Americans spend more on potato chips every year than energy investment, said Kleiner Perkins venture capitalist John Doerr at an event on Wednesday morning for the newly created American Energy Innovation Council. The group, which includes business leaders like former Microsoft CEO Bill Gates, Xerox CEO Ursula Burns, General Electric CEO Jeff Immelt, and Lockheed Martin CEO Norman Augustine, laid out a set of goals that would boost energy innovation in the U.S., including the recommendation that the U.S. needs to invest $16 billion per year into energy innovation.
The group emerged last April when Gates wrote an op-ed for the Washington Post focused on how the federal government needed to invest more in energy technology R&D. But this morning the business leaders offered four other recommendations beyond the call for more funding. At the heart of the report and recommendations is to use federal money to stimulate energy innovation.
The four recommendations, beyond the request for $16 billion, include 1). creating an independent national strategy board that would develop a national energy plan and would be filled with experts (also politically neutral), 2). create centers of excellence that would use $150 million to $250 million annually each, 3). fund the Department of Energy’s ARPA-E program (grants for early stage, high risk energy projects) at $1 billion per year, and 4). create a New Energy Challenge Program that would help move technology to the commercial stage (cross that valley of death).
In about 20 years these approaches will help deliver energy technologies that will hopefully be moving into the commercial stage, said Gates. The energy technology that is available today needs this kind of innovation to move it to the next stage, said Gates. The group noted that it would have performance metrics that would help the government implement the program effectively.
The group also expressed support of the U.S. putting a price on carbon at some point in some way, but didn’t include specifics about that in their report recommendations. As GE’s Immelt put it the government has “a policy of uncertainty right now.”
“The increase in scale is not a lot,” said Doerr. Immelt noted that it’s on the same scale as the funding for the National Institute for Health, which is a world-leading industry.
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