Summary
- US automakers are striving to catch up with China in reducing the cost of electric vehicles
- Ford is focusing on increasing renewable energy with the BlueOval City manufacturing campus in Tennessee
- The company is using geothermal, solar, and wind power locally sourced for the campus
- Ford is also working on initiatives to decarbonize its operations and supply chain
- The ChargeScape venture aims to incentivize renewable energy for EV drivers through a vehicle-to-grid platform.
Article
US automakers, particularly Ford, are working to catch up with China in the electric vehicle market by focusing on affordability and renewable energy. Ford’s new $5.6 billion BlueOval City manufacturing campus in Tennessee, along with two new SK battery plants in Kentucky, incorporates locally sourced geothermal, solar, and wind power. Despite Tennessee not being known for clean power, Ford may have been influenced by the US Department of Energy’s efforts to make geothermal and wind energy more accessible across different regions, as well as the clean power progress of the Tennessee Valley Authority utility.
Ford has a history of interest in renewable energy, dating back to experiments with solar energy storage in 2011. The company is already surpassing electricity decarbonization expectations for its Michigan factories and is now working on Scope Two decarbonization by collaborating with stakeholders in the manufacturing supply chain. Ford is also involved in industry collaborations, such as the First Movers Coalition and the Transform: Auto program, which aim to drive the adoption of renewable energy and cut carbon footprints in the automotive supply chain.
Ford is facing the challenge of Scope Three decarbonization, especially with its commitment to hybrid vehicles. However, the company is working to attract more drivers to electric vehicles by offering incentives for inexpensive renewable energy and the ability to power homes or businesses with EV batteries. The ChargeScape venture, a vehicle-to-grid service developed in partnership with BMW and Honda, allows EV drivers to sell excess storage capacity back to the grid, ultimately reducing electricity rates for drivers and contributing to grid stability.
The ChargeScape initiative focuses on home charging, as 80% of EV drivers charge up at home. By wirelessly connecting to electric vehicles and working with utilities to manage electricity flow, ChargeScape aims to reward EV drivers for their flexibility in contributing power back to the grid when needed. This concept aligns with the virtual power plant phenomenon, where utilities encourage energy storage stakeholders, such as EV and hybrid drivers, to provide electricity back to the grid when demand is high or supply is low, leveraging renewable energy sources like wind and solar power.
Ford is among leading US corporations purchasing electricity from remote renewable energy projects to support clean power initiatives. As the company focuses on electric and hybrid vehicles, including pickup trucks and delivery vans, there is a growing interest in a potential 100% EV project. Ford’s commitment to making zero-emission vehicles more affordable for everyday drivers indicates a continued dedication to reducing emissions and promoting sustainable transportation.
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