Austin-based KLD Energy looks to make mark on electric propulsion market
ByAustin Kurth
AMERICAN-STATESMAN STAFF
Published: 6:07 p.m. Sunday, Dec. 11, 2011
When Christian Okonsky founded KLD Energy Technologies Inc. in 2007, his vision for the Austin-based company was to see its electric propulsion systems used around the world.
Little more than four years later, you can find KLD Energy's electric engines powering two-wheeled bikes through the streets of cities in China, Malaysia and other Asian countries.
While there are numerous applications for KLD Energy's products, the two-wheeled bike market is driving the company's growth right now, Okonsky said.
The use of electric motorcycles and electric scooters in the Asia-Pacific market is expected to increase dramatically in the next five years, potentially reaching 22 million by 2017, according to a report by industry research company Pike Research.
The affordability of these vehicles — combined with a ban on combustion engine two-wheeled vehicles in 90 cities across China — have made them a promising market for KLD, company officials say.
"We are focused on the two-wheeled bike market because there is more opportunity for growth," Okonsky said.
The company has 50 employees, most of whom work at one of their two facilities in Austin. KLD declined to provide revenue figures, but it has raised more than $25 million in capital investment since 2007.
Generally speaking, an electric, two-wheeled vehicle is more expensive upfront, but it costs less over the life of the vehicle, Okonsky said. Gas will run the consumer almost $2,000 a year versus $700 a year in higher electricity costs, he said.
In Malaysia, KLD estimates that a new manufacturing deal will mean that 40,000 vehicles using the company's technology will hit the market next year.
Despite its focus on electric scooters and motorcycles, KLD is first and foremost a technology company, Okonsky said.
It is not unusual for companies to purchase products from various sources and integrate them into a single unit, but Julian Partridge, vice president of technology integration at KLD, said the company has moved that concept forward with its complete system design of a battery, controller and motor. That allows the engineers at KLD to better optimize the performance of the vehicles, Partridge said.
"The electric motor has been improved upon incrementally over the years, but what we have done is completely redesign it," Partridge said.
One of KLD's key innovations, company officials said, is its battery, which resembles a shoebox filled with cells that look like larger versions of AA batteries.
If one of the cells within the battery were to fail, the bike would run at a reduced rate until the single cell could be inexpensively replaced.
By contrast, a standard car battery would cease working at the failure of a single cell and cost more to replace.
With its array of products and potential applications, Okonsky said KLD is "focused on energy for the next generation" as it aims to move from startup to industry leader.
"In five years it's my goal to leave a meeting in New York City on an elevator using one of our systems, to get in a cab that says 'powered by KLD,' that takes me to a KLD factory," Okonsky said.
akurth@statesman.com; 445-3766