Business Traveler magazine
June 2008

The future starts here

"Sweden can become world class in terms of cleantech," says Åke Åredal, CEO and founder of SkyCab. Since the 90s, he has developed, calculated and informed about the climate-smart personal rapid transit solution.

Now in 2008, it is going global and investors have eyes for his ideas.

SkyCab is experiencing a strong tailwind in Sweden and internationally. The company is driving different projects through a wide network, with founder and Chief Executive Åke Åredal the spider in the web. "We have received enormous attention recently and have become top in a number of prestigious lists," he told Business Traveler.

The World Fund for Nature, WWF, wants the Government to spend four billion a year on development of cleantech. WWF has selected SkyCab as one of twelve climate entrepreneurs which could be developed for export, and Swedish Enterprise lists the company as one of 20 that might help improve the environment. Energy experts see SkyCab as an option to more easily meet Kyoto, and Power Circle, the electricity industry association, has also shown its support for the company.

Despite extensive technical evidence, estimates and market analysis, SkyCab is still a vision. But not much longer. The people of Hofors look forward to becoming the guinea pigs for the first real SkyCab network no earlier than 2012, which will deliver people between the train station and various hubs in the central area.

"There will be a sample track, a center for PRT, and a system in Hofors," says Åredal, who is finally able to see the project take concrete form.

In the longer term, he sees SkyCab as a Swedish green export industry. For ten years these ideas were dismissed as science fiction, but now the wind is blowing more favourably for SkyCab and other cleantech companies. In particular if they are Swedish. Michael Wood, U.S. Ambassador to Sweden as well as George W. Bush's childhood friend, sees as his major task to locate Swedish green innovators and introduce them to American venture capital. SkyCab is one of currently 48 companies on the ambassador's list.

"Sweden is good at innovation, but worse in daring to invest in them. The whole world is crying out for Environmental Technologies -- both India and China show interest, but we do need more powerful funders," says Åredal.

The idea of SkyCab was born in the 90s when an architect gave Åredal, who has a doctorate in Business Administration, the task of taking up a transport solution to a theme park on the Mediterranean.

"It would be best to have smaller unmanned carriages above the ground so that the tracks did not take so much space. The concept of PRT was unfamiliar, and despite that fact that I invited proposals from all leading suppliers in the world, I didn't find a fit."

"Then, I contacted Nutek ("Business Development" -Ed.) which, after a study made it clear to me, that it would take a minimum of ten years starting from scratch. I just laughed then, but Nutek turned out to be quite right," says Åredal.

He could not drop the idea of personal rapid transit, and today he has, with the help of a large network, refined its automation and environmentally sensitive transportation vision. Push a button, no waiting, boarding a driverless cabin, and quiet, electric-powered travel, direct to the desired destination.

Before an initial track in Hofors, Banverket has paid most of the bill, but the project has also received funds from the EU infrastructure fund, Gävleborg County, and City of Hofors.

Why did you choose an initial project in just Hofors?

"The area has four distinct seasons where we can test in snow, ice and wet leaves. It is a moderately large community for the purpose and the business climate is good. It welcomes change and has historically shown to be useful in innovative technologies -- for example, tests one hundred years ago in Hofors included a steam-driven railcar."

"SkyCab uses electricity and draws a quarter as much energy per passenger compared with a car, or half compared with a bus. Accomplishments made with universities and other institutions are long -- economic estimates, design, proposals on technical solutions, and, not least, a thorough needs analysis."

"This is how we want to travel. We have interviewed lots of people and charted different demands, needs and wishes. We have had help from disabled people to to create a product adapted to different types of disabilities, and even asked young people how they would vandalize our driverless vehicles, so that we can prevent vandalism," says Åredal.

Each SkyCab-compartment has room for four persons plus pram, wheelchair or baggage. The right vehicle capacity eliminated both waiting, schedules and detours, as SkyCab goes directly to the destination without stopping along the way. The passenger sets his or her own itinerary with a push of a button.

"By traveling silently at treetop level, the immediate area can be seen from a completely different perspective. In addition, we have great socioeconomic and environmental benefits. SkyCab phases out fossil fuels and carbon dioxide transport."

With industry players, public transport has the opportunity to double with the right projects. Åke Åredal explains the advantages of automated transit compared to traditional service.

"The public transportation we have today is a product with a traditionally male way of thinking -- from point A to point B as quickly as possible. Women more frequently look to travel as a network process. Drop off at kindergarten, go to work, lunch in town, back to work, shop, pick up at kindergarten, and home again."

It is not just the infrastructure that obeys convention and tradition. Åke Åredal has repeatedly had to prove that he is serious about his idea. "SkyCab goes on rubber tires, so that is for the Road Administration, says Swedish Rail. SkyCab goes on separate tracks, so it is for Swedish Rail, says the Road Administration.

In the end Swedish Rail was given the responsibility for PRT, and ordered research and development. Among other things, SkyCab also got the means in Hofors to build Sweden's first testing ground for PRT, which showed principles, volumes, security and design visions. SkyCab participated in SymbioCity, the government's sustainable cities initiative, and in February of this year was with Environment Minister Andreas Carlgren at the launch in India.

"The world needs new ways to plan and build cities in integrated collaboration. Today, we're taking the system know-how of Sweden and possible synergies in the construction of the new," says Åredal.

By EMMA GUSTAFSSON