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    3 Questions: Leveraging carbon uptake to lower concrete’s carbon footprint

    To secure a more sustainable and resilient future, we must take a careful look at the life cycle impacts of humanity’s most-produced building material: concrete. Carbon uptake, the process by which cement-based products sequester carbon dioxide, is key to this understanding.

    Hessam AzariJafari, the MIT Concrete Sustainability Hub’s deputy director, is deeply invested in the study of this process and its acceleration, where prudent. Here, he describes how carbon uptake is a key lever to reach a carbon-neutral concrete industry.

    Q: What is carbon uptake in cement-based products and how can it influence their properties?

    A: Carbon uptake, or carbonation, is a natural process of permanently sequestering CO2 from the atmosphere by hardened cement-based products like concretes and mortars. Through this reaction, these products form different kinds of limes or calcium carbonates. This uptake occurs slowly but significantly during two phases of the life cycle of cement-based products: the use phase and the end-of-life phase.

    In general, carbon uptake increases the compressive strength of cement-based products as it can densify the paste. At the same time, carbon uptake can impact the corrosion resistance of concrete. In concrete that is reinforced with steel, the corrosion process can be initiated if the carbonation happens extensively (e.g., the whole of the concrete cover is carbonated) and intensively (e.g., a significant proportion of the hardened cement product is carbonated). [Concrete cover is the layer distance between the surface of reinforcement and the outer surface of the concrete.]

    Q: What are the factors that influence carbon uptake?

    A: The intensity of carbon uptake depends on four major factors: the climate, the types and properties of cement-based products used, the composition of binders (cement type) used, and the geometry and exposure condition of the structure.

    In regard to climate, the humidity and temperature affect the carbon uptake rate. In very low or very high humidity conditions, the carbon uptake process is slowed. High temperatures speed the process. The local atmosphere’s carbon dioxide concentration can affect the carbon uptake rate. For example, in urban areas, carbon uptake is an order of magnitude faster than in suburban areas.

    The types and properties of cement-based products have a large influence on the rate of carbon uptake. For example, mortar (consisting of water, cement, and fine aggregates) carbonates two to four times faster than concrete (consisting of water, cement, and coarse and fine aggregates) because of its more porous structure.The carbon uptake rate of dry-cast concrete masonry units is higher than wet-cast for the same reason. In structural concrete, the process is made slower as mechanical properties are improved and the density of the hardened products’ structure increases.

    Lastly, a structure’s surface area-to-volume ratio and exposure to air and water can have ramifications for its rate of carbonation. When cement-based products are covered, carbonation may be slowed or stopped. Concrete that is exposed to fresh air while being sheltered from rain can have a larger carbon uptake compared to cement-based products that are painted or carpeted. Additionally, cement-based elements with large surface areas, like thin concrete structures or mortar layers, allow uptake to progress more extensively.

    Q: What is the role of carbon uptake in the carbon neutrality of concrete, and how should architects and engineers account for it when designing for specific applications?

    A: Carbon uptake is a part of the life cycle of any cement-based products that should be accounted for in carbon footprint calculations. Our evaluation shows the U.S. pavement network can sequester 5.8 million metric tons of CO2, of which 52 percent will be sequestered when the demolished concrete is stockpiled at its end of life.

    From one concrete structure to another, the percentage of emissions sequestered may vary. For instance, concrete bridges tend to have a lower percentage versus buildings constructed with concrete masonry. In any case, carbon uptake can influence the life cycle environmental performance of concrete.

    At the MIT Concrete Sustainability Hub, we have developed a calculator to enable construction stakeholders to estimate the carbon uptake of concrete structures during their use and end-of-life phases.

    Looking toward the future, carbon uptake’s role in the carbon neutralization of cement-based products could grow in importance. While caution should be taken in regards to uptake when reinforcing steel is embedded in concrete, there are opportunities for different stakeholders to augment carbon uptake in different cement-based products.

    Architects can influence the shape of concrete elements to increase the surface area-to-volume ratio (e.g., making “waffle” patterns on slabs and walls, or having several thin towers instead of fewer large ones on an apartment complex). Concrete manufacturers can adjust the binder type and quantity while delivering concrete that meets performance requirements. Finally, industrial ecologists and life-cycle assessment practitioners need to work on the tools and add-ons to make sure the impact of carbon is well captured when assessing the potential impacts of cement-based products in buildings and infrastructure systems.

    Currently, the cement and concrete industry is working with tech companies as well as local, state, and federal governments to lower and subsidize the code of carbon capture sequestration and neutralization. Accelerating carbon uptake where reasonable could be an additional lever to neutralize the carbon emissions of the concrete value chain.

    Carbon uptake is one more piece of the puzzle that makes concrete a sustainable choice for building in many applications. The sustainability and resilience of the future built environment lean on the use of concrete. There is still much work to be done to truly build sustainably, and understanding carbon uptake is an important place to begin. More

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    MIT-led teams win National Science Foundation grants to research sustainable materials

    Three MIT-led teams are among 16 nationwide to receive funding awards to address sustainable materials for global challenges through the National Science Foundation’s Convergence Accelerator program. Launched in 2019, the program targets solutions to especially compelling societal or scientific challenges at an accelerated pace, by incorporating a multidisciplinary research approach.

    “Solutions for today’s national-scale societal challenges are hard to solve within a single discipline. Instead, these challenges require convergence to merge ideas, approaches, and technologies from a wide range of diverse sectors, disciplines, and experts,” the NSF explains in its description of the Convergence Accelerator program. Phase 1 of the award involves planning to expand initial concepts, identify new team members, participate in an NSF development curriculum, and create an early prototype.

    Sustainable microchips

    One of the funded projects, “Building a Sustainable, Innovative Ecosystem for Microchip Manufacturing,” will be led by Anuradha Murthy Agarwal, a principal research scientist at the MIT Materials Research Laboratory. The aim of this project is to help transition the manufacturing of microchips to more sustainable processes that, for example, can reduce e-waste landfills by allowing repair of chips, or enable users to swap out a rogue chip in a motherboard rather than tossing out the entire laptop or cellphone.

    “Our goal is to help transition microchip manufacturing towards a sustainable industry,” says Agarwal. “We aim to do that by partnering with industry in a multimodal approach that prototypes technology designs to minimize energy consumption and waste generation, retrains the semiconductor workforce, and creates a roadmap for a new industrial ecology to mitigate materials-critical limitations and supply-chain constraints.”

    Agarwal’s co-principal investigators are Samuel Serna, an MIT visiting professor and assistant professor of physics at Bridgewater State University, and two MIT faculty affiliated with the Materials Research Laboratory: Juejun Hu, the John Elliott Professor of Materials Science and Engineering; and Lionel Kimerling, the Thomas Lord Professor of Materials Science and Engineering.

    The training component of the project will also create curricula for multiple audiences. “At Bridgewater State University, we will create a new undergraduate course on microchip manufacturing sustainability, and eventually adapt it for audiences from K-12, as well as incumbent employees,” says Serna.

    Sajan Saini and Erik Verlage of the MIT Department of Materials Science and Engineering (DMSE), and Randolph Kirchain from the MIT Materials Systems Laboratory, who have led MIT initiatives in virtual reality digital education, materials criticality, and roadmapping, are key contributors. The project also includes DMSE graduate students Drew Weninger and Luigi Ranno, and undergraduate Samuel Bechtold from Bridgewater State University’s Department of Physics.

    Sustainable topological materials

    Under the direction of Mingda Li, the Class of 1947 Career Development Professor and an Associate Professor of Nuclear Science and Engineering, the “Sustainable Topological Energy Materials (STEM) for Energy-efficient Applications” project will accelerate research in sustainable topological quantum materials.

    Topological materials are ones that retain a particular property through all external disturbances. Such materials could potentially be a boon for quantum computing, which has so far been plagued by instability, and would usher in a post-silicon era for microelectronics. Even better, says Li, topological materials can do their job without dissipating energy even at room temperatures.

    Topological materials can find a variety of applications in quantum computing, energy harvesting, and microelectronics. Despite their promise, and a few thousands of potential candidates, discovery and mass production of these materials has been challenging. Topology itself is not a measurable characteristic so researchers have to first develop ways to find hints of it. Synthesis of materials and related process optimization can take months, if not years, Li adds. Machine learning can accelerate the discovery and vetting stage.

    Given that a best-in-class topological quantum material has the potential to disrupt the semiconductor and computing industries, Li and team are paying special attention to the environmental sustainability of prospective materials. For example, some potential candidates include gold, lead, or cadmium, whose scarcity or toxicity does not lend itself to mass production and have been disqualified.

    Co-principal investigators on the project include Liang Fu, associate professor of physics at MIT; Tomas Palacios, professor of electrical engineering and computer science at MIT and director of the Microsystems Technology Laboratories; Susanne Stemmer of the University of California at Santa Barbara; and Qiong Ma of Boston College. The $750,000 one-year Phase 1 grant will focus on three priorities: building a topological materials database; identifying the most environmentally sustainable candidates for energy-efficient topological applications; and building the foundation for a Center for Sustainable Topological Energy Materials at MIT that will encourage industry-academia collaborations.

    At a time when the size of silicon-based electronic circuit boards is reaching its lower limit, the promise of topological materials whose conductivity increases with decreasing size is especially attractive, Li says. In addition, topological materials can harvest wasted heat: Imagine using your body heat to power your phone. “There are different types of application scenarios, and we can go much beyond the capabilities of existing materials,” Li says, “the possibilities of topological materials are endlessly exciting.”

    Socioresilient materials design

    Researchers in the MIT Department of Materials Science and Engineering (DMSE) have been awarded $750,000 in a cross-disciplinary project that aims to fundamentally redirect materials research and development toward more environmentally, socially, and economically sustainable and resilient materials. This “socioresilient materials design” will serve as the foundation for a new research and development framework that takes into account technical, environmental, and social factors from the beginning of the materials design and development process.

    Christine Ortiz, the Morris Cohen Professor of Materials Science and Engineering, and Ellan Spero PhD ’14, an instructor in DMSE, are leading this research effort, which includes Cornell University, the University of Swansea, Citrine Informatics, Station1, and 14 other organizations in academia, industry, venture capital, the social sector, government, and philanthropy.

    The team’s project, “Mind Over Matter: Socioresilient Materials Design,” emphasizes that circular design approaches, which aim to minimize waste and maximize the reuse, repair, and recycling of materials, are often insufficient to address negative repercussions for the planet and for human health and safety.

    Too often society understands the unintended negative consequences long after the materials that make up our homes and cities and systems have been in production and use for many years. Examples include disparate and negative public health impacts due to industrial scale manufacturing of materials, water and air contamination with harmful materials, and increased risk of fire in lower-income housing buildings due to flawed materials usage and design. Adverse climate events including drought, flood, extreme temperatures, and hurricanes have accelerated materials degradation, for example in critical infrastructure, leading to amplified environmental damage and social injustice. While classical materials design and selection approaches are insufficient to address these challenges, the new research project aims to do just that.

    “The imagination and technical expertise that goes into materials design is too often separated from the environmental and social realities of extraction, manufacturing, and end-of-life for materials,” says Ortiz. 

    Drawing on materials science and engineering, chemistry, and computer science, the project will develop a framework for materials design and development. It will incorporate powerful computational capabilities — artificial intelligence and machine learning with physics-based materials models — plus rigorous methodologies from the social sciences and the humanities to understand what impacts any new material put into production could have on society. More

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    3 Questions: Antje Danielson on energy education and its role in climate action

    The MIT Energy Initiative (MITEI) leads energy education at MIT, developing and implementing a robust educational toolkit for MIT graduate and undergraduate students, online learners around the world, and high school students who want to contribute to the energy transition. As MITEI’s director of education, Antje Danielson manages a team devoted to training the next generation of energy innovators, entrepreneurs, and policymakers. Here, she discusses new initiatives in MITEI’s education program and how they are preparing students to take an active role in climate action.

    Q: What role are MITEI’s education efforts playing in climate action initiatives at MIT, and what more could we be doing?

    A: This is a big question. The carbon emissions from energy are such an important factor in climate mitigation; therefore, what we do in energy education is practically synonymous with climate education. This is well illustrated in a 2018 Nature Energy paper by Fuso Nerini, which outlines that affordable, clean energy is related to many of the United Nations Sustainable Development Goals (SDGs) — not just SDG 7, which specifically calls for “affordable, reliable, sustainable, and modern energy for all” by 2030. There are 17 SDGs containing 169 targets, of which 113 (65 percent) require actions to be taken concerning energy systems.

    Now, can we equate education with action? The answer is yes, but only if it is done correctly. From the behavioral change literature, we know that knowledge alone is not enough to change behavior. So, one important part of our education program is practice and experience through research, internships, stakeholder engagement, and other avenues. At a minimum, education must give the learner the knowledge, skills, and courage to be ready to jump into action, but ideally, practice is a part of the offering. We also want our learners to go out into the world and share what they know and do. If done right, education is an energy transition accelerator.

    At MITEI, our learners are not just MIT students. We are creating online offerings based on residential MIT courses to train global professionals, policymakers, and students in research methods and tools to support and accelerate the energy transition. These are free and open to learners worldwide. We have five courses available now, with more to come.

    Our latest program is a collaboration with MIT’s Center for Energy and Environmental Policy Research (CEEPR): Climate Action through Education, or CATE. This is a teach-the-teacher program for high school curriculum and is a part of the MIT Climate Action Plan. The aim is to develop interdisciplinary, solutions-focused climate change curricula for U.S. high school teachers with components in history/social science, English/language arts, math, science, and computer science.

    We are rapidly expanding our programming. In the online space, for our global learners, we are bundling courses for professional development certificates; for our undergraduates, we are redesigning the energy studies minor to reflect what we have learned over the past 12 years; and for our graduate students, we are adding a new program that allows them to garner industry experience related to the energy transition. Meanwhile, CATE is creating a support network for the teachers who adopt the curriculum. We are also working on creating an energy and climate alliance with other universities around the world.

    On the Institute level, I am a member of the Climate Education Working Group, a subgroup of the Climate Nucleus, where we discuss and will soon recommend further climate action the Institute can take. Stay tuned for that.

    Q: You mentioned that you are leading an effort to create a consortium of energy and climate education programs at universities around the world. How does this effort fit into MITEI’s educational mission?

    A: Yes, we are currently calling it the “Energy and Climate Education Alliance.” The background to this is that the problem we are facing — transitioning the entire global energy system from high carbon emissions to low, no, and negative carbon emissions — is global, huge, and urgent. Following the proverbial “many hands make light work,” we believe that the success of this very complex task is accomplished quicker with more participants. There is, of course, more to this as well. The complexity of the problem is such that (1) MIT doesn’t have all the expertise needed to accomplish the educational needs of the climate and energy crisis, (2) there is a definite local and regional component to capacity building, and (3) collaborations with universities around the world will make our mission-driven work more efficient. Finally, these collaborations will be advantageous for our students as they will be able to learn from real-world case studies that are not U.S.-based and maybe even visit other universities abroad, do internships, and engage in collaborative research projects. Also, students from those universities will be able to come here and experience MIT’s unique intellectual environment.

    Right now, we are very much in the beginning stages of creating the alliance. We have signed a collaboration agreement with the Technical University of Berlin, Germany, and are engaged in talks with other European and Southeast Asian universities. Some of the collaborations we are envisioning relate to course development, student exchange, collaborative research, and course promotion. We are very excited about this collaboration. It fits well into MIT’s ambition to take climate action outside of the university, while still staying within our educational mission.

    Q: It is clear to me from this conversation that MITEI’s education program is undertaking a number of initiatives to prepare MIT students and interested learners outside of the Institute to take an active role in climate action. But, the reality is that despite our rapidly changing climate and the immediate need to decarbonize our global economy, climate denialism and a lack of climate and energy understanding persist in the greater global population. What do you think must be done, and what can MITEI do, to increase climate and energy literacy broadly?

    A: I think the basic problem is not necessarily a lack of understanding but an abundance of competing issues that people are dealing with every day. Poverty, personal health, unemployment, inflation, pandemics, housing, wars — all are very immediate problems people have. And climate change is perceived to be in the future.

    The United States is a very bottom-up country, where corporations offer what people buy, and politicians advocate for what voters want and what money buys. Of course, this is overly simplified, but as long as we don’t come up with mechanisms to achieve a monumental shift in consumer and voter behavior, we are up against these immediate pressures. However, we are seeing some movement in this area due to rising gas and heating oil prices and the many natural disasters we are encountering now. People are starting to understand that climate change will hit their pocketbook, whether or not we have a carbon tax. The recent Florida hurricane damage, wildfires in the west, extreme summer temperatures, frequent droughts, increasing numbers of poisonous and disease-carrying insects — they all illustrate the relationship between climate change, health, and financial damage. Fewer and fewer people will be able to deny the existence of climate change because they will either be directly affected or know someone who is.

    The question is one of speed and scale. The more we can help to make the connections even more visible and understood, the faster we get to the general acceptance that this is real. Research projects like CEEPR’s Roosevelt Project, which develops action plans to help communities deal with industrial upheaval in the context of the energy transition, are contributing to this effect, as are studies related to climate change and national security. This is a fast-moving world, and our research findings need to be translated as we speak. A real problem in education is that we have the tendency to teach the tried and true. Our education programs have to become much nimbler, which means curricula have to be updated frequently, and that is expensive. And of course, the speed and magnitude of our efforts are dependent on the funding we can attract, and fundraising for education is more difficult than fundraising for research.

    However, let me pivot: You alluded to the fact that this is a global problem. The immediate pressures of poverty and hunger are a matter of survival in many parts of the world, and when it comes to surviving another day, who cares if climate change will render your fields unproductive in 20 years? Or if the weather turns your homeland into a lake, will you think about lobbying your government to reduce carbon emissions, or will you ask for help to rebuild your existence? On the flip side, politicians and government authorities in those areas have to deal with extremely complex situations, balancing local needs with global demands. We should learn from them. What we need is to listen. What do these areas of the world need most, and how can climate action be included in the calculations? The Global Commission to End Energy Poverty, a collaboration between MITEI and the Rockefeller Foundation to bring electricity to the billion people across the globe who currently live without it, is a good example of what we are already doing. Both our online education program and the Energy and Climate Education Alliance aim to go in this direction.

    The struggle and challenge to solve climate change can be pretty depressing, and there are many days when I feel despondent about the speed and progress we are making in saving the future of humanity. But, the prospect of contributing to such a large mission, even if the education team can only nudge us a tiny bit away from the business-as-usual scenario, is exciting. In particular, working on an issue like this at MIT is amazing. So much is happening here, and there don’t seem to be intellectual limits; in fact, thinking big is encouraged. It is very refreshing when one has encountered the old “you can’t do this” too often in the past. I want our students to take this attitude with them and go out there and think big. More

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    Creating the steps to make organizational sustainability work

    Sustainability is a hot topic. Companies throw around their carbon or recycling initiatives, and competing executives feel the need to follow suit. But aside from the external pressure, there are also bottom-line benefits. Becoming more efficient can save money. Creating a new product might make money; customers care about a company’s practices and will spend their money based on that.

    The work is in getting there, because becoming sustainable can seem simple: Establish a goal for five years down the road, and everything will fall into place — but it’s easy for things to get upended. “There is so much confusion and noise in this space,” says Jason Jay, senior lecturer and director of the Sustainability Initiative at MIT’s Sloan School of Management.

    His work is to help companies break through the confusion and figure out what they want to actually do, not merely what sounds good. It means doing research and listening to science. Mostly, it requires discipline, and because something new — be it a product, process or technology — is being asked for, it also takes ambition. “It’s a tricky dance,” he says, but one that can result in “doing well and doing good at the same time.”

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    It’s about taking steps

    Three steps, to be exact. The first, which is the crux, Jay says, is for a company to focus on a small set of issues that it can take the lead on. It sounds obvious, but it’s often missed. The problem is that companies will do either one of two things. They’ll take an outside-in approach in which they end up listening to too many stakeholders, “get pulled in a million different directions,” and try to solve all of society’s problems, which means solving none of them, he says.

    Or they’ll go inside-out and have one executive in charge of sustainability who will do some internal research and come up with an initiative. It might be a good idea, but it doesn’t take into account how it will affect the facilities, supply chains, and the people who work with them. And without that consideration, “It’s going to be very difficult to get the necessary traction inside the company,” Jay says.

    What’s needed is a combination of the two — outside perspectives coupled with insider knowledge — in order to find an initiative that resonates for that company. It starts with looking at what the company already does. That might show where it’s making a negative impact and, in turn, where it could make a positive one. It also involves the C-suite executives asking themselves, “What do we want this company to stand for?” and then, “What do I want my legacy to be?”

    Still, it can be hard to envision what change can look like or what actions might have an impact. Jay says this is where a simulation tool like En-ROADS, developed by MIT Sloan and Climate Interactive, can help explore scenarios.

    But it’s ultimately about making a commitment and allowing an iterative process to play out. A company then discovers its true focus might be something less flashy. Nike early on, for example, found that a huge source of greenhouse gas emissions was sulfur hexafluoride gas in the Nike Air bladder. When they re-engineered it, they ended up with inert nitrogen and a stronger material that was aesthetically cool and lightweight for the athlete. That didn’t come in one brainstorming meeting. It meant doing research and looking at what the science says is possible. It’s not quick, but it also shouldn’t be, if the goal is to take real, measurable action.

    “Cheap talk leads to cheap things,” Jay says. 

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    The next two

    Deciding what matters is key, but nothing materializes without establishing concrete goals. This is where a company “shows the world you’re serious.” But it’s a place where companies slip up. They either set weak goals, ones they know they can easily reach, so there’s no challenge, no accomplishment, “no stretch,” Jay says. Or they set goals that are too ambitious and/or aren’t backed by science. It could be, “We’re going to be net zero by 2050,” but how exactly is never answered.

    Jay says it’s about finding the sweet spot of having a reasonable amount of goals — like two to four — and then have those goals feel like a reach, yet possible. When that balance is right, it becomes a self-fulfilling prophecy. People stay motivated because they experience progress. But if it’s off, it won’t happen.

    “You need that optimal creative tension,” he says.

    And then there’s the third step. Companies need to find partners to make their sustainability programs succeed. It’s the one part that’s most overlooked because executives continually believe that they can do it alone. But they can’t, because big initiatives require help and expertise outside of a company’s realm.

    Maersk, the global shipping company, has a goal of replacing fossil fuel with green fuels for ocean freight, Jay says. It discovered that green ammonia could make that happen, and it was Yara, a fertilizer company, which best understood ammonia production. But it could also be a startup that’s working on a promising technology. Sometimes, as with moving to electric cars, what’s needed are political partners to enact policy and offer tax breaks and incentives. And it might be that the answer is collaborating with activists who have been pushing a company to change its ways.

    “There are strange bedfellows all around,” Jay says.

    Know how to tap the brake

    All the steps circle back to the essential point that becoming sustainable takes a committed investment of time, money, and patience. Starting small helps, especially in a corporate culture that tends to move slowly. Jay says there’s nothing wrong with going from zero projects to one, even if it’s a small one in a specific department. It allows people to become accustomed to the idea of change. It also lets the company establish a framework, analyze results, and build momentum, making it easier to ramp up.

    The patience part can be hard since there’s a rightful sense of urgency involved. Companies want to show that they’re doing something, and want to affect climate change sooner rather than later. But Jay likens it to building a skyscraper. The desire is to get it up fast, but if the foundation is shaky, everything will crumble.

    “What we’re trying to do is strengthen that foundation so it can reach the height we need,” he says. More

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    Sustainable supply chains put the customer first

    When we consider the supply chain, we typically think of factories, ships, trucks, and warehouses. Yet, the customer side is equally important, especially in efforts to make our distribution networks more sustainable. Customers are an untapped resource in building sustainability, says Josué C. Velázquez Martínez, a research scientist at MIT Center for Transportation and Logistics. 

    Velázquez Martínez, who is director of MIT’s Sustainable Supply Chain Lab, investigates how customer-facing supply chains can be made more environmentally and socially sustainable. One way is a Green Button project that explores how to optimize e-commerce delivery schedules to reduce carbon emissions and persuade customers to use less carbon-intensive four- or five-day shipping options instead of one or two days. Velázquez Martínez has also launched the MIT Low Income Firms Transformation (LIFT) Lab that is researching ways to improve micro-retailer supply chains in the developing world to provide owners with the necessary tools for survival.  

    “The definition of sustainable supply chain keeps evolving because things that were sustainable 20 to 30 years ago are not as sustainable now,” says Velázquez Martínez. “Today, there are more companies that are capturing information to build strategies for environmental, economic, and social sustainability. They are investing in alternative energy and other solutions to make the supply chain more environmentally friendly and are tracking their suppliers and identifying key vulnerabilities. A big part of this is an attempt to create fairer conditions for people who work in supply chains or are dependent on them.”

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    The move toward sustainable supply chain is being driven as much by people as by companies, whether they are playing the role of selective consumer or voting citizens. The consumer aspect is often overlooked, says Velázquez Martínez. “Consumers are the ones who move the supply chain. We are looking at how companies can provide transparency to involve customers in their sustainability strategy.” 

    Proposed solutions for sustainability are not always as effective as promised. Some fashion rental schemes fall into this category, says Velázquez Martínez. “There are many new rental companies that are trying to get more use out of clothes to offset the emissions associated with production. We recently researched the environmental impact of monthly subscription models where consumers pay a fee to receive clothes for a month before returning them, as well as peer-to-peer sharing models.” 

    The researchers found that while rental services generally have a lower carbon footprint than retail sales, hidden emissions from logistics played a surprisingly large role. “First, you need to deliver the clothes and pick them up, and there are high return rates,” says Velázquez Martínez. “When you factor in dry cleaning and packaging emissions, the rental models in some cases have a worse carbon footprint than buying new clothes.” Peer-to-peer sharing could be better, he adds, but that depends on how far the consumers travel to meet-up points. 

    Typically, says Velázquez Martínez, garment types that are frequently used are not well suited to rental models. “But for specialty clothes such as wedding dresses or prom dresses, it is better to rent.” 

    Waiting a few days to save the planet 

    Even before the pandemic, online retailing gained a second wind due to low-cost same- and next-day delivery options. While e-commerce may have its drawbacks as a contributor to social isolation and reduced competition, it has proven itself to be far more eco-friendly than brick-and-mortar shopping, not to mention a lot more convenient. Yet rapid deliveries are cutting into online-shopping’s carbon-cutting advantage.

    In 2019, MIT’s Sustainable Supply Chain Lab launched a Green Bottle project to study the rapid delivery phenomenon. The project has been “testing whether consumers would be willing to delay their e-commerce deliveries to reduce the environmental impact of fast shipping,” says Velázquez Martínez. “Many companies such as Walmart and Target have followed Amazon’s 2019 strategy of moving from two-day to same-day delivery. Instead of sending a fully loaded truck to a neighborhood every few days, they now send multiple trucks to that neighborhood every day, and there are more days when trucks are targeting each neighborhood. All this increases carbon emissions and makes it hard for shippers to consolidate. ”  

    Working with Coppel, one of Mexico’s largest retailers, the Green Button project inspired a related Consolidation Ecommerce Project that built a large-scale mathematical model to provide a strategy for consolidation. The model determined what delivery time window each neighborhood demands and then calculated the best day to deliver to each neighborhood to meet the desired window while minimizing carbon emissions. 

    No matter what mixture of delivery times was used, the consolidation model helped retailers schedule deliveries more efficiently. Yet, the biggest cuts in emissions emerged when customers were willing to wait several days.

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    “When we ran a month-long simulation comparing our model for four-to-five-day delivery with Coppel’s existing model for one- or two-day delivery, we saw savings in fuel consumption of over 50 percent on certain routes” says Velázquez Martínez. “This is huge compared to other strategies for squeezing more efficiency from the last-mile supply chain, such as routing optimization, where savings are close to 5 percent. The optimal solution depends on factors such as the capacity for consolidation, the frequency of delivery, the store capacity, and the impact on inbound operations.” 

    The researchers next set out to determine if customers could be persuaded to wait longer for deliveries. Considering that the price differential is low or nonexistent, this was a considerable challenge. Yet, the same day habit is only a few years old, and some consumers have come to realize they don’t always need rapid deliveries. “Some consumers who order by rapid delivery find they are too busy to open the packages right away,” says Velázquez Martínez.  

    Trees beat kilograms of CO2

    The researchers set out to find if consumers would be willing to sacrifice a bit of convenience if they knew they were helping to reduce climate change. The Green Button project tested different public outreach strategies. For one test group, they reported the carbon impact of delivery times in kilograms of carbon dioxide (CO2). Another group received the information expressed in terms of the energy required to recycle a certain amount of garbage. A third group learned about emissions in terms of the number of trees required to trap the carbon. “Explaining the impact in terms of trees led to almost 90 percent willing to wait another day or two,” says Velázquez Martínez. “This is compared to less than 40 percent for the group that received the data in kilograms of CO2.” 

    Another surprise was that there was no difference in response based on income, gender, or age. “Most studies of green consumers suggest they are predominantly high income, female, highly educated, or younger,” says Velázquez Martínez. “However, our results show that the differences were the same between low and high income, women and men, and younger and older people. We have shown that disclosing emissions transparently and making the consumer a part of the strategy can be a new opportunity for more consumer-driven logistics sustainability.” 

    The researchers are now developing similar models for business-to-business (B2B) e-commerce. “We found that B2B supply chain emissions are often high because many shipping companies require strict delivery windows,” says Velázquez Martínez.  

    The B2B models drill down to examine the Corporate Value Chain (Scope 3) emissions of suppliers. “Although some shipping companies are now asking their suppliers to review emissions, it is a challenge to create a transparent supply chain,” says Velázquez Martínez.  “Technological innovations have made it easier, starting with RFID [radio frequency identification], and then real-time GPS mapping and blockchain. But these technologies need to be more accessible and affordable, and we need more companies willing to use them.” 

    Some companies have been hesitant to dig too deeply into their supply chain, fearing they might uncover a scandal that might risk their reputation, says Velázquez Martínez. Other organizations are forced to look at the issue when nongovernmental organizations research sustainability issues such as social injustice in sweat shops and conflict mineral mines. 

    One challenge to building a transparent supply chain is that “in many companies, the sustainability teams are separate from the rest of the company,” says Velázquez Martínez. “Even if the CEOs receive information on sustainability issues, it often doesn’t filter down because the information does not belong to the planners or managers. We are pushing companies to not only account for sustainability factors in supply chain network design but also examine daily operations that affect sustainability. This is a big topic now: How can we translate sustainability information into something that everybody can understand and use?” 

    LIFT Lab lifts micro-retailers  

    In 2016, Velázquez Martínez launched the MIT GeneSys project to gain insights into micro and small enterprises (MSEs) in developing countries. The project released a GeneSys mobile app, which was used by more than 500 students throughout Latin America to collect data on more than 800 microfirms. In 2022, he launched the LIFT Lab, which focuses more specifically on studying and improving the supply chain for MSEs.  

    Worldwide, some 90 percent of companies have fewer than 10 employees. In Latin America and the Caribbean, companies with fewer than 50 employees represent 99 percent of all companies and 47 percent of employment. 

    Although MSEs represent much of the world’s economy, they are poorly understood, notes Velázquez Martínez. “Those tiny businesses are driving a lot of the economy and serve as important customers for the large companies working in developing countries. They range from small businesses down to people trying to get some money to eat by selling cakes or tacos through their windows.”  

    The MIT LIFT Lab researchers investigated whether MSE supply chain issues could help shed light on why many Latin American countries have been limited to marginal increases in gross domestic product. “Large companies from the developed world that are operating in Latin America, such as Unilever, Walmart, and Coca-Cola, have huge growth there, in some cases higher than they have in the developed world,” says Velázquez Martínez. “Yet, the countries are not developing as fast as we would expect.” 

    The LIFT Lab data showed that while the multinationals are thriving in Latin America, the local MSEs are decreasing in productivity. The study also found the trend has worsened with Covid-19.  

    The LIFT Lab’s first big project, which is sponsored by Mexican beverage and retail company FEMSA, is studying supply chains in Mexico. The study spans 200,000 micro-retailers and 300,000 consumers. In a collaboration with Tecnológico de Monterrey, hundreds of students are helping with a field study.  

    “We are looking at supply chain management and business capabilities and identifying the challenges to adoption of technology and digitalization,” says Velázquez Martínez. “We want to find the best ways for micro-firms to work with suppliers and consumers by identifying the consumers who access this market, as well as the products and services that can best help the micro-firms drive growth.” 

    Based on the earlier research by GeneSys, Velázquez Martínez has developed some hypotheses for potential improvements for micro-retailer supply chain, starting with payment terms. “We found that the micro-firms often get the worst purchasing deals. Owners without credit cards and with limited cash often buy in smaller amounts at much higher prices than retailers like Walmart. The big suppliers are squeezing them.” 

    While large retailers usually get 60 to 120 days to pay, micro-retailers “either pay at the moment of the transaction or in advance,” says Velázquez Martínez. “In a study of 500 micro-retailers in five countries in Latin America, we found the average payment time was minus seven days payment in advance. These terms reduce cash availability and often lead to bankruptcy.” 

    LIFT Lab is working with suppliers to persuade them to offer a minimum payment time of two weeks. “We can show the suppliers that the change in terms will let them move more product and increase sales,” says Velázquez Martínez. “Meanwhile, the micro-retailers gain higher profits and become more stable, even if they may pay a bit more.” 

    LIFT Lab is also looking at ways that micro-retailers can leverage smartphones for digitalization and planning. “Some of these companies are keeping records on napkins,” says Velázquez Martínez. “By using a cellphone, they can charge orders to suppliers and communicate with consumers. We are testing different dashboards for mobile apps to help with planning and financial performance. We are also recommending services the stores can provide, such as paying electricity or water bills. The idea is to build more capabilities and knowledge and increase business competencies for the supply chain that are tailored for micro-retailers.” 

    From a financial perspective, micro-retailers are not always the most efficient way to move products. Yet they also play an important role in building social cohesion within neighborhoods. By offering more services, the corner bodega can bring people together in ways that are impossible with e-commerce and big-box stores.  

    Whether the consumers are micro-firms buying from suppliers or e-commerce customers waiting for packages, “transparency is key to building a sustainable supply chain,” says Velázquez Martínez. “To change consumer habits, consumers need to be better educated on the impacts of their behaviors. With consumer-facing logistics, ‘The last shall be first, and the first last.’” More

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    MIT community in 2022: A year in review

    In 2022, MIT returned to a bit of normalcy after the challenge of Covid-19 began to subside. The Institute prepared to bid farewell to its president and later announced his successor; announced five flagship projects in a new competition aimed at tackling climate’s greatest challenges; made new commitments toward ensuring support for diverse voices; and celebrated the reopening of a reimagined MIT Museum — as well as a Hollywood blockbuster featuring scenes from campus. Here are some of the top stories in the MIT community this year.

    Presidential transition

    In February, MIT President L. Rafael Reif announced that he planned to step down at the end of 2022. In more than 10 years as president, Reif guided MIT through a period of dynamic growth, greatly enhancing its global stature and magnetism. At the conclusion of his term at the end of this month, Reif will take a sabbatical, then return to the faculty of the Department of Electrical Engineering and Computer Science. In September, Reif expressed his gratitude to the MIT community at an Institute-wide dance celebration, and he was honored with a special MIT Dome lighting earlier this month.

    After an extensive presidential search, Sally Kornbluth, a cell biologist and the current provost of Duke University, was announced in October as MIT’s 18th president. Following an introduction to MIT that included a press conference, welcoming event, and community celebration, Kornbluth will assume the MIT presidency on Jan. 1, 2023.

    In other administrative transitions: Cynthia Barnhart was appointed provost after Martin Schmidt stepped down to become president of Rensselaer Polytechnic Institute; Sanjay Sarma stepped down as vice president for open learning after nine years in the role; professors Brent Ryan and Anne White were named associate provosts, while White was also named associate vice president for research administration; and Agustín Rayo was named dean of the School of Humanities, Arts, and Social Sciences.

    Climate Grand Challenges

    MIT announced five flagship projects in its first-ever Climate Grand Challenges competition. These multiyear projects focus on unraveling some of the toughest unsolved climate problems and bringing high-impact, science-based solutions to the world on an accelerated basis. Representing the most promising concepts to emerge from the two-year competition that yielded 27 finalist projects, the five flagship projects will receive additional funding and resources from MIT and others to develop their ideas and swiftly transform them into practical solutions at scale.

    CHIPS and Science Act

    President Reif and Vice President for Research Maria Zuber were among several MIT representatives to witness President Biden’s signing of the $52 billion “CHIPS and Science” bill into law in August. Reif helped shape aspects of the bill and was a vocal advocate for it among university and government officials, while Zuber served on two government science advisory boards during the bill’s gestation and consideration. Earlier in the year, MIT.nano hosted U.S. Secretary of Commerce Gina Raimondo, while MIT researchers released a key report on U.S. microelectronics research and manufacturing.

    MIT Morningside Academy for Design

    Supported by a $100 million founding gift, the MIT Morningside Academy for Design launched as a major interdisciplinary center that aims to build on the Institute’s leadership in design-focused education. Housed in the School of Architecture and Planning, the academy provides a hub that will encourage design work at MIT to grow and cross disciplines among engineering, science, management, computing, architecture, urban planning, and the arts.

    Reports of the Institute

    A number of key Institute reports and announcements were released in 2022. They include: an announcement of the future of gift acceptance for MIT: an announcement of priority MIT investments; a new MIT Values Statement; a renewed commitment to Indigenous scholarship and community; the Strategic Action Plan for Belonging, Achievement, and Composition; a report on MIT’s engagement with China; a report of the Working Group on Reimagining Public Safety at MIT; a report of the Indigenous Working Group; and a report of the Ad Hoc Committee on Arts, Culture, and DEI.

    Nobel Prizes

    MIT affiliates were well-represented among new and recent Nobel laureates who took part in the first in-person Nobel Prize ceremony since the start of the Covid-19 pandemic. MIT-affiliated winners for 2022 included Ben Bernanke PhD ’79, K. Barry Sharpless, and Carolyn Bertozzi. Winners in attendance from 2020 and 2021 included Professor Joshua Angrist, David Julius ’77, and Andrea Ghez ’87.

    New MIT Museum

    A reimagined MIT Museum opened this fall in a new 56,000-square-foot space in the heart of Cambridge’s Kendall Square. The museum invites visitors to explore the Institute’s innovations in science, technology, engineering, arts, and math — and to take part in that work with hands-on learning labs and maker spaces, interactive exhibits, and venues to discuss the impact of science and technology on society.

    “Wakanda Forever”

    In November, the Institute Office of Communications and the Division of Student Life hosted a special screening of Marvel Studios’ “Black Panther: Wakanda Forever.” The MIT campus had been used as a filming location in summer 2021, as one of the film’s characters, Riri Williams (also known as Ironheart), is portrayed as a student at the Institute.

    In-person Commencement returns

    After two years of online celebrations due to Covid-19, MIT Commencement returned to Killian Court at the end of May. World Trade Organization Director-General Ngozi Okonjo-Iweala MCP ’78, PhD ’81 delivered the Commencement address, while poet Kealoha Wong ’99 spoke at a special ceremony for the classes of 2020 and 2021.

    Students win distinguished fellowships

    As in previous years, MIT students continued to shine. This year, exceptional undergraduates were awarded Fulbright, Marshall, Mitchell, Rhodes, and Schwarzman scholarships.

    Remembering those we’ve lost

    Among MIT community members who died this year were Robert Balluffi, Louis Braida, Ashton Carter, Tom Eagar, Dick Eckaus, Octavian-Eugen Ganea, Peter Griffith, Patrick Hale, Frank Sidney Jones, Nonabah Lane, Leo Marx, Bruce Montgomery, Joel Moses, Brian Sousa Jr., Mohamed Magdi Taha, John Tirman, Richard Wurtman, and Markus Zahn.

    In case you missed it:

    Additional top community stories of 2022 included MIT students dominating the 82nd Putnam Mathematical Competition, an update on MIT’s reinstating the SAT/ACT requirement for admissions, a new mathematics program for Ukrainian students and refugees, a roundup of new books from MIT authors, the renaming of the MIT.nano building, an announcement of winners of this year’s MIT $100K Entrepreneurship Competition, the new MIT Wright Brothers Wind Tunnel, and MIT students winning the 45th International Collegiate Programming Contest for the first time in 44 years. More

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    Food for thought, thought for food

    According to the Food and Agriculture Organization of the United Nations, approximately 3.1 billion people worldwide were unable to afford a healthy diet in 2020. Meanwhile, in 2021 close to 2.3 billion people were moderately or severely food insecure. Given the strong link between malnutrition and income disparity, the numbers paint a grim picture representing one of the grand challenges of our time.

    “I’m probably an idealist,” says MIT Research Scientist Christopher Mejía Argueta, “but I really believe that if we change our diets and think about ways to help others, we can make a difference — that’s my motivation.”

    Mejía Argueta is the founder and director of the MIT Food and Retail Operations Lab (FaROL). He has more than a decade of experience in supply chain management, optimization, and effective data-driven decision-making on pressing issues like the evolution of end consumers for retail and e-tail supply chains, food waste, and equitable access to nutrition.  

    Supply chain network designs typically focus on minimizing costs without considering the implications (e.g., cost) of changes in consumer behavior. Mejía Argueta and his colleagues at the FaROL, however, are working to understand and design optimal supply chains to create high-performance operations based on consumer choice. “Understanding the significant factors of consumer choice and analyzing their evolution over time becomes critical to designing forward-looking retail operations with data-driven and customer-centric supply chains, inventory management, and distribution systems,” explains Mejía Argueta. 

    Play video

    One of his recent projects examined the challenges of small retailers worldwide. These mom-and-pop outlets, or nanostores, account for 50 percent of the global market share and are the primary source of consumer packaged goods for people in urban areas. Worldwide there are nearly 50 million nanostores, each serving between 100-200 households in a community. In India alone, there are 14 million nanostores known as kiranas. And while these retailers are more prevalent in emerging markets, they play an important role in developed markets, particularly in under-resourced communities, and are frequently located in “food deserts,” where they are the only source of essential goods for the community.  

    These small retailers thrive thanks, partly, to their ability to offer the right combination of affordability and convenience while fostering trust with local customers, who often lack access to a supermarket or a grocery store. They often exist in fragmented, densely populated areas where infrastructure and public transportation services are poor and consumers have limited purchasing power. But nanostore shopkeepers and owners are intimately familiar with their customers and their consumption patterns, which means they can connect those consumption patterns or information to the larger supply chain. According to Mejía Argueta, when it comes to the future of retail, nanostores will be the cornerstones of growth in emerging economies. 

    But it’s a complicated scenario. Mom-and-pop shops don’t have the capacity to offer a broad range of products to their customers, and often, they lack access to nutritious food options. Logistically speaking, it is expensive to supply them, and the cost-to-serve (i.e., the logistics cost) is between 10 to 30 percent more expensive than other retailers. According to Mejía Argueta, this has a significant ripple effect, impacting education, productivity, and, eventually, the economic performance of an entire nation.  

    “The high fragmentation of nanostores causes substantial distribution inefficiencies, especially in congested megacities,” he says. “At my lab, we study how to make nanostores more efficient and effective by considering various commercial and logistics strategies while considering inherent technical challenges. We need to serve these small retailers better to help them survive and thrive, to provide a greater impact for underserved communities and the entire economic ecosystem.”

    Play video

    Mejía Argueta and his team recently collaborated with Tufts University and the City of Somerville, Massachusetts, to conduct research on food access models in underserved communities. The Somerville Project explored various interventions to supply fresh produce in food desert neighborhoods.

    “A lack of nutrition does not simply mean a lack of food,” Mejía Argueta says. “It can also be caused by an overabundance of unhealthy foods in a given market, which is particularly troublesome for U.S. cities where people in underserved communities don’t have access to healthy food options. We believe that one way to combat the problem of food deserts is to supply these areas with healthy food options affordably and create awareness programs.”  

    The collaborative project saw Mejía Argueta and his colleagues assessing the impact of several intervention schemes designed to empower the end consumer. For example, they implemented a low-cost grocery delivery model similar to Instacart as well as a ride sharing system to transport people from their homes to grocery stores and back. They also collaborated with a nonprofit organization, Partnership for a Healthier America, and began working with retailers to deliver “veggie boxes” in underserved communities. Models like these provide low-income people access to food while providing dignity of choice, Mejía Argueta explains.  

    When it comes to supply chain management research, sustainability and societal impact often fall by the wayside, but Mejía Argueta’s bottom-up approach shirks tradition. “We’re trying to build a community, employing a socially driven perspective because if you work with the community, you gain their trust. If you want to make something sustainable in the long term, people need to trust in these solutions and engage with the ecosystem as a whole.”  

    And to achieve real-world impact, collaboration is key. Mejía Argueta says that government has an important role to play, developing policy to connect the models he and his colleagues develop in academia to societal challenges. Meanwhile, he believes startups and entrepreneurs can function as bridge-builders to link the flows of information, the flows of goods and cash, and even knowledge and security in an ecosystem that suffers from fragmentation and siloed thinking among stakeholders.

    Finally, Mejía Argueta reflects on the role of corporations and his belief that the MIT Industrial Liaison Program is essential to getting his research to the frontline of business challenges. “The Industrial Liaison Program does a fantastic job of connecting our research to real-world scenarios,” he says. “It creates opportunities for us to have meaningful interactions with corporates for real-world impact. I believe strongly in the MIT motto ‘mens et manus,’ and ILP helps drive our research into practice.” More

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    3 Questions: Robert Stoner unpacks US climate and infrastructure laws

    This month, the 2022 United Nations Climate Change Conference (COP27) takes place in Sharm El Sheikh, Egypt, bringing together governments, experts, journalists, industry, and civil society to discuss climate action to enable countries to collectively sharply limit anthropogenic climate change. As MIT Energy Initiative Deputy Director for Science and Technology Robert Stoner attends the conference, he takes a moment to speak about the climate and infrastructure laws enacted in the last year in the United States, and about the impact these laws can have in the global energy transition.

    Q: COP27 is now underway. Can you set the scene?

    A: There’s a lot of interest among vulnerable countries about compensation for the impacts climate change has had on them, or “loss and damage,” a topic that the United States refused to address last year at COP26, for fear of opening up a floodgate and leaving U.S. taxpayers exposed to unlimited liability for our past (and future) emissions. This is a crucial issue of fairness for developed countries — and, well, of acknowledging our common humanity. But in a sense, it’s also a sideshow, and addressing it won’t prevent a climate catastrophe — we really need to focus on mitigation. With the passage of the bipartisan Infrastructure Investment and Jobs Act and the Inflation Reduction Act (IRA), the United States is now in a strong position to twist some arms. These laws are largely about subsidizing the deployment of low-carbon technologies — pretty much all of them. We’re going to do a lot in the United States in the next decade that will lead to dramatic cost reductions for these technologies and enable other countries with fewer resources to adopt them as well. It’s exactly the leadership role the United States has needed to assume. Now we have the opportunity to rally the rest of the world and get other countries to commit to more ambitious decarbonization goals, and to build practical programs that take advantage of the investable pathways we’re going to create for public and private actors.

    But that alone won’t get us there — money is still a huge problem, especially in emerging markets and developing countries. And I don’t think the institutions we rely on to help these countries fund infrastructure — energy and everything else — are adequately funded. Nor do these institutions have the right structures, incentives, and staffing to fund low-carbon development in these countries rapidly enough or on the necessary scale. I’m talking about the World Bank, for instance, but the other multilateral organizations have similar issues. I frankly don’t think the multilaterals can be reformed or sufficiently redirected on a short enough time frame. We definitely need new leadership for these organizations, and I think we probably need to quickly establish new multilaterals with new people, more money, and a clarity of purpose that is likely beyond what can be achieved incrementally. I don’t know if this is going to be an active public discussion at COP27, but I hope it takes place somewhere soon. Given the strong role our government plays in financing and selecting the leadership of these institutions, perhaps this is another opportunity for the United States to demonstrate courage and leadership.

    Q: What “investable pathways” are you talking about?

    A: Well, the pathways we’re implicitly trying to pursue with the Infrastructure Act and IRA are pretty clear, and I’ll come back to them. But first let me describe the landscape: There are three main sources of demand for energy in the economy — industry (meaning chemical production, fuel for electricity generation, cement production, materials and manufacturing, and so on), transportation (cars, trucks, ships, planes, and trains), and buildings (for heating and cooling, mostly). That’s about it, and these three sectors account for 75 percent of our total greenhouse gas emissions. So the pathways are all about how to decarbonize these three end-use sectors. There are a lot of technologies — some that exist, some that don’t — that will have to be brought to bear. And so it can be a little overwhelming to try to imagine how it will all transpire, but it’s pretty clear at a high level what our options are:

    First, generate a lot of low-carbon electricity and electrify as many industrial processes, vehicles, and building heating systems as we can.
    Second, develop and deploy at massive scale technologies that can capture carbon dioxide from smokestacks, or the air, and put it somewhere that it can never escape from — in other words, carbon capture and sequestration, or CCS.
    Third, for end uses like aviation that really need to use fuels because of their extraordinary energy density, develop low-carbon alternatives to fossil fuels.
    And fourth is energy efficiency across the board — but I don’t really count that as a separate pathway per se.
    So, by “investable pathways” I mean specific ways to pursue these options that will attract investors. What the Infrastructure Act and the IRA do is deploy carrots (in the form of subsidies) in a variety of ways to close the gap between what it costs to deploy technologies like CCS that aren’t yet at a commercial stage because they’re immature, and what energy markets will tolerate. A similar situation occurs for low-carbon production of hydrogen, one of the leading low-carbon fuel candidates. We can make it by splitting water with electricity (electrolysis), but that costs too much with present-day technology; or we can make it more cheaply by separating it from methane (which is what natural gas mainly is), but that creates CO2 that has to be transported and sequestered somewhere. And then we have to store the hydrogen until we’re ready to use it, and transport it by pipeline to the industrial facilities where it will be used. That requires infrastructure that doesn’t exist — pipelines, compression stations, big tanks! Come to think of it, the demand for all that hydrogen doesn’t exist either — at least not if industry has to pay what it actually costs.

    So, one very important thing these new acts do is subsidize production of hydrogen in various ways — and subsidize the creation of a CCS industry. The other thing they do is subsidize the deployment at enormous scale of low-carbon energy technologies. Some of them are already pretty cheap, like solar and wind, but they need to be supported by a lot of storage on the grid (which we don’t yet have) and by other sorts of grid infrastructure that, again, don’t exist. So, they now get subsidized, too, along with other carbon-free and low-carbon generation technologies — basically all of them. The idea is that by stimulating at-scale deployment of all these established and emerging technologies, and funding demonstrations of novel infrastructure — effectively lowering the cost of supply of low-carbon energy in the form of electricity and fuels — we will draw out the private sector to build out much more of the connective infrastructure and invest in new industrial processes, new home heating systems, and low-carbon transportation. This subsidized build-out will take place over a decade and then phase out as costs fall — hopefully, leaving the foundation for a thriving low-carbon energy economy in its wake, along with crucial technologies and knowledge that will benefit the whole world.

    Q: Is all of the federal investment in energy infrastructure in the United States relevant to the energy crisis in Europe right now?

    A: Not in a direct way — Europe is a near-term catastrophe with a long-term challenge that is in many ways more difficult than ours because Europe doesn’t have the level of primary energy resources like oil and gas that we have in abundance. Energy costs more in Europe, especially absent Russian pipelines. In a way, the narrowing of Europe’s options creates an impetus to invest in low-carbon technologies sooner than otherwise. The result either way will be expensive energy and quite a lot of economic suffering for years. The near-term challenge is to protect people from high energy prices. The big spikes in electricity prices we see now are driven by the natural gas market disruption, which will eventually dissipate as new sources of electricity come online (Sweden, for example, just announced a plan to develop new nuclear, and we’re seeing other countries like Germany soften their stance on nuclear) — and gas markets will sort themselves out. Meanwhile governments are trying to shield their people with electricity price caps and other subsidies, but that’s enormously burdensome.

    The EU recently announced gas price caps for imported gas to try to eliminate price-gouging by importers and reduce the subsidy burden. That may help to lower downstream prices, or it may make matters worse by reducing the flow of gas into the EU and fueling scarcity pricing, and ultimately adding to the subsidy burden. A lot people are quite reasonably suggesting that if electricity prices are subject to crazy behavior in gas markets, then why not disconnect from the grid and self-generate? Wouldn’t that also help reduce demand for gas overall and also reduce CO2 emissions? It would. But it’s expensive to put solar panels on your roof and batteries in your basement — so for those rich enough to do this, it would lead to higher average electricity costs that would live on far into the future, even when grid prices eventually come down.

    So, an interesting idea is taking hold, with considerable encouragement from national governments — the idea of “energy communities,” basically, towns or cities that encourage local firms and homeowners to install solar and batteries, and make some sort of business arrangement with the local utility to allow the community to disconnect from the national grid at times of high prices and self-supply — in other words, use the utility’s wires to sell locally generated power locally. It’s interesting to think about — it takes less battery storage to handle the intermittency of solar when you have a lot of generators and consumers, so forming a community helps lower costs, and with a good deal from the utility for using their wires, it might not be that much more expensive. And of course, when the national grid is working well and prices are normal, the community would reconnect and buy power cheaply, while selling back its self-generated power to the grid. There are also potentially important social benefits that might accrue in these energy communities, too. It’s not a dumb idea, and we’ll see some interesting experimentation in this area in the coming years — as usual, the Germans are enthusiastic! More