Israel Inks Deal with Project Better Place for Electric Vehicles and Infrastructure

Jan 21, Project Better Place. Sounds idealistic, doesn't it? For a company determined to reduce greenhouse gases by eliminating automotive emissions, it may just be the perfect name. Project Better Place, in a joint venture with Renault-Nissan announced they have signed an agreement to make Israel the first country in their pilot program to provide electric cars and a charging infrastructure.

Project Better Place was formed in October 2007 to solve the Greenhouse Gas problems. The idea is a simple one, produce standard consumer automobiles as 100% electric vehicles and provide a charging infrastructure. You buy the car and they lease/rent you the batteries or electricity. In a press release it was described this way, "Consumers will buy and own their car and subscribe to energy, including the use of the battery, on a 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."

The company promises over 100 mile zero emission driving range between charges, "while at the same time offering driving performances similar to a 1.6 liter gasoline engine." Project Better Place has already converted a stock Renault-Nissan Megane to utilize it electric drive and Lithium-Ion battery pack for demonstration of the projects viability.

Shai Agassi,the founder and CEO of Project Better Place was quoted in the New York Times as saying "With $100 a barrel oil, we've crossed a historic threshold where electricity and batteries provide a cheaper alternative for consumers," Mr. Agassi said. "You buy a car to go an infinite distance, and we need to create the same feeling for an electric car - that you can fill it up when you stop or sleep and go an infinite distance."

Projected costs for the all electric automobile is expected to be on par with a conventional internal combustion engine. Project Better Place is counting on countries to enact tax incentives to lower the cost further to help make the cars even more attractive to consumers. Israel has already taken this step. "You'll be able to get a nice, high-end car at a price roughly half that of the gasoline model today," Mr. Agassi said.

Israel's unique political and geographic circumstances give it a fairly large incentive to drastically reduce its dependence on oil. In a country end to end only 170 miles along the coast, most commuters travel less than 100 miles daily. Surrounded by hostile oil rich countries that thus far refuse to admit it even exists makes acquiring oil a delicate business for Israel. Reducing the dependence on foreign oil is a top priority.

Israel currently taxes purchases of domestically purchased gasoline automobiles at 79% reduced to 30% for hybrid alternatives and is considering lowering this further for all electric vehicles.

Sources:

Renault-Nissan and Project Better Place prepare for first mass produced electric vehicles - Project Better Place

News Press Release - Nissan

Steven Erlanger - Israel Set to Promote the Use of Electric Cars - New York Times