A Tale of Two Start Ups: U.S. Leads in Clean Energy Research, but Struggles with Commercialization

The United States, a recognized global leader in clean energy research, invested $9.2 billion in energy research, development, and demonstration in 2020, outstripping investments made by Japan, the European Union, and China combined. Despite significant investments in RD&D, the U.S. faces ongoing challenges in commercializing and manufacturing new technologies domestically, missing critical opportunities to enhance U.S. competitiveness, achieve decarbonization goals, and generate domestic employment.

The Bipartisan Policy Center’s latest report, From Idea to Impact: A Climate Tech Startup Story, highlights the essential roles public and private funding play in overcoming common hurdles encountered by clean energy technology companies transitioning from RD&D to industrialization. Key findings are illustrated from the commercialization journeys of Sila Nanotechnologies and Monolith, two clean-tech leaders that benefitted from both federal government and private sector support, while also facing significant challenges as they brought their core technologies from lab to market.

“We must have a better understanding of the challenges involved in commercializing clean energy technologies if we are to strengthen the U.S.’s position in the global clean energy market,” said BPC Senior Associate Director of Energy Innovation Tanya Das. “Recent federal investments through the Bipartisan Infrastructure Law have improved the landscape for U.S. energy startups, but there is more to do.”

Lessons from the report include:

• The commercialization journey is long and capital intensive.
• Early-stage federal programs offer vital support for startups.
• The cyclicality of private markets can slow startup growth.
• Patient capital can be critical but is in short supply.

The report concludes, “As policymakers seek to accelerate decarbonization and grow the U.S. manufacturing base, acknowledging and addressing the challenges faced by companies commercializing clean energy technologies is an important first step. By developing strategies to address these challenges, policymakers and private-sector stakeholders have an opportunity to speed progress toward U.S. climate goals, drive lasting national and community-level economic gains, and help American clean energy companies remain competitive in the increasingly crowded global marketplace.”