Empowering the Future: Revolutionizing Electric Vehicle Charging with Alejandro Burgana of OBE Power

In a world rapidly embracing sustainable solutions, the wheels of innovation are turning towards a greener future.  In this episode, Jim  Frazer welcomes Alejandro Burgana, the co-founder of OBE Power, for an electrifying conversation that unveils the remarkable journey behind building a sustainable business around electric vehicle (EV) charging.

Episode Highlights:

•  From Biofuels to EVs: Delve into Alejandro's inspiring background that led him to spearhead OBE Power's mission. Discover how his passion for the environment sparked his journey in biofuels production and his determination to provide a carbon-neutral solution for transportation.
•  Charging for the Future: Uncover the inception of the groundbreaking idea of charging as a service even before electric vehicles were mainstream. Explore the current state of EV adoption and projections that suggest a 30% penetration rate by 2030, opening doors for unprecedented expansion.
•  The Sustainability Algorithm: Learn about OBE Power's innovative algorithm that identifies the optimal number of charging points for various locations. Understand the differences between charging technologies and how OBE Power ensures you'll never wait for your vehicle thanks to their strategic targeting system.
•  EVs: Beyond Transportation: Explore the potential of EVs as mobile power storage units, reducing costs for schools and facilities. Dive into the intricate balance between energy consumption, grid stability, and the exciting prospect of drivers trading excess energy.
•  Pioneering Infrastructure: Alejandro shares insights into meeting ring infrastructure, battery technology, and smart metering, all contributing to a smarter and more interconnected charging network.
•  Chargers that Endure: Discover the resilience of best-in-class EV chargers, designed to weather even the harshest conditions. Get a behind-the-scenes look at the evolving landscape of EV charging standards and why reliability is key.
• Charging for the Future: Alejandro's vision for the future is painted vividly, as he discusses the anticipated 30-fold growth in the EV industry by 2030. Learn about incentives, market trends, and the increasing accessibility of electric vehicles.

 This podcast episode is an eye-opening exploration of the sustainable evolution taking place in the electric vehicle charging realm. Whether you're a fervent supporter of renewable energy or a curious observer, "Empowering the Future: Revolutionizing Electric Vehicle Charging with Alejandro Burgana" promises to leave you inspired and enlightened. Tune in to this electrifying episode and get ready to power up the future with knowledge and innovation!

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Transcript

ARC Advisory Introduction - 00:00 Recording live from the ARC studios. Welcome to The Sustainability Podcast. Our goal is to provide engaging discussions on a broad range of topics, including cybersecurity, sustainability, supply chain management, and much more. For more information and to get in contact with us, visit us at ARCweb.com.

Jim Frazer - 00:32 Welcome again to another episode of The Sustainability Podcast. I'm Jim Frazer, Vice President of Smart Cities here at ARC Advisory Group. I'm thrilled to be joined today by Alejandro Burgana, co-founder of OBE Power. Welcome, Alejandro. How are you doing?

Alejandro Burgana - 00:51 I'm doing fantastic, Jim. Thank you for having me today.

Jim Frazer - 00:54 That's great to hear. I had the pleasure of meeting Alejandro at the ARC annual conference last February, and hopefully, we'll have him back as a speaker again this coming February. Both of us are residents here in South Florida, and I'm familiar with some of Alejandro's endeavors. But for those in our audience who might not know about you or OBE Power, let's start with a simple question: Who is Alejandro Burgana, and how did you become involved in this industry?

Alejandro Burgana - 01:31 Certainly. For the majority of my professional life, I've been involved in engineering. I hold a master's degree in business from New York University, but at heart, I'm an entrepreneur and an engineer. I have a passion for developing solutions and leveraging my business education to build sustainable business models around those solutions. Years ago, I was first involved in the production and development of biofuels due to my concerns about the environmental impact of traditional fuels. This interest gradually led me to the realm of electric vehicles and clean energy. As the automotive industry started to shift towards electrification, I saw a tremendous opportunity to contribute to a more sustainable future by providing innovative charging solutions for electric vehicles. This vision led to the founding of OBE Power, where we're dedicated to making convenient and efficient charging stations accessible in various locations.

Alejandro Burgana - 03:05 ...like a carbon-neutral solution, particularly for the transportation sector, which includes logistics—a field I'm passionate about. However, that business venture didn't take off, to be honest with you. It was a valuable lesson because failure prompts reflection on what went wrong and how to improve. Between 2010 and 2011, I was also exploring electric vehicles. Although not carbon-neutral, they offered a transportation solution with zero emissions. This concept strongly resonated with me. I began immersing myself in electric vehicles and even acquired one—a Nissan LEAF, the second available in South Florida at that time. It drew attention and curiosity, serving as a conversation starter. People would inquire if it was a Tesla or an electric car, sparking discussions about charging and the driving experience. Despite its limited range of just 75 miles, driving the LEAF was remarkably enjoyable. Experiencing its clean and smooth operation convinced me of its potential. This realization marked the turning point, driving me to establish a business centered around electric vehicle charging solutions.

Jim Frazer - 04:10 That's an incredible journey of how you transitioned from biofuels to electric vehicles. Can you delve deeper into how you transformed this initial spark of an idea into OBE Power?

Alejandro Burgana - 04:23 Certainly. It took a few years to refine the concept. We initially operated as charging station dealers, partnering with prominent industry players, albeit before electric vehicles gained widespread adoption. Our efforts generated interest from those curious about the future of transportation. However, selling charging stations alone proved insufficient as a sustainable business model. Realizing this, we revisited our approach. Recognizing the electric vehicle market's steady growth—penetrating nearly 1% of new vehicle sales—we shifted our focus. Instead of emphasizing station sales, we aimed to deploy charging solutions as a service. This marked the birth of the electric vehicle charging-as-a-service concept. We started deploying charging stations in strategic locations, anticipating high demand and usage. Our vision was to invest in these properties, ensuring widespread availability of charging stations at no cost to users. Today, this approach stands as the fastest-growing solution in our domain, making us leaders in the charging-as-a-service sector.

Jim Frazer - 05:37 Wow, that's truly an inspiring evolution. Thank you for sharing that journey. Now, could you provide an overview of the electric vehicle charging landscape for those who may not be familiar? We've all heard of prominent names like Electrify America, Tesla, and ChargePoint, but what's the current status of charging station deployment and the overall business ecosystem in this domain?

Alejandro Burgana - 06:13 Certainly. But before delving into the charging infrastructure, let's start with the cars themselves. Currently, there are approximately 2.5 million electric vehicles on the market, accounting for around 1% of the total number of cars in the United States...

[Note: I've revised the transcript for clarity, grammar, and punctuation. Let me know if you need any further adjustments.]

Alejandro Burgana - 06:13 ...about 250 million. However, considering new vehicle sales, the penetration rate has escalated from 0.5% and 1% to 6%. This signifies the current share of electric vehicles in newly sold vehicles. Projections indicate that this penetration rate will climb to a substantial 30% by 2030, the end of the current decade. With this in mind, envision the expansive growth potential. The forecasted number of electric vehicles by 2030 is approximately 30 million. To accommodate the charging needs of this fleet, the requirement amounts to around one charger for every five to seven electric vehicles. This implies the necessity for roughly 5 to 6 million public chargers across the country. Now, turning to your specific inquiry about the charging industry's current state, the US currently possesses about 120,000 public charging ports. While some may think that charging stations are sparse, they are often looking at high-profile locations. Yet, surprisingly, this figure aligns with the number of gas stations in the US, also at 120,000. The distinction lies in their locations; EV charging stations are situated in residential communities, parking lots, condominiums, workplaces, shopping malls, universities, hospitals, stadiums, and more. The shift signifies a change in mentality, as vehicles are now conveniently charged where they are parked, addressing the 80% of a car's life spent stationary.

Jim Frazer - 08:43 I see. So, what are the challenges then in facilitating this growth? We're in a period where electric vehicles are currently at 6% of new vehicle purchases, and this is projected to expand. What obstacles are hindering the deployment of public charging stations? Also, for those who are considering entering this market as charging station providers, how can they determine whether a location is suitable and profitable?

Alejandro Burgana - 09:26 Indeed, we've devised a comprehensive algorithm that aids in identifying optimal locations and determining the ideal number of charging points for each site. This algorithm constitutes the underlying foundation of building a scalable and sustainable business around charging activities. Naturally, we've refined this algorithm through a process of trial and error over the years. Going back five or six years, we encountered situations of over-deployment, placing more charging points than necessary at certain locations. Conversely, we also experimented with deploying stations at specific sites, only to find minimal utilization. These trials and errors have contributed to shaping our approach and understanding of charging behavior and patterns. By continuously analyzing utilization data, we glean insights into preferred locations and actual charging patterns.

Jim Frazer - 10:44 It sounds like the process of fine-tuning your charging station deployment strategy has involved both learning from mistakes and adapting to changing charging behavior and patterns.

Jim Frazer - 11:06 Absolutely, understanding the distinction between DC fast chargers and Level 2 chargers is essential. Often, there's a misconception that faster equates to better, but that's not always the case. DC fast charging rapidly brings a vehicle's battery to around 80% capacity in just minutes, akin to refueling a gasoline tank. However, relying on DC fast charging for everyday use isn't advisable. These fast chargers are suitable when traveling between cities or on road trips, covering substantial distances. For regular daily charging, Level 2 chargers are sufficient, requiring around two to three hours to replenish the battery. This might seem lengthy to someone unfamiliar with electric vehicle charging, but in reality, this process occurs seamlessly during your day-to-day activities while the vehicle is parked.

Jim Frazer - 12:46 Your current focus seems to be on passenger vehicle charging, particularly in dense urban areas. However, do you also engage with fleet charging solutions?

Alejandro Burgana - 13:01 Indeed, we initially started with passenger vehicles and continue to emphasize that aspect, particularly in densely populated urban settings. Nevertheless, we've expanded our scope to collaborate with municipalities, including Florida's largest municipality, as well as the city of Fort Worth, Texas. Furthermore, we anticipate partnering with municipalities in Georgia and other regions in the coming weeks. In these collaborations, municipalities and corporations alike are transitioning their fleets to electric vehicles, which presents us with a unique opportunity to provide solutions for fleet charging. This opens up an entirely new avenue and industry for us. Fleet charging necessitates specialized tools, reporting mechanisms, and conveniences tailored to fleet managers' requirements. For instance, we can offer a mileage-based solution rather than energy cost-based charging, which is incredibly appealing to fleet managers. This approach allows them to more accurately budget and predict fueling costs based on vehicle mileage. It's a game-changing solution that empowers fleet managers to efficiently control their budgets and enhance fleet operations.

Jim Frazer - 14:46 Indeed, offering mileage-based charging solutions to fleet managers can significantly streamline their budgeting processes and enhance their overall operational efficiency.

Jim Frazer - 15:31 Indeed, initially, one might assume that charging a fleet of school buses simultaneously requires a substantial increase in installed capacity. However, when you analyze factors such as battery capacity, daily routes, and energy consumption per mile, a different perspective emerges. School buses, for example, typically don't require charging every night. Their route analysis reveals that they may need to charge only a couple of times a week. Consequently, the need for total installed capacity reduces from 100% to around 20% of the fleet's capacity. Furthermore, school buses can serve as mobile power storage units. During downtime or between morning and afternoon shifts, these buses can return excess energy to the grid, thereby minimizing energy costs, stabilizing electric rates, and contributing to grid stability.

Jim Frazer - 17:46 Indeed, this is a promising avenue. My next question was about vehicle-to-grid (V2G) communication. How far are we from a scenario where I can buy power at an OBE Power charger during the afternoon and then sell the excess power through your network when parked downtown?

Alejandro Burgana - 18:21 Great news – we're already actively developing this solution for drivers. The technology is available, but there are several barriers to its widespread adoption. First, vehicles must be fully capable of Vehicle-to-Grid (V2G) interactions. Some manufacturers like Lucid, Ford, Nissan, and others are ready for it, while Tesla's plans for bi-directional capabilities are still to be announced. Alongside capable vehicles, deploying bi-directional chargers is essential, allowing cars to charge during certain hours and return energy back to the grid during peak demand times. Additionally, a legal and industry framework must exist to facilitate the utility's bulk purchase of power from charging companies. We're actively working towards these goals and are enthusiastic about the progress.

Alejandro Burgana - 20:11 Indeed, we're actively developing this solution and anticipate being ready to implement it within the next two to three years. The exciting aspect is that drivers will have the opportunity to trade energy and offset a portion of their fueling costs. For instance, you could charge your EV in the morning at around 30 cents per kilowatt-hour and then sell a portion of the stored energy in your battery during the evening at a higher rate, such as 40, 45, or even 50 cents per kilowatt-hour. By doing so, you're effectively profiting from the excess energy stored in your vehicle's battery, thus reducing your overall fueling expenses. This convenient process will be facilitated through the OBE Power app on your smartphone.

Jim Frazer - 20:46 That's fascinating. One potential concern could be the impact of frequent discharging cycles on the battery's lifespan. Manufacturers often specify a limit on discharge cycles before warranty issues arise. Is this a valid concern for V2G systems?

Alejandro Burgana - 21:47 Absolutely, the concept of excess energy specifically addresses this concern. By excess energy, we refer to the surplus energy in your battery that's not required for your daily activities. For example, if you need 40% of your battery to fulfill your daily tasks, the remaining 50 or 60% constitutes the excess energy. This portion is what you can trade, and it's entirely optional. The idea isn't to drain your battery from 100% to 0%, as that would indeed accelerate battery degradation. With this approach, the longevity of your battery remains a top priority.

Jim Frazer - 22:28 Indeed, it's interesting to see how these technological advancements align. I recently conducted a market research study at ARC on advanced metering infrastructure. AMI 2.0 electric meters are evolving to include second and third metering chips. One chip connects to your EV charger, another to your PV rooftop solar energy generation system, alongside the primary energy consumption meter. This convergence of technology within smart meters reflects the expanding landscape of energy management and trading.

Jim Frazer - 23:35 Currently, I believe I manage all of that with a single meter that handles bidirectional energy flow. Nevertheless, I'd certainly appreciate having more data and insights into energy generation, storage, and consumption within my home.

Jim Frazer - 24:53 Indeed, the potential of smart technologies to collect data and make informed decisions for implementing new solutions is fascinating. These advancements not only enhance our quality of life but also contribute to reducing energy costs and improving our overall standard of living.

Jim Frazer - 25:15 Regarding OBE Power, do you have a preferred EV charger that you deploy, or do you focus on deploying the best-of-breed chargers depending on the location?

Alejandro Burgana - 25:33 We collaborate with best-in-class charger brands from various manufacturers and maintain partnership agreements with industry leaders. Our selection criteria include factors such as durability, reliability, established performance over the years, and resilience to environmental challenges like hurricanes. We prioritize companies that offer excellent customer support, logistics, and comprehensive partnership development. Although there are numerous brands available, some of which are unfamiliar to us, the key is to work with established brands that ensure proper maintenance and deployment. The negative experiences users encounter, such as broken or poorly maintained chargers, often stem from specific charger brands or charging networks that fail to uphold adequate standards. As OBE Power adopts the charging-as-a-service model, our revenue stream relies on users accessing and using our stations. Hence, we must deploy smart, appropriate charging equipment and the optimal number of charging stations to efficiently serve the public's needs.

Alejandro Burgana - 28:43 Exactly, it's not just the charging technology itself, but the entire ecosystem that surrounds it. We've established partnerships with leading charging networks like ChargePoint through a roaming agreement, allowing users of the OB Power app to locate and activate charging stations across the US and Canada. This expanded coverage ensures that users can seamlessly charge their EVs even when traveling beyond their home states, providing a comprehensive and convenient experience. Our goal is to offer not only the charging technology but also the support, maintenance, and user-friendly app interface that fosters a positive experience for drivers. This approach encourages continued usage, recommendations, and network expansion.

Jim Frazer - 30:29 Absolutely, and it's evident that as technology advances, the expectation for simplicity and user-friendliness grows. The analogy with smartphones is apt – the iPhone or similar devices are designed to be intuitive and user-centric. Similarly, charging stations need to be easily activated via a smart app, plugged into the vehicle, and left to do their job with minimal interaction from the user.

Alejandro Burgana - 31:11 Precisely, and the comparison to smartphones highlights another crucial factor. While you're the sole owner and user of your smartphone, public charging stations are shared resources, and their usage can vary from careful to less considerate. Ensuring the reliability and durability of charging stations becomes paramount in public settings. This includes features like cable retracting systems, cloud connectivity, comprehensive sensors, remote diagnostics, and proactive maintenance measures. By having these elements in place, we can address potential issues remotely and dispatch technicians when required, all before customers experience any inconvenience. This approach has proven to be a major differentiator for our charging network compared to others.

Jim Frazer - 32:23 Absolutely, I can relate to that. It's similar to the challenge of having multiple parking applications on your phone. The lack of a common standard for charging plugs, especially for DC fast charging, has been a barrier in the industry. In Europe, the CCS (Combo) plug is widely adopted for DC fast charging, while the US has had a mix of plugs and standards, including Tesla's proprietary plug design.

Alejandro Burgana - 33:19 You're absolutely right. The recent developments with Ford and General Motors embracing the Tesla-designed plug is a significant and beneficial change in the industry. In Europe, the CCS (Combo) plug has become the standard for DC fast charging, and most non-Tesla EVs use this plug. This standardization has made charging more accessible and user-friendly.

Alejandro Burgana - 33:51 However, in the US, the situation has been more complex. Tesla vehicles use their proprietary charging plug, and other EV manufacturers have used various plugs and protocols. This variety of plugs and standards has created confusion for users and has been a hindrance to the adoption of electric vehicles.

Alejandro Burgana - 34:11 The adoption of a common plug standard, as Ford and General Motors are now doing, will be a game-changer for the industry. This common plug, often referred to as the "Tesla plug" or "Tesla connector," will create a unified charging experience for all EV drivers. It will allow EV drivers to charge at any charging station using the same plug, regardless of their vehicle's make or model.

Alejandro Burgana - 34:32 This shift towards a common plug standard will remove a significant barrier to EV adoption, as users will no longer need to worry about compatibility issues or finding the right charging station for their vehicle. It will also make it easier for charging networks to expand and grow, as they can focus on deploying charging stations with a standardized plug, rather than accommodating various plugs and adapters.

Alejandro Burgana - 34:53 For OB Power, this development is highly beneficial. Our focus is on Level Two charging at high-density urban locations where people live, work, play, and learn. The majority of daily charging activity occurs in these locations, and having a standardized plug will simplify the charging experience for our users. It will encourage more people to adopt electric vehicles and use our charging network with confidence.

Alejandro Burgana - 38:10 We typically target locations with more than 300 parking spaces to begin with. For such locations, we start by electrifying around 2% of the total parking spaces and installing charging stations. This is usually sufficient to accommodate the charging needs of more than 20 to 25 electric vehicles that regularly park and visit that particular property.

Jim Frazer - 38:33 So, in terms of customer size, you're looking at properties with a significant number of parking spaces, and you're focusing on providing a charging infrastructure that can meet the needs of a fraction of the EVs that frequent the location.

Alejandro Burgana - 39:29 Exactly. It's important to note that not all parked vehicles will be charging every day, so the number of chargers needed is typically lower than the total number of EVs present at the property. By providing a sufficient number of charging stations, those who do need to charge can find available stations when they need them, which might be around twice a week on average.

Jim Frazer - 39:46 Are we still at the beginning of building out these charging networks, or have most properties with 300 or more parking spaces already adopted this infrastructure?

Alejandro Burgana - 39:46 We are currently in the second phase of what we call "organic growth." Some of the locations where we deployed charging stations three to four years ago have already reached a certain level of utilization and are now asking for more stations. Typically, after we deploy charging stations, the number of electric vehicles at the location doubles within a year, and then it doubles again in the following year. As a result, we continuously add more charging stations to existing locations to accommodate the growing number of EVs.

Alejandro Burgana - 40:48 That's a portion of it. And then, of course, continue conquering and finding new locations that qualify and meet all the criteria for new deployments.

Jim Frazer - 40:56 So the criteria is 300 spaces. Are there other criteria in terms of turnover of cars in the parking lot, or does it matter to you if it's long-term parking at the airport or if it's a gas station?

Alejandro Burgana - 41:18 Funny enough, we don't go after gas stations. We've received multiple proposals and ideas to deploy chargers at gas stations, but we believe that considering how long it takes to charge right now, both with level two (2-3 hours) and even with DC fast charging (15-20 minutes), no one wants to leave their vehicle at a gas station. People would prefer to go to a shopping mall, plug in, and do something else while their car charges. We prioritize locations where the dwell time is over an hour, and that are frequented by visitors, residents, or regular patrons. Our goal is to provide convenient charging solutions that allow people to do other activities while their EVs charge.

Jim Frazer - 42:45 So, looking into the future, what do you see?

Alejandro Burgana - 42:53 I see significant growth in the industry, with projections indicating it will expand more than 30 times by 2030. However, with this growth comes increased competition as more companies enter the market. To maintain our advantage, we must continue improving our deployment process, enhancing partnerships with technology providers, and exceeding customer needs. Ultimately, our aim is to accelerate EV adoption, making it a pleasure for users to switch to electric vehicles. We want people to wonder why they waited so long to make the switch, enjoying the cleaner, cheaper, and more convenient experience of EV ownership. Our focus is on reducing the carbon footprint from transportation, contributing to a cleaner environment, and addressing the challenges of global warming.

Jim Frazer - 44:34 Wow, that was great. We only have a few minutes left. So is there anything that you haven't mentioned that our audience should be aware of?

Alejandro Burgana - 44:45 Certainly, I'd like to start by saying that despite the current 6% EV penetration, 94% of people are still buying traditional vehicles. I encourage everyone to consider the conveniences we've discussed in this conversation, not only for environmental benefits but also for the simplicity, cost-effectiveness, and overall improved quality of life that comes with driving electric. Some individuals might think that they're not ready to fully commit and might consider a plug-in hybrid. However, this isn't the ideal solution as it involves two separate technologies, gasoline and electric, which can lead to maintenance and repair complexities. Electric vehicles now offer an average range of over 250 miles per charge, with some premium models reaching up to 400 miles per charge. This range is sufficient for daily commutes and longer trips, allowing for seamless travel experiences. There are also myths to dispel, such as the notion that electric vehicles are expensive. While this might have been true five years ago, it's no longer the case. Decent electric vehicles with over 250 miles of range are available for around $35,000, with additional incentives like the federal $7,500 rebate for those earning under $300,000 per year. Car manufacturers also offer extra incentives, such as free charging for a couple of years on various networks. Moreover, driving an electric vehicle often comes with perks like using HOV lanes toll-free. I invite everyone listening to consider adopting electric vehicle technologies for a cleaner and more sustainable future.

Jim Frazer - 47:45 Wow, Alejandro, I want to thank you for joining us today. But before we go, could you please share your contact information so that our listeners can connect with you?

Alejandro Burgana - 47:58 Certainly. Our company name is "OBE Power," and our website is obe-power.com. You can also find us on social media platforms like Facebook and Instagram with the handle "obepowered." If you need to reach us, you can send an email to sales@obe-power.com for general inquiries or support@obe-power.com if you encounter any issues with a charging station's performance.

Jim Frazer - 48:39 Absolutely. Well, Alejandro, we're grateful for your time today, and we're delighted to have had you as a guest on the show. We encourage all our listeners to reach out to us and explore the possibility of bringing OBE Power's charging solutions to their communities and workplaces. It's been a pleasure speaking with you today.

Alejandro Burgana - 48:54 Thank you, Jim. It's always a pleasure.

Jim Frazer - 48:56 You too. Have a great day. Take care.