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Summary:

It’s not often that the Department of Energy gets to go far out on a limb with its investments. But that’s exactly the point of ARPA-E (Advanced Research Projects Agency-Energy) — a program funded under the stimulus package to support moonshot technologies that might be too […]

doe-logoIt’s not often that the Department of Energy gets to go far out on a limb with its investments. But that’s exactly the point of ARPA-E (Advanced Research Projects Agency-Energy) — a program funded under the stimulus package to support moonshot technologies that might be too risky for other investors. Today the DOE has announced the first round of ARPA-E grants, awarding a total of $151 million for 37 projects.

The winners in this first round include General Motors ($2.7 million), battery materials startup Envia Systems ($4 million), ultracapacitor developer FastCAP Systems ($5.3 million), auto supplier Delphi Automotive Systems ($6.7 million), solar tech developer 1366 Technologies ($4 million), efficient designers PAX Streamline ($3 million), and several universities (for a complete list see here). In all, the funding will cover work across the spectrum of green technologies, including building efficiency, carbon capture, energy storage, fuel-efficient vehicle technologies, renewable energy, waste heat capture and water desalination.

Created in 2007, but left unfunded until passage of this year’s stimulus package, ARPA-E has $400 million to award over the next two years. The projects announced today represent just about 1 percent of the original pool of applicants. A team of 500 scientists from U.S. universities considered 3,600 preliminary proposals, and invited 300 of those teams to submit complete proposals this summer.

The DOE explained earlier this year an ideal ARPA-E applicant would have a “multi-disciplinary” technical idea that could reduce dependency on oil imports, improve energy efficiency across all sectors of the economy, reduce greenhouse gas emissions and/or give the U.S. an edge in deployment of energy technologies.

ARPA-E-Awards1The grants are meant to support ideas and technologies in these areas that are facing the “valley of death” — the place where many capital-intensive cleantech startups go to die because they can’t find financing for a critical phase of development or commercialization.

“It’s not supposed to be things that are 90 percent worked out, but more what-if kinds of things,” biochemistry professor Lawrence Wackett, who’s working on an ARPA-E project at the University of Minnesota, told the New York Times.

Many of the projects funded under this first round — particularly the university projects — are at an earlier stage than when venture capitalists step in with big investments. Stealthy startup Envia Systems raised $3.2 million in Series A funding for its work on “a new class of cathode materials” in October 2008, but that would hardly be enough to finance the company’s development, commercialization and plans for high-volume production in late 2010 or early 2011.

Getting in on the ARPA-E program gives startups like Envia Systems access to more than government funds. The DOE has said it will work with teams to develop intellectual property strategy and technical data strategies, as well as a procurement or financial assistance instrument to help manage risk once government funding for a project runs out.

According to the Times, which interviewed Secretary Chu on Friday, “Some of the ideas may be supported until they are picked up by venture capitalists or major companies.” All is not lost for the 99 percent of proposals that did not receive funding in this first round: The DOE may host a “fair” to let venture capitalists sniff them out for investment.

  1. Google CEO & DOE Chief: Carbon Capture Tech Still in Beta, Needs “Debugging” Monday, October 26, 2009

    [...] where he interviewed Secretary of Energy Steven Chu. Chu, who was visiting the Googleplex to talk about today’s ARPA-E funding announcements, responded by saying that while today’s carbon capture tech remains much too expensive for [...]

  2. The meeting video I saw today at Google and the one on the White House website on energy with secretary Chu were all really informative and are in the right direction. Lowering the cost to the consumer thru engineering. Deploying at least two smart energy power stations across the country in each State. Connect them regionally then later connect them nationally. The demand consumption and surpluss generation will vary from state to state. Balance the unbalanced areas and build a national trunk line cable to connect the entire thing. Building out from those locations I believe will jump start major investment, and create substainable green energy jobs. To get the consumer interested? Once the cost of the Photovoteic panels are cheap enough to buy at your local Home Depot. Builders will be the key. Home builders will have to start offering solar as an upgrade that would come with utility grants. The home brochures of the future will have allthe green options. If the builders get on board early we are half way there so to speak. You can also package the small solar panels with a baseball card and a stick of bubble gum.

    We arrise early to the challenge,
    as we quest for a qust of wind,
    or solar ray across varried plane,
    our green technologies save the day,
    and light the quiet night
    ~Ed Penn

  3. Thanks for news. I worked a lot of work

  4. You know, if you patch and put problems off for a few years and those years turn into decades. Today we are looking at the last straw for health care and climate change. We have patched them both since the sixties, seventies, eighties, and nineties. But today we have to put up a trillion dollars to fix them. But that is the down side to accumulation cost that build over time and never go away, but like a can just kicked down the road. Now the rubber of our boots meets the road and we have to start walking a new path.

  5. 100 nuclear plants will produce more than 100 tons of nuclear waste. It will take a lot of water. Water that almost shut down the nuclear plant in south georgia or florida a couple years ago.

  6. Oil companies are using water to force oil to the surface. Do we have that much water to spare. To mix it with oil wasting billions of gallons that we may one day need into the ground. We are wasting good resources to mine bad resources.

    http://fossil.energy.gov/education/energylessons/oil/MS_Oil_Studyguide.pdf

  7. Energy Dept. Announces $151 Million in Grants for Green Energy Research | HeatingOil.com Wednesday, October 28, 2009

    [...] the folks over at Earth2Tech.com pointed out, it is unusual for the Department of Energy to have a pass to take risky investments. [...]

  8. What the ARPA-E Bets Mean for the Future of Green Cars Wednesday, October 28, 2009

    [...] the $151 million in grants announced this week under ARPA-E (Advanced Research Projects Agency-Energy), the Department of Energy’s highly [...]

  9. How An ARPA-E Grant Can Transform A Startup Thursday, October 29, 2009

    [...] Systems, a battery materials startup based in Hayward, Calif., has just entered an elite group: the 1 percent of applicants awarded a first-round grant under the Department of Energy’s high-risk energy tech fund, ARPA-E (Advanced Research [...]

  10. IPReader links for 30 October Friday, October 30, 2009

    [...] DOE Awards $151M for Early-Stage Green Tech – ARPA fund to do investing in the US gets set up to help capital intensive startups. [...]

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