Date: Nov 19, 2012 Author: Lindsay Riddell Source: bizjournals (
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Startup Motiv Power Systems, which has developed technology to convert gas-powered trucks into electric trucks, has won up to a $13.4 million contract with the City of Chicago to electrify 20 garbage trucks over the next five years.
Foster City-based Motiv's technology combines off-the-shelf batteries and motors to fit different styles of trucks from medium duty to Class 8 heavy-duty trucks, like garbage trucks, that weigh between 15,000 and 52,000 pounds. Motiv also developed software and related technology that provide fleet operators with information on location of their trucks, battery life, predictive maintenance and other features.
This is the first large contract Motiv has won, and Chicago will help Motiv finance some of its scale-up costs through a tiered pricing structure. The first garbage trucks that will be built with Motiv's electric powertrain control system will cost Chicago $1.3 million apiece. The first truck should be delivered to the city in 2013. Trucks 10 through 20 of the 20-truck contract will cost the city $500,000 each.
While acknowledging that price is still almost double what the City could pay for a diesel-powered garbage truck, Motiv said the trucks should pay for themselves through fuel savings in four to six years.
Compared to diesel trucks, "We can provide today a lower lifetime cost for these (electrified) trucks," said Jim Castelaz, CEO of Motiv.
In a pilot test of its electric shuttle bus, operating costs were reduced from 80 cents per mile to 10 cents per mile.
The garbage trucks' 10 battery packs will total 200 kilowatt hours of energy storage capacity, or enough for the trucks to travel more than 60 miles per charge.
The trucks are assembled at various partners in Chicago and Detroit. Motiv also recently won a grant from the California Energy Commission to install a pilot manufacturing line in San Jose.
