Accelerating Clean Energy Innovation in the United States

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by

June 30, 2016

www.mission-innovation.net www.energy.gov

MISSION INNOVATION

Overview of Mission Innovation

Dave Turk, Deputy Assistant Secretary for International Climate and Technology, U.S. Department of Energy

Context on the U.S. Energy System and Public Investment Priorities in Clean Energy Innovation

Joseph Hezir, Chief Financial Officer, U.S. Department of Energy

DOE-led Innovation Activities and Opportunities for Additional R&D

Franklin (Lynn) Orr, Under Secretary for Science and Energy, U.S. Department of Energy

Leveraging the Resources of the Clean Energy Investment Center and Office of Technology Transitions

Sanjiv Malhotra, Director of the Clean Energy Investment Center, U.S. Department of Energy

Question and Answer Session2

Agenda

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A Unique Moment in Time

All on One Stage – Leaders of 20 Countries Representing over 80% of Global Clean Energy R&D Investment Launched Mission Innovation

Each Country Will Seek to Double its Governmental Clean Energy R&D Investment over Next Five Years (www.mission-innovation.net)

Mission Innovation Launch was Complemented by Annoucement of Independent Breakthrough Energy Coalition (www.breakthroughenergycoalition.com)

Rationale

On Climate Change, Time is Running Out:

Atmospheric Concentrations of GHGs are Rising, with Substantial and Growing Impacts

Business as Usual Approach is Unacceptable

Current Solutions and Nationally Determined Contributions are Helping, but More Ambition Is Needed

The Pace of Innovation Remains Too Slow

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Power of Innovation:

Costs of Wind, Solar PV, Battery Costs, and LEDs Have Dropped Dramatically

More Innovative Ideas Are on Cusp of Realization, but Need a Boost to Market

Government and Private Investment Needed

Innovation Can Speed Solutions and Mitigate Climate Change Impacts for Long Haul

Source: Adapted from DOE, “Revolution…Now: The Future Arrives for Five Clean Energy

Technologies – 2015 Update,” http://www.energy.gov/eere/downloads/revolution-now-

future-arrives-five-clean-energy-technologies-2015-update

0

20

40

60

80

100

120

2008 2009 2010 2011 2012 2013 2014

Land-Based Wind

Distributed PV

Utility-Scale PV

Modeled Battery Costs

LEDs

Indexed Cost Reductions Since 2008

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Global Scope

Mission Innovation Countries Represent:

5 Most Populous Countries

60% of the World’s Population

68% of the Total Greenhouse Gas Emissions

82% of Global GDP

75% of the CO2 Emissions from Electricity

Well over 80% of Government Investment in Clean Energy R&D

UnitedStates

Canada

Mexico

Brazil

Chile

NorwaySwedenDenmark

Germany

ItalyFrance

United Kingdom

Saudi Arabia

United Arab Emirates

India

ChinaJapan

Republic of Korea

Indonesia

Australia

European Union

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Doubling Clean Energy R&D Investment

Inaugural Ministerial and Next Steps

Announcement of Clean Energy R&D Doubling Plans and Priorities

Addition of European Union as 21st Member

Governance and administration outlined in Enabling Framework

Compilation of technology roadmaps and meta analysis

Business and Investor Engagement Opportunities

See the summary video and full livestream video of the Ministerial

Beginning of webinar series…..more to come

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Mission Innovation

Joseph Hezir, Chief Financial Officer, U.S. Department of Energy

and

Franklin (Lynn) Orr, Under Secretary for Science and Energy, U.S. Department of Energy

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Scope of Mission Innovation forU.S. FY 17 President’s Budget Request

Clean energy technology is any process, product or system of products and processes, that can be applied at any stage of the energy cycle from production to consumption, whose application will reduce net greenhouse gas emissions, and can meet one or more of the following characteristics:

• reduced demand for water resources

• reduced waste

• reduced emissions of other air pollutants

• or reduced concentrations of contaminants in wastewater discharges.

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• Mission Innovation consists of early-stage clean energy elements of

existing programs that are research, development and demonstration

(RD&D) – not deployment

• FY 2016 U.S. government-wide baseline is $6.4 billion and, of this, the

U.S. Department of Energy (DOE) baseline is $4.8 billion (75%)

Example: US Innovation Pathways

DOE Mission Innovation FY17 Budget Request ($ millions)

FY 2016 FY 2017

President’s Budget Request

% Increase

TOTAL Mission

Innovation

% MI TOTAL Mission

Innovation

% MI TOTAL Mission

Innovation

EERE 2,073 1,406 67.8% 2,898 2,108 72.7% 39.8% 49.9%

OE 206 153 74.4% 262 177 67.5% 27.3% 15.5%

FE 632 533 84.3% 600 564 94.0% -5.1% 5.8%

NE 986 862 87.4% 994 804 80.9% 0.8% -6.7%

ARPA-E 291 291 100.0% 350 350 100.0% 20.3% 20.3%

SC 5,350 1,577 29.5% 5,572 1,853 33.3% 4.1% 17.5%

TOTAL 9,538 4,823 50.6% 10,676 5,857 54.9% 11.9% 21.4%

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Efficiency/Renewables

Advanced Projects

Science Office

Electricity Office

Fossil Energy

Nuclear Energy

Energy Frontier Research Centers

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• Over 100 participating institutions, located in 33 states plus the District of Columbia

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8

1

Lead Institution

University DOE Laboratory Non-Profit

• Advisors from 12 countries, 29 states

• $2-$4 million for year for five years

Energy Research Frontiers Centers

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CaliforniaLight-Material Interactions in Energy Conversion (LMI)Catalysis Center for Energy Innovation

District of ColumbiaEnergy Frontier Research in Extreme Environments

GeorgiaCenter for Understanding and Control of Acid Gas-induced Evolution of Materials for Energy (UNCAGE-ME)

IllinoisCenter for Electrochemical Energy Science Center for Geologic Storage of CO2(GSCO2)

IndianaCenter for Direct Catalytic Conversion of Biomass to Biofuels (C3Bio)

MarylandNanostructures for Electrical Energy Storage (NEES)

MassachusettsIntegrated Mesoscale Architectures for Sustainable Catalysis (IMASC)Center for Excitonics (CE)Solid-State Solar-Thermal Energy Conversion Center (S3TEC)

MinnesotaInorganometallic Catalyst Design Center (ICDC)

MissouriPhotosynthetic Antenna Research Center (PARC)

MontanaCenter for Biological Electron Transfer and Catalysis (BETCy)

New MexicoCenter for Advanced Solar Photophysics (CASP)

New YorkNorthEast Center for Chemical Energy Storage (NECCES)Center for Emergent Superconductivity (CES)Center for Mesoscale Transport Properties (m2m)

North CarolinaCenter for Solar Fuels (UNC)

PennsylvaniaCenter for Lignocellulose Structure and Formation (CLSF)Center for the Computational Design of Functional Layered Materials (CCDM)

TennesseeFluid Interface Reactions, Structures and Transport Center (FIRST)Energy Dissipation to Defect Evolution (EDDE)

TexasCenter for Frontiers of Subsurface Energy Security (CFSES)

WashingtonCenter for Molecular Electrocatalysis (CME)

Energy Frontier Research Centers - Accomplishments

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0

200

400

600

1 2 3 4 5 6 7

Program Year

EFRC Intellectual PropertyDisclosures

Patent Applications -USA

0

2000

4000

6000

8000

1 2 3 4 5 6 7

Program Year

EFRC Publications

0

20

40

60

80

100

1 2 3 4 5 6 7Program Year

Companies that have benefited from EFRCs

Large

Mid

Start-up

EFRC Contributions* to Companies

Science Applications

Low-Carbon Power

Energy Storage

Energy Efficiency

*Based on 2014 DOE Technology Transfer Report

Companies that Benefit from EFRC Research

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15

Energy Innovation Hubs

Energy Innovation HubsFY 2016

Enacted

FY 2017

Request

EERE: Critical Materials Institute (AMES) 25 20

Explores ways to address challenges in critical materials, including mineral processing, manufacture, substitution, efficient use, and end-of-life recycling.

EERE: Energy-Water Nexus Desalination Hub (TBD) 0 25

Will serve as a center of research focused on developing integrated technological system solutions and enabling technologies for de-energizing, de-carbonizing, and reducing the cost of desalination to provide clean and safe water.

NE: Modeling and Simulation of Nuclear Reactors (ORNL) 24 24

Creates a "virtual" version of an existing operating Pressurized Water Reactor, a modeling and simulation tool known as the Virtual Environment for Reactors Analysis (VERA) that is being used to create a better understanding of performance and safety issues with these reactors.

SC: Batteries and Energy Storage Hub (ANL) 24 24

Focuses on discovery of new energy storage chemistries through the development of an atomic-level understanding of reaction pathways and development of universal design rules for electrolyte function.

SC: Fuels from Sunlight Hub (LBNL) 15 15

Creates critical transformative advances in the development of artificial photosynthetic systems for converting sunlight, water, and carbon dioxide into a range of commercially useful fuels.

Total, Energy Innovation Hubs 88 108

Dollars in Millions ($M)

Advanced Manufacturing Initiative

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.

• Oak Ridge Manufacturing Demonstration Facility• Critical Materials Hub• America Makes • Power America• Institute for Advanced Composites

GOAL

Reduce by 50% in 10 years the life-cycle energy consumption of manufactured goods by targeting the production and use of advanced

manufacturing technologies

• Develop and demonstrate new, energy-efficient processing and materials technologies at a scale adequate to prove their value to manufacturers and spur investment.

• Develop broadly applicable manufacturing processes that reduce energy intensity and improve production.

• Develop and demonstrate pervasive materials technologies, enabling improved products that use less energy throughout their lifecycles.

• Conduct technical assistance activities that promote use of advanced technologies and better energy management to capture U.S. competitive advantage.

• Focus on early stage technologies

• Potential for meaningful advancement from concept to laboratory-scale prototype with a modest investment over a defined time period

• $291 million budget in FY 2016, proposed to increase by 20% to $350 million in FY 2017

• U.S. National Academy of Sciences recommends a funding path to an annual budget of $1 billion

– At current funding levels, only 2% of applications for open solicitation are funded

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Advanced Research Projects Agency – Energy (ARPA-E) Unique Role to Complement DOE Applied Energy R&D

• 475 projects funded at $1.3 billion cumulative through 29 focused and open solicitations

• 206 projects completed

– 45 projects have attracted $1.25 billion in private sector follow-on funding

– 35 ARPA-E project teams have formed new companies

– 8 projects have led to commercial sales

– 60 projects have signed partnered with other government entities for further development

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ARPA-E Early Indicators of Success

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DOE Crosscutting R&D Initiatives

FY 2017 Crosscut Summary ($M)

FY 2016 Enacted

FY 2017 Request

FY 2017 vs FY 2016

Energy-Water Nexus 28 96 +68

Exascale Computing Initiative 253 285 +32

Grid Modernization 295 379 +83

Subsurface Science, Technology and Engineering RD&D

207 258 +51

Supercritical CO2 32 36 +4

Advanced Materials for Energy Innovation 48 113 +65

Total, Crosscut Summary +864 +1,168 +304

• Upgrades to ATR and TREAT research reactors (safe nuclear fuel)

• Down-select to final candidates for FORGE (geothermal)

• Synthetic biology Foundry

• Offshore wind R&D consortium

• Increased funding for 3 existing Bioenergy Research Centers (BRCs); plans for new competition in FY 2018

• Expand National Laboratory user facilities operation to 100% of optimal use

• Expanded multi-year exascale computing initiative

• Super Truck II

• 2 new advanced carbon capture FEED studies (oxy combustion, chemical looping)

• 2 new advanced carbon capture pilot plants (post combustion, including natural gas)

Expanding On-Going DOE Research & Development Programs

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MI Portfolio: New Cross-cutting Initiatives

Regional Clean Energy Innovation Partnerships– Establish regionally-based innovation partnerships focused on

regional innovation capabilities, resources, markets, needs and opportunities ($110M)

– Two principal issues: design of a partnership and establishment of regional boundaries

National Laboratory Small Business Partnerships – Expansion of EERE small business voucher pilot program ($20M)

National Laboratory Energy Technology Innovation Accelerators– Provide clean energy entrepreneurs with seed funding, technical

support, and access to lab researchers and capabilities; modeled after LBNL Cyclotron Road Partnership ($25M)

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Notional Role of Regional Partnerships

Regional Innovation Centers

• Large-scale multi-state regions (perhaps up to 10)

• Not-for-profit entities (preferably consortia modeled after RPSEA)

• Partnerships can include state and federal governments, universities, industry and national laboratories

• Serve as planning and funding entities; no bricks-and-mortar or in-house R&D

• Broad latitude to set priorities across all clean energy technologies based on regional needs, opportunities and R&D capabilities

• Single annual DOE funding stream based on annual program plans; use of flexible funding vehicles (e.g. Other Transactions Authority)

• Capability to establish cost-sharing partnerships with the Breakthrough Energy Coalition and other federal and non-federal funding entities (e.g. State Green Banks)

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Power Generation Sources and Water Withdrawals for Power

Generation Vary Greatly by Region

Most Least

Water Withdrawal Southeast, Midwest Alaska/Arctic, Northwest

Water Intensity Hawaii, Midwest Northwest, Alaska/Arctic

Sources: EIA, 2014 data from “Net Generation by State by Type of Producer by Energy Source (EIA-906, EIA-920, and EIA-923),” October 21, 2015. https://www.eia.gov/electricity/data/state/USGS, EIA data via Maupin, M.A. et al., 2014, Estimated use of water in the United States in 2010: U.S. Geological Survey Circular 1405, 56 p., http://dx.doi.org/10.3133/cir1405

1 Includes Wind, Solar, Biomass, Geothermal

2 Includes Petroleum, Other Fossil Fuel Gases, Pumped Storage, Non-Biogenic Municipal Solid Waste, Batteries, Hydrogen, et al.

Northeast

SoutheastSouthwest/Central

North Central Midwest

West NETL

SNL

NETL

40,840 Mgal/day16,780 gal/MWh

200 Mgal/day370 gal/MWh

6,740 Mgal/day7,010 gal/MWh

17,510 Mgal/day9,340 gal/MWh

3,240 Mgal/day4,370 gal/MWh

39,890 Mgal/day20,630 gal/MWh

14,000 Mgal/day19,160 gal/MWh

35,320 Mgal/day17,410 gal/MWh

Mid-Atlantic

Northwest

Coal

Natural Gas

Nuclear

Hydroelectric Conventional

Non-Hydro Renewables

Other

KEY (GENERATION SOURCE DATA)

1

2KEY (WATER DATA)Water Withdrawal for Power

Generation (Mgal/day)Water Withdrawal Intensity of Power

Generation (gal/MWh)

656 Mgal/day22,097 gal/MWh

Alaska/Arctic

Hawaii

60 Mgal/day3,130 gal/MWh

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Mapping of U.S. Renewable Resources

Biomass

Wind

Concentrating Solar Thermal

Photovoltaics

Tidal2

Wave

Hydropower

Geothermal1

Resource

Dark =

Higher

Light =

Lower

1 Does not

include Alaska

or Hawaii

2 Does not

Include

Hawaii

Source: NREL 2006, 2012

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Regional CO2 Sources with Access to Sequestration Options or Associated Infrastructure

25

25

26

Status of DOE FY 2017 MI Funding Request

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Portfolio Approach Guided by U.S Quadrennial Technology Review (QTR)

Modernization of Electric

Power System

Clean Electric Power

TechnologiesCleaner Fuels

Advanced Vehicle

Technologies and

Transportation Systems

Advanced Manufacturing

Advanced Building

Systems and Technologies

Electricity End UseFuels and Transportation

Enabling Capabilities for Science and Energy

www. energy.gov/epsa/quadrennial-energy-review-qer

www.energy.gov/qtr

Dr. Sanjiv Malhotra, Director

Energy.gov/investmentcenter

Clean Energy Investment Center

Energy.gov/investmentcenter 29

Key Observations

• Massive need for new capital for deployment to achieve the 2 degree Celsius warming limit

• Growth of solar and other emerging clean energy technologies

• Demand for new energy will be driven by the emerging economies, especially China, India, and sub-Saharan Africa

• Importance of Innovation

Energy.gov/investmentcenter 30

Office of Technology Transitions: Mission

In February 2015, the office was created to expand the commercial impact of DOE’s portfolio of RDD&D activities over the short, medium, and long term. Through these efforts, OTT works to increase the return-on-investment from federally-funded scientific

and energy research.

● 3-D printed house in Oak Ridge highlights the possibilities of new manufacturing technologies.

● Nanosys partnered with DOE’s Lawrence Berkeley National Laboratory, 3M, and LG to develop Quantum Dot Enhancement Film that offers displays with 50% wider color spectrum at a comparable price without using more energy. This tech is being used in the new Kindle Fire 7 and demonstrated in new HD TVs.

● Blue Current is a early-stage battery materials company based on technology out of Lawrence Berkeley National Laboratory and UNC Chapel Hill. They are developing a new class of safe lithium-ion batteries.

Energy.gov/investmentcenter 31

● Department Wide

● Lab Organized

● Program Developed

DOE’s Coordinated Innovation Enterprise

● DOE SBIR

● TCF

● Energy Innovation Portal

● User Facilities

● Lab Partnering Service

● Project Database

Energy.gov/investmentcenter 32

EERE Small Business Vouchers (SBV) pilot provides a streamlined portal and financial support for small businesses in the clean energy sector to access National Laboratory capabilities and expertise. Round 1 selected 33 vouchers in 9 technical areas for total of $6.7 M.

EERE Small Business Vouchers Program - $20M

Objectives:

1. Increase small business access to labcapabilities

2. Broaden mutual awareness of labs and small businesses needs and technologies

3. Encourage labs to develop outreach strategies

4. Make lab business practices more compatible with private sector timelines

Awards were made in the areas of:

• Advanced Manufacturing

• Bioenergy

• Buildings

• Fuel Cells

• Geothermal

• Vehicles

• Water Power

• Wind Power

● Visit SBV.ORG for More information

Energy.gov/investmentcenter 33

TCF FY16 Description

Laboratory

Proposals

Summaries

• Topic 1: Technology Maturation Projects

Focus on maturing unlicensed lab-developed technologies identified as having commercial potential and needing additional maturation to attract a private partner.

• Topic 2: Cooperative Development Projects

Support for cooperative development of a lab-developed technology in collaboration with a private partner for its commercial application, as matching funds under a CRADA or other existing contractual mechanism.

Key FY16

Dates:

Open Application Period: February 4th – March 31st

Application Review: April – June Final Selection: Mid – Late June

Funding /

Timeline:

Topic 1: $100-150k (est.) / 6-12 months

Topic 2: $200-750k (est.) / 1-2 years

Private

match:

Private partner provides matching funds/in-kind (50%) (The lab could provide matching funds as long as they are not appropriated funds.)

Energy.gov/investmentcenter 34

Highlights: Selections Announced June 21, 2016 – $16 Million for 54

Projects Supporting 12 National Labs

• Labs contributed over $2.3 million cost share from royalty accounts

• Private partners contributed $14.8 million

• 26 Topic 1 projects were selected, 28 Topic 2 selected

• 37 projects have private partners

• Over 50 individual private partners are engaged with the TCF

• Partners range from large multi-nationals to regional firms

Impact Evaluation

• OTT will procure a third-party independent organization to conduct an evaluation of the TCF.

• The purpose of the evaluation is to develop independent, quantitative estimates of the impacts as well as capture lessons learned related to implementation and make recommendations to DOE on ways to further improve the TCF in future years.

FY16 TCF Highlights and Impact

Energy.gov/investmentcenter 35

Clean Energy Investment Center

Laboratory – Investor Knowledge Seminars (LINKS)

● Meetings between DOE National Laboratories and Investors

● Discussions of Partnership Opportunities

Innovation Interface (I2)● Sessions at DOE HQ with Investors and DOE

Technical Experts/Program Managers

● Provide access to DOE portfolio of investable clean energy opportunitiesProject Data Initiative

Laboratory Partnering Service

● Connection Platform for Investors and SMEs at National Labs

● Share research and analysis produced by DOE and its National Laboratories on relevant developments in clean energy technology.

Technical Assistance

Energy.gov/investmentcenter 36

For more information:

Dr. Sanjiv MalhotraDirector

DOE Clean Energy Investment Center Email: CEIC@hq.doe.gov

Website: http://energy.gov/investmentcenter