California Energy Commission Awards a $3 Million Grant to BorgWarner, Fermata Energy and Lion Electric for Innovative Vehicle-to-Grid Project with Bus Operator American Transportation to Service Student Transportation for California School Districts
California Energy Commission awards BorgWarner, Fermata Energy, and Lion Electric a $3M grant for innovative Vehicle-to-Grid project to support American Transportation Systems Bus Company, aiming to enhance grid reliability and decarbonize California's energy grid.
The recent grant awarded by the California Energy Commission to BorgWarner and its partners for the V2G project represents a strategic investment in green infrastructure that could influence the economics of renewable energy and transportation. By integrating electric school buses with the power grid, there is potential to enhance grid stability during peak demand periods. This could lead to a reduction in the need for expensive peak power plants and decrease overall electricity costs. Moreover, the ability of these buses to generate revenue by participating in demand response programs could incentivize more school districts to adopt electric buses, potentially leading to economies of scale and lower costs for electric bus technology.
However, it is important to consider the implementation costs and the long-term viability of such technology. While the grant covers the initial setup, ongoing maintenance and potential technology upgrades could impose additional financial burdens on school districts. Additionally, the success of this initiative depends on the broader regulatory environment and market mechanisms for energy pricing and grid services. Any changes in these areas could significantly impact the projected cost savings and revenue generation from V2G systems.
The grant-funded V2G project aligns with California's aggressive climate goals and could serve as a model for other states. By using electric school buses as mobile energy storage assets, the project not only reduces transportation-related emissions but also supports the integration of renewable energy sources into the grid. This dual benefit addresses both transportation and energy sector emissions, which are critical areas for climate policy.
Furthermore, the project's focus on reducing the Total Cost of Ownership for electric vehicles is key to accelerating their adoption. However, there are challenges related to the scalability of V2G technology, including the need for widespread infrastructure and regulatory support. The project's outcomes will likely influence future policy decisions on the integration of electric vehicles into grid management strategies and the prioritization of funding for similar initiatives.
The deployment of BorgWarner's bidirectionally-enabled chargers and Fermata Energy's V2X software in school buses is a significant technological advancement. The AI-driven platform's ability to manage thousands of data points to optimize EV charging and discharging could set a new standard for smart grid interactions. This technology's success could spur further innovation in V2G solutions, potentially leading to new business models and services within the energy and transportation sectors.
While this project demonstrates the technical feasibility of such integration, widespread adoption will require addressing interoperability between different manufacturers' hardware and software systems. Additionally, ensuring cybersecurity within the V2G network is important as the grid becomes increasingly reliant on digital technologies. The project's approach to these issues will be closely watched by industry stakeholders.
03/18/2024 - 07:47 AM
California Energy Commission Awards BorgWarner and Project Team Partners Fermata Energy and Lion Electric $3M
CHARLOTTESVILLE, Va. --(BUSINESS WIRE)--
The California Energy Commission (CEC) has awarded BorgWarner Inc. (NYSE: BWA) and project partners Fermata Energy and The Lion Electric Company (NYSE: LEV) (TSX: LEV) (“Lion Electric”) a $3 million American Transportation to California school districts, marking a significant step forward in energy management and the transition to electric school buses.
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California Energy Commission Awards a $3 Million
California has seen an increase in extreme weather events driven by climate change, including prolonged heat waves, droughts, and wildfires, leading to increased strain on the grid. With more electric vehicles (EVs) coming to market, V2G has the potential to play a part in the state's clean energy future by using excess power from solar and wind farms to charge during the day for use in the evening when demand is high.
By working with BorgWarner, Fermata Energy and Lion Electric, the CEC will support the strengthening and decarbonization of California’s grid while pairing a fleet of electric school buses with AI-powered V2G technology. This project will ultimately enable electric school bus batteries to support the grid with additional power during emergency events when parked and to generate revenue through participation in demand response programs and other value streams to lower the vehicles’ Total Cost of Ownership (TCO).
According to the CEC’s grant-funded opportunity Electric School Bus Bi-Directional Infrastructure (GFO 22-612), electric school buses with bidirectional charging capabilities can help offset the impacts and challenges of grid reliability and Public Safety Power Shutoff (PSPS) events. Some California school districts already have electric school buses that are ready to take advantage of Vehicle-to-Grid integration (VGI) benefits, with many more electric school buses expected to be ordered throughout the state in the near future.
The grant, funded through the CEC’s Clean Transportation Program, will include the installation of 21 BorgWarner 125 kW UL-listed, combined charging system (CCS) protocol bidirectionally-enabled chargers, paired with a minimum of 20 LionD all-electric school buses. Fermata Energy’s Vehicle-to-Everything (V2X) software platform will optimize and manage the charging and discharging of the buses to maximize grid benefits and V2X revenue for the school districts.
The deployment of V2G technology for the Conejo Valley Unified School District (CVUSD) and the Los Angeles County Office of Education (LACOE), in addition to American Transportation, the school bus fleet operator servicing these students, will support grid reliability and mitigate the impact of PSPS events and extreme weather events. It also will demonstrate the health benefits of zero-emission transportation solutions for communities leveraging V2G technology while generating revenue when selling power back to the grid.
“This CEC grant and project underscores the power of partnerships and our collective dedication to sustainability as we deploy this cutting-edge V2G bidirectional hardware and software solution,” said Tony Posawatz, CEO of Fermata Energy. “Together, we are advancing electric vehicle integration and grid support in California schools while enabling a viable path toward renewable energy for future generations.”
“American Transportation strives to be at the forefront of technology and innovation in an industry that often struggles to break free from its antiquated means of operation. With the assistance of the CEC grant and the company's strong partnerships formed with BorgWarner, Fermata Energy, and Lion Electric, we are able to provide a glimpse into the future of safe, clean, and environmentally sustainable student transportation. This is an exciting time to witness a pivotal change in the industry and we are extremely grateful to play a role in that advancement,” commented Dan Wilson, CEO of American Transportation.
Fermata Energy’s AI-driven V2X software platform analyzes thousands of rapidly changing data points to manage and optimize EV charging and discharging. It makes it simple for EV owners and operators to participate in revenue- or savings-generating grid programs. Fermata Energy's software platform provides signals to the V2G Electric Vehicle Supply Equipment (EVSE) and EVs when charging and discharging to provide the greatest value to the grid. The V2G software company has a history of successful projects throughout the United States .
“With this new technology, electric school buses are not only delivering cleaner air to our children and cost savings to our school districts, but also providing extra power to the grid when we need it most,” said Patty Monahan, California Energy Commission’s Lead Commissioner for Transportation.
V2X bidirectional school bus technologies can enable school districts to support CEC’s electrification goals while providing revenue or electric bill savings for school bus fleet operators. This CEC grant showcases a large-scale demonstration of how electric school buses can provide value to the grid while parked, serving as a model for schools across the nation.
“BorgWarner is proud to partner with Fermata Energy and Lion Electric on this exciting project, supporting the State of California in electrifying the transportation departments of their school districts while addressing real grid challenges,” said Isabelle McKenzie, Vice President of BorgWarner Inc. and President and GM, Morse Systems. BorgWarner’s bidirectionally-enabled chargers, combined with Fermata’s software and Lion Electric’s energy storage solutions, is a real-world case study in the V2G business case and we are excited to get started.”
“The investment from the CEC for V2G-dedicated projects is a testament to the significance of this emerging technology and how collaborating with Fermata Energy and BorgWarner is helping address the demands of electrification,” said Nate Baguio, Senior Vice President of Commercial Development at Lion Electric. “We have been at the forefront of shaping the V2G business case for several years in California and the United States , and these partnerships are vital for the future of clean energy transportation.”
While California leads the nation in electric school bus adoption, few California school districts with electric bus fleets are currently using bidirectional charging systems for mobility and energy services. By partnering with BorgWarner, Fermata Energy, and Lion Electric, the state will begin to deploy bidirectional charging technology to support grid reliability, mitigate the impacts of PSPS events and wildfires, and provide additional energy resources during periods of high electricity demand on the grid or at the customer site.
“The Conejo Valley Unified School District is proud to partner with American Transportation as an early adopter of electric buses, which will soon join the fleet of vehicles the CVUSD uses to transport our scholars to school and to extracurricular activities,” said Dr. Victor Hayek, Conejo Valley Unified School District’s Deputy Superintendent. “This new sustainable technology will support this endeavor, with positive infrastructure and environmental impacts for our community – a big win-win.”
About Fermata Energy
Park it. Plug it. Profit. ™ Fermata Energy is a leading software platform services provider of AI-driven Vehicle-to-Everything (V2X) bidirectional charging technology, including Vehicle-to-Grid (V2G), Vehicle-to-Home (V2H) and Vehicle-to-Building (V2B) solutions. The company was founded in 2010 to accelerate the adoption of electric vehicles and the transition to renewable energy. Fermata Energy’s proprietary technology enables its customers to manage EVs as distributed energy resources by selling excess energy stored in EV batteries to offset costly peak demand charges. To learn more about Fermata Energy, please visit https://fermataenergy.com/ and follow the company on LinkedIn .
About BorgWarner
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. Today, we’re accelerating the world’s transition to eMobility – to help build a cleaner, healthier, safer future for all.
About Lion Electric
Lion Electric is an innovative manufacturer of zero-emission vehicles. The company creates, designs and manufactures all-electric class 5 to class 8 commercial urban trucks and all-electric school buses. Lion is a North American leader in electric transportation and designs, builds and assembles many of its vehicles’ components, including chassis, battery packs, truck cabins and bus bodies.
Always actively seeking new and reliable technologies, Lion vehicles have unique features that are specifically adapted to its users and their everyday needs. Lion believes that transitioning to all-electric vehicles will lead to major improvements in our society, environment and overall quality of life. Lion shares are traded on the New York Stock Exchange and the Toronto Stock Exchange under the symbol LEV.
About the California Energy Commission
The California Energy Commission is the state's primary energy policy and planning agency. It has seven core responsibilities: advancing state energy policy, encouraging energy efficiency, certifying thermal power plants, investing in energy innovation, developing renewable energy, transforming transportation, and preparing for energy emergencies.
About American Transportation
American Transportation Systems dba American Transportation is a provider of school and charter bus services to a multitude of schools, school districts, municipalities, and corporations throughout California and Nevada . With a growing fleet of roughly 200 vehicles, American Transportation is one of the largest and fastest growing family-owned transportation companies on the West Coast. More information on the company can be found at www.BusAmerican.com .
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Fermata Energy Media Contact
dcherrin@northcoaststrategies.com
Borg Warner Media Contact
mediacontact@borgwarner.com
Lion Media Contact
Dominik.Beckman@thelionelectric.com
California Energy Commission Media Contact
mediaoffice@energy.ca.gov
American Transportation Media Contact
Dan@BusAmerican.com
Source: Fermata Energy
What grant did the California Energy Commission award BorgWarner, Fermata Energy, and Lion Electric?
The California Energy Commission awarded BorgWarner, Fermata Energy, and Lion Electric a $3 million grant for an innovative Vehicle-to-Grid (V2G) project.
What is the purpose of the V2G project funded by the grant?
The V2G project aims to bring grid-supporting and cost-saving solutions for American Transportation to serve California school districts.
What are the benefits of the V2G project for California's energy grid?
The project will strengthen and decarbonize California's grid while enabling electric school buses to support the grid with additional power during emergency events and generate revenue through demand response programs.
How many BorgWarner chargers and Lion Electric school buses will be installed as part of the grant?
The grant will include the installation of 21 BorgWarner chargers and a minimum of 20 Lion Electric all-electric school buses.
What software platform will optimize the charging and discharging of the buses for grid benefits?
Fermata Energy's Vehicle-to-Everything (V2X) software platform will optimize the charging and discharging of the buses.
