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Winning the Clean Energy
    Innovation Race


     ARPA-E Energy Innovation Summit
                 National Harbor, MD
                       1 March, 2011
Price of oil will go up in the coming decades
           Oil prices: 1996 - 2011

$140                                                          Here?


$100                                        Price
                                            today              Here?



                                                               Here?
$20
                                                    In 2015 or 2020, what
                                                    will be the price of oil?
   1996                              2010




                                                                                2
$400 B flows out of
              the U.S. to import
                   energy.

               There will also be
            tremendous increase
              in the demand for
                 accessible and
                affordable clean
Oil trade            energy.



                               3
Our National Security is dependent on our Energy Security
   Energy created at home is wealth creation at home.



                             Wayne Gretzky: “I skate to
                             where the puck is going to
                              be, not where it’s been.”

                                 … and so should
                                    America.



                                                        4
We must decrease our dependency on oil


Increasing
fuel efficiency




Electrification
of vehicles



  Bio-
 fuels
We are in a race to develop the clean energy
   technologies the world will demand.


 China, EU countries and others recognize
   the economic opportunities and are
              investing big.



                                            6
Top Countries in Clean Energy Investment
             Clean Energy Investment as a Percentage of GDP




Source : Third Way Dec. “Creating a Clean Energy Century” (2010), and
“Who’s Winning the Clean Energy Race? Growth, Competition and Opportunity in the
World’s Largest Economies,” Report, The Pew Charitable Trusts.                     7
Other evidence of the Chinese innovation challenge
• China has installed the highest voltage and capacity, lowest loss
HVDC (800kV) and HVAC (1,000 kV) lines, and plans an integrated
HVDC/HVAC backbone.

• Broken ground on ~ 25 nuclear reactors out of more than 60 world-
wide.

• Just surpassed the U.S. with the fastest super-computer in the world.

• Holds the record for the highest speed rail in the world (with 220 mph
operational speed). 5612 miles of new high-speed rail is now under
construction. (Japan - 1524 miles; France - 1163, U.S. – 0)

• China will achieve 18% (and may reach 20%) renewable energy by
2020 according to Zhang Xiaoqiang, vice-chairman of China's National
Development and Reform Commission.

                                                                          8
We are losing our high-tech manufacturing base
             Percentage of global high-tech exports
30.00
25.00
20.00
15.00                                                 United States
                                                      EU
10.00
                                                      China
 5.00
 0.00
         1995
         1996
         1997
         1998
         1999
         2000
         2001
         2002
         2003
         2004
         2005
         2006
         2007
         2008
                                                              9
 NSF Science and Engineering Indicators 2010
China
ASSET FINANCING:                   U.S.


Typically used to install clean
energy equipment and
generating capacity. It is an
indicator of clean energy
deployment and the creation of
new jobs.


                                  China
PUBLIC MARKET FINANCING:           U.S.

Sale of stocks enables
companies to raise capital for
expansion and growth.



                                          10
Profile of Venture Capital funding
There was a significant influx of
venture capital in                      U.S.
                                        Brazil
Next-generation biofuels
Solar energy
Energy efficiency
Smart grid technologies
                                        China
 In response to the financial crisis,
venture capitalists retreated from
new companies and concentrated
instead on well established
entities.




                                                      11
We are in a race to develop the clean energy
   technologies the world will demand.

 China, EU countries and others recognize
   the economic opportunities and are
              investing big.

        What about the U.S.?


                                          12
To create jobs, strengthen security and win
the clean energy race, we need long range
 policies and a sustained commitment to
      supporting energy innovation.

 President Obama is committed to making
  America the world’s innovation leader.



                                          13
Investing in Scientific R&D to Unleash Energy
                      Innovation

                                “Even as we cut out things that
                                we can afford to do without, we
                                have a responsibility to invest
                                in those areas that will have the
                                biggest impact in our future…”

                                -- President Obama, 2/14/11

Touring Penn State University
Engineering Labs to discuss
                                To promote economic
energy innovation, 2/3/11       competitiveness, the President’s
                                budget makes critical
                                investments in science and
                                clean energy R&D.
                                                               14
The sun and wind are domestic sources of energy … but can the
                ,
cost of clean energy (LOCE) be competitive with fossil energy?




                                                            15
            Source: NAS/NAE America’s Energy Future, 2010
Federal support of R&D is critical to economic
    competitiveness (Example: Advanced Batteries)
                     DOE-supported research led to the
                     development of the lithium-ion battery.

                     But technology leadership moved to Japan.


                                An intense x-ray source at Argonne
We’ve begun to reclaim
                                  was key to their breakthrough.
technological leadership.

Argonne National Lab
researchers have developed
a unique suite of cathode
materials to make lithium-ion
batteries cheaper, safer and
longer-lasting.
                                                                     16
Leadership in High-Performance Computing Leads to
    New Technology and Savings for Semi Trucks

                           BMI Corporation performed
                           aerodynamic simulations using a
                           DOE supercomputer to reduce
                           wind resistance on semi trucks.




By installing BMI’s
technology, the typical
big rig can achieve fuel
savings between 7 and
12 percent.


                                                         17
ARPA-E: Cutting-edge Research

 Nature has found a way to capture, transport and
    release CO2 without using excess energy.

                    A synthetic analogue of an enzyme
                    used by red blood cells to capture
                         CO2 in the human body




  A new approach to wind
turbines based on proven jet
       engine designs
                                                         18
ARPA-E Program: Building Energy Efficiency
Through Innovative Thermodevices (BEETIT)

Primary Energy Use
for Cooling (kJ/kg)
                              Today                        Future
    120 Today
                                                3X
        BEETIT
        Target &
        Competition
                           180 lb/ton-cooling        60 lb/ton-cooling
                                                     Georgia Tech,
    12 Theoretical Limit                             Georgia

                                                                     19
President’s Goal: Generating 80% of electricity from clean
                        sources by 2035
 “Clean energy breakthroughs will only translate into clean energy
 jobs if businesses know there will be a market for what they’re
 selling.” – President Obama
• Creates a guaranteed market
for clean energy. The most
competitive clean energy sources
will win in the market place.
• Gives companies investment
certainty.
• Creates market certainty
needed to create domestic
manufacturing supply lines.
• Creates demand certainty
known to simulate long-term grid
investments.
                                                                 20
America still has the opportunity to lead the
world in clean energy and capture the jobs of the
      21st century, but time is running out.

        The train is leaving the station.




                                            21
                                                    21
END




      22

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Arpa esummit030111finalfordistribution-110304135201-phpapp02 (1)

  • 1. Winning the Clean Energy Innovation Race ARPA-E Energy Innovation Summit National Harbor, MD 1 March, 2011
  • 2. Price of oil will go up in the coming decades Oil prices: 1996 - 2011 $140 Here? $100 Price today Here? Here? $20 In 2015 or 2020, what will be the price of oil? 1996 2010 2
  • 3. $400 B flows out of the U.S. to import energy. There will also be tremendous increase in the demand for accessible and affordable clean Oil trade energy. 3
  • 4. Our National Security is dependent on our Energy Security Energy created at home is wealth creation at home. Wayne Gretzky: “I skate to where the puck is going to be, not where it’s been.” … and so should America. 4
  • 5. We must decrease our dependency on oil Increasing fuel efficiency Electrification of vehicles Bio- fuels
  • 6. We are in a race to develop the clean energy technologies the world will demand. China, EU countries and others recognize the economic opportunities and are investing big. 6
  • 7. Top Countries in Clean Energy Investment Clean Energy Investment as a Percentage of GDP Source : Third Way Dec. “Creating a Clean Energy Century” (2010), and “Who’s Winning the Clean Energy Race? Growth, Competition and Opportunity in the World’s Largest Economies,” Report, The Pew Charitable Trusts. 7
  • 8. Other evidence of the Chinese innovation challenge • China has installed the highest voltage and capacity, lowest loss HVDC (800kV) and HVAC (1,000 kV) lines, and plans an integrated HVDC/HVAC backbone. • Broken ground on ~ 25 nuclear reactors out of more than 60 world- wide. • Just surpassed the U.S. with the fastest super-computer in the world. • Holds the record for the highest speed rail in the world (with 220 mph operational speed). 5612 miles of new high-speed rail is now under construction. (Japan - 1524 miles; France - 1163, U.S. – 0) • China will achieve 18% (and may reach 20%) renewable energy by 2020 according to Zhang Xiaoqiang, vice-chairman of China's National Development and Reform Commission. 8
  • 9. We are losing our high-tech manufacturing base Percentage of global high-tech exports 30.00 25.00 20.00 15.00 United States EU 10.00 China 5.00 0.00 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 9 NSF Science and Engineering Indicators 2010
  • 10. China ASSET FINANCING: U.S. Typically used to install clean energy equipment and generating capacity. It is an indicator of clean energy deployment and the creation of new jobs. China PUBLIC MARKET FINANCING: U.S. Sale of stocks enables companies to raise capital for expansion and growth. 10
  • 11. Profile of Venture Capital funding There was a significant influx of venture capital in U.S. Brazil Next-generation biofuels Solar energy Energy efficiency Smart grid technologies China In response to the financial crisis, venture capitalists retreated from new companies and concentrated instead on well established entities. 11
  • 12. We are in a race to develop the clean energy technologies the world will demand. China, EU countries and others recognize the economic opportunities and are investing big. What about the U.S.? 12
  • 13. To create jobs, strengthen security and win the clean energy race, we need long range policies and a sustained commitment to supporting energy innovation. President Obama is committed to making America the world’s innovation leader. 13
  • 14. Investing in Scientific R&D to Unleash Energy Innovation “Even as we cut out things that we can afford to do without, we have a responsibility to invest in those areas that will have the biggest impact in our future…” -- President Obama, 2/14/11 Touring Penn State University Engineering Labs to discuss To promote economic energy innovation, 2/3/11 competitiveness, the President’s budget makes critical investments in science and clean energy R&D. 14
  • 15. The sun and wind are domestic sources of energy … but can the , cost of clean energy (LOCE) be competitive with fossil energy? 15 Source: NAS/NAE America’s Energy Future, 2010
  • 16. Federal support of R&D is critical to economic competitiveness (Example: Advanced Batteries) DOE-supported research led to the development of the lithium-ion battery. But technology leadership moved to Japan. An intense x-ray source at Argonne We’ve begun to reclaim was key to their breakthrough. technological leadership. Argonne National Lab researchers have developed a unique suite of cathode materials to make lithium-ion batteries cheaper, safer and longer-lasting. 16
  • 17. Leadership in High-Performance Computing Leads to New Technology and Savings for Semi Trucks BMI Corporation performed aerodynamic simulations using a DOE supercomputer to reduce wind resistance on semi trucks. By installing BMI’s technology, the typical big rig can achieve fuel savings between 7 and 12 percent. 17
  • 18. ARPA-E: Cutting-edge Research Nature has found a way to capture, transport and release CO2 without using excess energy. A synthetic analogue of an enzyme used by red blood cells to capture CO2 in the human body A new approach to wind turbines based on proven jet engine designs 18
  • 19. ARPA-E Program: Building Energy Efficiency Through Innovative Thermodevices (BEETIT) Primary Energy Use for Cooling (kJ/kg) Today Future 120 Today 3X BEETIT Target & Competition 180 lb/ton-cooling 60 lb/ton-cooling Georgia Tech, 12 Theoretical Limit Georgia 19
  • 20. President’s Goal: Generating 80% of electricity from clean sources by 2035 “Clean energy breakthroughs will only translate into clean energy jobs if businesses know there will be a market for what they’re selling.” – President Obama • Creates a guaranteed market for clean energy. The most competitive clean energy sources will win in the market place. • Gives companies investment certainty. • Creates market certainty needed to create domestic manufacturing supply lines. • Creates demand certainty known to simulate long-term grid investments. 20
  • 21. America still has the opportunity to lead the world in clean energy and capture the jobs of the 21st century, but time is running out. The train is leaving the station. 21 21
  • 22. END 22