BOB HEBNER, PH.D.

DIRECTOR, CENTER FOR ELECTROMECHANICS

UNIVERSITY OF TEXAS AT AUSTIN

Commercializing Emerging Energy Technologies

Aim of Discussion

At the end of the session Unlikely to be a better investor Might be a better voter

Focus on What works in government-funded technology policy with

some insight into today’s domestic industry

Focus on energy, not medicine

History of Technology Policy in One Chart

Before WWII I wasn’t born yet, but…

WWII – 1980’s Vannevar Bush – Science, the Endless Frontier Truman Bell Labs, GE & Westinghouse R&D, etc.

1980’s – 2000 Japan showed a different way U.S. corporations followed, intelligently U.S. government worried about “picking winners and losers” and

“corporate welfare” Exceptions – medicine, agriculture, coal mining

2000 – 2010 Lots of experiments, no consensus on policy

Texas Is a Player

Emerging Technology FundCancer Prevention and Research InstituteSome university funding

Why Me?

Accident Worked at NIST on technology important to commerce and export

control Primarily electricity

Bush I Administration appointed me to OMB to find investments to minimize global warming risk Cost-effectiveness was a challenge

Back at NIST oversaw review of NIH’s proposed changes to technology transfer laws

Helped establish and was responsible for Advanced Technology Program

Responsible for Manufacturing Extension Program and Malcolm Baldrige National Quality Program

AT UT, retail side Trying to get three energy products to market every five years

University of Texas Technology Examples

• Fission – Fusion HybridFission – Fusion Hybrid− Nearly no radioactive wasteNearly no radioactive waste

• Fusion used to produce Fusion used to produce neutronsneutrons− Sustain fission reactionSustain fission reaction− Transmute radioactive Transmute radioactive material material

• Poor candidate for Poor candidate for commercial fundingcommercial funding

• Risk ~ $100 million to prove Risk ~ $100 million to prove concept prior to cash flowconcept prior to cash flow

• Feds told power industryFeds told power industry – – you build power plants, we’ll handle wasteyou build power plants, we’ll handle waste

•Poor candidate for Federal fundingPoor candidate for Federal funding- - Organizational barriersOrganizational barriers

Nuclear PowerNuclear Power

National Priorities

U.S. health cost greater than $6 billion/dayWar in Afghanistan costs about $130 million/dayVenture capital investment in promising new ideas about $3

million (about $5,000/day)Venture investment in proven ideas about $30 million

(about $50,000/day)Federal investment in promising energy science ideas

about $0.25 million (about $400/day)Federal investment in major r&d programs about $50

million (about $30,000/day)

Depending on political persuasion this may be too much, too little, about right, or irrelevant

Energy StorageEnergy Storage

• Developed and/or evaluated storage systems for cranes, ships, wind farms, vehicles from trucks to Formula 1, and grid stabilization

• UT develops• Flywheels• Batteries• Ultracapacitors• Compressed Gas

VG 12983h

• Commercialization• Efforts continuing• Flywheels

• Export laws a challenge• Batteries – fame, litigation, and new ideas

Algal Biofuel

The interest in algal oil is not new, though the widespread interest in making biofuels from algal oil is more recent

Algae contain anywhere between 2% and 40% of lipids(oils) by weight

The yields of oil from algae are orders of magnitude higher than those for traditional oilseeds

Algae can grow in places unsuitable for use as farmlands, prairies and forests, thus potentially providing a much needed source of fuel without damage to the ecosystem

The Problem--$$$

Algae oil production costs Present cost to produce 1 gallon of algae oil—$20-30/gal Future cost goal—$1-3/gal

Issues…production scale-up & cost reduction Strain selection--oil yield, growth rates, stability Production systems—ponds or photobioreactors CO2 source Harvesting Oil Extraction Capital costs Energy & water usage

• Oil producing algae growth capability up to 2,500 gal

• Dewatering process demonstrated at 5000 gal/day

• Flow-through EM lysing apparatus built; used to process dewatered algae.

• Novel version of commercial separation process demonstrated

• Mass and energy balance performed on integrated system of processes

• Mobile extraction pilot plant design in-progress

Commercialization Moving ForwardCommercialization Moving Forward

Commercialization Approach

Apply for all available Federal fundingFocus on processing, not algae engineeringTeam early with private investors

OpenAlgae formed Unique experiment Personal education

Learn from the failures of othersFirst two possible customers offshore

Help U.S. balance of payments Rather solve problems closer to home

First system $6 million away

Motors and GeneratorsMotors and Generators

Advanced motors for hybridsAdvanced motors for hybridsSuperconducting motorsSuperconducting motorsDC generator designDC generator designHigh speed motors and generatorsHigh speed motors and generators

Things to Worry About

U.S. is not as good at commercializing technology as we need to be Competitors were hungry and understood new roles faster

Government programs need independent impact assessment both Prospective

Typically 100x Retrospective

Typically 4xPeer review works to eliminate bad ideas, not choose the

highest commercial potentialElected officials should only review programs and/or add

earmarks, not choose projects

Things to Be Happy About

We’re falling behind, but not out of the race The world still comes to the U.S. for much base technology

Taking advantage of U.S. widening the Valley of Death

Places like UT still attract folks who hope, plan, and expect to make a positive difference