Slide 1

ARPA-E and Its Investments in TransportationNational Petroleum Council BriefingDecember 8, 2010Arun Majumdar, ARPA-E DirectorEric Toone, ARPA-E Deputy Director of TechnologyDavid Danielson, Program Director

Official Use OnlyCreation & Launching of ARPA-E2006Rising Above the Gathering Storm (National Academies)2007America COMPETES Act2009American Recovery and Reinvestment Act($400M appropriated for ARPA-E)

President Obama launches ARPA-E at National Academies on April 27, 2009

Innovation based on science and engineering will be primary driver of our future prosperity & security2Official Use Only2Influential reports

American Enterprise InstituteBrookings InstituteBreakthrough Institute

3Official Use OnlyOffice of the SecretaryDr. Steven Chu, Secretary

Daniel B. Poneman, Deputy Secretary*Federal Energy Regulatory Commission13 OCT 10

Associate Administrator for EmergencyOperationsAssociate Administratorfor Management& AdministrationOffice of the Under Secretary For Nuclear Security/Administrator forNational Nuclear Security AdministrationThomas P. DAgostino

* The Deputy Secretary also serves as the Chief Operating OfficerDeputy Administratorfor Defense ProgramsDeputy Under Secretaryfor Counter-terrorismOffice of the Under Secretary

Cathy ZoiActing Under Secretary Office of the Under Secretary forScience

Dr. Steven E. KooninUnder Secretary for Science Office of ScienceChief of StaffInspector GeneralSouthwestern PowerAdministrationBonneville PowerAdministrationWestern Area Power AdministrationSoutheastern Power AdministrationLegacy ManagementAssistant Secretary for Nuclear EnergyAssistant Secretary For Energy Efficiency And Renewable Energy

Assistant Secretary Electricity DeliveryEnergy Reliability

Assistant Secretary For Environmental ManagementCivilian Radioactive Waste ManagementAssistant Secretary for Fossil EnergyAdvanced Scientific Computing ResearchBasic Energy SciencesBiological & Environmental ResearchFusion Energy ScienceHigh Energy PhysicsNuclear PhysicsWorkforce Development for Teachers & ScientistsEnergy Information AdministrationAmerican Recovery & Reinvention Act OfficeLoan Programs OfficeAdvanced ResearchProjects Agency - EnergyGeneral CounselAssistant Secretary forCongressional & Intergov. AffairsChief Human Capital OfficerChief Financial OfficerAssistant Secretary forPolicy & InternationalAffairsManagementHearings & AppealsHealth Safety &SecurityChief Information OfficerPublic AffairsIntelligence &CounterintelligenceEconomic Impact & DiversityAssociate Administratorfor Defense Nuclear SecurityDeputy Administratorfor Defense NuclearNonproliferationDeputy Administratorfor Naval ReactorsAssociate Administratorfor Infrastructure& EnvironmentDoe Organizational Chart

Breakthroughs in TechnologyBreakthroughs in ScienceBreakthroughs in Scaling4Official Use Only4Reduce Energy-Related EmissionsImprove Energy EfficiencyARPA-Es Mission & MeansTo enhance the economic and energy security of the U.S.

To ensure U.S. technological lead in developing and deploying advanced energy technologies Reduce Energy Imports5To overcome the long-term and high-risk technological barriers in the development of energy technologies.

identifying and promoting revolutionary advances in fundamental sciences; AND

translating scientific discoveries and cutting-edge inventions into technological innovations; AND

accelerating transformational technological advances in areas that industry by itself is not likely to undertake because of technical and financial uncertainty.Official Use Only5IMPACT

If successful, project could have:High impact on ARPA-E mission areasLarge commercial applicationBREAKTHROUGH TECHNOLOGY

Technologies that: Do not exist in todays energy market Are not just incremental improvements; could make todays technologies obsoleteADDITIONALITYDifficult to move forward without ARPA-E fundingBut able to attract cost share and follow-on fundingNot already being researched or funded by othersPEOPLE Best-in-class people Teams with both scientists and engineers Brings new people, talent and skill sets to energy R&DWhat is an ARPA-E Project?6Official Use Only6Game Changers from 20th CenturyArtificial FertilizersGreen RevolutionPolio VaccinationAntibioticsAirplanesElectrificationNuclear EnergyTransistorIntegrated CircuitsFiber Optic Communication Wireless CommunicationInternet

Pace and Scale of Innovations Needed in Energy Technologies100 years of innovationImagine all of this happening in the next 20 years

20 years

Official Use OnlyELECTRIC CARS: Car batteries with 3X energy density and 5X lower cost, making electric cars cheaper and with longer range than those based on the internal combustion engine.NATURAL GAS: Safe production of natural gas and cost-effective conversion to liquid transportation fuelsSOLAR FUELS: Fuels (natural gas and transportation liquid fuels) from sunlight at cost lower than petroleum, land and water use 5-10X lower than biomass, and capacity that can match global demand.SUNSHOT: Solar electricity generation at cost lower than that produced from fossil fuels ($1/W fully installed) by 2017. This will enable solar electricity to scale without subsidies.DIGITAL GRID: Real-time optimization, security and storage for grid with two-way dispatchable electric power. With the right policy changes, this will enable the business of distributed generation and storage.CARBON CAPTURE: Carbon capture and utilization at net cost lower than its market price anywhere in the world. This will enable the business of carbon capture.NUCLEAR: Safe and scalable nuclear energy at cost lower than that from natural gas and coal.GEOTHERMAL: Enhanced geothermal power generation and heating/cooling of buildings at cost lower than that from natural gas.REDUCE CONSUMPTION: 50% reduction in energy consumption in buildings and industry with payback period less than 5 years.WATER: Low-cost purification and desalination of water.Our Goal for next 10-20 yearsOfficial Use OnlyHome RunsDomestic and global sales, US market share ($)Avoided greenhouse gas emissions (tCO2 equivalent)Reduced oil imports (barrels of oil equiv.)Creation of new technology/business or new industry ecosystem (#)Jobs created (#)Beating current projections and trajectories (Moving McKinsey GHG abatement cost curves, EIA & IPCC projections, etc.)NOW3 - 5 YRS10+ YRSManaging expectations and metrics of successIt is not expected that all selected projects will be successful, but it is expected that at least a few of them will change the ball gameAttracting the best minds to energy R&DFollow on investment post ARPA-E award ($) Increase in enterprise value of company ($)Companies created (#)Initiating new technology-business ecosystems Accelerated market entry - Products to market (#) / Product sales ($)Patents filed and licensed (#)Papers published in top journals (#)World Record-setting best-in-class performance (#)9Official Use OnlyEnd-Use EfficiencyARPA-E ProgramsTransportation

Electrofuels

BEEST

BEETITStationary Power

IMPACCT

ADEPT

GRIDS

Broad Solicitation10Official Use OnlyARPA-E Technology Showcase

Feb 28-March 2, 2011Washington, DCTechnology ShowcaseARPA-E Funded technologies; ANDFinalists that ARPA-E could not fund

2 months preparation1700 attendeesIntegrating relevant communitiesScientists & engineersTechnology entrepreneursOther DOE Offices and federal agenciesInvestorsState and regional clean tech incubatorsWhite House, Congress and policy makers

11Official Use OnlyNext Brain Trust meeting Feb 28 first day of Summit (workshop day)Private VIP tour of Tech Showcase

11Transportation Sector Overview and Liquid Transportation Fuels

Eric Toone, Deputy Director of TechnologyOfficial Use Only2009 U.S. Transportation UseSource: LLNL Energy Flow Charts

20.236.74Electricity0.03Biomass0.92Natural Gas0.69PetroleumEnergy ServicesRejected Energy13Official Use Only13Three levers to pull to transportation energy useEM = PMTM (1/M) [M(fM/mile)] [(ee+ep+ef)/fM]Aggregate Miles TraveledAverage Modal OccupancyFuel Units Consumed/Mile TraveledLifecycle Energy/Fuel UnitTravel BehaviorPMT = Personal Miles TraveledM = average vehicle occupancyM = driver impact on fuel efficiency (0