Addressing the challenges of climate change

“Addressing the Challenges of Climate Change: Innovative Technology Developed by the Private Sector” : 

“Addressing the Challenges of Climate Change: Innovative Technology Developed by the Private Sector” Thaddeus Burns General Electric Company

It Starts with A Good Idea. . .Or Does It?: 

It Starts with A Good Idea. . .Or Does It? Thomas Edison, GE’s founder, was fond of saying “Genius is 1 % inspiration and 99 % perspiration .” Invention is possible only where there is investment Investment happens where returns are high/predictable So, how do we ensure investment in GREEN TECHNOLOGY? What Drives Inspiration & Perspiration? First, let’s explore how well we are currently investing in green technology

Investment in Green Technology: 

Investment in Green Technology Current Investment Levels in Research & Development Global R&D = $1 trillion/year with over 95% occurring in the OECD countries + Russia & China (80% is occuring in the G8 countries). - Private Sector accounts for almost 70% of R&D investment globally - Energy technology R&D spending by p rivate sector is ~ $40-$60 B/yr as compared with public sector R&D spending of only $10 B/yr. The secretariat UNFCCC estimates that an additional $200 billion in global investment and financial flows will be required annually by 2030 just to return GHG emissions to current levels . Are We Investing Enough in Clean Technology? Greater Investments in Clean Technology are Necessary

What is the Role of Innovation: 

What is the Role of Innovation Do We Really Need More Invention? One study finds that if we were limited to technologies available in 2005, the present value cost of achieving stabilization at 550 ppm CO2 would be over $20 trillion greater than with expected developments in energy efficiency, hydrogen energy technologies, advanced bio-energy, and wind and solar technologies (Edmonds 2007). Other studies have found that accelerated technology development offers the potential to dramatically reduce the costs of stabilization , with advanced technology scenarios reducing the cumulative costs of stabilization by 50% or more , yielding economic benefits of hundreds of billions to trillions of dollars globally. Innovation is a Critical Component of the Cure

It Starts with A Good Idea. . .Or Does It?: 

It Starts with A Good Idea. . .Or Does It? Thomas Edison, GE’s founder, was fond of saying “Genius is 1 % inspiration and 99 % perspiration.” Invention is possible only where there is investment Investment happens wherever returns are highest How do we ensure investment in GREEN TECHNOLOGY ? Provide meaningful incentives to encourage investment - Patent protection for green innovation - Gov. funding to drive new breakthrough technology - Prizes for achieving technical milestones - Remove market barriers for winning solutions What Drives Perspiration?

How do we know what incentives are BEST suited to encourage the level of investment needed to solve climate change problems? : 

How do we know what incentives are BEST suited to encourage the level of investment needed to solve climate change problems? Investment in Green Technology Depends on WHO you want to motivate What Works Best in the Private Sector Gov. is best suited for long-range R&D investment Academia is more motivated by prizes than private sector Private sector measures absolute return & predictability IP protection a necessary prerequisite for investment Tariff reduction accelerates adoption & tech transfer

Proof That IP Incentives WORK: 

Proof That IP Incentives WORK GE’s Eco-Certified Products GE’s Eco-R&D Investment ($B) GE’s Clean Energy Inventions GE’s Energy Efficient Inventions

Transportation (Trains): 

Transportation (Trains) The Environmental Challenge Locomotives are a critical part of the infrastructure in many countries. They represent one of the most efficient way to transport goods and people. GE’s innovative solution The six-axle freight China Mainline Evolution locomotives will be powered by 16-cylinder, 6,000 horsepower GEVO engines. As a result, they are more fuel-efficient and dramatically reduce emissions when compared to other locomotives. Environmental Impact (Example – China) If China’s current mainline fleet of 8,000 locomotives were replaced with a fleet of 4,544 China Mainline Evolution locomotives, which would have the same total horsepower, this would avoid the emission of approximately 199,000 tons of nitrogen oxides (NOx) per year.

Transportation (Planes): 

Transportation (Planes) The Environmental Challenge Air travel continues to grow as a major means of global transportation. GE’s Innovative Solution. . .The GEnx Jet Engine Every major component is the result of more than 60 years of jet engine innovation. Exotic materials like powdered metal alloys and carbon fiber composites have been combined with our advanced design codes and most advanced combustion technology ever to optimize the entire propulsion system. Environmental Impact The GEnx delivers 15% better fuel consumption and its emissions are roughly 94% below 2008 regulatory limits. The GEnx aircraft engines projected to be sold in the next 20 years will emit an estimated 77 million fewer tons of greenhouse gases than would have been produced by older comparable engines while being 30% quieter than comparable engines today.

Energy Generation: 

Energy Generation The Environmental Challenge A growing world requires more electricity to light more homes & businesses. At a minimum, we need 10 Terawatts from some new clean energy source by 2050. GE's Innovative Solution. . .The GE 7H Gas Turbine The H System™ uses an innovative closed-loop steam cooling system. This system allows the turbine to fire at a higher temperature to achieve 60% fuel efficiency and reduced emissions and less fuel consumption per megawatt generated. Environmental Impact Producing 3.2 million megawatts with a GE 7H rather than a typical gas turbine combined cycle system could avoid emitting 45,000 metric tons of CO2 per year (roughly 8,700 passenger cars). Producing 3.2 million megawatts with a GE 7H rather than a typical U.S. coal-fired plant could avoid the emission of 1,900,000 metric tons of CO2, equivalent to the CO2 absorbed annually by 530,000 acres of forest.

Methane Reduction & Energy: 

Methane Reduction & Energy The Environmental Challenge Coal mines account for ~10% of US anthropogenic emissions. Active mines emit methane, a greenhouse gas > 20 times as potent as CO2 in the atmosphere. GE’s Solution. . .The Jenbacher LEANOX Generator System The Tahmoor colliery coal mine in Australia releases enough coal mine gas to generate >7 MW of electricity. That energy was going to waste until GE installed 7 generator sets to harness this unused resource. The LEANOX system uses a special combustion chamber configuration for more efficient combustion and directly links power output, boost pressure, fuel temperature to NO2 emissions. Environmental Impact Compared to venting coal mine gases, the Jenbacher generators can reduce the release of methane into the atmosphere by 85%. This corresponds to CO2 savings of about 30,000 to 40,000 tons per year.

Waste Disposal & Energy: 

Waste Disposal & Energy The Environmental Challenge Disposal and treatment of biological waste represent a major challenge. GE’s innovative solution. . .The Jenbacher Biogas Engine Organic material is collected, sterilized and moved to a digester. The biogas produced in the digester is collected in a gas storage tank to ensure a continuous supply of gas independent of fluctuations in the gas production. Finally, the biogas is fed into a gas engine. The end product from the fermentation of the biomass can be utilized as fertilizer. The gas mixture produced in the digester is ~60-70 % methane (CH4) and 30 - 40 % carbon dioxide (CO2). Environmental Impact Jenbacher cogeneration technology fueled with biogas enables maximum economic and ecological benefits to be realized. Currently more than 290 Jenbacher Biogas systems with a total electrical output of over 180 MW are in operation worldwide. Continued development of anaerobic fermentation applications are leading to greater opportunities for the utilization of Biogas for energy production.

TRANSFER OF CLEAN TECHNOLOGY: 

TRANSFER OF CLEAN TECHNOLOGY There is no Transfer Without Development!! Big advances in technology require BIG R&D investments IP is a NECESSARY driving force behind private investment Successful Technology Transfer Paradigms Licensing of technology & associated Intellectual Property Joint development &/or joint commercialization efforts Outsourcing of components or portions of the end product Foundation for Successful Technology Transfer Common rules of business/law. . . stable & predictable Ability to enforce violations of such laws Gov. incentives for good actors/punishments for violators

Can We Achieve Our Technology Development & Transfer Objectives?: 

Can We Achieve Our Technology Development & Transfer Objectives? The reason a lot of people do not recognize opportunity is because it usually goes around wearing overalls looking like hard work . . . . .Thomas A. Edison YES! But Not Without Hard Work

Back-up Materials: 

Back-up Materials

Driving Forces & Barriers: 

Driving Forces & Barriers Barriers to Successful Tech Transfer Not enough technology to transfer Inadequate economic incentives No/low profit from investments No/low tax incentives Insufficient or inadequate systems supporting technology transfer Existing infrastructure Manufacturing capabilities Sourcing capabilities Inadequate laws governing transfer No/weak IP protection Little ability to punish violators Perceived inability to control one’s destiny in a given jurisdiction No credit for “doing the right thing” Driving Forces Shaping Environment Perception of “the problem” Pace of technology development Ability to serve current market needs Economic incentives Government Incentives Grants or other funding Tax incentives Tax penalties Government as consumer Ability to adopt new technology Current infrastructure (+/-) Desired pace of change Changes in governing rules of law Concerns over reputation