NM CSETP

The Need for Center of Technology Excellence in NM

Building a New Economy for NM

New Mexico has relied on the Oil & Gas industry, primarily exploration and production in the Permian Basin, for as much as 46% of the state's budget. As renewable energies become cheaper and cheaper, fossil fuel energy becomes uneconomic much as coal already has (as of mid 2020). This will be a problem for New Mexico's state budget in year's to come. Unfortunately, the COVID-19 pandemic along with the collapsing price of oil in 2020 has made the financial situation imminent if not urgent.

New industries, new jobs and a rebuilt tax base is going to be essential and need to be urgently developed to replace the retraction of Oil & Gas. While New Mexico is an excellent state for solar and wind power, little if any of the equipment, infrastructure and service industries needed by these industries is hosted in New Mexico. As petro-sourced products become impractical, undesirable and environmentally problematic bio-sourced products will be needed. While early research suggests some substitutions are available, manufacturing costs are not yet economic. An R&D opportunity is then an opportunity for the current academic institutions and industrial enterprises to develop these technologies and solutions. The state has a role in coordinating such efforts and the desperately need funding.

Appropriate R&D is often overlooked as a policy with the biggest impact on reversing global warming:

“The climate change policy with the most potential is the most neglected” - VOX David Roberts - Jul 11, 2019:

We propose that these activities be centered and coordinated by a New Mexico Center of Technical Excellence. The actual name is not important but a solid plan for the organization will be critical to its success and relevance in the international market place for green energy products and services.

This is actually a simple idea but with many underlying complications. How innovations are harnessed, how a NM technology hub or center is feasible, who participates, what is it's focus and how it might be funded are all questions that will need addressing.

On Innovation

A broad overview of the roles and realizing potential improvements and innovations in renewable energy has is discussed by IHS Markit and Energy Futures Initiative. The clearly emphasize the need for R&D. Some suggestions can be found in:

“Advancing the Landscape of Energy Innovation” - Feb 2019, 229 pages

The concept of a technology hub is discussed in the book:

Jump-Starting America: How Breakthrough Science Can Revive Economic Growth and the American Dream” – Johnathan Gruber & Simon Johnson, Public Affairs – April 9, 2019 368 pages

and on their website. However, since Albuquerque came in 53rd on their list of candidates for Top Technology Hubs there might be significant hurdles. The report also found that Santa Fe fails to meet these three criteria, while Los Alamos makes no appearance:

• House price upper bound $265,000
• Working Population lower bound, 100,000
• Percent College Grad lower bound 25%

The three parameters are meant to determine if there’s cheap (affordable) housing, a significant percentage of the population is well educated. The report cites Rochester, NY as the poster-child of the concept.

Observations on how NM is positioned

It is generally considered that Research and Development at the state level is not where it needs to be. This is in spite of the presence of the two national laboratories where the focus is on national security issues.

The state departments of Energy, Minerals and Natural Resources Department, (Sarah Cotrell Propst) (EMNRD) and Economic Development Department, (EDD) have a potential coordination role, both internally and externally with participating industries and academia.

Among candidate academic institutions are the New Mexico Institute of Mining and Technology (NM Tech) and New Mexico State University (NMSU). NMSU with it's history as an Agriculture and Mechanical college has extension service missions that positions it well to participate.

New Mexico Governor Michelle Lujan Grissom is reported to support in general the need to grow a replacement economy much less dependent on Oil & Gas.

As of September 2019 it didn't appear that NM had funds to spare for such a project, even with O&G revenues that were projected by some to last 10 yrs. By mid 2020 with the collapse of oil prices, funding becomes even more of a challenge.

Institutional Models

Some models of centers of technical excellence can be found. Sandia National Labs and Lawrence Livermore National Labs together have formed the Livermore Valley Open Campus – a university in Livermore, California. There research is funded, students are educated and nearby universities collaborate, though details need to be identified. [TODO]

It turns out that Sandia has research centers for PV, Wind and Storage, and a partnership program that may have resources. Sandia has a Technology Partnership with local industries in Albuquerque, see:

Working with Sandia/Technology Partnerships

Areas of Research

Petrochemical Substitutions

Much of modern civilization is built on the products from the oil and gas extractive industries. Plastics in protective equipment, supplies etc. are critical to a viable modern health care system. Trains, boats, planes and automobiles rely enormously on plastic parts of one kind or another. Lubricants based on mineral oils keep everything moving. Chemical dyes and paints color our world. Nylon fibers carpet our homes and clothe our bodies. In order to get off fossil fuels, leaving it in the ground will also starve the chemical industries for these products. We need alternatives, somethings that will substitute for feedstocks derived from oil and gas. 13% of petroleum is used in chemical manufacturing, i.e. not burned.

To begin with…

Natural rubber production (latex) worldwide in 2017 amounted to more than 13.5 million metric tons. Synthetic rubber production worldwide in 2017 amounted to some 15.05 million metric tons.

These natural fibers can be grown:

• sisal
• cotton
• seagrass
• jute
• silk
• coir
• wool
• flax

Natural polymers/plastics can be made by fermentation

• polyhydroxybutyrate-valerate, or PHBV – made in a bacteria/fermentation process

Bio-lubricants can be derived from vegetable oils

• Bio-lubricants are derived from vegetable oils and other renewable sources. They usually are triglyceride esters (fats obtained from plants and animals. For lubricant base oil use, the vegetable derived materials are preferred.

Renewable energies will be needed to run the processes that will convert these sources into commercial products. Successful leaders in these industries will probably make a killing! Development times tho’ can take decades so starting now may not be too late.

We need an advanced technology research and development center to make New Mexico a leader in this field. With appropriate funding, we could search out experts in these sciences and technologies, grow them locally or get them to move to northern New Mexico in our own Research Triangle (Santa Fe, Los Alamos and Albuquerque)! Spinoff successes will create great job opportunities in solar powered pilot plant and manufacturing projects.