Portugal in talks with Project Better Place

Prime Minister Jose Socrates will soon sign an agreement for Portugal to join the Better Place electric car project backed by Renault SA and Nissan Motor Co, Diario Economico reported without naming its sources.

Project Better Place has already signed agreements to build electric vehicle recharge grids in Denmark and Israel, and the company has raised $200 million from investors including VantagePoint Venture Partners, Israel Corp., and Maniv Energy Capital.

Last week, Better Place CEO Shai Agassi testified before the U.S. Congress' Select Committee on Energy Independence and Global Warming. The topic of the hearing was “$4 Gasoline and Fuel Economy: Auto Industry at a Crossroads”.

In his testimony, Agassi revealed that Better Place is "in active discussions with more than 30 other countries, and with dozens of regions, provinces, states and large cities." He added that he expects four to six other countries or regions to sign agreements with Better Place in the coming months, just as Israel and Denmark have already done.

Better Place has not yet responded to today's news report, but it sounds like Portugal may be next.

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Israel set to adopt electric cars produced by Renault-Nissan and Project Better Place

For the first time in history, all the conditions necessary for electric vehicles to be successfully mass-marketed will be brought together in a partnership between the Renault-Nissan Alliance and Project Better Place in Israel.

In an agreement signed today in Jerusalem, the Israeli government will provide tax incentives to customers, Renault will supply the electric vehicles, and Project Better Place will construct and operate an Electric Recharge Grid across the entire country. Electric vehicles will be available to customers in 2011.

100% electric vehicles: According to a press release, the Renault-manufactured vehicles will run on pure electricity for all functions, produce zero emissions, and offer driving performances similar to a standard 1.6 liter gasoline engine. The vehicles will be equipped with lithium-ion batteries supplied by Nissan.

Innovative business model: For the first time in the electric vehicle business, ownership of the car is separated from the requirement to own a battery. Consumers will buy and own the car and subscribe to energy, including use of the battery, on the basis of kilometers driven. This model is similar to the way mobile phones are sold, with an initial purchase and a monthly subscription for the mobility service.

Competitive cost of ownership: The Israeli government recently extended a tax incentive on the purchase of any zero-emission vehicle until 2019, making them more affordable. Combined with the lower cost of electricity as opposed to fuel-based energy, and the vehicle's lifetime guarantee, the total cost of ownership for the customer will be significantly lower than that of a fuel-based car of the life cycle of the vehicle.

Electric Recharge Grid infrastructure: California-based Project Better Place plans to deploy a massive network of battery charging spots. Driving range will no longer be an obstacle, because customers will be able to plug their cars into charging units in any of the 500,000 charging spots in Israel. An on-board computer systems will indicate to the driver the remaining power supply and the nearest charging spot. Project Better Place, founded by Israeli entrepreneur Shai Agassi, has already raised $200 million from investors.

Perfect first mass market: In Israel, where 90% of car owners drive less than 70 kilometers per day, and all major urban centers are less than 150 kilometers apart, electric vehicles would be the ideal means of transportation and could therefore cover most of the population's transportation needs.

The story is already being covered by the New York Times and the Financial Times. More information is also available on the new web site for Project Better Place.

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WSJ: "Renault, Nissan Go Electric"; to partner with Shai Agassi and test battery-powered cars in Israel

The Wall Street Journal reports today that Renault SA and partner Nissan Motor Co. are expected to make a major commitment to develop battery-powered cars, with an eye toward producing significant volumes within three to five years.

On Monday, the two auto makers plan to announce a venture to test electric cars first in Israel and later in other cities around the world, people familiar with the matter said.

Renault and Nissan are teaming up with former SAP AG executive Shai Agassi to offer electric cars that are powered by lithium-ion batteries and would go about 100 miles on a single charge, these people said. Mr. Agassi's company would set up a network for charging and battery-replacement stations in Israel with subsidies from the Israeli government, they said.

"With rising fuel prices and with battery cost going down, in some parts of the market, we believe electric vehicles have a vibrant future," said a person familiar with Renault's plans.

In an interview yesterday, Carlos Ghosn, who serves as chief executive of both Renault and Nissan, declined to comment on the expected Monday announcement. But he confirmed the two companies are working on batteries and electric cars and have explored the idea of testing electric cars in highly congested cities.

"We have cities that are asking for this," he said, noting that London now imposes tolls on vehicles entering the city's crowded center.

The auto makers are developing a lithium-ion battery to power electric cars that are nearing the testing stage, he said. "We think we are near a mass-market solution."

Renault and Nissan, in which the French auto maker has a 44.3% equity stake, want to mass-market electric cars in congested cities like London, Yokohama, Japan, and Paris by as early as 2010, working with governments if necessary.

The venture with Mr. Agassi is one of the few electric-car projects that addresses a key issue blocking the road: What do drivers do if their battery is running down while they are on the road?

Under the plan, Renault and Nissan would offer a small number of electric-car versions of existing vehicles -- at least one of them is based on the mid-size Renault Megane -- with price tags comparable to those for gasoline-powered models.

That is possible because those cars would be sold to consumers and fleet operators like rental-car companies without battery packs. Mr. Agassi's company, Project Better Place of Palo Alto, Calif., would provide batteries for customers for an undisclosed monthly fee that Mr. Agassi said would be cheaper than the monthly cost of gasoline. Mr. Agassi's company, which has raised $200 million from investors such as the venture-capital firm VantagePoint Venture Partners, is responsible for procuring batteries and operating battery-charging and exchange stations.

The companies hope to gain feedback from electric-vehicle users through Mr. Agassi's green-car project in Israel and then in three to four equally small markets, with Denmark as perhaps the next target, people familiar with matter said.

Renault CEO to arrive for Israeli electric car project dedication

Sources inform ''Globes'' that Renault president and CEO Carlos Ghosn is expected to come to Israel to attend the dedication ceremony for the Project Better Place electric car venture initiated by Shai Agassi and Israel Corp. The ceremony is scheduled for January 21 at the President's Residence in Jerusalem. Minister of Finance Ronnie Bar-On and business leaders are expected to attend, and possibly Prime Minister Ehud Olmert as well.

The Renault Nissan Alliance of Renault SA and Nissan Motor Co. Ltd. is expected to participate in the technical development of the electric car, at an estimated investment of $150-300 million. The electric car will not be manufactured in Israel, however.

Meanwhile, Project Better Place posted a video on YouTube to promote awareness of their plan to build an electric car infrastructure.

The Green Tax Committee yesterday recommended that the purchase tax on zero-emission cars - mainly electric cars - should be only 10%, compared with the 78% tax on regular cars. Zero-emission cars will be eligible for a NIS 400 tax break on the value use of company cars. The government also promised not to cut the purchase tax on gasoline and diesel cars below 60%, which will preserve a minimal margin on tax brackets.

The benefit, if the government approves it, will be valid through the end of 2014, on the assumption that this is enough protection for an emerging industry. The Green Tax Committee nevertheless recommended that if the market share for electric cars exceeds 20%, a revised benefits package should be submitted to the government to reflect the changed circumstances.

The Green Tax Committee also recommends taxing the electricity used to recharge the batteries of electric cars so that the tax rate per kilometer of travel will equal the excise on gasoline and diesel. The cabinet is expected to approve the recommendations at next Sunday's meeting.