Recently, my dad asked me my thoughts on a recent chance discovery of a way to make water burn–or, more specifically, how to use radio waves to release hydrogen from water and set it on fire. My response was that this was one of a number of potential energy production techniques that may, in the not too distant future, unseat petroleum as our primary industrial energy source.
This potential lies not in any particular energy production technology, but, rather, on a transformation in the energy market that may be imminent. At the center of such a transformation, if it happens, may be cheap, ubiquitous large-capacity batteries. Here’s one way this might play out…
There will be a tipping point where enough electric cars are in use that service stations will start looking for ways to attract electric car drivers as customers. That will require service stations to provide electricity either via some fast charging mechanism or through a fast battery swap. Tesla already has an automated system that swaps the battery in 90 seconds, demonstrably faster than pumping a full tank of gas. Tesla has since essentially mothballed it, but I think the problem is one of timing and market penetration rather than its intrinsic feasibility.
Battery swap has one significant supply advantage over fast charging. Fast charging will turn service stations into significant users of the real-time electrical grid. That puts service stations essentially on the spot market for electricity–a spot market that has only one supplier: the local utility company. It’s not clear that the current electrical grid has enough capacity to supply a fleet of millions of electric cars or that it could be scaled fast enough to meet demand. Of course, fast-charging stations could be battery backed which may provide similar benefits to large-scale battery swap described below.
Battery swap has a significant impediment to adoption in the form of standardization, since multiple auto manufacturers would need to agree on a battery standard. Standardization is always a problem in the adoption of new technology, so its not at all clear that battery swap will become practically possible.
But, market conditions *do* make battery swap possible, there would be a market in portable, fully-charged, high-capacity batteries. This will have at least two benefits. The first (and smallest) is that it will amortize the cost of battery r&d across all battery users, not just those who can afford to buy new batteries. This will create a *huge* market for new battery technology and improvements. The second benefit will be to break the stranglehold of petroleum on energy distribution. The unit of energy distribution will become the charged battery instead of the gallon of gasoline or diesel for the transportation industry.
Once there is a functioning market for charged batteries, there will be an explosion of investment in battery technology, production, and distribution coupled with a similar explosion of investment in technology to charge those batteries.
The first investment will dramatically drive their efficiency up and their cost per kilowatt down, making them attractive for use beyond the transportation industry. Imagine a multi-kilowatt-hour battery that costs less than a thousand dollars and may be replaced for the price of a tank of gas. People will start putting them in houses and commercial/industrial facilities to draw from during peak electricity cost while charging them at night. This will cut capacity of electricity production for the power grid by at least half, since the grid may then be provisioned for average rather than peak load. It will also give rise to technologies that reclaim energy and give it back to the battery, since electrical demand will go from being one way now (from the grid) to two way (from the grid to the battery and from the building to the battery and from the battery to the grid). Both the power grid and the devices that consume electricity will be completely transformed.
The final transformation will be in energy production. Currently, energy is distributed mainly through petrochemical fuel and long-haul electric lines. The addition of large-scale, fully-charged, high-capacity battery distribution will allow alternative energy tech to compete on fair footing with petroleum.
Right now, in order to sell into the energy market, you need access to the distribution network which is a closed system that only allows for the introduction of petroleum or the creation of an power plant.
When energy demand can be supplied with batteries, those exclusive, closed distribution networks become irrelevant. Gigantic wind, wave, and solar farms will be built that do nothing but recharge batteries. This particular radio wave tech can be used as well to charge batteries. Virtually any conceivable scheme to produce electricity will be tested and the effective ones will be scaled up.
True competition, free from the constraints of legacy, closed distribution networks will give petroleum a run for its money in the energy markets. My guess is that, at the very least, energy production will become far cheaper, far more efficient, and far cleaner. It’s also entirely possible that combustion of petrochemicals will cease to be a competitive process of energy production altogether.
I see all of this as possibly happening within the next 20 years.