Energy Research at DOE Was It Worth It? Energy Efficiency and Fossil Energy Research 1978 to 2000 (2001) / Chapter Skim
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Appendix E: Case Studies for the Energy Efficiency Program
Appendix E: Case Studies for the Energy Efficiency Program
Pages 95-161
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From page 95... ...
~ ~ , From the programs and technologies in the industry sector, the committee selected the following: · Advanced lost foam technology, · Advanced turbine systems, · Black liquor gasification, · Forest products Industries of the Future program, and · The oxygen-fueled glass furnace. It selected the following technologies and programs from the transportation R&D sector: · Advanced batteries for electric vehicles · Catalytic conversion for cleaner vehicles, iEE refers throughout this appendix to the energy efficiency component of DOE's Office of Energy Efficiency and Renewable Energy (EERE)
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From page 96... ...
To estimate the benefits from compressor improvement, the committee sent a data request to DOE and received in response a spreadsheet analysis of the energy savings and net energy cost savings to consumers due to the purchase of more efficient refrigerators. In this analysis, DOE used the sales-weighted average annual energy use of refrigerators sold by year over the period 1981 to 1990.
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From page 97... ...
For each year from 1981 through 1990, the annual energy use reduction compared to 1979 was used to calculate the energy savings due to advanced compressors and the total life-cycle savings for units sold that year. From these savings and the national average residential cost of electricity, the life-cycle energy cost savings were calculated for units sold in each year.
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From page 98... ...
The energy savings from these further improvements through 2005 are estimated to be 2.6 Q of primary energy. The corresponding net cost savings to consumers is estimated to be $15 billion (McMahon et al., 2000~.
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From page 99... ...
Since fluorescent lamps are four to five times more efficient than incandescent lamps, finding ways to replace existing incandescent lighting applications with CFLs could yield substantial energy savings and has become a key goal of the DOE lighting R&D program. Nevertheless, DOE did not have a program targeted at CFLs until 1997.
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From page 100... ...
Programa Realized Benefits/Costs Options Benefits/Costs Knowledge Benefits/Costs Economic DOE R&D costs: $1.8 million benefits/costs Industry costs: $755,000 Environmental CFLs produce twice as much light and consume only 25% as much electricity as conventional halogen lights Security Benefits are small to date benefits/costs Benefits may be large: Market potential is significant, and industry appears interested in further commercializing the products Potential benefits are larger Potential benefits are large R&D on halogen lights and CFL prototypes Increased knowledge of circuit designs and heat dissipation methods to meet an extreme size and durability constraint Research on miniaturizing the ballasts Development of lower-cost CFLs Research on lighting, given its importance in terms of energy consumption and energy savings potential Avoided emissions of carbon, SO2, and Noxf Reduced hazards from reduced heat output in some applications R&D on reducing electricity demand" With widespread use, possible under some future scenarios, deployment of CFLs will reduce electric system peak loads. aUnless otherwise noted, all dollar estimates are given in constant 1999 dollars through 2000.
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From page 101... ...
Since then, this computer program has been continually updated and improved. In 1994, LBNL released version DOE-2.1E, which incorporated new models for ice storage systems and evaporative cooling systems, desiccant cooling systems, and variablespeed heat pumps; an enhanced energy cost calculation to simulate complex rate structures; and a link to the WINDOW-4 program that simulates custom glazing (LB NL, 1994a; LBNL,1994b)
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From page 102... ...
, are not likely. Moreover, the second assumption double-counts the energy savings attributable to the improvement of the actual technology or the use of the system being simulated (e.g., low-e windows, compact fluorescent lamps, desiccant cooling systems, and variable-speed heat pumps)
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From page 103... ...
ft. energy savings of 25.5 percent and average energy use of new buildings of 225,000 Btu/ft2 (this is originating source data, not end-use energy consumption)
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From page 104... ...
In fact, if that is the measure of success of the program, the effectiveness of the simulation models could be biased. Because DOE-2 has been used to estimate the energy savings of various technologies in the BE program, another method for measuring their benefits and costs should be identified.
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From page 105... ...
The DOE provided a spreadsheet analysis of the benefits of the electronic ballasts calculated from its sales, the energy savings per unit, and the average hours of use per year of fluorescent lights in commercial buildings. DOE's number, 3200 hr/year, is now thought to be an underestimate by 500 hr/year, so this is a source of underestimation for energy savings.
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From page 106... ...
The DOE Role In parallel with its development of other technologies, for a natural gas heat pump, DOE supported the development of three different mechanical design concepts for the free-piston Stirling engine heat pump from 1976 through 1992. The projects focused on residential and small commercial buildings.
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From page 107... ...
Why Stirling? Internally, several factors supported the choice of the freepiston Stirling engine as a leading candidate technology to achieve a gas heat pump: · Before DOE's involvement in Stirling, the American Gas Association (AGA)
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From page 108... ...
Funcling and Participation The level of DOE funding for free-piston Stirling engine R&D was influenced primarily by the efforts of the natural gas industry to educate Congress and administration officials about the importance of gas-fired heat pumps. The raAPPENDIX E tionale for gas heat pumps included source energy efficiency, environmental benefits, peak-load reduction, infrastructure utilization, and foreign competition.
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From page 109... ...
Competing technologies are often investigated concurrently until one emerges as superior to the others; research on the inferior options is halted, and resources are then focused on the more promising ones. In this case, the development program for the Stirling engine heat pump was terminated after it was judged to be inferior to the gas absorption heat pump and because budget constraints forced a choice to be made at the time the Stirling engine heat pump was dropped.
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From page 110... ...
Thus, the total industry cost share for the total program is probably higher. CNatural gas heat pumps can save 40 percent of the energy used by today's best gas and oil heating systems and can reduce summer electric peak loads by providing an alternative energy source for air conditioning.
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From page 111... ...
, "Ventilation and Acceptable Indoor Air Quality in Low-Rise Residential Buildings." Although the development of new technologies was not the primary focus of the IAQI&V Program, EE claims that the program was influential in improving four IAQI&V-related technologies from 1985 to 1999: 1. A device that is capable of pressurizing or depressurizing a building to identify and locate the source of air leaks (a "blower door")
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From page 112... ...
As for the second goal developing ways to harvest the large energy savings potential from reduced infiltration and ventilation without degrading the resulting indoor environment considerable technical progress has been made, but further work is needed to catalyze broader market use of the four IAQ-related technologies that were the focus of the IAQI&V program from 1985 to 1999: 1. BE reported that three North American manufacturersi4 now sell more than a thousand blower doors per year (Anderson, 1995~.
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From page 113... ...
Helped facilitate the establishment of the blower door testing industryC Facilitated development of radon mitigation industry Stimulated development or refinement of instruments and sensors used for building control systems Facilitated development of consensus industry standards Environmental Enabled industry and homeowners to avoid or mitigate many indoor environmental and related health problems through NOX at power plantsh changes in materials, building design, and Potential for avoided emissions of other operation and maintenance practices benefits/costs Security Reduction in electricity demand due to benefits/costs reduced AC loads; some reduction in energy consumption for heating heating oil use Potential for reduced energy consumption owing to residential tightening measures Potential for avoided emissions of carbon" Potential for avoided emissions of SO' and criteria pollutants including particulates and heavy metals, especially from coalfired power plants Reduction in peak electricity demand due Minimal to reduced AC loads; some reduction in Increased knowledge about causes of sick building syndrome Increased knowledge about source of redone Increased knowledge about how tight building envelopes can bef Increased knowledge of moisture migration and transmission in buildings and development of mathematical models and other tools for moisture prediction Assisted in development of MOIST program for estimating moisture transmission through building envelopes Research demonstrated importance of building ventilation and indoor air quality and identified the important pollutants aUnless otherwise noted, all dollar estimates are given in constant 1999 dollars through 2000. bA large fraction of spending by others on IAQ research is by the NIH, with considerable emphasis on asthma, allergies, and pesticide exposures and very little emphasis on building science.
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From page 114... ...
Yet, the potential not only for energy savings but also for reduced health care costs and improved productivity from this research far exceeded the cost of the program. The primary lesson to be learned from this case study is that health and safety issues may be more important public goals than energy efficiency.
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From page 115... ...
to estimate the energy savings and corresponding consumer net energy cost savings for the residential market only and for heating energy savings only. The commercial buildings market was not considered nor was the impact of low-e glass on reducing the cooling load in residences.
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From page 116... ...
This basic assumption was apparently based on one referenced study in 1987 and does not consider the development of "next-best technologies" since that time. Moreover, this assumption does not consider potential energy savings from reduced cooling loads in residential nor any potential energy savings from reduced heating losses or cooling loads in nonresidential buildings.
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From page 117... ...
This number was then multiplied by the square footage of low-e windows sold for residential applications per year, and national averages of fuel and electricity mixes for home heating were used to calculate the electricity, natural gas, fuel oil, etc., savings in the year the windows were sold. These energy savings were then multiplied by the average national cost of fuels and electricity.
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From page 118... ...
program for metal casting. Research cofunded by DOE and an industry consortium of more than 30 partners and in large part being performed at the University of Alabama at Birmingham, which has a Lost Foam Technology Center, and the University of Missouri, Rolla, has resulted in significant improvements to the lost foam process, which are being used bv the industry.
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From page 119... ...
2000i. ORE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Advanced Lost Foam Technology Program.
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From page 120... ...
Environmental benefits were based on emission reductions resulting from energy savings, and emission rates, emission savings, and electricity generation capacity type are based on the DOE/OIT Impact Projections Model. BE assumed that the total annual energy consumption of iron, steel, and aluminum sand castings (adjusted for scrap and yield)
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From page 121... ...
The productivity improvements and environmental benefits in terms of waste minimization outweighed the importance of energy savings to industry. The ability to make parts that could not be made using other casting methods also was a driving force for its adoption.
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From page 122... ...
The overall goals of the EERE portion of the ATS program have been achieved, although all manufacturers did not achieve all of the goals. Several products have resulted directly from the EERE portion of the ATS program, and some are nearing commercialization, including the follow~ng: · The primary product, the Mercury 50 advanced turbine system, was developed by Solar Turbines, Inc.; · Howmet and PCC have demonstrated a low-sulfur melt process as a result of the casting RD&D initiative; · Pratt & Whitney and Siemens-Westinghouse are currently demonstrating two advanced thermal barrier coatings; · Solar Turbines will reach a world record in January 2001 for the 15,000 hours of continuous service of its advanced ceramic-composite combustor liner; · Rolls-Royce achieved over 800 hours of continuous service for ceramic vanes; and Industry Average Cost of Downtime Source Cellular communications Telephone ticket sales Airline reservations Credit card operations Brokerage operations 41,000 72,000 90,000 2,580,000 6,480,000 Teleconnect Magazine Contingency Planning Research-1996 Contingency Planning Research-1996 Contingency Planning Operations-1996 Contingency Planning Operations-1996
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From page 123... ...
At that point, the EERE portion of the ATS program had completed its original technical mission of developing the next-generation advanced turbine system. 123 However, the move from OIT to OPT has led to a broader scope and has enabled program participants once again to devote their attention to the full suite of potential applications, which includes manufacturing, buildings, institutions, and district energy systems, as well as the Industries of the Future.
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From page 124... ...
The BE ATS program also provided a measurable difference in outages, spikes, and sags.l920 The program has also contributed to the development of effective government-industry-university partnerships, including industry/laboratory fellowships. It has helped to raise awareness of the regulatory and institutional barriers to the expanded use of distributed energy resources and combined heat and power systems.
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From page 125... ...
As part of the ATS program's effort in distributed energy resources, a joint working group was established in EERE and EPA. This working group, along with several industry participants, trade associations, and nongovernmental organizations, conceived and launched the Combined Heat and Power (CHP)
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From page 126... ...
All in all, the ATS program is a good example of a successful industry-government R&D program. The focus on TABLE E-16 Benefits Matnx for the Advanced Turbine Systems Program (Energy Efficiency Components Realized Benefits/Costs Options Benefits/Costs Knowledge Benefits/Costs Economic DOE funds: $185 million benefitsb/costs Private industry funds: $172 million Substantial energy savings: approximately $400 millions Prevents outages and spikes and sags in voltages Environmental 9793 tons of NOX reductionsf benefits/costs Security Minimal benefits/costs Mercury 50 appears to be close to commercialization Rolls-Royce products are being reevaluated Low-emission technology and ceramic materials are beginning to be commercialized Recuperator is potentially applicable to other turbine designs.
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From page 127... ...
A similar process is being followed for the Advanced Reciprocating Engine Systems program, which was started in FY 2000. BLACK LIQUOR GASIFICATION Description and History of Program The papermaking process produces a waste product called black liquor, composed of chemicals used in the pulping process and (depending on the process)
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From page 128... ...
SOURCE: Office of Energy Efficiency, 2000k. ORE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Black Liquor Gasification Program for the Forest Products Industry, December 12.
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From page 129... ...
2000k. ORE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Black Liquor Gasification Program for the Forest Products Industry.
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From page 130... ...
contemplates demonstrating two other technologies as well: pressurized kraft black liquor gasification and low inlet velocity gasification of biomass such as bark and wood residuals (PIMA's North American Papermaker, 1999a)
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From page 131... ...
conomlc DOE R&D costs: $14.9 million benefits/costs Industry costs: $2.2 million No realized benefits: technology has not yet been proven to be commercially successful on a full scaler Program has helped to bring gasification technology to the point where it can be commercially demonstrated Large potential for the technologyC Increased energy productions Technology can provide the same critical energy and chemical recovery functions as a Tomlinson boiler at the same cost and with many advantagese Development of a pulse combustor-based, indirectly heated process for the gasification Development of the MTCI/StoneChem steam reforming technologyf Basic research on the kinetics of black liquor gasification, development of corrosion-resistant gasifies materials, analysis of the formation and control of tar deposits, and studies of the technology and economics of black liquor and biomass gasification Testing of the PulseEnhanced Steam Reformer using a variety of fuels, including sawdust, paper mill sludge, and municipal solid waste Engineering study to design a full-scale steam reformer demonstration project Research on the DOE BioEnergy Initiative Engineering study of a full-scale demonstration of StoneChem's PulseEnhanced Steam Reformer technology Environmental None Large potential reduction in fuel If technology can be demonstrated to be benefits/costs consumption and CO2 emissions" fully reliable and able to meet all Technologies produce significantly less environmental regulations, it is likely environmental emissions than the that the industry will use these systems MTCI/StoneChem steam reformer or a to replace the less-efficient, lower Tomlinson recovery boiler power-output Tomlinson boilers Security None Minimal oil displacement Minimal benefits/costs aUnless otherwise noted, all dollar estimates are given in constant 1999 dollars through 2000. bBlack liquor gasification technology has not yet been proven to be commercially successful on a full scale.
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From page 132... ...
As with other OIT programs, the black liquor gasification demonstration program also illustrates the interaction between government technology programs and government regulatory programs. The opportunity for flexibility in meetAPPENDIX E ing the 2002 Cluster Regulations emissions standards with DOE cost-sharing together, of course, with the Cluster Rules themselves created the incentive for GeorgiaPacific's interest in the new technology.
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From page 133... ...
20001. ORE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Forest Products Industries of the Future (IOF)
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From page 134... ...
The increased emphasis on capital effectiveness is associated with the Black Liquor Gasification demonstration. During the first 4 years of the program, partnerships became more inclusive.
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From page 135... ...
20001. ORE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Forest Products Industries of the Future (IOF)
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From page 136... ...
Biomass and black liquor gasification demonstration initiative: Market introduction is in 2008, with 31 units installed by 2015. Combined-cycle configuration for maximum electric power production increases power output from a 1500-tpd kraft mill from 70 MW (using conventional technology)
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From page 137... ...
The decision by glass companies to use oxy-fuel firing was dependent on their individual situations. Initially, the primary reason for employing oxy-fuel firing was either for NOX reduction to meet standards or for energy savings.
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From page 138... ...
2000m. OEE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Oxygen-Fueled Glass Furnace Program.
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From page 139... ...
Lessons Learned The demonstration of the technology was critical to its successful adoption by industry. DOE's research on oxyRealized Benefits/Costs Options Benefits/Costs Knowledge Benefits/Costs Economic DOE R&D costs: $1.3 millions benefits/ costs Industry cost share: $527,000C Energy savings of 128 trillion Btu and reductions in energy costs of approximately $300 millions By 1999, about 30% of all glass made in U.S.
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From page 140... ...
DOE should have a role through much of the road mapping and visioning for individual technologies as well as for the industry, but the nature or amount of federal support for research on a technology should be expected to change at a predetermined point. For basic research or directed exploratory research, the industry cost share should be very low or even zero.
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From page 141... ...
2000. ORE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Advanced Batteries for Electric Vehicles Program.
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From page 142... ...
Programa Realized Benefits/Costs Options Benefits/Costs Knowledge Benefits/Costs Economic DOE R&D costs: $376 million benefits/costs Private industry cost share: $169 millions Few benefits thus far: electric vehicles have achieved little market penetration. Niche markets for nickel metal hydride battery powered vehicles.
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From page 143... ...
Overall, it appears to the committee that the insurance provided by potential environmental and security benefits and the knowledge benefits of the DOE program are well worth the $376 million expended to date. Even if the electric car never extends beyond niche markets, the carryover of battery R&D knowledge to PNGV's hybrid engine-electric and fuel cell vehicles will remain a significant insurance benefit.
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From page 144... ...
All the funds shown in Table E-3 1 were for the joint technology development efforts only; additional, unknown amounts are being expended by industry to develop CIDI catalytic exhaust emission control devices. The DOE work on catalytic control of emissions from CIDI engines receives direction as part of a yearly peer review process of the PNGV program.
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From page 145... ...
(This assumes that the catalytic conversion systems do not reduce too much the fuel economy advantage of the engine over gasoline engines.) The dollar savings from reduced petroleum consumption is not expected to cover the initial cost premium of CIDI engines with catalytic emission control in conventional or hybrid configurations when compared with conventional engines (see discussion in the PNGV case study)
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From page 146... ...
At the 2000 Detroit Auto Show, Vice Chairman Harry Pearce of General Motors said, "It was the Department of Energy that took fuel cells from the aerospace industry to the automotive industry, and they should receive a lot of credit for bringing it to us." APPENDIX E The distribution of DOE funding among the various PNGV technologies varied considerably over the years of the program. Figure E-2 (NRC, 2000)
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From page 147... ...
_ ~ 25.0 Cal An ILL ~ 20.0 o 15.0 10.0 5.0 0.0 147 \ it, .' \ i: I' ~ S ~ .. __~ .~# · ~ Cow' ~ _ /1~1 1 995 1996 1997 1998 1999 2000 Fiscal Year Hybrid Propulsion Systems High-Power Batteries Power Electronics ~ Fuel Cells -- -a Combustion and Aftertreatment ~ Fuels an_ Propulsion Materials he Lightweight Materials FIGURE E-2 Distribution of OAAT PNGV funds by technology.
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From page 148... ...
Improved body structure Recycling Design Gas turbines/ceramics Manufacturing technologies Fuel cellsb Casting Painting Ion-implantation Induction heating Adhesive bonding Rapid prototyping Combustion diagnostics Phosphor thermometry Simulation/modeling Virtual reality Recycling Because they appear to be more expensive than the corresponding conventional technologies they replace, when and if eventually applied to automobiles, option economic benefits may be negative for the following: Hybrid power train High-power batteriesb Materials Ni-aluminide dies Diamond-like coatings Lightweight airbag Hybrid power train technology High-power batteriesb Materials Ni-aluminide dies Diamond-like coatings Lightweight airbag Reduced weight gives improvement in fuel economy and reduced CO2 emission. Pickup bed gives 1.3 percent vehicle weight reduction, or 0.18 mpg fuel economy improvement.
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From page 149... ...
Some of the less useful knowledge has been in automo tive Stirling engines, automotive gas turbines, and flywheel, ultracapacitor, and hydraulic energy storage. These projects might be considered failures of the PNGV program, and it might be questioned whether their potential was sufficient to have warranted starting them in the first place or whether they should have been terminated sooner.
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From page 150... ...
A1though CO2 is currently unregulated, it is a known greenhouse gas and a potential threat for climate change. Fuel cell vehicles, if employed, would probably have emissions well below the tier 2 level, but the emissions from fuel preparation are still uncertain, since the supply system has not yet been chosen.
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From page 151... ...
from 1978 until 1987 to develop an automotive Stirling engine. The goals of the program included a 30 percent fuel economy improvement, low emission levels, smooth operation, and successful integration and operation in a representative U.S.
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From page 152... ...
Cost Share 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 Total 18.00 22.77 20.90 20.88 22.96 18.84 22.65 24.99 25.74 16.68 214.41 o o o o o o o o o o o SOURCE: Of fice of Energy Efficiency.2000r. OEE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Stirling Automotive Engine Case Study (failure)
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From page 153... ...
The chance for a radically different power plant like the Stirling engine to displace the internal combustion engine in the automobile industry is small unless the new power plant brings a dramatic improvement in performance, fuel economy, convenience, or cost, or meets a severe new social requirement unattainable by conventional means. The auto industry has so much plant, equipment, and experience devoted to the manufacture and service of gasoline and diesel engines that incremental improvements by competing technologies do not justify the cost and logistic difficulty of introducing an entirely new engine type.
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From page 154... ...
2000s. ORE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Transportation Fuel Cell Power Systems Program.
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From page 155... ...
When he introduced the Precept, Harry Pearce, vice chairman of General Motors, said, "It was the Department of Energy that took fuel cells from the aerospace industry to the automotive industry, and they should receive a lot of credit for bringing it to us." This is an unusually strong endorsement of a government-supported technology and reflects both the potential of the program as well as the key role DOE has played as a catalyst for industry activity. DOE has had a major role in the development of PEM fuel cell technology.
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From page 156... ...
These benefits include the following: · Reduced dependence on foreign oil; · Reduced local, regional, and global environmental impacts of transportation while maintaining a high level of mobility; · Fuel cell technology leadership that will help domestic automotive companies and their fuel cell suppliers capture larger market share not only in international markets but also in markets for electricity generation in buildings and industry. · Accelerating the growth of stationary fuel cells through shared technology development, leading to system reliability through distributed power.
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From page 157... ...
eEE estimated that fuel cell hybrid vehicles running on gasoline with on-board conversion to hydrogen could achieve up to 80 mpg; hydrogen fuel cell vehicles running on stored hydrogen could achieve the equivalent of 110 mpg. fThese would use natural gas reforming to supply hydrogen.
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From page 158... ...
DOE has significantly increased the efforts to develop a high-temperature membrane. This membrane is needed to solve three problem areas for fuel cells: (1)
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From page 159... ...
2000b. Impact of Diesel Fuel Sulfur on CIDI Engine Emission Control Technology.
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From page 160... ...
2000k. OEE Letter response to questions from the Committee on Benefits of DOE R&D in Energy Efficiency and Fossil Energy: Black Liquor Gasification Program for the Forest Products Industry, December 12.
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From page 161... ...
Rothwell, Bruce, Xcellsis: The Fuel Cell Engine Company, personal communication to William Fulkerson, BEES liaison to the committee, 2001. Ryan, John, DOE Office of Energy Efficiency, personal communication to William Fulkerson, BEES liaison to the committee, 2001.
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