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Though congress authorized the development of Advanced Research Projects Agency-Energy (ARPA-E) in August of 2007, the last few weeks have brought some exciting developments thanks to funding from the American Recovery and Reinvestment Act. On Monday, a $400 million program designed to fund development of disruptive/transformational energy technologies with the goal of reducing the nation’s dependence on fossil fuels and enhancing the nation's economic and energy security.

The Energy Department will begin taking applications next month for research projects and they are looking for high risk projects that will knock their socks off – incremental innovation need not apply. The program is modeled after the Defense Advanced Research Projects Agency (DARPA) that spawned the Internet, Global Positioning systems (GPS), and advanced space exploration.

Not only are the program goals innovative, but the approach signals change. The DOE Funding Opportunity Announcement issued this week offers individual awards of $500,000 to $20 million and requires applicants to submit only an eight-page “concept paper” outlining the technical idea by June 2. If accepted, applicants will then be invited to submit a full application. The announcement also explains, “ARPA-E has the flexibilities to work with companies who do not traditionally work with the Federal Government,” indicating new flexibility in the process.

The challenges these funds are slated to address are not new – cheaper alternative energy solutions, reduction of energy-related emissions, and improved energy efficiency – but the solutions must be.