The electric intercity bus, tested by the Automotive Research and Testing Center (ARTC), uses in-wheel induction motors and batteries with lithium-titanium-oxide (LTO) anodes. The energy capacity reaches 109 kWh, while charging from 20% to 80% only takes 15 minutes. The cumulative range of 500 km or more per day can fully meet the requirements of intercity transportation (Taipei-Taoyuan Airport, Taipei-Taoyuan, Taipei-Keelung, Taipei-Yilan).
The most significant feature of the electric intercity bus is the use of safer LTO as the anode material for the battery instead of graphite, which is normally used for lithium-ion batteries. Replacing graphite with LTO not only eliminates concern about the lifespan of the battery shortened by excessive discharge of graphite, but LTO batteries also handle up to 20,000 charge cycles. Ergo, LTO batteries can serve electric buses used in the public transportation system for more than 10 years, and furthermore, they can be used as energy storage batteries for more than 10 years even after they are retired. Should they succeed in gaining support, such electric buses with holistic utilization of green energy in mind will likely dominate the next stage of public transportation in Taiwan.
Coincidentally, on April 18, the National Development Council (NDC) deliberated and approved the proposal of the Ministry of Transportation and Communications (MOTC) to achieve the 2050 net-zero target, including the "Full Electrification of Urban Buses by 2030" program that subsidizes urban electric buses as public transportation vehicles. Up until the end of this February, there were 1,190 pure electric buses licensed to operate and 773 vehicles approved for grants and under construction, for a total of 1,963 vehicles in Taiwan. There are still 12,170 diesel buses that need to be phased out, and the total number of electric buses is expected to reach 14,500 by 2030.
The program approved by the NDC will provide subsidies for the purchase of electric buses, based on 3.338 million TWD per vehicle, as of 2024 to amp up incentives for bus operators to switch to EVs. In addition, a maximum subsidy of $3.7 million will be provided for each electric bus purchased to encourage the bus operators to adopt intelligent energy management systems (EMS), energy storage facilities, and other advanced measures. Regarding subsequent operations, subsidies of $1.6 million per vehicle will be available to urban buses and general highway passenger vehicles. Such government support, in the form of policies and subsidies, not only acts as the greatest encouragement and incentive to companies dedicated to the development and manufacture of electric buses like Master Transportation, but it is also the best manifesto that Taiwan is striving for net zero.
Taiwan's Pathway to Net-Zero Emissions in 2050, published by the NDC, specifies two milestones: electrification of 35% of urban buses by 2025 and full electrification of urban buses and official vehicles by 2030. The achievement of these short-term goals would create business opportunities of at least 3,100 electric buses by 2025 for companies focusing on electric buses like Master Transportation. With a price tag of around $10 million per electric bus, there will be business opportunities worth at least $31 billion over the next three years for companies in the electric bus industry, and the figure will approach $100 billion between 2026 and 2030, not to mention other related opportunities. GUS Technology, headquartered in Xizhi, put its new plant specializing in LTO batteries in Zhongli into operation in late April. It is the first GWh lithium battery super plant in Taiwan, believed to play a critical role in Taiwan's R&D, innovation and manufacturing strengths in batteries, as well as in opportunities in the international green energy market. Master Transportation, drawing on its own technology, even has opportunities to sell electric buses to overseas markets such as Singapore, Japan, and India. It will be a great encouragement to Taiwan's electric bus industry if Master Transportation's electric buses successfully find their way to overseas markets.
Following the issue of net zero, which has been gaining momentum across the globe, carbon tariffs, carbon trading, carbon fees and dividends, and other carbon-related issues appear in the news media more often than not. The green economy is bringing business opportunities to a new level, but what is the most effective way to reduce carbon emissions and achieve the 2050 carbon neutrality target?
According to the research report "Global Energy Transformation, a Roadmap to 2050" presented by the International Renewable Energy Agency (IRENA) at the Berlin Energy Transition Dialogue in Germany in April 2019, annual energy-related CO2 emissions in the REmap Case decline 70% below today's level. An estimated 75% of this reduction can be achieved through renewable energy and electrification technologies; if energy efficiency is included, then this share rises to over 90% (IRENA Global Energy Transformation 2019).
Electricity only accounts for 20% of the world's energy consumption now, but with electrification in the transportation sector, such as the conversion of gasoline vehicles to electric vehicles, electricity will account for 50% of the world's total energy consumption by 2050. As the process of electrification speeds up, global electricity supply and demand will more than double by 2050, with the principal demand coming from 1 billion electric vehicles. Renewable energy will be instrumental in supplying electricity. Thanks to lower costs and faster scale-ups, renewables will meet 86% of global electricity demand by 2050. Since they account for 86% of electricity, renewables will make contributions in other areas. One example is the hydrogen fuel cell vehicle, which uses hydrogen made from renewable energy sources.
Therefore, in general, renewables will account for two-thirds of the world's total energy consumption. To respond to the sweeping green energy, Taiwan, surrounded by the sea, should actively exploit the copious geothermal power resources and ocean currents and tidal power resources, which are not subject to weather changes or the day-night cycle, as well as green hydrogen energy in addition to solar power and offshore wind power, which are being developed painstakingly. Without tapping into more of these exclusive renewables, Taiwan would not be able to help various industries compete better for new opportunities in the green energy economy.
Along with the wider adoption of electric vehicles in Taiwan comes the installation of more super charging piles from competing manufacturers islandwide. The EV growth in Taiwan, coupled with the government's policy requirements for energy storage facilities and the actual needs of manufacturers, will accentuate the popularization of V2G systems and the moderating effect of ubiquitous energy storage facilities on peak demand for electricity in summer and special weather conditions. In Taiwan, the transportation sector accounts for 12.8% of the national greenhouse gas emissions. With the electrification of public transportation and the rising penetration rate of EVs, not only will greenhouse gas emissions from transportation vehicles be reduced effectively, but the above-mentioned moderating effect on energy consumption will also reduce greenhouse gas emissions from power generation at peak times, thereby creating a virtuous circle of reduced power demand, reduced power generation, reduced carbon emissions, and reduced weather anomalies. I'm optimistic about the multi-win situation and can't wait for it to happen.
About the author - Kenny Liu
Graduated from Dept. of Aeronautics and Astronautics, Cheng Kung University in 1988, started his auto industry career since July 1990 after two year military service. Starting as a service engineer and a temp technician, product marketing specialist in Peugeot/ Daihatsu, marketing and dealer channel specialist in VW LCV from March 1992, then field manager in GM Taiwan from Feb. 1994, sales and service / parts head in Ford Lio-Ho from Sep. 1998 till retirement in May 2019. Kenny then started to work for JLR Taiwan as sales/service head and consultant/ lecturer. After that, he was invited to work at a Suzuki dealer of Taipei as the general manager until April 2022.