Shaping Energy Technology Transition

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In the years following Pons and Fleischman’s announcement, a wide array of experimental designs have been tested using various metals and deuterium concentrations. The results have yielded inconsistent outcomes, sometimes producing transmutations, excess heat, or no reaction at all. While largely discredited by the physics community, a small group of scientists in the United States continues to conduct independent research under the title of low energy nuclear reactions. Recently, the U.S. Navy announced “significant” results in the production of cold-fusion like reactions.3 An adhoc press conference and the absence of peer reviewed research with clear methodology and replicable procedures, coupled with mass skepticism by the scientific community, all contributed to cold fusion’s demise. By heeding the lessons learned from cold fusion, perhaps future scientific breakthroughs can be addressed more cautiously and in collaboration with the academic community and the government. It is important to consider that significant breakthroughs and future alternative energy sources may come from the most surprising of places. Biofuels Corn ethanol is a story of U.S. policy attempting to prematurely select an energy technology as a preferred option. Due to unintended consequences associated with life cycle costs and food supplies, the government should not have supported corn ethanol. This case illustrates the uncertainty surrounding energy policy decisions and the need for policymakers to use caution when making such decisions. In the United States, fluctuations in oil prices have spurred demand for alternative energy sources capable of offsetting foreign oil while also reducing greenhouse gas emissions and increasing domestic economic activity. In the 1990s, a renewed interest in corn- ethanol catapulted the industry into the spotlight. Consequently, policies aimed at bolstering corn production generated a new set of unintended consequences. By diverting corn reserves from feed stocks and underestimating life cycle costs associated with production, corn ethanol’s feasibility has come under close scrutiny by environmental organizations and the American public. For the past 6 years, the U.S. Congress has provided farmers and refiners with lucrative incentives aimed at increasing ethanol production.4 EPAct 2005 included a subsidy of 51 cents per gallon of ethanol blended with gasoline and a mandate requiring the annual production of 7.5 billion gallons of renewable fuels by 2012. Most recently, the Food, Conservation, and Energy Act of 2008, an omnibus bill passed in May, allocates $300 million for the Bioenergy Program for Advanced Fuels over the next 5 years and also establishes the Biomass Crop Assistance Program for agricultural and forest landowners.5 The recipients of such subsidies, grants, and other financial assistance packages are heavily concentrated in the Midwest, a key region that has gained importance during presidential primaries and national elections. During the 2008 presidential campaign, Sen. Barack Obama, D-Ill., the second largest corn producing 136

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