Phinia’s Twin Focus: Efficiency Today and a Carbon-Free Future
Based in Auburn Hills, Mich., Phinia (NYSE: PHIN) is a publicly traded company spun off from BorgWarner in July 2023 that is dedicated to advancing sustainable mobility solutions. It specializes in fuel systems, electrical systems, alternative fuel technologies, and aftermarket products, Phinia aims to enhance fuel efficiency, reduce emissions, and help drive the transition to cleaner, low-carbon fuels. SBN Detroit interviewed Todd Anderson, Phinia’s Chief Technology Officer, to explore the implementation of alternative fuel systems and their real-world applications. Q: Phinia has allocated 78% of its research and development to fuel efficiency and alternative fuel technologies and 30% of that to zero- and low-carbon fuel systems. Can you tell us more about this initiative? A: We are committed to driving efficiencies today while moving toward a carbon-neutral and ultimately carbon-free future. It’s important not to focus solely on future technologies when there is a clear need to improve our current energy systems. By allocating 78% of our budget to fuel efficiency and alternative fuel technologies, we are addressing both immediate and long-term needs. This investment allows us to work on improving the systems that our customers currently use and are ordering while also investing in alternative fuels that will help us achieve decarbonization over time. Our funding applies to all aspects of our business. The research and development aspect, mentioned above, but also investing in other business functions, including manufacturing, supply chain, and quality to ensure that as a business we are ready to move forward into a new era. Q: Describe the different alternative fuel systems and what they are used to power today. A: Each of these fuel systems serves specific purposes and applications, providing a range of options for different vehicle types and needs. Advanced Gasoline Direct Injection (GDi) Systems are primarily used to power lighter vehicles, from passenger cars to medium-duty vehicles. Recently, we released a 500-bar GDi system with this higher pressure, designed to improve fuel economy and reduce emissions for passenger cars and light commercial vehicles. Hydrogen fuel cell technology powers electric vehicles (EVs) using an onboard fuel cell that uses hydrogen as fuel. This system is suitable for a range of vehicles, from lighter passenger cars to medium-duty vehicles, and could be particularly efficient for delivery vehicles in controlled environmental settings. Hydrogen Internal Combustion Engine (ICE) technology is well-suited for heavier applications where high loads, continuous operation, and challenging environments are common, such as heavy commercial vehicles and medium commercial vehicles. Hydrogen ICE provides the power and performance expected from traditional diesel or gasoline systems but without harmful emissions to the environment. Q: How is developing technologies for alternative fuels different from working on traditional combustion engines? A: Interestingly, it’s quite similar in many ways. The ways in which we develop liquid fuel systems for gasoline or diesel engines are directly applicable as we move toward alternative fuels. The basic physical principles, such as combustion and fluid metering, remain the same. The difference lies in adapting and refining the elements of these systems to work with alternative fuels. For example, in a hydrogen internal combustion engine, hydrogen gas is injected into the combustion chamber instead of gasoline. While the core technology remains similar, we need materials that can seal and respond appropriately to hydrogen gas, along with some design refinements. Q: What are the main challenges in creating and adopting alternative fuel technologies? A: The technology to use alternative fuels in vehicles is already well understood and has been proven effective. However, the challenge lies in the ecosystem needed to support these fuels. Take hydrogen internal combustion engines (ICE) as an example. While we have vehicles running effectively with this technology, faster market adoption requires sustainable hydrogen production at a scale that isn’t currently available. The infrastructure to deliver this sustainable alternative fuel to the point of use also needs to be in place. Currently, the cost of hydrogen is higher than will be acceptable for a broad market adoption. In my discussions with government officials in the U.S., Europe, and Asia, my call to action has been clear: ensure sufficient production of renewable hydrogen while developing the infrastructure needed to deliver it. This will help reduce costs and support wider adoption. Q: What do you see as the biggest opportunities for growth and innovation in alternative fuels? A: We see significant growth opportunities in the transportation sector, whether in passenger cars or commercial vehicles. In the shorter term, there is substantial interest in commercial vehicles due to their specific operating conditions. For example, there is great potential with captive fleets operating on fixed routes, where we can achieve significant progress without needing to rely on widespread public infrastructure for hydrogen deployment. This allows us to make meaningful advancements in those areas. Additionally, there is interest in alternative fuels beyond just transportation. We’re seeing opportunities in industrial applications, marine sectors, and stationary power generation. Industries like marine shipping, especially large vessels, are actively exploring alternative fuels. So, while there are significant opportunities in transportation, they extend far beyond that sector. Q: How does Phinia work with partners in the alternative fuel industry? Can you share any recent partnerships? A: Partnerships are critical for us — no company can operate as an island. We partner with government bodies such as the U.S. Department of Energy, the Environmental Protection Agency (EPA), the European Commission, and the UK Transport Authority. We also work closely with our customers to support their vehicle roadmaps and align our innovations to meet their needs. We have close partnerships with universities and educational institutions, which provide access to their innovative and advanced thinking while supporting communities and students alike. In addition, collaboration with our supply chain partners is vital. Q: How does Phinia ensure sustainability is integrated into product design and development, particularly with your “Design for Environment” approach? A: Sustainability is critical in the design process. Our design reviews include considerations like the potential for remanufacturing and the end-of-life designation for products, which are vital elements of a circular
Accelerating Solar Through Connecting Contractors
Established in 2013 in Detroit by Patrick McCabe, GreenLancer is dedicated to accelerating the adoption of solar energy and EV usage. The company’s software platform is designed to connect solar installers with design and engineering partners while guiding the permitting process, making it easier and faster for contractors to do their work. SBND interviewed McCabe about the current landscape for contractors in the industry. Q: What inspired the creation of GreenLancer? A: Following my graduation as a mechanical engineer, I moved to California and began working for a solar company. It became evident to me over time that there was a significant gap between contractors eager to install solar systems and the availability of engineering and design services to support them. Upon returning to Michigan, I founded GreenLancer with the vision of creating a platform where contractors could easily connect with engineers and designers, effectively bridging this gap. Today, GreenLancer is dedicated to advancing the adoption of clean energy and EV infrastructure, contributing to sustainability efforts not only in Southeast Michigan but nationwide. Q: Could you explain GreenLancer’s core function? A: GreenLancer operates as a marketplace that links contractors with engineering and design firms, streamlining processes to accelerate the installation of solar energy and EV charging stations. Since our inception in 2013, we’ve assisted over 7,500 contractors on more than 200,000 clean energy projects nationwide, totaling over $2.5 billion in solar energy and EV infrastructure investments. Q: Those are big numbers. Can you tell us more about how those numbers are achieved? A: We work as an online marketplace – akin to Amazon. The software connects contractors globally to design firms and engineers globally 24/7, so we can connect hundreds – even thousands – daily who then can move into the project phase. If you do the math, GreenLancer has been in existence for 11.5 years, so this equates to the support of approximately 48 projects per day being executed around the world. Q: What challenges do contractors typically face in the solar and EV sectors? A: The solar and EV charging industries pose unique challenges since they are so new. Many contractors lack the specialized knowledge and resources required for these installations, often necessitating costly engagements with engineering firms. Additionally, navigating the diverse and complex permitting processes across different states can be overwhelming. Issues related to utility interconnections further complicate PV installations, potentially causing delays and increased costs. These factors frequently deter contractors from entering the solar and EV markets altogether. Q: What impact does this have on the economy? A: Simplifying the complexities of permitting and engineering enables clean energy contractors to scale their operations, thus enhancing the economy. It also expands access to green technologies for both businesses and residents. Q: Your website mentions incorporating concepts from lean manufacturing in the automotive industry. Can you elaborate on this? A: As a Detroit-based company, we’ve adopted the automotive industry’s assembly line approach in a virtual capacity, optimizing our marketplace operations for efficiency and scalability. We also embrace concepts of continuous improvement methodologies and lean manufacturing used in the automotive industry to evolve alongside the needs of our users, enhancing our technology and service offerings over time. Q: How do drones factor into the solar industry? A: Drone use by solar companies has increased dramatically in recent years for residential, commercial, and utility-scale projects. Drones can save time, increase worker safety, and help pinpoint maintenance issues. In fact, many contractors are now using drones to gather data for solar site surveys, inspections, and marketing images. Several drone software companies specifically cater to the solar energy industry. Q: Solar farms are controversial in many places, including Michigan, mainly over questions of land use. What are sustainable practices for solar farm installation that can help mitigate the environmental and community impact? A: It’s helpful to consider the community and environmental impact of solar farms from the planning stage to ensure they provide the most benefit possible to the community. However, some practices are difficult or costly to implement at certain locations. It’s best to avoid constructing solar farms on undisturbed natural areas in ecologically sensitive areas. Therefore, using already cleared land usually has less impact on wildlife and is often more cost-effective. It’s helpful to keep some existing vegetation that doesn’t shade the array and to minimize soil disturbance during construction whenever possible. Some solar farm developers are experimenting with wildlife-friendly fencing around solar farms that allows wildlife to pass seasonally or is high enough to allow small animals to pass underneath. Another option, if space allows, is to create vegetative buffers along the fence line for wildlife habitat. Planting native wildflowers can reduce the need for mowing, promote biodiversity, and encourage pollinator populations. This can benefit nearby farmers because pollinators are essential for many crops. Some solar farms use sheep as an alternative to mowing to manage vegetation growth, reducing the need for mechanical mowing equipment. This approach typically involves partnering with local ranchers. Q: This is an expanding industry – is the size of the labor force keeping pace? What are the qualifications needed to get started? A: The solar power, energy storage, and EV charging industries need many skills to expand. The 2024 Electriciation Contractor Survey highlights some issues related to the labor force for solar, energy storage, and EV charging station contractors. The report found that 49% of contractors surveyed report a lack of experience and industry-specific knowledge as a challenge for hiring qualified professionals, particularly electricians and field technicians. Transitioning to clean energy is boosting the demand for licensed electricians. According to the Bureau of Labor Statistics (BLS), the demand for electricians is expected to increase by 6%-9% from 2022 to 2026. In addition, the North American Board of Certified Energy Practitioners (NABCEP) Certification helps launch a career in the solar industry. Various training programs are offered by trade schools, community colleges, universities, and nonprofit organizations designed to advance the clean energy industry. 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