Traveling Geeks

Africa joining the electric car craze, with Optimal Energy’s Joule

The entire world hopes to start driving electric cars soon, and Africa, despite its reputation for poor economies, is no exception. Luckily, a South African company called Optimal Energy is working to release a vehicle in 2010.

And unlike the many attempts to make electric cars as small and cheap as possible, the vehicle, called the Joule, will be a highway-speed, multi-passenger model aimed at the same people that buy full-priced four door vehicles, making it a good fit for Europe and the United States.

Optimal has the benefit of strong support from its government, which has put money into the company through a research investment fund. Having such backing gives Optimal the time to pay close attention to its engineering and design choices.

That has resulted in some some uncommon bonuses for buyers, like an optional solar panel integrated with the roof that will help charge the car, and varying seat designs — the standard model will have six seats, three front and three back, but North Americans would likely be more comfortable with four.

One interesting design choice affects both the physical car and its business model. The Joule will have an adjustable chassis that can fit a variety of battery types and sizes, so the company won’t be tied to using a particular technology. The battery will also be offered on a separate lease, to help ease the pain of simultaneously paying for the vehicle and, effectively, several years worth of fuel. Customers will also have the choice of paying for a smaller or cheaper battery to save money.

But even without the battery included in the price, the car won’t be cheap by local standards. While Optimal’s CEO, Kobus Meiring, isn’t ready to set a firm price yet, he says vehicles in the same class go for about 220,000 South African Rand, about $22,000 dollars. Compare that to the Tata Nano, sold in the same market. The Nano’s lowest price is around $2,200 – and it is still far out of reach for the poorest South African families.

That leaves plenty of potential buyers, but focusing only on the local market would be a mistake, says Meiring. “You really have to be a global player,” he says. “There isn’t a manufacturer in the world that remains successful by staying only in its own country.”

So far, the company has completed much of the design, and recently showed off the vehicle at a popular Paris auto show. It was well received, according to Meiring. That’s not a hard claim to believe; up close, the prototype model comes across as sleek and modern, and the car is supposed to have a robust range of almost 250 miles, and top speed of about 80 miles per hour.

While Optimal is also working on a three seat design and a truck, the Joule is furthest along, and the company is bulking up rapidly to reach production. It currently has 79 employees, primarily engineers, and is planning to open a manufacturing facility near its headquarters in Cape Town, or in another South African city.

What the company still needs is money, although perhaps less than companies based in countries with more expensive labor. It also needs international partners to begin selling the car, once it’s in production. Meiring says he’d be interested in forming partnerships similar to the one Think, a Norwegian electric car maker, set up with two American venture capital firms.

With any luck, the pieces will all fall into place — it’s not hard to imagine a Joule parked in an American driveway.

South African Startup Has Joule of an EV

This morning’s blogger tour of South Africa included a stop off at the Capetown headquarters of startup electric car maker Optimal Energy.

The three-year old company is developing the Joule, a six-passenger all electric car that is scheduled to begin low-volume production at the end of 2010. CEO Kobus Meiring said the vehicle will have a maximum range of about 200 km, but the trunk has space for a second battery pack to double the range. The top speed for the car, aimed at city drivers, will be 130 km/hr.

The Joule is designed to compete with mainstream vehicles, not electric cars, Meiring said. He didn’t give specifics about the price, but said that without the batteries (which will be leased separately), the price will be in the range of 220 Rand (or around $25,000). The batteries will have a useful driving life of around 200,000 km.

The cost of the batteries is uncertain as the company has not selected a lithium ion battery partner yet, and Optimal Energy may lease batteries at multiple price points. (This is consistent with EV and plug-in hybrid makers in the U.S., who are similarly scrambling to identify batteries that meet their performance requirements). For EVs, batteries are a considerable amount of the cost, and the technology is still being tested and developed.

(For me it’s a little unsettling for car companies such as GM and Optimal Energy to be touting the wonders of a car when the major driving force–the batteries — are an unknown quantity. It’s like HP promising a wonderful new computer without knowing which CPU they’d use.)

Executive Marketing Manager Diana Blake said the company is considering batteries from 20 companies including those from China, the U.S. and Japan, and is also looking at ultracapacitors — the costly but durable solid state devices that can supplement batteries. Third-party battery companies, such as Better Place, which is setting up operations in Israel and the U.S., would be welcome to compete in battery leasing, according to Meiring.

Optimal Energy is targeting South Africa’s 700,000 units per year vehicle market. The Joule is designed to meet European safety regulations so that exporting to the north can also be an option.

The motivation to start the company included issues familiar to Americans — energy security (Meiring claimed 90 percent of all wars in the past 50 years were over energy), reducing carbon emissions, and increasing local jobs. However, the company has not yet studied the carbon impact in switching from South Africa’s diesel fuel derived from coal (nearly the entire market) to electricity from coal. Meiring said that electric batteries are five times more energy efficient than internal combustion engines, but transmission and energy losses in transferring energy to and from the batteries will lower the relative benefit. Since coal-to-liquids is about as carbon and energy intensive transportation around, the bar is pretty low for the vehicles to have a positive carbon impact.

While South Africa is currently under producing electricity to meet demand (and is therefore building more coal power plants), Meiring says the power grid has more than adequate power to accommodate overnight recharging even if the entire 7 million vehicle fleet switched to electrics.

Optimal Energy has several advantages in launching an electric fleet without impacting the grid over U.S. auto companies. First, the South African government’s Department of Science and Technology is a shareholder. Also, the state utility Eskom provides 90 percent of the electricity for the country, so introducing the vehicles requires dealing with a single entity, as compared to the U.S.’ mishmash of local private and public power providers.

Also, the country is on a single time zone, so night time recharging administration could be consistent through the nation. Meiring says introductory talks have begun with Eskom (which “has bigger fish to fry” because of insufficient power generating capacity), but they haven’t done demonstrations like are being done in the U.S. to test the impact of the vehicles on the grid. Meiring said the company plans on having the vehicles automatically recharge only at night, but an override would allow daytime charging.

Optimal Energy’s management include several engineers who developed helicopters for the government. Meiring said the company has outsourced much of the research and development to universities. He said that South Africa had been a leader in lithium battery technology until 1994 (when the government changed), and he believes that they could return to prominence in that area. Availability of lithium should not be an issue as nearby Zimbabwe has considerable untapped resources, according to Meiring.

The field for a full-time electric vehicle remains wide open as much-hyped Tesla Motors continues to have problems. While Optimal Energy did not mention selling the U.S. market, if the company can provide a hit in South Africa with locally-produced vehicles, the world may come calling.

(The blogger tour and meeting with Optimal Energy is being sponsored by the South African International Marketing Council).

How to approach content in the digital age

The phrase “User Generated Content” (UGC) has always been a troubled notion. At its heart it emphasises a divide between the user and the professional, with the implication that users have their place, and the professionals have theirs.
Perhaps the aversion to this phrase stems from the fact that it is so simplistic. It doesn’t […]

Click on headline link to visit matthewbuckland.com for full article

Data shows US mobile data usage ready to pass the UK

Before long, the United States may become the world’s top user of the web on mobile devices, according to analytics and billing firm Bango. The company is releasing figures this morning showing the US at almost 19 percent of the world total, just short of the top country, the United Kingdom, which has about 19.4 percent.

In terms of absolute growth in each country, the US is growing much more quickly than the UK, so it should be surpassing its old colonial master in yet one more area soon. Bango estimates that might happen within several weeks, as the trend picks up pace in the States.

Mobile data is difficult to gather, and the numbers often aren’t dead-on. The indicators seem clear, though: Customers in the US are finally getting good options for using the web, from handsets like the iPhone, to better unlimited data plans, to the roll-out of better third generation networks.

Bango’s numbers also corroborate data released earlier this year, including Google’s report that mobile web usage of its sites is increasing.

The question left unanswered is where the usage ceiling lies for the US. While the UK has long been considered a fairly mature market, having had options for browsing available for years, the US has been behind in the race. Now that the technology is catching up, its larger population should make it easy for it to draw ahead, but it’s difficult to tell from this point how far mobile usage will penetrate into non-premium markets.

It seems reasonable to assume, however, that devices will continue to innovate (or copycat, as with the Instinct, Samsung’s version of the iPhone), and prices for both devices and data will edge down as carriers compete. Applications and services also tie in; for more on how they’re helping expand mobile web usage, check out our article on five trends driving the mobile web.

In case it’s of interest, here are the runners-up that Bango listed: India had almost 11 percent of total usage, South Africa was approaching 9 percent, and Indonesia had 4 percent.

Cathy’s Traveling Geeks wrap-up

With the mental maelstrom sorted, I’m clear of mind enough to hammer out some final thoughts from my Kinnernet/Traveling Geeks 2008 adventure in Israel.

In the spirit of brevity (and clarity), I’m opting to embrace my not-so-inner-Virgo moon and clear out these last items in short order.

So fasten your seat belt, and perhaps keep a crash helmet nearby, as I whip through a series of powerful and impactful events:

Rogozin School
There is, at some point, a far more in-depth commentary from me about this visit. For now, however, I’ll defer to the words of my fellow TG, Robert Scoble because his truly touching post paints a lovely picture of our visit.

Peres Center for Peace
In December 2006, I had the pleasure of hearing Shimon Peres speak at LeWeb. He said that while governments might posture and make noise about peace, the truth is that it was up to the private sector to establish the infrastructure necessary to maintain and grow a peaceful society. That is what the Peres Center for Peace endeavors to do – bridge chasms between disparate groups by bringing the sides together to tackle common issues (education, agriculture, children).

Good Vision
Sadly I missed most of this presentation. As was the case with pretty much our entire week, we were running late. Based on an earlier version of our schedule, which showed Thursday afernoon open, I had arranged a series of meetings with entrepreneurs in Tel Aviv.

My TG colleagues who took part in these meetings each offered glowing reviews. But rather than try and paraphrase, I’ll point you to Renee Blodgett’s accounting of the visit.

Israeli Entrepreneurship – the Ladies’ Way
This trip to Israel brought with it several opportunities to meet a few of the powerful women rising in the ranks of this innovative community. Susan Mernit wrote a great post that captures the essence of how the woman who populate this incredibly aggressive and rapidly moving technology market manage to blaze trails while remaining utterly committed to forward movement of technology and in supporting other women in the market.

My last meeting finished up at about 7:00pm. The Traveling Geeks were to have one last dinner together, but unfortunately some pressing deadlines back in the States required that I work through dinner (since I’d spend the entire next day on the plane).

I sent the last email, got my bags pretty much packed, and that’s when I made a decision that, while perhaps not the most intelligent choice I’ve ever made, certainly was fun.

Our flight was to depart at about 8am. That meant getting to the airport by 6am. Which meant leaving the hotel around 5:15am.

“No problem,” I thought to myself. “I just won’t go to sleep.”

Oy.

While the tales of the evening are amusing, I have to think about whether or not they’re appropriate to share … (and of course if I have to think about it, that probably means the answer is that I shouldn’t).

But in any case … with the trip now in the rearview mirror and many adventures on the horizon, I conclude this last Traveling Geeks Israel 2008 post… and look forward to the future and more TG adventures!

U.S. Aid’s Tie to Israeli/Palestinian Peace Process

At the San Francisco Commonwealth Club earlier this month, I attended a heated debate on whether U.S. aid should be tied to the Israel peace process.

Subject to congressional approval, the U.S. would pledge $27 billion in security assistance to Israel over the next decade. The discussion was whether this investment was in support of peace and whether it is a good investment for America.

Panelists included:
Dr. Stephen Zunes, Professor, University of San Francisco; Chair, Middle Eastern Studies
Alison Weir, Founder, If Americans Knew
Dr. Mitchell Ba/2008Author Myths and Facts
Dr. Uri Bar Joseph, a visiting professor of Israel Studies at SFSU
Jonathan Adelman, Author, The Rise of Israel: A History of a Revolutionary State

Alison Weir was adamant about getting her point across that we only hear one side of the argument through the American media and suggested history as many of us know it isn’t entirely accurate. She argued that Israel has received more in U.S. tax money than any other country on earth and that Jordan and Palestine gets 1/20 to 1/23 of that.

She says, “Over half of our tax money abroad goes to a country the size of New Jersey.” And then she proceeded to go on and on about how Israel’s evil ways. How they tend to attack first, and then throws death stats out: Israelis have killed 982 Palestinians and 119 Israeli children.

While she ‘could have shown us’ a fair opposing perspective, she failed to deliver. Commitment to being right was too strong as it was for Dr. Mitchell Bard on the other side.

What I found frustrating was that each side seemed to have their own set of stats, which conflicted with every stat on the other side, and that instead of presenting fair arguments, it all just felt far too personal. The problem is that its not just a political or economic issue – it IS personal. It’s about land that both sides want and need to call home. Your home is about as personal as it gets.

Dr. Mitchell Bard probably had the strongest opposing view of the panelists who were in favor of continued aid. “Israelis hunger for peace,” he asserts. “How do we achieve peace in the Middle East when the Israelis gave up land in Gaza and Lebanon and terrorism continues? Israel must be able to defend itself and its land. Israel has traded land but where is the peace?”

There was tremendous polarity among the speakers, which in many cases made it counterproductive. In some ways, I wished they merely had each panelist make a 5 minutes opening remark and then move to the floor so we could engage with them and have a productive discussion about the issues at hand.

The topic is clearly a highly-inflamed one. I’m simultaneously reading The Lemon Tree and The Israelis, both of which are fabulous reads. After the read, you end up empathizing for both sides and end up in conflict.

And yet if you’re not Jewish, ask yourself the question: how far would you go to protect your homeland if you didn’t have one? If you had lost a couple of generations because of your religion, your family name?

After the event, I met a number of interesting people with views on both sides. An American Jewish lawyer who was pro-Israel had concerns that continued aid for weapons would only lead to more violence, never allowing a chance for peace. Other American Jews took different sides — it was really all over the map.

Another woman in her who was roughly 70 simply wanted to tell her story of how she led American students to Israel in the early seventies. How her Israeli husband still lives there and what it is like to spend half her time there and half of it in Silicon Valley. After walking down Market Street with her for nearly an hour, I wanted to hear her entire life story as well as her husband’s lengthy tale. I later got this lengthy tale which I’ll write about later.

It’s such a complex issue that its painful to go back and forth between so many scenarios. Israeli Uri Bar Joseph seemed to be the calmest of the panelists posing a solution that sits somewhere in between, a view that seemed reasonable and ‘kind.’

He felt that the money could be more wisely spent if we diverted some of it to rebuilding Palestine and Syria. He reminds us that 60% of both Israelis and Palestinians agree on some form of peace plan from the 2000 agreement. His approach of a quieter solitude rather than an angry “you’re wrong, I’m right” approach left me feeling more optimistic. There must be a solution to ending this conflict if both sides want to live side by side.

And on the business side, the world is very different. My world. See a March SJ Mercury News article about the growth of Silicon Valley Israel ties.

As the article points out, “tech history buffs may recognize the land where Jesus was born as also the birthplace of Intel’s Pentium chip and AOL’s ICQ instant-messaging service. As technology transforms the 21st century, the relationship between the valley and Israel is intensifying, creating a rich two-way flow of highly skilled workers, intellectual property, finance and commerce.”

So What Did We Accomplish?

Why Israel is an Innovation Leader?Yet Tough Times Ahead

Check Point’s Gil Shwed Believes in Israel

Our group met with Check Point’s CEO and founder Gil Schwed today in Tel Aviv suburb Ramat Gan, the same stretch of land where the Barkats’ grandfather, a bus driver once grew tomatoes. According to Rosenthal’s research, he is nicknamed “Gil Gates” after successfully growing Check Point into a $20 billion stock market value company by 2001.

I shot a 15 minute video of Gil telling his ’story’ on a Nokia GSM video phone, but it sadly seems to have disappeared. If I can somehow reclaim the footage, I’ll post the video at a later date. Scoble also shot him in high resolution so if my raw footage is lost, you can watch the interview on Fast Company.com later this month.

One of the things that was an underlying thread throughout all of his business examples and recap of Check Point’s history, was his love of Israel and his belief that running a technology company here is easier than it would be in the United States. Easier and more efficient. He also brought up several other points.

Says Gil, “we?ve had an entrepreneurial spirit for over 100 years. My parents came here, trying to build something new. First agriculture, then infrastructure and today, technology. One thing that really helps us here is that we don?t have a local market.

What if we had started Check Point in Boston rather than Tel Aviv? Here, we think more globally. In the states, France and Germany, you have large local markets, which means creating and thinking in those languages and for those cultures. We are thinking of customers who are 6,000+ miles away from home.”

More than anything else, he stressed the benefits of building a company in Israel. “People are loyal here,” says Gil. “They are driven, think globally, and have a lot of passion. Because they are far away from the energy of Silicon Valley, they are focused on products and listening to customers, not the hype and latest trends.”

He thinks that being in an environment where a new trend born every few months is distracting. In Silicon Valley, there’s always a new trend and if people don?t jump on that bandwagon when it hits, they feel left behind. “Not the case here,” he says. “People work at companies for 3-5 years or longer and don?t feel as if they?re being left behind. They feel like they?re part of a group, a community, that they?re building something.”

In Rosenthal’s book, what it means to be an Israeli entrepreneur comes through as strong as it did today when we chatted in one of his conference rooms on Tel Aviv’s Ha’solelim Street. She describes him as a ‘boyish looking bachelor with cropped hair and John Lennon glasses.’ I didn’t quite see him that way, but I do think she did a great job of bringing his dry and serious wit to life.

During his interview with her, he noted that Israel is a natural for start-ups. Yossi Vardi feels the same way as does numerous other driven and successful entrepreneurs in this country.

Like Gil’s references today, he brought up the impact that immigration has had on business growth, particularly technology. He has immigrant mentality – strong, committed, loyal, passionate, driven and practical. I have read in a few articles that wearing black clothes is one of Gil’s trademarks, so I expected him to walk through the door wearing all black, and he did. Not surprising that he thinks wearing all black is “practical.” When you travel as much as he does, it makes sense.

He tells an amusing story of his resourceful mother in the book, an example from childhood that I resonated with. I think his mother and my grandfather would have really hit it off since my grandfather pulled similar stunts on a regular basis when I was growing up.

He recalls traveling around the country with her. “She’d see a dairy and stop and ask, ‘can my kid watch how you milk cow? She knocked on the door of Ha’aretz and asked, ‘can my kid see how you print the newspaper?’

It’s the best way to raise kids in my opinion. It gives children a sense of adventure and shows them how easy it is to create it. If it doesn’t feel right or you’re not sure, just ask. How will you know if you don’t try? I was raised that way but its no surprise since I was raised my grandparents, a generation behind most of my counterparts.

That generation is closer to the early immigrant mentality that Israel is experiencing today. It is during this stage of building a new country that great innovation happens. Passion and energy levels are high. There isn’t a lot of fear nor is there much complacency.

People hunger for growth and knowledge and with these characteristics, comes great things, like the amazing technology that came out of Check Point more than ten years ago and is being launched today in incubators and start-ups. Great innovation is coming out of kibbutzim as well but that’s another story to be told. Stay tuned. It’s a story that will likely bring tears to your eyes.

Jerusalem Venture Partners