Friday, May 3, 2013

Uncle Sam's Awesome Energy Innovations


May 3, 2013, 8:01 a.m. EDT

Awesome energy innovations, courtesy of Uncle Sam

Commentary: ARPA-E helps pave the way to a post-carbon future

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By Rex Nutting, MarketWatch
WASHINGTON (MarketWatch) — Someplace in America, some very smart scientists are busy revolutionizing our economy.
At least, that’s what a small federal agency — ARPA-E (the Advanced Energy Projects Agency-Energy) — hopes to accomplish by giving a few million dollars to each of hundreds of promising technologies that could change the way the world produces and consumes energy.
Some of these researchers are rushing to invent, perfect and commercialize the technologies that could one day replace petroleum and other fossil-fuels as the world’s dominant energy source.
The hope is that these new technologies could allow us to dramatically cut the emissions of carbon dioxide and other greenhouse gases without hurting economic growth. Indeed, energy costs could be much lower and less volatile. The right mix of technologies could make any country or region entirely energy self-sufficient.

ARPA-E
A team from the University of Florida is working on bioengineering pine trees to produce more turpentine. Ultimately, these trees could be tapped like sugar maples to provide biofuels.
While these researchers are reinventing energy technology, ARPA-E is reinventing the way the government funds research and development.
Rather than give billions of dollars to one laboratory or one company to develop one technology, as most government programs do, ARPA-E is giving small amounts to hundreds of labs to investigate promising transformative energy technologies.
ARPA-E doesn’t fund basic research that may or may not have any practical applications; it requires its grantees to think like entrepreneurs, to think about how to commercialize their idea.
ARPA-E is almost like a venture capital firm, nurturing many ideas in the hope that one of them will be The Next Big Thing. But ARPA-E isn’t a VC firm; it doesn’t provide all the financing needed to bring a product to market, only the seed money to prove the technology enough to attract private venture capital.
The ARPA-E incubator is already showing some successes: So far, 17 of its projects have attracted follow-up funding from the private sector totaling $450 million. Twelve other projects have started new companies, and 10 more are receiving additional funds from other government agencies.

Electric avenues

So far, the biggest success stories have come from projects working on building better batteries and on bioengineering projects to invent plants and microorganisms that can directly produce usable liquid fuels.
Both of these areas are designed to wean the transportation sector off petroleum. More than a fourth of the energy — and 90% of the petroleum — consumed in the United States is used for transportation. Cutting the petroleum bill in half — or all the way — would improve national security and reduce our massive current account deficit.

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Envia Systems, for example, got a $4 million grant from ARPA-E to develop a long-range lithium-ion battery for electric cars. Envia says it has been able to triple the amount of energy stored in a battery, at half the cost of currently available batteries.
In the same vein, Sion Power used its $5 million ARPA-E grant to develop a long-range lithium-sulphur battery, which could provide even greater range and cost savings.
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If Envia, Sion and other researchers are successful in making batteries stronger, cheaper and lighter, electric vehicles will soon be competitive with gasoline-powered cars in terms of performance and price. General Motors GM +2.25% , which has invested in Envia, announced last week that its next-generation Chevy Volt will be profitable because of the advancements in battery technologies.
ARPA-E has also funded several research projects that could lead to widespread adoption of natural-gas-fueled cars. There is also research into a dozen different areas, ranging from smart grid technologies to solar and wind technologies.

Electrofuel power

But the really exciting research is happening in biology, where 13 different research teams are trying to invent new life forms that would produce what are known as electrofuels, in which genetically engineered microorganisms convert electrical energy into usable fuels. Ten other projects are working on developing plants (including pine trees, tobacco and sorghum) that would directly produce fuel.
Current biofuels programs use inefficient photosynthesis to convert energy into plant matter (such as corn or cane sugar), which must then be processed further to make something useful, such as ethanol. Biofuels aren’t particularly green, and they can compete directly with crops grown for food.
By contrast, electrofuels are produced directly by the organisms, using simple inputs such as sunlight, water and carbon dioxide. This means that electrofuels can be carbon-neutral. These organisms could even help scrub carbon dioxide out of the air.
Several projects (including OPX Biotechnologies and Ginkgo Bioworks) have proven the concept in the lab; what’s left to do is to prove that these processes can be scaled up to industrial strength at a competitive price.
The challenge to the researchers is not just to invent something cool, but to be at least as good if not better than the old alternative technologies.
The whole point of the ARPA-E process is to create new products that don’t require continuous subsidies from the government. After a brief assist from ARPA-E, they have to make it on their own.
The agency has broad support from the research community, industry and policy wonks on both sides of the aisle in Washington. Republican Sens. Lisa Murkowski of Alaska and Lamar Alexander of Tennessee are big supporters.
President Barack Obama has requested $379 million for APRA-E for fiscal 2014. It got $277 million in 2013. That’s a tiny portion of the $3.8 trillion federal budget. It could be the biggest bang for the buck in Washington.
Rex Nutting is a columnist and MarketWatch's international commentary editor, based in Washington. Follow him on Twitter @RexNutting.
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Awesome energy innovations, courtesy of Uncle Sam

Someplace in America, some very smart scientists are busy revolutionizing our economy and the way it uses energy, writes Rex Nutting. And Uncle Sam is actually helping.
 
 

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