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1 U.S. Department of Energy International Conference on Innovation in Energy Technologies The Innovation of Complex Energy Technologies: The Case of the Advanced Turbine System Program By Michael Curtis, Ph.D. Policy and International Affairs 1
2 Advanced Turbine Systems Siemens - Westinghouse 501G General Electric H System 375 MW, 58% Efficiency 480 MW, 60% Efficiency 2
3 ATS Overview Technology Performance Characteristics 60% efficiency Less than 10 ppm NOx emissions 10% lower operating costs DOE ATS Program $755 million cost-shared program Public-private partnership between industry-universitiesgovernment Phased Approach Using Cost-shared Agreements 3
4 Objective of the Study Examines the innovation of a complex, energy technology Seeks to understand how the OEMs acquired knowledge and capabilities needed for innovation under conditions of uncertainty Illuminates our understanding of innovation of complex energy technologies within a publicprivate partnership 4
5 It s An Ideal Subject Because.. Manufacturers Overcame Presumptive Technological Limits Higher Temperatures Needed for Efficiency But Higher Temps Can Mean High NOx Emissions Problems with Lean Fuel-Air Mixtures Exceed Material Tolerances Technological Change Occurred During Period of Uncertainty Public-private Partnership Used to Spur Innovation 5
6 Combined-cycle Gas Turbine System Steam Turbine Generator Gas Turbine Heat Recovery Steam Generator steam 6
7 Key Subsystem Innovations Closed-loop steam cooling: Fundamentally changed the way turbine blades and vanes are cooled. Single crystal fabrications: First time application for utility-scale turbines. Thermal barrier coatings: Transferred from aircraft engine technology using ceramic coatings. Lean pre-mix, dry low-no x combustors: Improvements to existing technology to reduce NO x emissions under lean conditions. 7
8 Closed-loop Steam Cooling Source: Dept. of Energy, Office of Fossil Energy, National Energy Technology Laboratory. Advanced Turbine Systems: Advancing the Gas Turbine Power Industry, November
9 Single Crystal Blades Internal serpentine cooling passages 2-3 times larger than aircraft blades 5-10 times heavier than aircraft blades 9
10 Dry, Low-NOx Combustors Source: Proceedings of the 2000 Advanced Turbine Systems Annual Program Review Meeting, December 5, 2000, General Electric Power Systems 10
11 Framework For the Study Evolutionary theory of innovation Selection environment Trajectories Path Dependency Organizational learning Networks Learning Processes Patterns of Innovation 11
12 GEPS Turbine Innovation Trajectory 70% 60% 50% Combined-cycle efficiency 40% 30% 20% Percent change 10% 0% ATS Program period
13 SWPC s Turbine Innovation Trajectory 70% 60% Combined-cycle efficiency 50% 40% Percent change 30% 20% 10% ATS Program period 0%
14 GEPS Organizational Network DOE Program Mgmt. Utility Companies and Power Producers Vendors General Electric Power Systems University Research Program Casting Companies National Labs GEAE GE CRD
15 SWPC s Organizational Network SWPC s R&D Center DOE Program Mgmt. Strategic alliances Utilities SWPC Vendors University Research National Labs Casting Companies
16 Patterns of Innovation Performance Trajectory 2 f Normal pattern e Transition pattern Trajectory 1 b a Transformation pattern c Technology Networks d Innovation legend: Incremental Major Fundamental Time Source: Rycroft, Robert W., and Don E. Kash. The Complexity Challenge -- Technological Innovation for the 21st Century. London: Pinter, 1999, p
17 ATS Technology in a Transition Pattern Significant improvements in efficiency and NOx emissions Significant changes in design Closed-loop steam cooling was fundamentally different than any previous technology Single crystal components and thermal barrier coatings were a spin off from aircraft technology 17
18 Drivers for Innovation Gulf War 1990 and Concern for Energy Security Energy Policies of the 1990 s favor energy efficiency to address energy and environmental concerns Energy Policy Act of 1992 Deregulation of U.S. Retail Electric Markets Gas Turbine Markets in the 1990s Public Preference for Natural Gas-fired Power Plants over Coal or Nuclear Dept. of Energy s Advanced Turbine System Program 18
19 DOE Advanced Turbine System Program Begun in 1992, 8 yr. program 2 classes of turbines: Industrial (< 20 MW) Utility (>400 MW) Focus of Study Goals: 60% efficiency (LHV) < 10 ppm NOx 10% lower operating costs Commercial systems in 2000 University Research Program Cost-shared Phased Approach 19
20 SWPC s Learning Processes for Closed-Loop Steam Cooling Innovation Closed-loop Steam cooling Knowledge Source Internal - explicit Learning Approach Learning by formalized inquiry Knowledge Creation Process In-house studies for cooling medium and materials. External tacit Learning by interaction Technological capabilities from alliances. External explicit Learning by Interaction Licensing agreements from alliance partners. External tacit Learning by interaction Testing from government labs and testing facilities. Building personal networks with university researchers and government laboratories. External explicit Learning by interaction Reports from NASA and Wright Patterson AFB research and testing. External explicit Learning from advances in science and technology Research network through the AGTSR on rotating blade cooling and film cooling. 20
21 Analysis of Learning Patterns Subsystem innovations General Electric Power Systems Siemens Westinghouse Power Corp. Internal External Internal External Tacit Explicit Tacit Explicit Tacit Explicit Tacit Explicit Closed-loop cooling Single crystal castings Combustors Thermal barrier coatings
22 Casting Company s Learning Processes Company Knowledge Source Learning Approach Knowledge Creation Process Howmet Corp. Internal tacit Learning by doing Trial-and-error experimentation with process improvements to casting development Internal explicit Learning from formalized inquiry Work with ORNL on single crystal castings External tacit Learning by using Network relationships with customers to identify long-term needs. External - explicit Learning from advances in science and technology University research was useful in casting development. 22
23 Patent and Citation Analysis Used as a proxy for the flow of explicit knowledge Measure of knowledge spillovers Table 4.7 ATS Program Patents Organization Total GE - ATS 23 SWPC ATS * 28 Howmet 0 PCC Airfoils 0 DOE 2 Universities 2 Total 55 23
24 GE s Patent Citations Societe Nationale United Tech. US Gov't ABB Hitachi Rolls Royce Westinghouse Individ. Other General Electric Self-citations Kawasaki Steel MTU Allied Signal Avco EG&G GM Hughes Supply Kubushiki Kvoerner Pulping Minn. Mining N.V. Taychem Reeves Bros. Sulzer Bros. Sundstrand 24
25 Siemens - Westinghouse s Patent Citations Others SWPC or Westinghouse Self citations Vevy Mfgrng US Govt US Air Force Sundstrand MTU Kubshiki Kaisha Toshiba Swiss Aluminium Southwest Research Societe Nationale Rexnord Deutsche Babcock Werke Avco US Navy US DOE International Harvestor Hitachi Allied Signal Individual ABB Rolls Royce GE United Technologies 25
26 Summary of GEPS Learning Processes Organizational networks consisted primarily of other GE business groups; GEAE, GE CRD Depth and breadth of capabilities reside within GE family of organizations Some external participants: Casting companies, professional networks Learning patterns are path dependent 26
27 Summary of SWPC s Learning Processes Organizational networks consisted internal and external organizations Depth and breadth of capabilities reside within as well as alliance partners, including Rolls Royce, Mitsubishi, and others Other external participants: Casting companies, national labs, universities Actively searched out new knowledge and capabilities 27
28 Innovation and Organizational Networks Organizational networks as resources of tacit and explicit knowledge GEPS organizational network was one primarily made up of GE sister organizations SWPC s organizational network included both internal and external participants Howmet and PCC Airfoils (casting companies) were Critical Suppliers to Both GEPS and SWPC 28
29 Conclusions Organizational networks as resources of tacit and explicit knowledge Cost-shared public-private partnerships can act to spur organizational learning processes ATS Program Filled a gap left by market failures Created an industry-led program Supported university research 29
30 Implications for Public Policy Enhance Organizational Learning Shape the Selection Environment Stimulating Innovation Processes Using Cost-shared public-private partnerships Technology development that addresses both energy and environmental concerns 30
31 Next Steps Evaluation of Benefits and Costs Use Framework developed by the National Academy of Science Benefits and costs will be evaluated for: Economic Environmental Security 31
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