The State of Energy Innovation

The State of EnergyInnovation INTERNATIONAL ENERGYAGENCY The IEA examines the fullspectrumof energy issuesincluding oil, gas andcoal supply anddemand, renewableenergy technologies,electricity markets,energy efficiency,access to energy,demand sidemanagement and muchmore. Through its work,the IEA advocatespolicies that will enhancethe reliability,affordability andsustainability of energyin its32Member countries,13Association countriesand beyond. IEAAssociationcountries: IEAMembercountries: AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLatviaLithuaniaLuxembourgMexicoNetherlandsNew ZealandNorwayPolandPortugalSlovak RepublicSpainSwedenSwitzerlandRepublic of TürkiyeUnited KingdomUnited States ArgentinaBrazilChinaEgyptIndiaIndonesiaKenyaMoroccoSenegalSingaporeSouth AfricaThailandUkraine This publication and any mapincluded herein are withoutprejudice to the status of orsovereignty over any territory,to the delimitation ofinternational frontiers andboundaries and to the nameof any territory, city or area. The EuropeanCommission alsoparticipates in thework of the IEA Source: IEA.International Energy AgencyWebsite: www.iea.org Abstract Global energy innovation is evolving rapidly, shaped by technological advances,increased public and private investment, and a shifting international landscape.Thisreport provides a comprehensive assessment of recent progress andemergingchallenges in energy technology innovation,drawing on over150 innovation highlights and a survey of practitioners across 34 countries. Itanalyses trends in public and corporate R&D spending, venture capital flows, andtechnologydemonstration efforts,highlighting an increasingly internationallandscape, with emerging economies making strides alongside traditional leaders. The report documents the increasing focus on low-emissions, modular and mass-manufactured technologies, as well as launching a set of 18 “races” to encouragefaster progress towards key demonstration milestones. It identifies areas wherenew approaches to policy support are being developed to use public funds moreeffectively, but also highlights areas where more efforts are needed to addressbarriers to scale-up and attract private capital. The report includes focus chapters on three dynamic fields, namely diversificationofbattery mineral supplies,application of artificial intelligence to energyinnovation,and development of carbon dioxide removal technologies.Theanalysis provides a data-driven foundation to inform policy makers, industry andotherstakeholders on the state of energy innovation worldwide and theimportance of sustaining innovation momentum over the long term. Acknowledgements, contributorsand credits TheState of Energy Innovationreportwas prepared by the Energy TechnologyPolicy (ETP) Division of the Directorate of Sustainability, Technology and Outlooks(STO) of the International Energy Agency (IEA). The project was designed anddirected byTimur Gül, IEA Chief Energy Technology Officer. Simon Bennettco-ordinated the analysis and production of the report.AraceliFernandez Pales, Head of the Technology Innovation Unit, provided strategicguidance throughout the development of the project. The principal IEA authors were (in alphabetical order):Jose Miguel BermudezMenendez(survey),Chiara Delmastro(buildings),Mathilde Fajardy(CCUS andCDR),Hannes Gauch(transport),Carl Greenfield(CCUS and CDR),IlkkaHannula(bioenergy and energy storage),Maija Lehtonen(data trends andsurvey),Teo Lombardo(minerals and batteries),Martina Lyons(critical mineralsand geothermal),Leonardo Paoli(batteries and innovation highlights),AmaliaPizarro(policy,hydrogen and energy storage),Richard Simon(industry),CourtneyTurich(fossil and geothermal),Deniz Ugur(nuclear,fossil andgeothermal). Other IEA contributors included Eric Buisson, Leonardo Collina, Shobhan Dhir,Luke Hatton, Alexandre Gouy, Anna Kalista, Konstantina Kalogianni, MartinKueppers, Rena Kuwahata, Suzy Leprince, Rafael Martinez Gordon, RebeccaMcKimm,Jeremy Moorhouse,Aloys Nghiem,Omenah Okogu,FaidonPapadimoulis, Uwe Remme, Andrew Ruttinger, Nicholas Salmon, Sophie Sterr,Josephine Tweneboah Koduah, Tiffany Vass, Ivo Walinga, Qi Wang and ZihanZhu. The development of this report also benefited from reviews from other IEAcolleagues: Roberta Quadrelli, Cecilia Tam, Rebecca Schulz, Talya Vatman andAlayPatel.Valuable comments and feedback were provided by seniormanagement and other colleagues within the IEA, in particular Laura Cozzi, DanDorner, Tim Gould, Brian Motherway, Dennis Hesseling and Paolo Frankl. Per-Anders Widell and Charlotte Bracke provided essential support throughout theprocess. Lizzie Sayer edited the manuscript. Thanks also to Curtis Brainard, Poeli Bojorquez, Jon Custer, Astrid Dumond,Merve Erdil, Grace Gordon, Oliver Joy, Jethro Mullen, Clara Vallois, Lucile Wall,and Wonjik Yang of the Communications and Digital Office. Special thanks go to the colleagues of th