thecleanenergytechnologycontext--advancedmanufacturing

ASEE-AmericanSocietyforEngineeringEduca8on

-PublicPolicyForumFebruary10,2015

WilliamB.BonvillianDirector,MITWash.Office

TheCleanEnergyManufacturingContext--

•  WilltheU.S.manufacturecleanenergytechnologyproducts?– Themarkethasgrownworldwidefrom

•  2004:$54billion•  2012:$269billion•  Ex.,solar,windonthewaytobecomingtrilliondollarmarkets

•  Increaseenergyproduc8vityinU.S.produc8on-->supporttheefficiency-enablingtechnologyadvances– Ex.,powerelectronics 2

SCIENCEAdvancedMfgPoliciesandParadigmsDec.62013PolicySecPon

3

What’stheAdvancedMfgContext?---RecentReports…

REPORTTOTHEPRESIDENT

ACCELERATINGU.S.ADVANCEDMANUFACTURING

October2014

Points:1)  ManufacturingisnotAgriculture2)  OurManufacturingFirmsareIncreasingly:“HomeAlone”3)  Small,mid-sized,andstart-upfirms–mostofU.S.

manufacturing-can’tgetfinancingto “Scale-Up”innovaPveproducPon

4)  StronginnovaPoncapabilitymeansstrongproducPoncapability•  Emergingadvancedtechnologyfields

5)ManufacturingispartoftheinnovaPonsystem6)WorkforceTraining/EducaPon–theissues7)WhatGermanycanteachus:strongecosystem8)Jobs–HowmanufacturingsectoraffectsU.S.

servicessector4

PointOne:ManufacturingisnotAgriculture•  ForalongPmewethoughtmanufacturingwasagriculture.

•  In1900halfofpopulaPonfarming;nowlessthan2%farming•  Producingmorethanever,soenormous“producPvitygains’inagriculture

•  Butthereportstellusthismanufacturingisnotagriculture•  Welost5.8millionmanufacturingjobsfrom2000to2010

–  Wethoughtmanufacturingoutputwasholdingfirm,butitwasn’t-onreexaminaPonwe’refindingitwasindecline

–  Sowedidn’tgettheproducPvitygainswethought

–  JoblossdatatellsusmanufacturingsectorishollowingoutnotgejngmoreproducPve

5

PointTwo:HomeAlone•  Thereportstellusforthepastthreedecadeswehavebeenthinningoutourmanufacturingecosystem– WeusedtohavefirmsandsupplychainsthatwereveryverPcallyintegrated

– Wehitonafinancialmodelofemphasizingquarterlyreturns,whichledustoreduceriskbymakingourfirms“corecompetency”and“assetlight”

–  Sothesharedassetsoftraining,bringingbestpracPcestosuppliers,thinnedout

–  Thecompaniesinoursystemarenowmuchmore“homealone”

6

PointThree:TheScaleUpProblem•  Wehave3manufacturingsectors:

–  1)Ourbigmul:na:onals–theyareglobal,theycangetproducPonefficienciesbyproducinginlowercostcountriesandtheymustbeinalltheglobalmarkets

•  They’reOK,althoughtheyareincreasinglyproducingabroad

+TwoMoreVulnerableSectors:–  2)MainStreetfirms–theydomostofourmanufacturing,there

are300,000smallandmid-sizefirms–  TheyhavetroublegeGngproduc:onscaleupfunding,they’rethinly

capitalized,mustberiskadversetosurvive,anddon’tdoR&D(althoughtheycanbeveryinnovaPveaboutprocess)

–  3)Ourentrepreneurialstartupsthatmakesomething–•  theydowellunPltheyhavetoscaleupforproduc:onoftheirproduct–theylackfinancingforscale-uphere–Venturefirmsdon’’tfundthis–sendstartupstocontractmfgs.inAsia

•  Sotheyturntocontractmanufacturersabroad 7

PointFour:The8ebetweenInnova8onandProduc8on

•  FormostproductsneedtoPeinnovaPoncloselytoiniPalproducPon– Needdensefeedbackloopsasyoudoproductdesign-iniPalproducPonrequiresverycreaPveengineeringanddesign–it’spartofinnovaPon

–  SoifyoushipproducPoncapability,inmanycasesinnovaPoncapabilityhastofollowit

–  Producethere=Innovatethere•  InnovaPonisU.S.strongsuit–whatitdoesbest•  ButifmanyofourimportantinnovaPonshavetofollowproducPon,thenendangeringourinnovaPonstrength

•  AndInnovaPonisthekeyfactoringrowth 8

PointFour,con’t•  Aretherenewadvancedmanufacturing“Paradigms”thatcould

leadtorestoraPonofmfg.leadership?•  Energy Efficiency – energy is “waste”

•  “Network centric” – mix of advanced IT, RFID, sensors in every stage and element, new decision

making from “big data” analytics, advanced robotics, supercomputing w/adv’d simulation & modeling

•  Advanced materials –  “materials genome” – ability with supercomputing to design all possible

materials with designer features –  Biomaterials, bio fabrication, syntehtic biology –  Lightweighting everything

•  Nanomanufacturing –  fabrication at the nano-scale

•  Mass Customization –  Production of one at cost of mass production (ex.: 3D printing /

additive mfg, etc.)

•  Distribution efficiency –  IT advances that yield distribution efficiency (ie, supply chain)

9

PointFive:Produc8onmustbeseenaspartoftheInnova8onSystem

•  ManufacturingnotpicturedaspartoftheinnovaPonprocess– FocusononlyR&D:fragmentedview–  InnovaPonisasystem,fromearly-stageresearchthroughproducPon

•  ProducPonisthemajorenablerof“increasingreturns”inaneconomy– afoundaPonalsocietalwealthcreator.

•  treatproducPonascriPcalelementthatmustbeconnectedtoinnovaPonsystemorriskinnovaPonerosion 10

PointSix:Workforce•  MITstudysurveyed3000+manufacturingfirms

– 75%:filledjobvacanciesinlessthanamonth– Thereisnoemergencyonworkforcetalent– Aperall,welaidoff5.8mworkersinlastdecade

•  Butthe25%isinteresPng–  InnovaPvefirmsrequiringhigherjobskillsinthisgroup

–  Ifwewanttomovetoadvancedmfg.,increasingskillskey

– And:Bigdemographicsproblem–agingworkforce

– EngineeringEd–KEYISSUE 11

PointSeven:whatGermanycanteachus•  WethoughtthatwehadtolosemanufacturingjobstolowcostproducersinAsiabecausewearehighwage.

•  ButGermanyishighwageandhighcost–Germanwagesandbenefitsare66%higherthantheU.S.

•  Theyrunamajormanufacturingsurplus,includingamanufacturingsurpluswithChina

•  Theyhaveadeepecosystemfortheirmanufacturers,smallandlarge–theyaren’t“homealone”

•  ExtensivecollaboraPveR&Dsharedbyindustry-gov’t-universiPesaroundmanufacturingtechnologiesandprocesses

•  Sharedtrainingsystemfortheirworkforce•  Waystolinktheirsupplychainsforrapidscaleup•  SomeGermanpracPcesdon’tapply,somedo

12

PointEight:Jobs–themanufacturingsectoraffectstheservicessector

•  U.S.:80%“services”economy•  Butincreasingly–the21stcenturyfirmPescomplexproductstoservices–tooffer“soluPons”– TradeablegoodsarePedtoservices,whichmakestheservicetradeable

– Personalservicesarefacetoface,don’tscale– Butwiththetradeablegood,youcanscaleboththegoodandtheservice

–  So:successinproducPonincreasinglyPedtosuccessinservices,&viceversa

–  Scalingishowaneconomygrows–  Losetheproduct,can’tscaletheservice 13

Behind it all: Understanding the Hourglass --

<---- Resources, Suppliers, Components, Innovation

<--- Production (12m jobs)

<--- Distribution, Sales, Life Cycle

14

Summary:TheEightPoints…•  ManufacturingispartofInnovaPonSystem•  ManufacturingisnotAgriculture•  U.S.ManufacturingFirmsareIncreasingly“HomeAlone”

•  TheScale-Upproblemforsmall,mid-sized,andstart-upfirms–mostofU.S.manufacturingproducPonstrong

•  CloselinkagebetweeninnovaPon/producPon•  NewproducPonparadigms?

•  Workforce:tomovetoadv’dmfg.,needskillstraining•  Germany:strongmfg.ecosystem•  Jobs–Petradeablegoodstotradeableservicesforscaleablegrowth

•  manufacturingsectoraffectsservices15

LinkingPolicytothePoints•  Lessonfrom“homealone”–restoretheecosystem:

– ManufacturingInsPtutes–likeGermany’sFraunhofers–  EducaPon–communitycollegerole;putadv’dmfgintoengineeringeducaPon–needlifelonglearning-useonline

•  Lessonfrom“innovaPon/producPonconnecPon”-reconnect:–  UsethefederalR&Dsysteminadv’dmfg–  Technologystrategiesforadv’dmfgparadigms

•  CollaboraPve–industry-univ.-gov’t•  Digitalmfg.,adv’dmaterials,nanofabricaPon,masscustomizaPon...

–  TieinR&Dsystemtostrategies,linktoinsPtutes•  LessonreWorkforce:needtrainingforadv’dmfg•  LessonreProducPonScaleup

–  Gapinfinancingsystem–needsreview16

So:AdvancedMfg.Parternership2.0--

•  Transforma0veTechnologies–TechnologyStrategiesLinkedtoR&D

•  Implemen0ngManufacturingIns0tutesandnetworkingthem

•  Demand-DrivenWorkforceSolu0ons•  TechnologyScale-Up/Policy

17

18

Program Name or Ancillary Text eere.energy.gov

DOE/EERE R&D Priorities and University Engagement

David Danielson Assistant Secretary, Energy Efficiency & Renewable Energy

ASEE, Engineering Deans Public Policy Colloqium Feb 10, 2015

eere.energy.gov 20

Outline

•  Personal Introduction

•  Introduction to EERE

•  Major DOE/EERE Research Priorities

•  EERE University Engagement

eere.energy.gov 21

PersonalBackground

•  B.S., Materials Science & Engineering, UC Berkeley

•  Ph.D., Materials Science & Engineering, MIT

•  Founder, MIT Energy Club; Collegiate Energy Association; New England Clean Energy Council

•  Venture Capitalist, General Catalyst Partners

•  Employee #1, ARPA-E (May 2009)

•  DOE Assistant Secretary, Energy Efficiency & Renewable Energy (April 2012 – now)

eere.energy.gov 22

EERE’sRDD&DScope

eere.energy.gov 23

EERE’sGuidingPrinciples

1.   HIGHIMPACT:Isthisahighimpactproblem?2.   ADDITIONALITY:WilltheEEREfundingmakealargedifference

relaPvetowhattheprivatesector(orotherfundingenPPes)isalreadydoing?

3.   OPENNESS:Havewemadesuretofocusonthebroadproblemwearetryingtosolveandbeopentonewideas,newapproaches,andnewperformers?

4.   ENDURINGU.S.ECONOMICBENEFIT:HowwillthisEEREfundingresultinenduringeconomicbenefittotheUnitedStates?

5.   PROPERROLEOFGOVERNMENT:Whyiswhatwearedoingaproperhighimpactroleofgovernmentversussomethingbestleptotheprivatesectortoaddressonitsown?

The5EERECoreQues:ons

eere.energy.gov 24

EERERDD&DApproach

EERE identifies high-impact opportunity areas, creates aggressive long-term cost-reduction goals, develops and implements targeted multi-year program plans/

roadmaps, and updates them on a regular basis.

eere.energy.gov 25

MajorEmergingDOE/EERER&DPriori:es

•  Clean Energy Manufacturing (Advanced Materials/Manufacturing Methods)

•  Grid Modernization

•  Subsurface Science & Technology

•  Energy & Water

eere.energy.gov 26

•  Materials Genome Approaches to Accelerated Materials Discovery, Processing, Qualification

•  Additive Manufacturing

•  Advanced Composite Materials/Structures •  Critical Materials •  Next Generation (Wide Bandgap) Power Electronics •  Next Generation Electric Machines •  Smart Manufacturing: Advanced Sensors, Real-Time

Modeling & Control

•  Chemical Process Intensification •  Roll-to-Roll Processing •  Sustainable Manufacturing (water, CO2, waste products)

EEREAdvancedManufacturingOfficePriori:es:Founda:onalTechnologies

eere.energy.gov 27

Vehicles: Beyond Lithium Ion Batteries Fuel Cells: Anion Exchange Membranes,

Renewable H2 Production Biofuels: Drop-In Hydrocarbon Production Solar: Grid Integration, high T materials for CSP Wind: Wind Plant Optimization Buildings: Low/No GWP Working Fluids for Cooling

SomeKeyUniversity-RelevantEmergingTechnologyAreas

eere.energy.gov 28

•  Manufacturing Innovation Institutes ($70M/5 years) –  Next Generation (WBG) Power Electronics (NCSU) –  Advanced Composites (UT Knoxville)

•  Michigan State, Purdue University, Univ of Kentucky, …

•  Multi-University Research Initiative: High Operating Temperature Thermal Fluids (2012-2017, $5M/each) –  UCLA (UC Berkeley, Yale) –  Univ of Arizona (ASU, Georgia Tech)

•  Marine Hydrokinetic Energy University R&D Center ($5M) –  Oregon State University (Univ of Washington, Univ of Alaska)

•  “Next Generation Photovoltaics” ($15-$25M, every 2-3 years); other EERE funding opportunities – restricted to universities, non-profits, National Labs

ExamplesofMajorUniversityBasedAc:vi:es

eere.energy.gov 29

•  Advanced Grid Modeling •  Advanced Power Systems Engineering •  Power Electronics •  Electric Machine Design •  Materials, Process, End-Use Modeling & Simulation

(HPC); High Throughput Experimental Methods •  Chemical Process Intensification •  Combustion Modeling •  Energy Systems Modeling/Optimization •  Smart Systems/Controls/Big Data

Emerging&Con:nuingSTEMNeedAreas

eere.energy.gov 30

•  Engage in Biannual Program Peer Reviews/Workshops/DOE Visits

•  Participate in Competitive Funding Calls as Prime or Sub (consortia vs individual projects) –  Some calls targeted at universities, non-profits, Labs –  “Incubator” Funding Opportunities – 5% of R&D/off

roadmap –  http://eere-exchange.doe.gov

•  Engage with DOE National Laboratories

•  Student Competitions

•  Fellowships/Traineeships

University Engagement Mechanisms

eere.energy.gov 31

EERE’sNewCostShareApproach(2014)

Applied R&D:

•  Standard: 20% project level

•  Cost Share Waiver: 10% project level –  If prime is University, Non-Profit, National Lab

–  If prime has >50% of funding

eere.energy.gov 32

David.Danielson@ee.doe.gov

Thanks and Get in Touch…