus to make change happen faster,” Brinley said. If “you have the opportunity for volume there, and you’re going to be able to sell the car, then you can put more money into investing and increasing your capacity faster.”

Newsom’s order — signed on the hood of the forthcoming electric Ford Mustang Mach-E — will inevitably set the tone for states across America. Not only is California the largest car market in the U.S., it’s also one of the nation’s biggest gasoline consumers and the world’s second-largest EV market, behind only China. The strength of its transportation policy has always hinged on the fact that automakers, other like-minded states and often the nation have tended to follow suit.

The ban is “a kiss of death for gasoline and petroleum as California tends to be a trendsetter,” said Patrick DeHaan, head of petroleum analysis for fuel-pricing firm GasBuddy.

Key questions remain, including whether California will allow plug-in hybrid sales (used gasoline car sales will be allowed) — and whether the rest of the U.S. will actually join. Much of the latter hinges on the upcoming presidential election. While the Trump administration has aggressively fought California’s efforts to squeeze emissions out of transportation, Democratic presidential nominee Joe Biden has advocated for the widespread adoption of electric cars and a national charging network to power them.

Read more: NNY360

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Volkswagen ID.3 electric car (Image: Volkswagen.com)

Volkswagen ID 3 1st Edition 2020 UK review

Competitive EV hatchback is pleasing to drive and attractive to sit in – but doesn’t change the game

What is it?
“Can I be geeky and take a closer look?” asks a man charging his Nissan Leaf, no sooner than I’ve plugged the VW ID 3 into an Instavolt charger in Banbury. Why of course you can, sir, although one question: as an electric vehicle convert, driving the world’s most populous EV, does the arrival of the new ID 3 still feel like a significant moment? “Absolutely.”

Interesting. You can already buy an electric vehicle that does everything an ID 3 does. You’ve even been able to buy an electric Volkswagen before now. But, somehow, the ID 3, in the UK here in ‘1st Edition’ trim, still feels like a waypoint on the road.

It sits, as you’ll doubtless know, on Volkswagen’s MEB electric architecture, so although, at 4.3m, it’s about the length of a Golf, it has a longer wheelbase and, it’s claimed, much more interior space.

The battery (this one is the mid-range 58kWh unit with a WLTP range of 260 miles and a 100kW charge capacity) sits beneath the floor, with the motor (at 201bhp, the higher powered of two offerings) at the back axle. The ID 3 is rear motored and rear-wheel drive, like the original Beetle but, alas, because there’s an inverter and lord knows what else in the front, it doesn’t have a frunk.

Instead, the boot has a high load lip and the rear seats split and fold, revealing that this 1.6m-tall car is a practical hatchback, with plentiful head room front and rear. Cabin fitment is good but material choice is pretty scratchy in places, including the door tops. Not such a biggie further down the range, one suspects, but the UK price for a 1st Edition with the middling battery is £35,215 (after the government grant).

Volkswagen ID.3 electric car (Image: Volkswagen.com)
Volkswagen ID.3 electric car (Image: Volkswagen.com)

Someone will be along shortly to argue that overall ownership costs are no more than a lower-priced internally combusted car, which is true if you get your electricity cheaply enough, but if you always have to refill on the road, probably isn’t.

What’s it like?
There aren’t many buttons inside. VW has promoted/relegated everything it can to a touchscreen, save for light switches, steering wheel shortcuts or voice control, plus iffy temperature buttons and a couple of menu selectors.

This approach works at both cleaning up an interior and worsening its functionality, making adjusting the temperature harder than I’ve known in a Volkswagen bar my own 1973 Beetle. Perhaps that was the inspiration. You can verbally whinge to the car that you’re cold, but then I feel like a child asking their dad to turn the heating on in September.

The driving position, and much of the driving experience, is pure Volkswagen – and perhaps that’s where the impression that this is an EV ‘moment’ comes from. It’s an interestingly designed car and not too ‘weird’. The stalks are VW, the instrument pack plain and clear, steering smooth and linear if perhaps short on self centring, and the driving experience as seamless and quiet as an EV gets; the sort of thing that makes them really agreeable to scooch along in smoothly. It doesn’t feel its 1794kg.

I’d want a back-to-back test with a rival to assess rolling comfort (one is on the way, handily), but it seemed fine to me, even on 19in rims. It’s not a driver’s car in the traditional sense, like a Ford Focus is, but there’s a different driving pleasure to be had. I’d rather the level of lift-off energy regeneration was variable by wheel paddle, as on an Audi E-tron, rather than a reach to the gear stalk.

Read more: AutoCar

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Zappi 2018 EV Charge Point (Image: myEnergi)

Rightcharge electric-car tariff and charging comparison site launches

Rightcharge.co.uk lets electric-car owners compare energy suppliers and charger installations; savings of “more than £230 a year” claimed

A new website described as “the UK’s first electric vehicle (EV) energy tariff, home charging and installation online comparison service” has launched at Rightcharge.co.uk

Citing a lack of information on specialised electric-car domestic electricity tariffs and the various options for home-wallbox installation, Rightcharge has been introduced to help save customers money, it claims.

“The explosion of EV ownership means there’s more choice than ever – of cars, chargers and energy tariffs. However, without easy-to-compare information, drivers are still in the dark about what options work best for them to get the best deal,” said Charlie Cook, founder and CEO of Rightcharge.

Zappi 2018 EV Charge Point (Image: myEnergi)
Zappi 2018 EV Charge Point (Image: myEnergi)

“Our free online tool is the only service on the market that solves this for drivers, providing easy-to-understand and impartial advice that’s tailored to every customer,” Cook stated.

As with some other comparison websites for mobile phones, household bills and so on, Rightcharge is a free service that lets prospective customers find and compare multiple energy tariffs, home chargers and over 30 installation firms. Results can be adjusted to account for specific requirements.

The site specialises in the comparison of EV-specific energy tariffs, which tend to offer cheaper electricity rates during off-peak periods. When paired with a smart charger that can be scheduled to charge in these periods, Rightcharge suggests, these tariffs can help lower bills for those charging their car at home.

Read more: driving electric

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Car prices after Brexit: should you buy now?

Find out how manufacturers plan to change car prices in response to a no deal Brexit, and how you can avoid being caught out

Car buyers should complete their purchases soon to avoid the risk of price rises from a no-deal Brexit outcome, Which? has learned. Find out what impact car manufacturers say a no-deal Brexit will have on them and what it could mean for you. Car manufacturers are announcing their plans in the event the UK leaves the EU without a deal at the end of the Brexit transition period on 31 December. Any additional costs in manufacturing and importing cars risks price rises for car buyers. Manufacturers, including Ford, Mercedes-Benz, Peugeot and Vauxhall have confirmed the prices of their cars will rise in the event of a no-deal Brexit, with others saying it would lead them to review their prices. Some manufacturers have told Which? that they’re committed to honouring the price of cars bought before the end of the transition period, but which are delivered after that date. The approach varies from manufacturer to manufacturer. Find out below how much extra you could pay, plus what key car manufacturers have told us.

How much more could you pay for a car? Around 70% of cars registered in the UK are currently imported from the EU. At the moment there are no tariffs on cars imported from the EU because the UK is following EU trade rules until the transition period ends on 31 December. If the UK leaves the EU without a trade agreement, in line with World Trade Organization (WTO) rules, after this date a 10% tariff will apply to finished cars imported from the EU. If a manufacturer passed on the full 10% import tariff, that would then lead to a 6.3% increase in the price you pay for a car (based on average prices and according to industry body the Society of Motor Manufacturers and Traders). This is because import tariffs are levied on the customs price of a vehicle at the time of import, rather than the final price of sale. When a vehicle is sold in the UK, it will have additional taxes such as VAT and Vehicle Excise Duty added to it. Costs can also be impacted by changes in vehicle demand. In the table below, we’ve added this 6.3% increase to the purchase price of the top five bestselling UK cars to see how much prices could rise in the event of a no-deal Brexit.

An industry insider told us overall car costs would rise by around £1,800, on average, if a 10% tariff is introduced. The increase will be even more for premium-priced cars. The popular BMW X5 SUV starts from £59,135. With the 6.3% increase applied, potential buyers would see its price rise by around £3,726 to £62,861.

Will Ford put up its car prices if there’s a no-deal Brexit?
Ford makes some of the UK’s bestselling cars, including the Ford Fiesta and Ford Focus. Ford has confirmed to Which? it will price-protect orders placed prior to leaving the transition period without a deal. Ford of Britain managing director Andy Barratt said: ‘In a no-deal scenario and the imposition of a WTO 10% tariff regime on new vehicles, prices for Ford’s most popular passenger and commercial vehicles would rise by between £1,000 and £2,000. Ford said: ‘We will provide more details if or when the situation dictates.’ Ford of Europe communications executive director, John Gardiner, also said: ‘We continue to hope that all sides can reach an agreement to ensure the UK leaves the EU with a deal in an orderly manner.’ Adding that despite taking actions to mitigate the impact of not having a deal, it’s ‘impossible to avoid disruption in such a scenario’.

Read more: Which

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Volvo XC40 P8 (Image: media.volvocars.com)

New Volvo XC40 P8 Recharge 2020 review

Is the new all-electric Volvo XC40 P8 Recharge worth its nearly £60k price tag? We find out…

Verdict
The XC40 EV is a beautifully engineered creation with excellent performance, decent range, exceptional refinement and no compromise on practicality compared with regular versions. Android Automotive feels like a worthy upgrade, too. But, if anything, the P8 feels a little too potent and pricey for this size of vehicle. We’re confident that more modest versions, perhaps with a single motor and at sub-£50k, will be even more appealing.

Volvo has hit the headlines with its approach to electrification, with the company stating that half of its sales will be fully electric by 2025. But this car, the XC40 Recharge Pure Electric P8, is its first full EV. It’s a sign of how quickly Volvo has to move to meet its target – and a reminder of how important this new model is.

Of course, we’ve tried a plug-in XC40 before, because Volvo already sells a hybrid version. But don’t think that the XC40 P8 is really just a PHEV with bells on, because the car’s CMA (Compact Modular Architecture) platform has allowed the firm’s engineers to pack in specs that are punchy, to say the least.

Volvo XC40 P8 (Image: media.volvocars.com)
Volvo XC40 P8 (Image: media.volvocars.com)

The XC40 P8’s lithium-ion battery has a capacity of 78kWh (usable capacity is 75kWh) and this powers a pair of identical electric motors – one on each axle – producing a combined total of 402bhp and 660Nm. That’s a serious amount of power and torque for a small family SUV and, sure enough, the electric XC40’s performance figures are startling: 0-62mph takes a whisker under five seconds, and the top speed is 112mph – relatively high for an EV.

The perils of adding extra cells are aptly demonstrated by the XC40’s mass and range, mind you. This car weighs 2.2 tonnes – hefty for something with the footprint of a Ford Focus – and as a result, even that large battery can only manage 260 miles between charges. That’s respectable, not stellar.

At least you get 150kW DC charging as standard, capable of adding up to 80 per cent of capacity in 40 minutes (or around 55 miles of range every 10 minutes). That hefty battery means that home charging is a bit more of a chore, of course, but a full charge on a domestic wallbox can take from less than eight hours – so overnight charging shouldn’t be a problem.

The pricing is every bit as hefty as the weight and performance – but it doesn’t help that here we’re sampling the First Edition that is the only version available at launch. Still, we can only test what’s put in front of us and, at a whopping £59,985, this is a seriously expensive XC40 – the thick end of £20k more pricey than anything else in the range (even the plug-in hybrids), and way beyond the reaches of the Plug-in Car Grant.

Of course, it’s better to compare this car with other EVs of its size – and there aren’t too many of those. The Jaguar I-Pace is larger and more expensive (although not by much), but BMW’s iX3 is a closer match, starting from almost £62,000 while offering a bit more cabin space, luggage capacity, and range than the XC40. Volvo’s offering is in the mix, in other words – but on paper, far from a stand-out favourite.

It stacks up well when you get behind the wheel, though. The first thing you’ll notice is that there’s no starter button; the car uses a seat sensor to trigger its key detection, so you can just get in, push it into D and drive, like a Tesla.

Once you’re on the move, you’re likely to be surprised by just how refined the XC40 P8 is – because it’s impressively hushed. There’s next to no electric motor whine to speak of – no mean feat when you have a front-mounted unit as well as one on the rear axle – and wind noise is also well suppressed. Cut out these frequencies and you’re left with a bit of rumble from the chunky wheels on the road below you, but that’s about your lot.

Read more: AutoExpress

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Charging with an Ohme smart charging cable

Wallbox Starts Delivery of Quasar, The World’s Lightest and Smallest Bidirectional Charger for Home

Quasar’s unique technology will deliver vehicle-to-grid and vehicle-to-home functionality that will transform the energy ecosystem by enabling consumers to feed energy stored in their EVs back to the grid or to their homes

Octopus Electric Vehicles started installing the first units of Quasar as part of its energy management solution across the UK in August

LONDON–(BUSINESS WIRE)– Wallbox, the leading energy management company that manufactures smart EV charging solutions, will partner with Octopus Electric Vehicles to introduce its latest game-changing technology into homes across the UK.

Quasar, the world’s lightest and smallest bi-directional charger for the home, was first announced in June of last year. Wallbox has now started to deliver the first pre-ordered units, and the UK is the first market to have the product available.

In addition to providing DC charging capabilities for EVs, Quasar allows owners to pull energy from their cars’ batteries and export it into the grid, a capability referred to as vehicle-to-grid or V2G, as well as to power their own homes, known as vehicle-to-home or V2H, effectively converting their EVs into a powerful energy storage unit that can replace or add capacity to an energy system.

The partnership with Octopus Electric Vehicles will be focused on the V2G technology.

Charging with an Ohme smart charging cable
Charging with an Ohme smart charging cable

Enric Asunsión, CEO of Wallbox, explains the importance of this technology in the future of energy management: “There are three trends accelerating that will cause a paradigm shift in how we produce, store and use energy: rising demand for energy worldwide; electrification of the mobility sector; and the increase in production of renewable energy as a positive response to climate change. The new possibilities that emerge with this scenario will require technology to harness their potential. At Wallbox we are creating the first generation of products that will give consumers the ability to use their EVs as a source of energy for the grid or the home.”

Wallbox creates smart charging systems that combine state-of-the-art technology with exceptional design, creating an intelligent ecosystem between car, charger and home. With Quasar, the company is bringing the grid into this ecosystem, giving consumers more control over how and when they use their energy.

As explained by Eduard Castañeda, co-founder and Chief Product Officer, “An EV stores enough energy to power a home for multiple days, and most drivers only use a fraction of this capacity on their daily commute. By enabling the transfer of energy to and from the battery to the grid and the home, consumers are empowered to use and share their energy in ways we didn’t even imagine until recently.”

Octopus Electric Vehicles offer Powerloop, the complete V2G package for a consumer: a lease on a brand new Nissan LEAF, a Quasar charger, a smart meter and a green energy tariff compatible with the charger. Using a dedicated app, the customer can ‘set and forget’ their charging schedule, and earn up to £30 cashback every month, just for allowing the car battery to be used to help the energy system.

Powerloop is Octopus Electric Vehicles’ market-leading large scale demonstration project for residential vehicle-to-grid. Octopus Electric Vehicles secured £3 million from Innovate UK, funded by the Department for Business, Energy and Industrial Strategy (BEIS) and the Office for Low Emission Vehicles (OLEV), to roll out V2G technology to over 130 homes in a consortium alongside their sister company – the green energy supplier Octopus Energy – and others including UK Power Networks (UKPN).

“The Wallbox Quasar enables us to bring V2G charging technology to our customers on the Powerloop project. We envisage a connected world of energy where your car is capable of supporting and strengthening the grid at times when renewable energy is abundant or when demand is high,” says Claire Miller, Director of Technology & Innovation at Octopus Electric Vehicles.

Read more: Street Insider

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Nissan Leaf 3.Zero e+ (Image: Nissan)

Nissan Re-Leaf EV provides mobile power in natural disasters

Nissan has created an electric concept car to show how EVs can help restore power during natural disaster outages

The Nissan Re-Leaf concept has been created to show how 100% zero emissions electric cars can provide mobile power in natural disaster zones

Natural disasters are the biggest cause of power outages and the electric car concept from Nissan aims to show how EVs can come to the rescue.

The Nissan Re-Leaf is derived from a regular Nissan Leaf electric car, and is equipped with a range of external sockets to power devices from the lithium ion battery.

Nissan says it can power an electric jack hammer, an intensive care medical ventilator and a 100-watt LED floodlight all for a full 24 hours.

Nissan Leaf 3.Zero e+ (Image: Nissan)
Nissan Leaf 3.Zero e+ (Image: Nissan)

The Re-Leaf also has uprated suspension, wheels and tyres so it can be driven into a disaster zone to provide the fully mobile power service.

The Leaf’s bi-directional charging ability is behind the mobile power functionality, allowing it to both ‘pull’ power from the grid, but also ‘push’ it back to electronic devices.

In disaster zones, power typically takes a day or two to be restored: the Re-Leaf provides electricity during the outage, and can then be recharged once power comes back online.

Nissan says the concept also shows how electric cars can help support the broader electricity network for additional resilience against power cuts.

Nissan Europe’s Helen Perry said: “Concepts like the Re-Leaf show the possible application of EVs in disaster management.

“Electric vehicles are emerging as one of the technologies that can improve resilience in the power sector.

“By having thousands of EVs available on standby, either as disaster-support vehicles or plugged into the network through Vehicle-to-Grid (V2G), they’re uniquely capable of creating a virtual power plant to maintain a supply of energy during a major outage.”

RJN, a UK engineering and motorsport firm, carried out the modifications that include raised suspension giving 225mm of ground clearance.

Read more: Motoring Research

MG 5 Exclusive 2020 UK review

Brand’s all-important second EV has a segment to itself, but unique bodystyle can’t compensate for its biggest shortcomings

What is it?
The latest addition to MG Motor’s range is important for two reasons: primarily because it’s the first electric estate car to go on sale in Europe, and secondly because it will play a vital role in helping the 12-year-old brand to achieve a 50% plug-in car model mix in 2021.

Based on parent company SAIC’s Roewe Ei5 – a big seller in its Chinese home market – the 5 arrives in electric form only. Unlike its ZS sibling, MG bosses deemed the potential European market for a petrol-powered estate to be too small to make its import worthwhile. The brand is quickly transitioning away from combustion power, having shunned diesel some years ago and ushered in a new plug-in version of its HS SUV alongside the 5.

Even before the 5 and HS PHEV arrive in dealerships, MG already has the highest proportional plug-in sales mix of any mainstream car maker with a combustion offering, the ZS EV accounting for 27% of its UK sales. The 5 will play a lead role in the brand’s journey to an all-electric future, working alongside the higher-riding model to bring affordability to a segment that remains predominantly occupied by luxury SUVs, saloons and sports cars.

MG 5 EV (Image: mg.co.uk)
MG 5 EV (Image: mg.co.uk)

Brand boss Daniel Gregorious acknowledges that estate car sales have suffered in recent years as buyers flock en masse to higher-riding SUVs, but said that MG is “pioneering a new wave”, with the 5 bringing superior aerodynamics and better handling.

Like its ZS EV sibling, the 5 comes in entry-level Excite trim – from £24,995 – and better-equipped Exclusive trim at £26,995. This puts it roughly on par with similar-sized, conventionally fuelled cars like the Skoda Octavia in range-topping SE L trim and the Ford Focus Estate Titanium, while undercutting its closest electric rivals, the Nissan Leaf and Kia e-Niro, by around £5000.

MG expects half of all 5s sold to go to fleet buyers, with its 0% BIK rating giving a not-inconsiderable edge over its combustion contemporaries, and highlights its 578-litre boot and practical rear seats as an incentive for families on a budget to make the switch to electric.

What’s it like?
While it occupies an as-yet-unexplored niche, the 5 is unable to fall back on the one-time novelty of an electric powertrain to cultivate appeal across its target market. To be as successful as its zero-emission ZS stablemate, the 5 should offer usability and performance benefits that justify its similar price tag, while tempting budget- and eco-conscious private buyers away from smaller and cheaper EVs like the Renault Zoe and now endangered Volkswagen e-Up.

Its success in this respect is threatened on first glance by its rather inelegant styling, with kinked lower window line, lofty ride height and small 16in alloys creating an awkward stance, and chrome exterior embellishments erring on the sides of both excessive and unnecessary.

Things don’t get off to a great start inside, either, where lacklustre fit and finish combines with scratchy plastics and overly firm seats to create an environment that you might be glad to escape every 200-or-so miles when the time comes to charge the battery. The cluttered, ponderous and unintuitive infotainment interface doesn’t help, but happily MG has seen fit not to implement the maddening array of warning bongs and beeps that afflicted the ZS EV before it was subtly updated in June.

Read more: AutoCar

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Renault Attacks Idling Pollution At Schools

I’m currently waiting for my daughter to get out of school. Being Florida, it’s hot as he**. So, everyone else sitting here is running their car.
I prefer to not think about the pollution that is rising up around us and that kids will have to walk through as they get out of school. There are perhaps 7 or 8 Teslas in the pickup area, but that’s nothing compared to the many, many more that are burning gasoline. While it won’t help me, I’m happy to see that Renault is doing something about this problem in the UK.

Despite not being a scorching hot mess, 27% of parents in the UK admit to idling while waiting for their children — men more than 50% likely to do so than women (or more than 50% likely to admit it). As a result, “1 in 3 children in the UK breathe unsafe levels of air pollution,” according to Renault.

Interestingly, in the UK, sitting in a car and idling with the engine running is illegal! Didn’t know that? Don’t worry, neither did 60% of respondents. What is there to do about the idling problem if it’s already illegal? Yep — raise awareness around the problem, the law, and solutions. Hence, Renault has launched the “Be Mindful, Don’t Idle” awareness campaign.

The stakes? According to Renault, “More than 8,500 schools, nurseries and colleges in England, Scotland and Wales are located in areas with dangerously high levels of pollution.”

“The fact that the majority of people don’t realise that idling is illegal just highlights the scale of the problem,” explains Matt Shirley, Senior Manager, Electrification & New Mobility. “Every minute a car is idling it produces enough emissions to fill 150 balloons. It goes without saying, if the 27% of school run journeys stop idling, there would be a significant improvement in the air quality for their children.”

Naturally, the easiest solution to enjoy your air conditioning or heater without causing harmful pollution where your kids are walking around is to go electric. Renault’s awareness campaign may be partly or even mostly altruistic, but it’s also a marketing campaign. Renault is a leader in the electric vehicle market, and the more people see the benefits of an electric car, the more ZOEs it’s going to move.

So far in 2020, the Renault ZOE is the top selling electric vehicle in Europe. Indeed — it’s even outselling the Tesla Model 3 so far this year. We’ll see what happens as the year closes out, but the ZOE is certainly in the running for best selling vehicle of the year even at the end of December.

In the UK, where this awareness campaign is focused, the ZOE also sells well, and plugin vehicle vehicle sales overall have risen to 10% of automobile sales in the market.

Read more: Clean Technica

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Nissan Ariya EV SUV (Image: Nissan)

EVs spell crude’s doom

THE issue of climate change is beginning to impact the ‘crude’ horizon.

Last Tuesday, at its “Battery Day” Tesla unveiled plans to develop an in-house, “tabless” battery. This battery would improve the range and power of its electric cars, Tesla CEO Elon Musk announced. It could dramatically reduce costs and lower the cost per kilowatt-hour of Tesla cars significantly. It would allow Tesla to eventually sell electric vehicles for the same price as gasoline-powered ones, Musk emphasised. Many experts agreed, saying it could allow Tesla to lower the price of its cars, making them far more accessible.

Interestingly, while car sales collapsed in Europe owing to the pandemic, sales of electric vehicles (EVs) continued to grow. And this does not defy logic. The purchase prices of EVs in Europe are coming tantalisingly closer to the prices for cars with gasoline or diesel engines.

Government subsidies are largely responsible for this near price parity, cutting more than $10,000 from the final price. Carmakers are offering deals on electric cars to meet stricter European Union regulations on carbon dioxide emissions. In Germany, an electric Renault Zoe can be leased for 139 euros a month, or $164, reports indicate.

The recent advances in batteries are going to make the price gap between the internal combustion engines and EVs still less. A few years ago, the industry was expecting 2025 to be the turning point. Now, this could be earlier.

Nissan Ariya EV SUV (Image: Nissan)
Nissan Ariya EV SUV (Image: Nissan)

This threat to crude consumption is coming from various quarters. Indeed, the slow, yet gradual, switch over to EVs is making a major difference. But other factors are also getting into play. The pandemic is changing life patterns. A greater number of people are opting to work from home. Jet fuel was another area of crude consumption growth. With fewer few people taking flights, jump in jet fuel consumption is also getting into question.

Another possible area of crude consumption was the use of crude as a feedstock to produce petrochemicals. That is also now under clouds. Green, or sustainable, chemistry could undermine Big Oil’s petrochemical ambitions, especially in an increasingly environment-conscious world writes Tsvetana Paraskova in Oilprice.com.

The chemical sector is the largest industrial consumer of both oil and gas, accounting for 15 per cent, or 13 million barrel per day, of total primary demand for oil on a volumetric basis and 9pc of gas, according to the International Energy Agency (IEA).

Chemical sector emissions need to peak in the next few years and decline towards 2030 to stay on track with the Sustainable Development Scenario (SDS), the IEA says.

With transportation accounting for almost 70pc of total global crude consumption, the emergence of ‘cost-effective’ electric vehicles would significantly dent global crude consumption. It could drastically change the short-term crude horizon. And oil majors are beginning to take note.

British Petroleum has announced increasing investments in low-emission businesses tenfold, to $5 billion a year, while shrinking its oil and gas production by 40pc over the next decade. Eni of Italy, Total of France, Repsol of Spain, and Equinor of Norway have set similar targets. Several of those companies have cut their dividends to invest in new energy.

Dutch oil major Shell is looking to slash as much as 40pc of its upstream oil and gas operations as it is redesigning its business toward a greener portfolio, sources in Shell involved in the costs review told Reuters. Shell is reported to be planning significant restructuring by the end of the year to reflect its net-zero emissions goal for 2050. However, their US counterparts, ExxonMobil and Chevron, for the time being, appear committed to fossil fuels.

Read more: Dawn

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