ARPA-E, the government’s incubator for high-risk energy inventions, has its first graduate in the electricity area — a new energy storage technology — and on Thursday it announced a preliminary agreement to get it tested.
The agency, more formally the Advanced Research Projects Agency – Energy, modeled after the Defense Department’s longstanding program, said it had signed a memorandum of understanding with Duke, the big utility company, and the Electric Power Research Institute, the nonprofit utility consortium, to try out the inventions in the real world.
The agreement will “provide the connective tissue for ARPA-E,’’ said Arjun Majumdar, the agency’s director, and “provide the test bed to see how to create value in the actual business.’’
The first candidate will probably be General Compression, a company to which ARPA-E directed $750,000; that advanced the technology enough for the firm to raise $12 million privately, Mr. Majumdar said. The company developed a way to pump air into an underground cavern, using electricity generated at inconvenient hours. When the energy is needed, the air flows back out again through a generator.
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