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What Tesla can learn from Israel’s Better Place post-mortem


What if we could apply the charisma, imagination and marketing genius of Steve Jobs to help promote green technology? Israeli entrepreneur Shai Agassi had many of the characteristics of Apple’s much-worshiped CEO but instead of personal entertainment devices, Shai focused his energies on electric cars.

He had enough chutzpah to convince investors to bet nearly $1 billion on his grandiose plan to free Israel from the shackles of oil dependency.

Agassi’s inspirational Ted talk entitled A New Ecosystem for Electric Cars won him respect and a standing ovation. He appeared on the cover of Wired magazine and Fast Company celebrated him on its 2009 Most Creative People in Business list.

So what went wrong? How did Shai’s dream of a Better Place turn into a nightmare of chaos and bankruptcy? To learn what went wrong we first need to understand a little bit about Better Place and the history of technology.

[youtube]https://www.youtube.com/watch?v=FcoJt2KLC9k[/youtube]

The technology wasn’t the problem

Just as Thomas Edison tried nearly everything under the sun before he settled on a carbon filament for his incandescent bulb, Agassi’s team studied everything from railed slot-cars to air powered cars as they searched for a path out of Israel’s oil dependency. They settled on electric cars based on Lithium Iron Phosphate batteries. These batteries have an energy density of 220 Wh/L, twice that of the best lead-acid batteries but more importantly, his Renault Fluence Z.E. cars relied on an innovative charging mechanism where a robot would swap out the entire battery for a fresh one in less time than it takes to go through a drive-through car wash.  Just as Edison developed electricity generation and distribution infrastructure to power his electric lights, Shai made sure that these robotic charging stations were part of his electric car plan. Israel was the perfect place to begin. 1000 charging stations would be sufficient to make sure that the entire country was within range. He made arrangements with Renault to produce 100,000 electric cars.

Underestimating your competition
And this, according to a former Better Place employee interviewed by Fast Company, is where things began to go wrong. Approximately 200,000 new cars are sold in Israel each year. Even Steve Jobs’ reality distortion field would have to stretch to assume that half of Israel’s new car buyers would abandon their Hondas, Hyundais, Toyotas and Fords and flock to his single model electric Renault during its first year of production. As one GM executive explained, “It took the Toyota Prius 15 years to get to 1.5% market share in the U.S., and the Prius is a hit.”

Overselling yourself

As a salesman, Shai Agassi would have given even the venerable Steve Jobs a run for his money. In fact after making comparisons to the growth of the cell phone industry and hyping the possibility that Better Place could be the world’s first trillion dollar company, Shai soon had the ear and money from Israel Corp, Morgan Stanley, Maniv Energy Capital and other venture capitalists. With his reality distortion field on overdrive, Agassi suggested that Better Place cars might sell for half the price of their gasoline competition, a number seemingly pulled out of the air before agreements had been finalized with Renault.

More money than sense
Speaking to Fast Company, former Better Place policy VP Ziva Patir said, “If Shai had raised $50 million instead of $200 million, it would have forced us to focus.” Projects overran their budgets, too many cars were ordered, charging stations cost twice as much as estimated, employees were highly paid in cash rather than in performance-based bonuses and no one had thought to hire managers with expertise in the automotive industry where efficient cut-throat competition is the norm.

An alternative point of blame, government as innovation’s anchor

Michael Granoff, the founder Maniv Energy Capital, one of Better Place’s first investors blames the government of Israel for a tax structure which favors hybrids and punishes electric car manufacturers. Because of this, he told Haaretz he fears that Israel will be the last country in the world to develop a viable electric car industry.

Repeating history
Those who believe in the relentless forward march of technology believe in a myth. A glance at history shows that the path to progress is full of backpedals and pitfalls. For example, the lead-acid storage battery enabled the first practical electric car to be developed in the year 1859. This technology improved until 1911 when the first hybrid was produced and became a commercial failure. We can imagine an alternative history where these early electric car companies invested their profits into the steady improvement of motors, batteries and photovoltaic charging technology. But Ford and other companies had begun the century of the internal combustion engine. Nearly all early electric car companies had failed by 1920. Electric car prototypes and limited production models made appearances in fuel-starved Europe during WWII and again in the 50s, 60s, 70s and 90s but their commercial success was limited by long charging times and the fact that state-of-the art lead acid batteries had only 1/100th the energy storage density of gasoline.

Better Place isn’t the first innovative companies to fail and it certainly won’t be the last. The computer industry is littered with examples such as Altair, Atari, Commodore, Cray, Digital Equipment Corporation, NeXT, Tandem… most of which created technological innovations which were lost for decades or forever after their demise. But for a bit of luck and the gleam in Steve Jobs’ eye, Apple could have easily ended up on that list. The auto industry is no different. Tucker, Edsel, AMC, DeLorean and others have come and gone.

There is a story from my home town about a man named Dr. John Wesley Carhart. He was a Methodist Episcopal pastor and he invented the world’s first automobile in 1871. He entered it in the world’s first long distance car race and drove it around Racine Wisconsin until the noise of its two cylinder steam engine frightened a valuable horse to death. Townspeople convinced him to disassemble it. Like the electric car, its time had not yet come.

Google goes for awesome driverless car concept

Chris Urmson google driverless car head

After making billions on online advertising Google execs are now putting some money into companies of their dreams. The latest – the Google driverless car concept.

“Look Ma, no hands!”

Chinese investors to build a mini Dubai in Kenya

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Dubai Skyline, urban development, Dubai, chinese investors in Kenya, neocolonial China, Africa, Chinese investments in Kenya, Lamu Port, SaveGoatIslandsThe Kenyan government is reportedly paving the way for China to build a new city just outside of the capital. Some 100 Chinese investors aim to build roughly 20 skyscrapers in the enclave, which is expected to become a shopping destination for products from China and other countries.

Ancient Egyptian secret cracked : how they moved massive stones through desert sand

egyptian-stone-mystery-solved

It’s one of the world’s biggest mysteries: how did the ancient Egyptians transport massive stones across the desert to create the pyramids?  Scientist from the FOM Foundation and the University of Amsterdam report that they now know how the pyramid stones were transported. The clue is the dampness of the desert sand.

Jerusalem’s water contamination scare hits both Arabs and Jews

water-urn-jerusalem

Residents of Jerusalem were told yesterday to boil their water for two minutes until further notice. High levels of treated sewage water had leaked into the main drinking water system. The neighborhoods affected include Arab and Jewish regions alike: Baka, Abu Tor, Talpiot, Tsur Baher, Silwan, Ras el-Amud, the Old City, Mamilla and Musrara.

Wow-alicious green gifts upcycled by Ex Libris Anonymous

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ex libris journals green giftsJacob Deatherage founded a clever company that saved my skin many times over a decade of holidays – letting me serve up clever gifts that are useful, affordable and green.

Desypher dispels stereotypes with exquisite Islamic Museum of Australia

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Islamic Museum, Desypher, Melbourne, Australia, Islamic architecture, design, sustainable design, Islamic museum in AustraliaBlogging makes a writer vulnerable to hyperbole – anything to capture a corner of the internet. But it’s not hyperbole to say that Desypher’s architectural expression vis-à-vis the Islamic Museum of Australia is unparalleled in any contemporary Islamic architecture I’ve come across.

Trump Gadde: embracing the shipping container in Istanbul

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Trump Cadde, GAD, Istanbul, shipping containers, bazaar, souk, Trump Tower Mall shipping containers, recycled shipping container, adaptive reuse

GAD Architects stacked a series of recycled shipping containers on top of a fancy shopping mall in Istanbul to create this remarkable modern day bazaar. Officially it’s a food court, but in practice, it is so much more.

Making freekeh with the Druze

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freshly roasted green wheat freekeh
We learn the craft of making freekeh

I stood in a golden wheat field some five miles north of Acre in Israel. Paul Nirens of the Galileat organization had arranged a demonstration with a local farmer, to show us how the Druze traditionally roast green wheat for freekeh.

To reach the field, we’d driven over a ditch of teeth-rattling bumpiness, part of the foundation for a railroad that will soon divide that field. Spring lingers in the cool Galilee. There was still enough green wheat to make freekeh worthwhile.

green wheat freekeh

Golden oats, blue chicory and lacy green fennel made colorful spots among yellow mustard flowers in the verges of the field. A breeze rustled the swaying wheat. In the distance, a grove of olive trees completed the perfect picture of a small Druze farm.

Salman Nijim Abu Heissam dragged a pitchfork full of dry thorns to a bare patch of earth, away from danger to the growing crops.

Thorns catch fire easily, make a high flame and plenty of smoke, but it burns out quickly. This is necessary to avoid burning the wheat past the point where it’s edible. It should come out of the fire only somewhat charred.

The green wheat had dried in the sun for several days. Heaping it on top of the thorns, Abu Heissam set it on fire with a cigarette lighter.

freekeh bonfire wheat

I was surprised to know that the Druze also roast green oats, just as they do wheat. “But oats yield less grain than wheat, so we plant less of them,” explained Abu Heissam.

The Druze take their wheat, whether roasted or fresh, to the mill to make – not flour, but bulgur. “Wheat is our basic food,” Abu Heissam said. “We Druze can’t exist without bulgur, and olive oil. Just as King Solomon’s throne was protected by a lion at the right and at the left, so we have bulgur and olive oil. Every Druze family stores enough olive oil and bulgur for two years.”

Make freekeh for the future

Some say that making freekeh is a way to guarantee that at least part of the crop is saved for the future. The fire drives out insects and field pests, and kills insect eggs too. The kernels’ high moisture content prevents them from burning, but the fire dries them. So they’re less likely to rot in long-term storage. According to chef and food historian Moshe Basson, this is how Joseph of the Bible kept seven year’s worth of wheat in good shape for the seven lean years to come after.

Abu Heissam explained that this small demonstration of how to make freekeh is just a sample of the real harvest. “About a month before the wheat matures, we harvest a determined percent of our crop with the combine harvester. Then we set the green wheat in the sun to dry for several days, and it shrinks. We light our bonfire with a gas torch. It’s a big family project, with everyone out in the field.”

The freekeh fire burned down in a few minutes, leaving ashes and the charred wheat stalks.

bonfire dies down with freekehThe stalks cooled down quickly. We picked them out of the ashes with our bare hands and threw them onto a tarp.There were some stalks that had burnt through, and those we left on the ground. The good ones with future freekeh looked like this:

roasted green wheatWe carried the tarp full of roasted wheat to a field shed where a mulberry and fig sycamore tree provided leafy beauty and more shade over a water point. Abu Heissam washes his hands with his own home-made soap made from olive oil.

water point freekeh
Making freekeh

In the shade there, Abu Heissam showed us that to become freekeh the wheat gets rubbed through a series of sieves, first the finest sieve and proceeding to the ones with coarser and coarser weaves.

I was surprised again, thinking that it would be the other way around, but understood when I saw how the straw and chaff separate from the kernels as they’re rubbed on the surface of the sieves.

“Freekeh” means “rubbed.” The English word “friction” comes from the Latin fricare, but I wonder if it goes back even further, to the Arabic freekeh. It was a pleasant thing to think of.

But the work of rubbing wheat stalks onto the harsh fabric of the sieves to make freekeh isn’t easy on the hands.

The farmer wore heavy gloves to work the stalks back and forth over the old hand-made sieves.

traditional field sieves freekeh harvestrubbing wheat stalksThe freekeh kernels, freed from their stalks, fell through the sieve’s holes. We collected them and turned the sieve over to receive them from the deep side.

rubbed wheat freekehI ate some freekeh kernels. They were nutty and chewy, with the expected smoky flavor. The freekeh wheat’s sweetness came through a second later. The occasional charred kernel tasted like popcorn.

freekehThe next step was winnowing the freekeh kernels by moving them around a tray while standing downwind. The regular motion of wheat bouncing around made a rough sound, like fine gravel on the tray. It seemed to say, chaff, chaff, chaff.

“I’m not very good at this,” said Abu Heissam. “This is women’s work.”

But I thought he winnowed very well.

winnowing freekehThe railroad works crosses Abu Heissam’s fields. It will cut off access to the fields from the highway, unless a bridge is built over it. The community has requested a bridge many times, but no one in the government has taken notice, not even the Druze MK. In the meantime, a neighboring farm has two bridges to allow their cows to cross its property. Abu Heissam also needs a second water point for irrigation, but the water company hasn’t responded to his requests.

freekeh with the Druize, man holding twigsJust about now, or in a week, the farmer will walk to his field again and taste the ripe wheat to judge if it’s ready for harvest. He’ll sell most of it, but the small amount left for home use, his womenfolk will process for bulgur.

Abbu Heissam is an ex-army officer and besides Arabic speaks fluent Hebrew. Like most Druze men who have served in the Israeli army, he’s well versed in the various cultures of Israel, comfortable in the company of any well-meaning person. But his soul is rooted in the earth, which in the Druze religion is considered holy in and of itself.

“The Druze learned that an army career grants benefits and a pension,” he said. “But we don’t eat from that income. We eat from the money we make selling what we grow in our own fields.”

Need it be said that GMO doesn’t come near the fields of the Druze and their freekeh?

Why is freekeh uncool?

Freekeh, like many traditional Druze foods, is considered uncool by the younger generation. It’s sad, but the art and craft of freekeh is mostly in the hands of old folks these days. I hope that the young ones wake up to the beauty of the seasonal food traditions and love of the earth that their grandparents are keeping alive.

Read more from our archives on freekeh:
The ancient grain freekeh spurs boutique recipes
Freekeh recipes from around the world

More about Druze culture in the Galilee, Israel:

All photos by Miriam Kresh

Cyprus starts political party for … animals!

animal-party

This is no joke: the island nation of Cyprus is now home a political party for animals. It was launched in Nicosia on Sunday. It is called Animal Party Cyprus and follows the lead of Holland – which seems like the first to launch a political party for animals.

Iran’s Hossein Zare captures our wildest dreams in surreal photographs

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Hossein Zare Photography, photoshop, Iranian photographer, dreamscapes, landscape photography, city photography, digital manipulation, environmental artIranian photographer Hossein Zare captures in photography what we can only see in our dreams – otherworldly land and cityscapes infused with an sense of eternal longing. A longing to reconnect with the land, with the heavens? Step in to see just a small handful of his incredible work.

Rooftop garden blooms for Bethlehem refugees

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refutreesA new project in a Bethlehem-area refugee camp seeks to help reverse a history of forced urbanization and revitalize connections to agriculture, simultaneously increasing Palestinians’ control over their food sources, especially organic vegetables. It’s not the first time we reported on Refutrees, but they project has been blooming over the past year.

Deadly MERS virus spreading fast out of Saudi Arabia, raising panic before Hajj

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MERS virus

Deadly and debilitating viruses are no strangers to the Middle East; especially following the discovery of a SARS-like mystery virus in Saudi Arabia back in 2012.  This virus, which since then has become known as the Corona or MERS virus (see photo above) has been said to be spreading fast in the Arabian Peninsula by bats and camels.

Find the wind in Iran with these handy energy maps

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wind-maps-iran

Iran is most known in global news for its nuclear ambitions. But the country has resources for wind energy, the international renewable energy organization IRENA has announced. The NGO which is headquartered in Abu Dhabi has just released wind maps which show where Iranian winds blow.