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Redefining What’s Possible for Clean Energy by 2020 Job Growth Energy Security Climate Change Solutions Full RepoRt JuNE 2009 Go to gigatonthrowdown.org for report downloads, supplemental material, and discussion. Published by the Gigaton Throwdown Initiative, 912 Cole St. #385, San Francisco, CA 94117 This document and additional details are posted at http://www.gigatonthrowdown.com. Downloads are free for individual use. This work is distributed under Creative introduction Commons (CC) license for Attribution, Non-commercial. Attribution should be given to the Gigaton Throwdown Initiative. 2009 Disclaimer: This work does not express the views of any of its funders, supporters, advisors, or reviewers, only its authors and endorsers. i i table of Contents Endorsement Letter i i Executive Overview 1 Introduction 13 Biofuels 2 7 Building Efficiency 4 5 Concentrating Solar Power 59 Construction Materials 7 1 Geothermal 8 1 Nuclear 9 1 Plug-in Hybrid Electric Vehicles 1 0 3 Solar Photovoltaics 1 1 5 Wind 1 2 7 g i g a t o n t h r o w d o w n i A letter from the Cleantech Community Dear Colleagues: out of our garages came the innovations that launched the information technology and biotech revolutions. From those beginnings, we have built a trillion-dollar It economy and a biotech industry. As investors, entrepreneurs, and business leaders, we recognize a similar economic opportunity in clean energy technology. And this prospect isn’t just about economic growth. our security and prosperity and that of future generations depend on energy independence and a stable climate, which clean technology can ensure. FoR thE first tImE, we hAvE A Roadmap oF hoW to scalE Clean energy to hAvE majoR Impact by 2020 As this report shows, clean energy can reduce greenhouse gas emissions by the gigatons required to address climate change over the next 20 years. For an entrepreneur, what can be imagined sets the bounds for what can become real. We can now imagine gigaton scale for clean energy technologies, and entrepreneurs can starting building the leading clean energy companies of tomorrow. AcceleratIoN will require Policy engagement All of the technologies that can make major carbon dioxide emissions reductions — energy, buildings, transportation, forestry, and agriculture — have historically had market rules established by local, regional, national and international policy decisions. the future will be no different. FoR innovAtIoN to Flourish, PolicymAkers muSt lAy out fair and StAblE Rules oF thE Road Scaling up clean energy industries requires coordinated action by the entire supply chain. Companies will expand capacity only when there are clear market signals for expected growth. Such signals are also required to increase demand for renewable energy and low-carbon alternatives. the energy and carbon policies being decided now in the u.S. Congress and in December at the 15th Conference of the Parties (CoP-15) in Copenhagen can lay the foundations for decades of massive innovation and growth in clean energy. the central reform must be a comprehensive carbon policy that puts a price on carbon for the long term. Without such a policy, cleantech energy pathways will grow slowly and in most cases fail to affect climate change. With such a policy, we can achieve gigaton scale by 2020, stabilize the climate, and create a new industry. While we did not prepare this report, we agree with its basic findings and encourage our colleagues to use it as a framework g i g a t o n t h r o w d o w n for thinking about how to achieve scale in cleantech energy industries. We encourage policymakers to take to heart its central ii conclusions. Signatories RAJ AtluRu Greg kAtS Marc Porat managing Director, Draper Fisher Jurvetson Senior Director and Director of Climate Chairman, Change Policy, Good Energies Serious materials, Calstar, and ZEtA Andrew bEEbE managing Director, Energy Solutions, RIChARD kAuFFmAN AratI PrabhAkAR Suntech America CEo, Good Energies Partner, u.S. venture Partners WARREN byRNE ShIbAb kuran DAN o’ShEI CEo, Foresight Wind President and CEo, Petra Solar CEo, AltaRock mAtt ChENEy FRED kIttlER RhoNE Resch CEo, Renewable ventures managing Director and Co-Founder, President and CEo, Firelake Capital management Solar Energy Industries Association lARRy CobEN Chairman and CEo, mARty LagoD JasoN SCott tremisis Energy Corporation managing Director, managing Partner, Firelake Capital management EKO Asset management Partners WIll ColEmAN Partner, mohr Davidow ventures ChRIS luEbkEmAN mIChAEl SkElly Director for Global Foresight + Innovation, Chief Development officer, Jesse FINk Arup horizon Wind Energy Founding Partner, missionPoint Capital Partners Jack OswalD DICk SwansoN CEo, Syngest Inc. CTO, SunPower Corporation ADRIAN FolEy Chief business Development officer, SuNIl PAul DhARmesh thAkkER AltaRock Energy Founding Partner, vice President, Spring ventures Advanced technology ventures bIll GRoss CEo, eSolar and founder, Idealab RAvI ViswanathAN Partner, New Enterprise Associates ARNo hARRIS CEo, Recurrent Energy g i g a t o n t h r o w d o w n iii thank you The Gigaton Throwdown wishes to thank Advisors: Jason Scott, Managing Partner, EKO Asset the following organizations and individuals. Management Partners This project was made possible through their Raj Atluru, Managing Director, Draper Fisher financial or in-kind support: Jurvetson Jigar Shah, Co-founder, SunEdison Neil Z. Auerbach, Managing Partner, Hudson Dick Swanson, CTO, SunPower Sunil Paul and Michelle Odom Foundation Capital Management Matthew Trevithick, Partner, Venrock Energy Foundation Josh Becker, Founding Partner, New Cycle Ravi Viswanathan, Partner, New Enterprise Firelake Capital Management Capital Associates Jesse Fink Andrew Beebe, Managing Director, Energy Sanjay Wagle, Principal, VantagePoint Venture Solutions, Suntech America Environmental Entrepreneurs Partners Clean Economy Network James Brew, Rocky Mountain Institute Jonathan Wolfson, CEO, Solazyme Weber Shandwick Warren Byrne, CEO, Foresight Wind Marianne Wu, Partner, Mohr Davidow Orrick Matt Cheney, CEO, Renewable Ventures Ventures Tendris Aimee Christensen, CEO, Christensen Global Ethan Zindler, Head of North America Strategies Research, New Energy Finance Clinton Global Initiative L.E.K. Consulting Will Coleman, Partner, Mohr Davidow Reviewers and other Contributors: Ventures Andy Aden, Senior Research Supervisor, Jesse Fink, Founding Partner, MissionPoint National Renewable Energy Lab Capital Partners Shai Agassi, Founder and CEO, Better Place Josh Green, Partner, Mohr Davidow Ventures Annie Barton, University of Michigan Anup Jacob, Partner, Virgin Green Fund Gautam Barua, Partner, Aclaria Capital Greg Kats, Senior Director and Director of Climate Change Policy, Good Energies Anthony Bernhardt Richard Kauffman, CEO, Good Energies Warren Byrne, CEO, Foresight Wind Hal LaFlash, Director, Emerging Clean Larry Coben, Chairman and CEO, Tremisis Technologies, Pacific Gas and Electric Energy Corporation Marty Lagod, Managing Director, Firelake Bruce Dale, Professor of Chemical Capital Management Engineering, Michigan State Unviersity Marc Porat, Chairman, Serious Materials, Adrian Foley, Chief Business Development CalStar; and Pegasus Capital ZETA Officer, AltaRock Energy Arati Prabhakar, General Partner, U.S. Venture Charles Forsberg, Executive Director for the Partners MIT Fuel Cycle Study, Massachusetts Institute g i g a t o n of Technology t h r o w d o w n Scott Sandell, General Partner, New Enterprise Sigurgeir Bjorn Geirsson, Reykjavik Energy iv Associates Ron Gremban, CalCars Jack Oswald, CEO, Syngest Inc. Kevin Cornish W. Michael Griffin, Executive Director of the Frans Otten, Tendris Diane Doucette, Director of the Climate Green Design Institute and Assistant Research R. Martin Roscheisen, CEO, Nanosolar Campaign, Environmental Entrepreneurs Professor, Carnegie Mellon University Ruth Scotti, U.S. Regulatory Affairs Manager, Lucas Dunnington Bill Gross, CEO, eSolar BP Biofuels Candice Eggerss, Managing Director, Firelake Arno Harris, CEO, Recurrent Power Michael Skelly, Former Chief Development Capital Management Sean Hazelett Officer, Horizon Wind Energy Bob Epstein, Co-Founder, Environmental Eirikur Hjalmarsson, Reykjavik Energy Richard Sears, Visiting Scientist in the MIT Entrepreneurs Holmes Hummel, Policy Specialist, Energy Energy Initiative Victoria Fleming and Resources Group, University of California, Jigar Shah, Co-founder, SunEdison Tim Greeff, Clean Economy Network Berkeley Saurin Shah, Senior Vice President, Neuberger Eric Heitz, Energy Foundation Jim Imbler, CEO, Zeachem Berman LLC Bob Hemphill Mark Z. Jacobson, Professor of Civil and Kevin Surace, CEO, Serious Materials Jim Hurd, GreenScience Exchange Environmental Engineering, Stanford Dick Swanson, CTO, SunPower University Thomas Kalil, University of California, Marc Tarpenning, Co-Founder, Tesla Motors Berkeley Willett Kempton, Professor, University of Delaware Jeff Tester, Croll Professor of Sustainable Andy Karsner, Former Assistant Secretary, Energy Systems, Cornell University Department of Energy Fred Kittler, Managing Director and Co- Founder, Firelake Capital Management Rob Watson, CEO and Chief Scientist, EcoTech Anna Halpern-Lande International Chip Krauskopf, Chromasun Thomas Leahy, University of Michigan Ryan Waddington, Director, ZBI Ventures Craig Lewis, Founding Principal, RightCycle Rick Lewis and FIT Coalition Michael Wang, Senior Scientist, Argonne Jon Mingle National Laboratory Adam Liska, Research Assistant Professor, Urvi Parekh,