Going Green – Opportunities and Challenges Automotive News World Congress – 2008 January 22, 2008 Mary Ann Wright Chief Executive Officer 1 Johnson Controls Johnson Controls - Saft Advanced Power Solutions LLC Johnson Controls has been in the Energy Efficiency Business for 122 Years Power Solutions World’s largest manufacturer of lead-acid automotive batteries • 97% Lead Recycling Rate The leading independent supplier of fully integrated battery systems for hybrid and electric vehicles Sold 400,000 AGM lead-acid batteries for micro-hybrids in 2007 Building Efficiency World’s largest provider of energy efficiency and comfort solutions involving heating, cooling, fire, security, and lighting North Automotive Experience America 52% World’s largest provider of automotive interiors, including seats, door systems, cockpits, overhead systems, and electronics 2 Johnson Controls Transportation Sustainability – the Challenges are Well Known Oil to reach $100/barrel by end of '08 Economic Disruption Tuesday October 2, 2007 @ 4:29 pm ET By Adam Schreck, AP Business Writer FROM: http://biz.yahoo.com/ap/071002/100_oil_outlook.html?.v=1 Energy Security http://www.anarkismo.net/attachments/apr2007/p anic_peak_oil.jpg Environmental Risk Resource Impact http://www.maf.govt.nz/mafnet/ruralnz/sustainable-resourceuse/climate/impact-onindustries/greenhouse.jpg 3 Johnson Controls http://www.usip.org/fellows/reports/200 4/images/iraq_oil_fire.jpg Globally, the Transportation Sector Accounts for 24% of all CO2 Emissions Some forecasts project that the current global population of 700 million automobiles could reach 1.2 billion by 2030 12 Global Emissions from the Transportation Sector Billions of metric tons CO 2 A mid-size automobile driven 24,000 km per year will emit approximately 5 metric tons of CO2 annually 10 8 6 4 2 0 Year 2006 In absence of significant improvements in powertrain efficiencies, annual CO2 emissions from the transportation sector could exceed 10 billion metric tons by 2030 The non-OECD countries will account for the majority of this increase, about 60% 4 Johnson Controls Year 2030 Non-OECD Countries Brazil China India Russia A Spectrum of Technologies can Reduce Oil Consumption and CO2 Emissions Energy Efficiency is the Lowest Total Cost Strategy for CO2 Abatement Hybrid and electric technologies significantly improve overall vehicle efficiency Factor Diesel Emissions (GHG) Hybrid (gasoline) All Electric or Fuel Cell X X X X X X Fuel efficiency X Performance (acceleration) X X X Model choice/flexibility X X X Convenience (range, refilling) X Initial cost to manufacture Cost per mile 5 Flex-Fuel (E85) Johnson Controls X X X X X There are Multiple Types of Hybrids… Types of Hybrid Electric Vehicle (HEVs) Micro (a.k.a Stop/Start) Low voltage Shuts down engine at idle to save fuel Example: BMW 1,3 mini series – JCI is the world leader in AGM micro hybrid batteries Mild Low to medium voltage Includes stop-start, regeneration braking and acceleration assist Example: GM Saturn VUE Full hybrids High voltage Includes all mild HEV features PLUS electric-only operating range and optionally, multiple axle electric drive Example: Ford Escape 6 Johnson Controls There are Multiple Types of Hybrids… Plug-In Hybrid (PHEV) High voltage Includes all full hybrid features PLUS electric-only operation for ~20 miles Ability to recharge battery through 120V electrical outlet (in addition to regenerative braking) Demonstration vehicles: GM Saturn VUE, Dodge Transit, Ford Escape Electric Vehicle High voltage No internal combustion engine Recharge battery through 120V electrical outlet No models in production Fuel Cells 7 High Voltage No internal combustion engine Full gas hybrid functionality Demonstration vehicles: Daimler, Ford, Honda, Toyota Johnson Controls Fuel Efficiency & CO2 Reduction Benefit Battery Innovation “Fuels” the Drive To Sustainable Transportation Technology Micro Hybrid Vehicle Fleets Mild Hybrid Vehicle Fleets Full Hybrid Vehicle Fleets PHEV Vehicle Fleets Pure Electric Vehicle Fleets 100% 60%- 100% 25-40% 12-20% Commercially Available 5-8% Under Development Phased Technology Roll-out and Commercialization 8 Johnson Controls Incremental Steps Can Have a Significant Impact Mild hybridization of just 25 percent of the new vehicle fleet over the next 23 years would have the equivalent emissions impact of eliminating 6 percent of the current global automobile fleet Reduced CO2 Emissions of 215 Million Metric Tons 43 Million Automobiles 9 Johnson Controls Hybridization achieving a 20% MPG improvement in ¼ of the new vehicles Li-Ion is the Next Battery Technology for Hybrid Vehicles Li-Ion Battery Technology Advantages for HEVs Existing Nickel Metal Hydride Battery Nickel Metal Hydride is today’s battery technology • • • 1.8 kWh of Energy 83 liters volume 76 kg (without housing) Li-Ion is the target of every OEM as the obvious next step battery solution New Lithium Ion Battery • • • WHY? 10 Johnson Controls 1.5 kWh of Energy 35 liters volume 33 kg (without housing) Smaller Lighter More Powerful Safe Durable Flexible { 30% Smaller Faster Recharge 50% Lighter Enhanced Cycle Life More Powerful 30% Smaller More Energy Hybrid Batteries – A Very Complex System Mechanical Subsystem Electrochemistry/Cell Cell Manufacturing Electronics Software JIT System Assembly Electrical Subsystem 11 Johnson Controls Thermal Management Subsystem Critical Challenges to PHEV Commercialization Validation of system level performance: OEM requirements Regulatory requirements Life Abuse Tolerance Identifying the “Value Proposition” Petroleum versus electricity costs Public policy incentives Involvement by all stakeholders Cost impact of regulatory requirements Battery secondary use potential Comprehensive understanding of V2B/V2G economics/challenges Regulatory motivation beyond California Understanding energy security versus environmental impact Broad use of PHEVs will require rationalization of the utilities fuel base More coal will require CO2 sequestration Innovation is the key, both technically and commercially 12 Johnson Controls Initial Test Results from PHEV Application are Encouraging 120K+ Miles Equivalent PHEV - 80% DoD Test Results 110% JCS Li-Ion VL41M 105% JCS NiMH 4NP40 Life Testing at Southern California Edison: 78% DOD under 40°C Ambient Temperature 13 Johnson Controls Peak Power Test 100% 95% 90% 85% 80% 0 500 1000 1500 cycle number 2000 2500 3000 Critical Challenges for the Transportation and Battery Industries Cost Economies of scale Diverse/capable supply base and access to secure supplies of strategic materials Legislative and policy alignment with technology and market development needs Technology Technology advancements for PHEVs with demonstrated safety Advanced manufacturing technologies Infrastructure Recycling and Battery recharging infrastructure (plug-ins) Common engineering standards for HEV powertrains Transportation regulations for shipment of large battery systems Technical skill sets - Renewed emphasis on technical education in the United States 14 Software engineering Electrochemistry/Materials science Electrical engineering Mechanical/Thermal engineering Johnson Controls Energy Bill - Key Transportation Provisions CAFE increase to 35 mpg fleet average by 2020 vs. current 25 mpg Promote development and manufacturing of advanced batteries Expanded R&D Technology and vehicle demonstration • Federal fleet conservation program • Encourage PHEV and electric drive vehicle fleet at state and local levels Domestic manufacturing incentives Secondary applications and recycling Technical education 15 Johnson Controls Johnson Controls Global Footprint Nersac, France Bordeaux, France NiMH & Li-Ion Production Line Li-Ion Pilot Line & Research Lab Pontoise, France BMS NiMH & LiIon Hannover, Germany Milwaukee, US System Integration Li-Ion Lab Shanghai, PRC Development Facility New Milwaukee Test Facility Opened October 2007 16 Johnson Controls The Future Without Hybrids? 17 Johnson Controls