Secretary Chu’s Introduction:
Steven Chu was thrilled to be at the National Press Club and walked up the eight flights of stairs to the venue, despite his security’s concern. He wanted to address a topic he was passionate about: “The Energy Race, Our New Sputnik Moment.” Analogies to Sputnik are often trite, but Chu believes it should be taken seriously.

The Sputnik Moment and the United States’ Response:
On October 4th, 1957, the Soviet Union launched Sputnik, a small satellite that passed over the United States several times. This event shocked the United States and prompted President Eisenhower to give a major speech on November 13th. Eisenhower emphasized the Soviet Union’s lead in science and engineering and called for a long-term focus on producing more scientists and engineers in the United States. Chu, who was nine years old at the time, benefited from the increased investments in science education and research that followed.

Innovation and Prosperity:
Chu believes innovation adds to society’s wealth and that science and technology R&D are central to innovation. Leadership in innovation cannot be taken for granted. Robert Solow’s work showed that technology development directly increases society’s productivity, leading to increased wealth.

The Importance of Innovation and the Declining Leadership of the United States:
The National Academy of Sciences, National Academy of Engineering, and the Institute of Medicine published a report in 2005 called “Rising Above the Gathering Storm.” This report emphasized the importance of intellectual capital and investing in it for wealth creation. A progress report in 2010 indicated that the United States’ long-term competitiveness outlook has further deteriorated since 2005. The United States has been the greatest innovation machine in the world for over a century, but this leadership is now at risk.

China’s Rise in Innovation:
The United States is no longer the leader in manufacturing or high-technology manufacturing. From 1995 to 2008, China’s share of the global market of high-tech manufactured goods increased from 6% to 20%, while the United States’ share declined from 25% to 12%. Premier Wen Jiabao stated in 2009 that China aims to become a country of innovation and make scientific and technological innovations a priority.

China’s Strategy for Innovation:
China is using government policies to guide the private sector in playing the leading role in R&D. This approach has resulted in significant investments in innovation and a long-term plan for economic development.

U.S. Patent Trends:
Non-U.S. companies now hold the majority of U.S. patents. In 2009, for the first time, 51% of U.S. patents were awarded to non-U.S. companies.

China’s Rise in Innovation:
China has experienced a rapid increase in international patents, moving from 15th place to 5th place. China’s Tsinghua and Peking Universities are the leading suppliers of PhDs in the United States. In published research articles, China is now second only to the United States, moving from 14th place to 2nd place in less than 15 years.

Global R&D Investments:
Eight of the 10 global companies with the largest R&D budgets have established facilities in China or India, with 77% planning to build in China and India. An American company, Applied Materials, recently opened the world’s largest private solar R&D facility in China.

China’s Energy Innovations:
China has installed the largest and most advanced high voltage DC and AC lines in the world. China is actively building nuclear reactors, with 30 new reactors in progress, surpassing the United States. China holds the record for the world’s fastest supercomputer and high-speed rail. China has ambitious plans to expand its high-speed rail network, targeting 5,600 miles of new lines.

China’s Renewable Energy Goals:
China aims to achieve 18% of its energy from renewable sources by 2020, with a potential to reach 20% according to the vice chairman of China’s National Development and Reform Commission.

China’s Coal Industry Transformation:
China systematically closed down old, inefficient coal plants to reduce pollution and CO2 emissions. In 1992, China purchased ultra-supercritical generators from ABB and GE, setting the stage for technological advancements. By 2005, China built its first indigenous supercritical plant, achieving world-record efficiency. Today, China holds the record for the highest efficiency coal plants globally, with cost-effectiveness comparable to supercritical plants in the US.

China’s Solar Photovoltaic Industry:
Suntech, China’s largest solar photovoltaic company, was founded by a Chinese-born entrepreneur with a PhD from Australia. Despite the myth of cheap labor, Suntech’s success lies in its high-tech automated manufacturing process. Suntech holds the world record for polycrystalline solar efficiency, measured by the German Fraunhofer Institute. While the US still leads in monocrystalline silicon technology, China’s progress poses a competitive threat.

The Importance of Federal Support for Energy R&D:
The US has a history of losing technological leadership due to insufficient R&D investment, as seen in the aviation industry. A recent report by a committee of industrial leaders emphasizes the need for government involvement in accelerating energy innovation. The current fraction of sales invested in energy R&D is significantly lower compared to other industries like pharmaceuticals and aerospace. The federal budget allocates only 0.14% to energy research and development, indicating a downward trend.

The Benefits of Energy Innovation:
Energy technology innovations provide quantifiable public benefits, including cleaner air, improved public health, enhanced national security, reduced climate change risks, and protection from energy price shocks. The free market does not adequately recognize or reward these benefits.

Challenges in Energy Investment:
The energy business requires substantial capital investment, often exceeding the risk threshold of private sector investors. This high level of risk perpetuates a cycle of status quo behavior, hindering the development of new ideas.

Exciting Technologies Supported by the Department of Energy:
Affordable electric vehicle batteries with a 500-mile range, three to five times better than current batteries. Transformative approaches for producing biofuels at a dramatically lower cost. Abundant domestic fuel production directly from sunlight. A roadmap to reduce the price of photovoltaic solar energy by a factor of four, eliminating the need for subsidies. Carbon capture and storage cost reduction. Use of supercomputers and simulations to design energy technologies more efficiently.

Conclusion:
Steven Chu urges the US to recognize the urgency of investing in energy R&D, emphasizing that underfunding R&D in times of austerity is akin to removing an engine from an overloaded aircraft. He highlights the need for a comprehensive plan to secure America’s future prosperity in a world facing the challenge of a new industrial revolution for clean and affordable energy.

America’s Innovation Leadership:
Steven Chu emphasizes the importance of maintaining America’s leadership in innovation, particularly in the energy sector. He urges seizing the opportunity to develop new energy technologies and create jobs.

High-Risk, High-Reward Research:
Chu introduces two innovative research funding programs: Advanced Research Projects Agency for Energy (ARPA-E) and energy innovation hubs. ARPA-E supports short-term, high-risk, high-reward research projects with the potential to transform the energy landscape. Energy innovation hubs focus on long-term, collaborative research efforts to develop groundbreaking energy technologies.

Artificial Photosynthesis:
Chu discusses the potential of artificial photosynthesis, which aims to replicate the process by which plants convert sunlight, water, and carbon dioxide into energy-rich fuels. He believes that advances in nanotechnology make it possible to design artificial systems that are more efficient than natural photosynthesis.

Collaboration with China and India:
Chu highlights the opportunity to collaborate with China and India, which are rapidly expanding their infrastructure and energy needs. He sees these countries as potential markets for new energy technologies and as laboratories to test and refine these technologies.

Long-Range Energy Policies and R&D Support:
Chu emphasizes the need for sensible, long-range energy policies with bipartisan support to guide the private sector. He argues that government investment in energy research and development is crucial, as private companies often lack incentives to pursue long-term, high-risk projects.

Climate Change and Carbon Pricing:
Chu expresses disappointment at the lack of progress on a comprehensive energy bill in Congress. He believes that a price on carbon is necessary to drive investment in clean energy technologies and mitigate the effects of climate change. He emphasizes the importance of developing technologies that can make clean energy cheaper than fossil fuels.

International Climate Change Meetings:
Chu discusses the role of the Department of Energy in international climate change meetings, such as the Cancun conference. He believes that the U.S. can meet its pledges made in Copenhagen with bipartisan support and the development of innovative energy technologies.

U.S. Graduate Programs in Hard Sciences:
Chu acknowledges the historical strength of U.S. graduate programs in attracting foreign students in hard sciences. He emphasizes the importance of maintaining this strength to ensure a continued supply of highly skilled workers in science and technology fields.

U.S. Innovation and Foreign-Born Graduates:
The United States is witnessing a trend of foreign students returning to their home countries after earning science and engineering degrees, impacting U.S. innovation. One recommendation to address this issue is to grant a green card to foreign students who excel in science and engineering programs in the U.S. This investment in graduate education would encourage skilled individuals to remain in the country and contribute to U.S. innovation.

The Allure of U.S. Research Universities:
The U.S. research universities continue to attract international students due to their reputation for excellence. However, if these students return to their home countries after completing their education, the U.S. loses valuable talent and investment.

A Renewed Interest in Science and Energy:
There is a growing interest among young people in science and energy, particularly in addressing climate change and energy challenges. This trend is seen as a positive sign and an opportunity for the government to capitalize on this enthusiasm and promote economic prosperity.

Potential Impact of Federal Pay Freeze:
A potential federal pay freeze could affect the Department of Energy’s (DOE) ability to attract top-notch scientific talent. Despite this, some individuals are willing to accept pay cuts to work in the DOE due to the importance and impact of the work.

Recovery Act Funds and Climate Change Debate:
The DOE’s Recovery Act funds are seen as a crucial down payment for addressing energy challenges, but the future use of these funds is uncertain. The vocal opposition to climate change science may lead to a resurgence of the climate change debate, diverting attention from finding solutions.

Addressing Climate Change Uncertainty:
Steven Chu emphasizes that absolute certainty is not necessary for action on climate change. The potential consequences of inaction outweigh the need for 100% certainty, drawing an analogy to repairing faulty home wiring.

Economic Opportunities in Alternative Energy:
The transition to alternative energy sources presents economic opportunities for the U.S. Investments in clean energy technologies and research will contribute to long-term economic health.

Developing U.S. Capacity for Rare Earth Materials:
China’s dominance in the mining and processing of rare earth materials raises concerns about supply risks. The DOE is exploring options to develop U.S. capacity for producing rare earth materials or alternatives to reduce reliance on a single supplier.

Rare Earth Elements (REEs):
Concern about the environmental impact of REE mining. Efforts to mine REEs in an environmentally responsible manner. Exploring alternative sources for REEs to reduce reliance on specific countries. Research into more efficient use of REEs and technological substitutes. Price increases in REEs and the need for substitutes.

Corn Ethanol Subsidies and Trade Protections:
Question about the continued need for corn ethanol subsidies and trade protections in the current energy climate. DOE’s focus on developing new technologies beyond corn-based ethanol. Aim to supersede ethanol made from starches and sugars with advanced technologies. Ethanol as a good starting point but not an ideal transportation fuel. DOE’s priority is to develop fuels like gasoline, jet fuel, kerosene, and diesel due to their superior characteristics.

Advanced Biofuels:
Steven Chu emphasizes the importance of developing biofuels that can be blended directly into existing fuel infrastructure without requiring major changes. He highlights the work of three bioenergy research centers, which have made significant progress in engineering bacteria to produce direct substitutes for gasoline, diesel, and jet fuel. While the technology is not yet commercially viable, a private company has already begun optimizing it, suggesting that it could potentially be a viable solution in the near future.

Nuclear Energy:
The administration’s position is to pursue nuclear energy development while also opposing the dumping of spent fuel at Yucca Mountains. The challenge is to develop nuclear energy in a way that addresses public concerns about safety and waste disposal. Potential solutions include developing new nuclear reactor designs that are inherently safer and produce less waste, as well as exploring alternative methods for storing and disposing of spent fuel.

Nuclear Waste Disposal:
Steven Chu believes the problem of nuclear waste disposal is fundamentally solvable, both scientifically and politically. The political problem requires early engagement and public support. The low-level waste repository in New Mexico, operating for 10 years without accidents, is an example of successful nuclear waste disposal. The salt formation encapsulates the waste, preventing retrieval, which is now seen as a desirable feature.

Yucca Project:
The Yucca project is currently off the table. The Blue Ribbon Commission is tasked with investigating technically feasible options for nuclear waste storage. The commission has 50 years to make recommendations, allowing for a more thorough and informed decision.

Importance of Restarting the American Nuclear Industry:
Restarting the nuclear industry is beneficial for carbon emission reduction, technological advancement, and economic growth. The United States has lost its leadership in the nuclear industry to countries like France, Japan, Korea, and China. Restarting the industry is also important for non-proliferation efforts, as the United States can exert more influence as a player in the civilian nuclear industry.

Energy Efficiency:
Energy efficiency is a critical area for DOE and researchers to pursue.

Understanding Energy Efficiency:
Energy efficiency is a crucial aspect of energy conservation, offering significant potential for cost savings and environmental benefits. It involves reducing energy consumption without compromising functionality or comfort.

Benefits of Energy Efficiency:
Energy efficiency measures can lead to substantial financial savings for individuals and businesses. It enhances competitiveness by reducing operating costs and increasing productivity. Energy efficiency plays a vital role in promoting economic growth by stimulating investment and job creation. It significantly reduces greenhouse gas emissions, contributing to environmental sustainability.

Challenges in Implementing Energy Efficiency:
High initial investment costs can be a barrier to adopting energy-efficient technologies and practices. Insufficient awareness and understanding of the long-term benefits of energy efficiency measures hinder their implementation. Behavioral and cultural factors, such as habits and preferences, can impede the adoption of energy-efficient practices.

Energy Efficiency in Buildings:
Buildings represent a significant area for energy efficiency improvements. Advanced design techniques and technologies can reduce energy consumption in new buildings by up to 75%. Retrofitting existing buildings can also lead to substantial energy savings, typically around 50%. Implementing energy-efficient measures in buildings requires a willingness to invest in long-term savings over short-term costs.

Conclusion:
Energy efficiency offers numerous advantages, including cost savings, environmental benefits, and increased competitiveness. However, challenges related to initial investments, awareness, and behavioral factors hinder its widespread adoption. Overcoming these barriers and promoting energy efficiency is essential for a sustainable and prosperous future.

Adaptability and Persistence:
Despite his intelligence and accomplishments, Stephen Chu does not approach interactions with an attitude of superiority. He acknowledges that in various roles, such as a professor and at Bell Labs, he has encountered situations where his ideas were not initially understood or supported.

Seeking Clarity:
Instead of assuming that others are not smart or knowledgeable, Chu seeks to understand why his ideas may not be understood. He reflects on his explanations and tries to improve them to ensure clarity and persuasiveness.

Openness to Feedback:
Chu is open to feedback and willing to consider the possibility that he may be wrong. He engages in discussions and debates to explore different perspectives and viewpoints.

Building Relationships:
Through his willingness to listen, understand, and adapt, Chu has developed strong relationships with colleagues, even those who initially disagreed with him. He emphasizes the importance of maintaining a positive attitude and continuing to try even when faced with resistance.

Humility and Self-Awareness:
Chu demonstrates humility by acknowledging that he may not always be right and by being willing to learn from others. He recognizes that effective communication and persuasion require understanding and empathy towards others’ perspectives.