DC-GRIDS SBIR STTR Concept Paper NOFO.pdf

Questions about this NOFO? Check the Frequently Asked Questions available at https://arpa-e.energy.gov/faqs. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with NOFO name and number in subject line). Problems with

ARPA-E eXCHANGE? Email ExchangeHelp@hq.doe.gov (with NOFO name and number in subject line).

AR-311-10.24

FINANCIAL ASSISTANCE

NOTICE OF FUNDING OPPORTUNITY

ADVANCED RESEARCH PROJECTS AGENCY – ENERGY (ARPA-E)

U.S. DEPARTMENT OF ENERGY

DISRUPTIVE DC CONVERTERS FOR GRID RESILIENT

INFRASTRUCTURE TO DELIVER SUSTAINABLE ENERGY

SBIR/STTR

(DC-GRIDS SBIR/STTR)

Announcement Type: Initial Announcement

Notice of Funding Opportunity No. DE-FOA-0003500 Assistance Listing Number 81.135

NOFOs are posted on ARPA-E eXCHANGE (https://arpa-e-foa.energy.gov/), Grants.gov (http://www.grants.gov/), and FedConnect (https://www.fedconnect.net/FedConnect/). Any modifications to the NOFO are also posted to these websites. You can receive an e-mail when a modification is posted by registering with FedConnect as an interested party for this NOFO. It is recommended that you register as soon as possible after release of the NOFO to ensure that you receive timely notice of any modifications or other announcements.

https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov https://arpa-e-foa.energy.gov/ http://www.grants.gov/ https://www.fedconnect.net/FedConnect/

Questions about this NOFO? Check the Frequently Asked Questions available at https://arpa-e.energy.gov/faqs. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with NOFO name and number in subject line). Problems with

- 2 -

TABLE OF CONTENTS

BASIC INFORMATION ......................................................................................................................................... - 5 -

I. FUNDING OPPORTUNITY DESCRIPTION ..................................................................................................... - 7 -

A. AGENCY OVERVIEW ........................................................................................................................................... - 7 - B. SBIR/STTR PROGRAM OVERVIEW ...................................................................................................................... - 9 - C. PROGRAM OVERVIEW ................................................................................................................................. - 10 - D. PROGRAM OBJECTIVES ................................................................................................................................ - 14 - E. TECHNICAL CATEGORIES OF INTEREST ................................................................................................................. - 16 - F. TECHNICAL PERFORMANCE TARGETS .................................................................................................................. - 20 - G. STATEMENT OF SUBSTANTIAL INVOLVEMENT ................................................................................................... - 22 - H. FUNDING RESTRICTIONS .............................................................................................................................. - 23 -

1. ALLOWABLE COSTS .................................................................................................................................... - 23 -

2. PRE-AWARD COSTS ................................................................................................................................... - 23 -

3. PATENT COSTS .......................................................................................................................................... - 23 -

4. CONSTRUCTION ......................................................................................................................................... - 23 -

5. FOREIGN TRAVEL ....................................................................................................................................... - 24 -

6. PERFORMANCE OF WORK IN THE UNITED STATES............................................................................................ - 24 -

7. PURCHASE OF NEW EQUIPMENT .................................................................................................................. - 24 -

8. TECHNOLOGY TRANSFER AND OUTREACH ...................................................................................................... - 24 -

9. LOBBYING ................................................................................................................................................ - 25 -

10. CONFERENCE SPENDING ............................................................................................................................. - 25 -

11. INDEPENDENT RESEARCH AND DEVELOPMENT COSTS....................................................................................... - 25 -

12. BUY AMERICA REQUIREMENT FOR PUBLIC INFRASTRUCTURE PROJECTS .............................................................. - 26 -

13. REQUIREMENT FOR FINANCIAL PERSONNEL .................................................................................................... - 27 -

14. PARTICIPANTS, COLLABORATING ORGANIZATIONS, AND CURRENT AND PENDING SUPPORT ................................... - 27 -

15. PAYMENT OF FEE OR PROFIT ....................................................................................................................... - 27 -

II. ELIGIBILITY INFORMATION ...................................................................................................................... - 28 -

A. ELIGIBLE APPLICANTS ....................................................................................................................................... - 28 -

1. SBIR ELIGIBILITY ....................................................................................................................................... - 28 -

2. STTR ELIGIBILITY ...................................................................................................................................... - 28 -

3. JOINT SBIR AND STTR ELIGIBILITY ............................................................................................................... - 28 -

B. ELIGIBLE SUBRECIPIENTS ................................................................................................................................... - 29 -

1. RESEARCH INSTITUTIONS ............................................................................................................................ - 29 -

2. OTHER PROJECT TEAM MEMBERS ................................................................................................................ - 29 -

3. FOREIGN ENTITIES ..................................................................................................................................... - 30 -

C. ELIGIBLE PRINCIPAL INVESTIGATORS ............................................................................................................... - 30 -

1. SBIR ....................................................................................................................................................... - 30 -

2. STTR ...................................................................................................................................................... - 30 -

D. FOREIGN PARTICIPATION ............................................................................................................................. - 31 -

1. FOREIGN NATIONAL PARTICIPATION FROM COUNTRIES OF CONCERN ................................................................. - 31 -

2. FOREIGN PARTICIPATION CONSIDERATIONS ................................................................................................... - 31 -

E. ELIGIBILITY OF PRIOR SBIR AND STTR AWARDEES: SBA BENCHMARKS ON PROGRESS TOWARDS COMMERCIALIZATION . - 31 - F. COMPLIANCE AND RESPONSIVENESS ................................................................................................................... - 33 - G. LIMITATION ON NUMBER OF SUBMISSIONS ..................................................................................................... - 33 -https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov

Questions about this NOFO? Check the Frequently Asked Questions available at https://arpa-e.energy.gov/faqs. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with NOFO name and number in subject line). Problems with

- 3 -

H. COST SHARING ........................................................................................................................................... - 33 -

III. APPLICATION CONTENTS AND FORMAT .............................................................................................. - 34 -

A. GENERAL APPLICATION CONTENT REQUIREMENTS ................................................................................................ - 34 -

1. MARKING OF CONFIDENTIAL INFORMATION ................................................................................................... - 34 -

2. EXPORT CONTROL INFORMATION ................................................................................................................. - 34 -

B. CONCEPT PAPERS ............................................................................................................................................ - 35 -

1. FIRST COMPONENT: CONCEPT PAPER............................................................................................................ - 35 -

2. SECOND COMPONENT: SUMMARY SLIDE ....................................................................................................... - 35 -

C. FULL APPLICATIONS .................................................................................................................................... - 36 -

1. FIRST COMPONENT: TECHNICAL VOLUME ...................................................................................................... - 36 -

2. SECOND COMPONENT: SF-424 ................................................................................................................... - 36 -

3. THIRD COMPONENT: BUDGET JUSTIFICATION WORKBOOK/SF-424A ................................................................ - 37 -

4. FOURTH COMPONENT: SUMMARY FOR PUBLIC RELEASE .................................................................................. - 38 -

5. FIFTH COMPONENT: SUMMARY SLIDE ........................................................................................................... - 38 -

6. SIXTH COMPONENT: BUSINESS ASSURANCES & DISCLOSURES FORM .................................................................. - 38 -

6. SEVENTH COMPONENT: SBIR.GOV COMPANY REGISTRATION ........................................................................... - 38 -

7. EIGHTH COMPONENT: ADDITIONAL OWNERSHIP CERTIFICATIONS ...................................................................... - 38 -

D. REPLIES TO REVIEWER COMMENTS ................................................................................................................ - 39 -

IV. SUBMISSION REQUIREMENTS AND DEADLINES ................................................................................... - 40 -

A. COMPLETION OF SBIR.GOV COMPANY REGISTRATION .......................................................................................... - 40 - B. UNIQUE ENTITY IDENTIFIER AND SAM REGISTRATION ........................................................................................... - 40 - C. USE OF ARPA-E EXCHANGE ...................................................................................................................... - 41 - D. REQUIRED DOCUMENTS CHECKLIST AND DEADLINES ......................................................................................... - 42 - E. COMPLIANCE .................................................................................................................................................. - 43 - F. INTERGOVERNMENTAL REVIEW ......................................................................................................................... - 43 -

V. APPLICATION REVIEW INFORMATION ..................................................................................................... - 44 -

A. RESPONSIVENESS ............................................................................................................................................ - 44 -

1. TECHNICAL RESPONSIVENESS REVIEW ........................................................................................................... - 44 -

2. SUBMISSIONS SPECIFICALLY NOT OF INTEREST ................................................................................................. - 45 -

B. REVIEW CRITERIA ............................................................................................................................................ - 45 -

1. CRITERIA FOR CONCEPT PAPERS ................................................................................................................... - 45 -

2. CRITERIA FOR FULL APPLICATIONS ................................................................................................................ - 46 -

3. CRITERIA FOR REPLIES TO REVIEWER COMMENTS ............................................................................................ - 47 -

C. PROGRAM POLICY FACTORS ......................................................................................................................... - 47 - D. REVIEW AND SELECTION PROCESS ................................................................................................................. - 48 -

1. CONCEPT PAPERS ...................................................................................................................................... - 48 -

2. FULL APPLICATIONS ................................................................................................................................... - 49 -

3. REPLY TO REVIEWER COMMENTS ................................................................................................................. - 49 -

4. PRE-SELECTION CLARIFICATIONS AND “DOWN-SELECT” PROCESS ...................................................................... - 49 -

5. SELECTION FOR AWARD NEGOTIATIONS ........................................................................................................ - 49 -

E. ARPA-E REVIEWERS ....................................................................................................................................... - 50 - F. ARPA-E SUPPORT CONTRACTORS ..................................................................................................................... - 50 - G. RISK REVIEW.............................................................................................................................................. - 50 -https://arpa-e.energy.gov/faqs

Questions about this NOFO? Check the Frequently Asked Questions available at https://arpa-e.energy.gov/faqs. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with NOFO name and number in subject line). Problems with

- 4 -

VI. AWARD NOTICES AND AWARD TYPES ................................................................................................. - 52 -

A. AWARD NOTICES ............................................................................................................................................ - 52 -

1. REJECTED SUBMISSIONS ............................................................................................................................. - 52 -

2. CONCEPT PAPER NOTIFICATIONS .................................................................................................................. - 52 -

3. FULL APPLICATION NOTIFICATIONS ............................................................................................................... - 52 -

B. PRE-AWARD COSTS ......................................................................................................................................... - 53 - C. RENEWAL AWARDS ..................................................................................................................................... - 54 - D. FUNDING AGREEMENTS ............................................................................................................................... - 54 -

VII. POST-AWARD REQUIREMENTS AND ADMINISTRATION ...................................................................... - 55 -

A. NATIONAL POLICY REQUIREMENTS .................................................................................................................... - 55 -

1. NATIONAL POLICY ASSURANCES ................................................................................................................... - 55 -

2. ENVIRONMENTAL IMPACT QUESTIONNAIRE ................................................................................................... - 55 -

B. ADMINISTRATIVE REQUIREMENTS ...................................................................................................................... - 56 -

1. INTELLECTUAL PROPERTY AND DATA MANAGEMENT PLANS ............................................................................. - 56 -

2. U.S. COMPETITIVENESS .............................................................................................................................. - 56 -

3. NONDISCLOSURE AND CONFIDENTIALITY AGREEMENTS REPRESENTATIONS .......................................................... - 58 -

4. INTERIM CONFLICT OF INTEREST POLICY FOR FINANCIAL ASSISTANCE .................................................................. - 59 -

5. COMPLIANCE AUDIT REQUIREMENT .............................................................................................................. - 59 -

6. RESEARCH SECURITY TRAINING REQUIREMENT ............................................................................................... - 59 -

C. REPORTING................................................................................................................................................ - 60 -

1. FRAUD, WASTE, AND ABUSE ....................................................................................................................... - 60 -

2. COMMERCIALIZATION PLAN AND SOFTWARE REPORTING ................................................................................. - 60 -

VIII. OTHER INFORMATION ......................................................................................................................... - 61 -

A. TITLE TO SUBJECT INVENTIONS .......................................................................................................................... - 61 - B. GOVERNMENT RIGHTS IN SUBJECT INVENTIONS.................................................................................................... - 62 -

1. GOVERNMENT USE LICENSE ........................................................................................................................ - 62 -

2. MARCH-IN RIGHTS .................................................................................................................................... - 62 -

C. RIGHTS IN TECHNICAL DATA ......................................................................................................................... - 62 - D. PROTECTED PERSONALLY IDENTIFIABLE INFORMATION ...................................................................................... - 63 -

IX. GLOSSARY ........................................................................................................................................... - 64 -https://arpa-e.energy.gov/faqs

Questions about this NOFO? Check the Frequently Asked Questions available at https://arpa-e.energy.gov/faqs. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with NOFO name and number in subject line). Problems with

- 5 -

BASIC INFORMATION

KEY DATES:

Notice of Funding Opportunity (NOFO) Issue Date: November 7, 2024 Deadline for Concept Paper Questions to ARPA-E-CO@hq.doe.gov: 5 PM ET, December 2, 2024 Submission Deadline for Concept Papers: 9:30 AM ET, December 10, 2024 Anticipated Date for Encourage/Discourage Notifications: 5 PM ET, TBD Deadline for Full Application Questions to ARPA-E-CO@hq.doe.gov: 5 PM ET, TBD Submission Deadline for Full Applications: 9:30 AM ET, TBD Expected Reviewer Comment Release Date: 5 PM ET, TBD Submission Deadline for Replies to Reviewer Comments: 5 PM ET, TBD Anticipated Timeframe for Selection Notifications: June 2025 Anticipated Timeframe for Award: September 2025 Anticipated Period of Performance: September 2025 – September

BASIC INFORMATION:

Total Amount to Be Awarded

Approximately $38 million, subject to the availability of appropriated funds to be shared between NOFOs DE-FOA-0003499 and DE-FOA-0003500.

Anticipated Number and Value of Awards

ARPA-E anticipates making approximately 10-12 awards between NOFOs DE-FOA- 0003499 and DE-FOA-0003500. ARPA-E may issue one, multiple, or no awards under this NOFO. The Federal share of awards under this NOFO may vary between $314,363 and $4,505,859.

Agency Contact Information

• Questions and answers (Q&As) about ARPA-E and this specific NOFO:

http://arpa-e.energy.gov/faq.

• Send other questions about the NOFO to: ARPA-E-CO@hq.doe.gov.

• Send questions about use of ARPA-E eXCHANGE to:

ExchangeHelp@hq.doe.gov.

Upon the issuance of a NOFO, only the Grants Officer via ARPA-E-CO@hq.doe.gov may communicate with Applicants. This “quiet period” remains in effect until ARPA-E’s public announcement of project selections. Emails sent to other email addresses will be disregarded.

The rising electricity demand from data centers, the electrification of transportation, and U.S.-based manufacturing calls for a significant increase in energy supply. Offshore wind, solar photovoltaics, and new nuclear power have the potential to meet the increased demand.

However, the U.S. will require a massive expansion of its transmission capacity to move that electricity promptly and reliably to where it is needed.

High-voltage direct current (HVDC) transmission can transport electrical power more efficiently than conventional alternating current (AC) transmission over long distances. The goal of DC- GRIDS is to enable the rapid expansion of the grid’s capacity by making HVDC transmission systems cost-comparable with conventional AC technology. This will lead to higher grid resiliency, energy availability, performance, and lower deployment time (if HVDC can use the existing overhead and underground transmission infrastructure rights-of-way). The program https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov mailto:ARPA-E-CO@hq.doe.gov mailto:ARPA-E-CO@hq.doe.gov http://arpa-e.energy.gov/faq mailto:ARPA-E-CO@hq.doe.gov

Questions about this NOFO? Check the Frequently Asked Questions available at https://arpa-e.energy.gov/faqs. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with NOFO name and number in subject line). Problems with

- 6 -will also enable true multi-directional power routing with flexible interconnections between new and existing AC and direct current (DC) lines, making integration of sustainable energy sources faster and easier.

This program will focus on two technical categories:

1. Category A: Novel submodules and modular high-voltage power electronic valves; and

2. Category B: Technologies that enable highly compact multi-terminal converter stations.

Technological breakthroughs under Category A will enable the availability of low-cost, vendor-agnostic valves that can be plug-and-play-ready and able to flexibly operate together in the same HVDC converter station. This would lead to a competitive economy that will drive down the cost of valves, and consequently converters, enabling their wider deployment. Technologies under Category B will make conversion of existing AC substations into HVDC converter stations possible. By realizing a higher-capacity grid where DC and AC transmission operates in a highly coordinated fashion, DC-GRIDS can lead to higher grid resiliency and significantly improved flexibility when integrating new electricity sources (e.g., offshore wind) onto the U.S. grid.

ARPA-E expects that scientists and engineers will form project teams with expertise in power electronics, power systems, digital control, insulation, thermal management and other related fields. Interdisciplinary and cross-sector collaboration and partnership with system integrators, equipment vendors, developers, utilities, and/or independent system operators will be critical in achieving advances in novel HVDC technology.

Questions about this NOFO? Check the Frequently Asked Questions available at https://arpa-e.energy.gov/faqs. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with NOFO name and number in subject line). Problems with

- 7 -

I. FUNDING OPPORTUNITY DESCRIPTION

A. AGENCY OVERVIEW

The Advanced Research Projects Agency – Energy (ARPA-E), an organization within the Department of Energy (DOE), is chartered by Congress in the America COMPETES Act of 2007 (P.L. 110-69), as amended by the America COMPETES Reauthorization Act of 2010 (P.L. 111- 358), as further amended by the Energy Act of 2020 (P.L. 116-260):

“(A) to enhance the economic and energy security of the United States through the development of energy technologies that—

(i) reduce imports of energy from foreign sources;

(ii) reduce energy-related emissions, including greenhouse gases;

(iii) improve the energy efficiency of all economic sectors;

(iv) provide transformative solutions to improve the management, clean-up, and disposal of radioactive waste and spent nuclear fuel; and

(v) improve the resilience, reliability, and security of infrastructure to produce, deliver, and store energy; and

(B) to ensure that the United States maintains a technological lead in developing and deploying advanced energy technologies.”

ARPA-E issues this Notice of Funding Opportunity (NOFO) under its authorizing statute codified at 42 U.S.C. § 16538. The NOFO and any cooperative agreements or grants made under this NOFO are subject to 2 C.F.R. Part 200 as supplemented by 2 C.F.R. Part 910.

ARPA-E funds research on, and the development of, transformative science and technology solutions to address the energy and environmental missions of the Department. The agency focuses on technologies that can be meaningfully advanced with a modest investment over a defined period of time in order to catalyze the translation from scientific discovery to early-stage technology. For the latest news and information about ARPA-E, its programs and the research projects currently supported, see: http://arpa-e.energy.gov/.

ARPA-E funds transformational research. Existing energy technologies generally progress on established “learning curves” where refinements to a technology and the economies of scale that accrue as manufacturing and distribution develop drive improvements to the cost/performance metric in a gradual fashion. This continual improvement of a technology is important to its increased commercial deployment and is appropriately the focus of the private sector or the applied technology offices within DOE. In contrast, ARPA-E supports transformative research that has the potential to create fundamentally new learning curves.

ARPA-E technology projects typically start with cost/performance estimates well above the level of an incumbent technology. Given the high risk inherent in these projects, many will fail to progress, but some may succeed in generating a new learning curve with a projected cost/performance metric that is significantly better than that of the incumbent technology.

ARPA-E will provide support at the highest funding level only for submissions with significant https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov http://arpa-e.energy.gov/

Questions about this NOFO? Check the Frequently Asked Questions available at https://arpa-e.energy.gov/faqs. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with NOFO name and number in subject line). Problems with

- 8 -technology risk, aggressive timetables, and careful management and mitigation of the associated risks.

ARPA-E funds technology with the potential to be disruptive in the marketplace. The mere creation of a new learning curve does not ensure market penetration. Rather, the ultimate value of a technology is determined by the marketplace, and impactful technologies ultimately become disruptive – that is, they are widely adopted and displace existing technologies from the marketplace or create entirely new markets. ARPA-E understands that definitive proof of market disruption takes time, particularly for energy technologies. Therefore, ARPA-E funds the development of technologies that, if technically successful, have clear disruptive potential, e.g., by demonstrating capability for manufacturing at competitive cost and deployment at scale.

ARPA-E funds applied research and development (R&D). The Office of Management and Budget defines “applied research” as an “original investigation undertaken in order to acquire new knowledge…directed primarily towards a specific practical aim or objective” and defines “experimental development” as “creative and systematic work, drawing on knowledge gained from research and practical experience, which is directed at producing new products or processes or improving existing products or processes.”0F

1 Applicants interested in receiving financial assistance for basic research (defined by the Office of Management and Budget as “experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts”)1 should contact the DOE’s Office of Science (http://science.energy.gov/). Office of Science national scientific user facilities (http://science.energy.gov/user-facilities/) are open to all researchers, including ARPA-E Applicants and awardees. These facilities provide advanced tools of modern science including accelerators, colliders, supercomputers, light sources and neutron sources, as well as facilities for studying the nanoworld, the environment, and the atmosphere. Projects focused on early-stage R&D for the improvement of technology along defined roadmaps may be more appropriate for support through the DOE applied energy offices including: the Office of Energy Efficiency and Renewable Energy (http://www.eere.energy.gov/), the Office of Fossil Energy and Carbon Management (https://www.energy.gov/fecm/office-fossil-energy-and-carbon-management), the Office of Nuclear Energy (http://www.energy.gov/ne/office-nuclear-energy), and the Office of Electricity (https://www.energy.gov/oe/office-electricity).

ARPA-E encourages submissions stemming from ideas that still require proof-of-concept R&D efforts as well as those for which some proof-of-concept demonstration already exists.

Submissions can propose a project with the end deliverable being an extremely creative, but partial solution.

1 OMB Circular A-11 (https://www.whitehouse.gov/wp-content/uploads/2018/06/a11_web_toc.pdf), Section 84,

pg. 3.

https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov http://science.energy.gov/ http://science.energy.gov/user-facilities/ http://www.eere.energy.gov/ https://www.energy.gov/fecm/office-fossil-energy-and-carbon-management https://www.energy.gov/fecm/office-fossil-energy-and-carbon-management http://www.energy.gov/ne/office-nuclear-energy https://www.energy.gov/oe/office-electricity

Questions about this NOFO? Check the Frequently Asked Questions available at https://arpa-e.energy.gov/faqs. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with NOFO name and number in subject line). Problems with

- 9 -

B. SBIR/STTR PROGRAM OVERVIEW

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are Government-wide programs authorized under Section 9 of the Small Business Act (15 U.S.C. § 638). The objectives of the SBIR program are to (1) stimulate technological innovation in the private sector, (2) strengthen the role of Small Business Concerns in meeting Federal R&D needs, (3) increase private sector commercialization of innovations derived from Federal R&D activities, (4) foster and encourage participation by socially and economically disadvantaged and women-owned Small Business Concerns, and (5) improve the return on investment from Federally funded research and economic benefits to the Nation. The objective of the STTR program is to stimulate cooperative partnerships of ideas and technologies between Small Business Concerns and partnering Research Institutions through Federally funded R&D activities.1F

ARPA-E administers a joint SBIR/STTR program in accordance with the Small Business Act and the SBIR and STTR Policy Directive issued by the U.S. Small Business Administration (SBA).2F

ARPA-E provides SBIR/STTR funding in three phases (Phase I, Phase II, and Phase IIS).

Applicants must apply for a Combined Phase I/II Award or a Combined Phase I/II/IIS Award.

Combined Phase I/II and I/II/IIS Awards are intended to develop transformational technologies with disruptive commercial potential. Such commercial potential may be evidenced by (1) the likelihood of follow-on funding by private or non-SBIR/STTR sources if the project is successful, or (2) the Small Business Concern's record of successfully commercializing technologies developed under prior SBIR/STTR awards. Phase IIS awards are a “sequential” (i.e., additional) Phase II award, intended to allow the continued development of promising energy technologies. Combined Phase I/II/IIS awards may be funded up to $4,505,859. Funding amounts will be consistent with the Phase I and Phase II limits posted on SBIR.gov website.3F

ARPA-E reserves the right to select all or part of a proposed project (i.e., only Phase I, or only Phase I and Phase II). In the event that ARPA-E selects Phase I only or Phase I/II only, then the maximum award amount for a Phase I award is $314,363 and the maximum amount for a Phase I/II award is $2,410,111.

2 Research Institutions include FFRDCs, nonprofit educational institutions, and other nonprofit research organizations owned and operated exclusively for scientific purposes. Eligible Research Institutions must maintain a place of business in the United States, operate primarily in the United States, or make a significant contribution to the U.S. economy through the payment of taxes or use of American products, materials, or labor.

3 See 88 Fed. Reg. 19704 (May 3, 2023) or SBIR.gov file at SBIR and STTR Policy Directive - May 2023.

4 For current SBIR and STTR Phase I and Phase II funding amounts, see https://legacy.www.sbir.gov/about. Phase IIS funding amounts are equal to Phase II funding amounts for both SBIR and STTR awards.

https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov https://www.sbir.gov/sites/default/files/2024-07/SBA%20SBIR_STTR_POLICY_DIRECTIVE_May2023.pdf https://legacy.www.sbir.gov/about

Questions about this NOFO? Check the Frequently Asked Questions available at https://arpa-e.energy.gov/faqs. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with NOFO name and number in subject line). Problems with

- 10 -

C. PROGRAM OVERVIEW

1. SUMMARY

The Disruptive dc Converters for Grid Resilient Infrastructure to Deliver Sustainable energy (DC- GRIDS) program will target transformative technologies that enable a multi-terminal high-voltage direct current (MT-HVDC) transmission macrogrid. It will enable multi-directional power routing, flexible interconnections between existing and new alternating current (AC) and direct current (DC) lines, and the easier addition of sustainable energy sources. Furthermore, a MT- HVDC macrogrid would accelerate adoption of offshore power transmission, conversion of high-voltage alternating current (HVAC) corridors to HVDC, and interconnection of the three U.S. electrical grids. This program seeks to enable the rapid expansion of existing grid capacity, while improving resiliency and performance.

2. BACKGROUND AND MOTIVATION

HVDC lines transport electrical power more efficiently than HVAC lines over long distances, particularly in underground or subsea applications, and may allow for 3.5 times the capacity of existing HVAC rights-of-way.4F

5 However, there are several barriers to wider HVDC adoption, including:

• A lack of understanding regarding the interaction of HVDC and the surrounding HVAC system;

• An absence of domestic supply chains and availability of HVDC equipment;

• High terminal equipment and installation costs;

• Insufficient standardization among vendors;

• Large footprints and volumes (which are a driver of higher costs);5F

6 and

• A lack of coordinated system-level controls validated with mature modeling and simulation methods.6F

7, 7F

Despite the noted barriers, there are several HVDC back-to-back converter stations linking the U.S. Eastern, Western, and Texas interconnections that allow small amounts of power to flow between them. There are also a few isolated point-to-point HVDC lines that transmit hydropower-generated electricity from the Pacific Northwest to Southern California and from

5 EPRI. “Leveraging Existing Infrastructure: Increasing the Capacity of Transmission Lines and Rights-of-Way,” (September 2021). https://www.epri.com/research/products/000000003002023004.

6 In this NOFO, “footprint” refers to the size of onshore converter stations, while “volume” refers to the size of offshore converter stations.

7 Gomis-Bellmunt, Oriol, Joan Sau-Bassols, Eduardo Prieto-Araujo, and Marc Cheah-Mane. “Flexible Converters for Meshed HVDC Grids: From Flexible AC Transmission Systems (Facts) to Flexible DC Grids.” IEEE Transactions on Power Delivery 35, no. 1 (February 2020): 2–15. https://doi.org/10.1109/tpwrd.2019.2939588.

8 Ray Chaudhuri, Nilanjan, Balarko Chaudhuri, Rajat Majumder, and Amirnaser Yazdani. Multi-terminal direct-current grids, September 8, 2014. https://doi.org/10.1002/9781118960486.

https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov https://www.epri.com/research/products/000000003002023004 https://doi.org/10.1109/tpwrd.2019.2939588 https://doi.org/10.1002/9781118960486

Questions about this NOFO? Check the Frequently Asked Questions available at https://arpa-e.energy.gov/faqs. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with NOFO name and number in subject line). Problems with

- 11 -

Québec to New England, with several more in development. HVDC is widely used in Europe, Asia, and other parts of the world to efficiently move gigawatts (GW) of electric power subsea or over long distances.8F

As shown in Figure 1, terminal costs (i.e., the cost of the HVDC stations that convert and control the DC power flow) are the driving factor in the cost break-even point between HVDC and HVAC transmission.

Figure 1. The cost break-even distance for AC and DC transmission before and after the program.9F

Offshore wind, solar photovoltaics, and new nuclear power have the largest potential impact in meeting the U.S. goal of net-zero greenhouse gas emissions by 2050.10F

11 The U.S. is expected to invest around $65 billion in offshore wind by the end of the decade, with capacity ramping up to around 14 GW by 2030, 30 GW by 2033, and 40 GW by 2035.11F

12, 12F

13 This will help meet surging electricity demand from data centers, manufacturing, and electrified transportation. Electricity demand from information technology equipment in U.S. data centers alone is expected to

9 McCalley, James. "High Voltage DC Transmission." Iowa State University (2024).

https://home.engineering.iastate.edu/jdm/ee552/HVDC1.pdf.

10 Figure created using information from Kalair, A., N. Abas, and N. Khan. “Comparative Study of HVAC and HVDC Transmission Systems.” Renewable and Sustainable Energy Reviews 59 (June 2016): 1653–75.

https://doi.org/10.1016/j.rser.2015.12.288.

11 U.S. White House. “The Long-term Strategy of the United States: Pathways to Net-Zero Greenhouse Gas Emissions by 2050” (2021). https://www.whitehouse.gov/wp-content/uploads/2021/10/US-Long-Term- Strategy.pdf 12 Bradstock, Felicity. “Billions Pouring into U.S. Offshore Wind despite Setbacks,” Yahoo! Finance (August 2024).

https://finance.yahoo.com/news/billions-pouring-u-offshore-wind-210000864.html?guccounter=1.

13 U.S. DOE. “Advancing Offshore Wind Energy in the United States,” (March 2023).

https://www.energy.gov/sites/default/files/2023-03/advancing-offshore-wind-energy-highlights.pdf.

https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov https://home.engineering.iastate.edu/jdm/ee552/HVDC1.pdf https://doi.org/10.1016/j.rser.2015.12.288 https://www.whitehouse.gov/wp-content/uploads/2021/10/US-Long-Term-Strategy.pdf https://www.whitehouse.gov/wp-content/uploads/2021/10/US-Long-Term-Strategy.pdf https://finance.yahoo.com/news/billions-pouring-u-offshore-wind-210000864.html?guccounter=1 https://www.energy.gov/sites/default/files/2023-03/advancing-offshore-wind-energy-highlights.pdf

Questions about this NOFO? Check the Frequently Asked Questions available at https://arpa-e.energy.gov/faqs. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with NOFO name and number in subject line). Problems with

- 12 -increase from 21 GW in 2023 to more than 50 GW by 2030.13F

14 The power grid is the backbone of the U.S. electricity sector, and it must adapt to achieve these increased capacity requirements while maintaining reliability and resiliency.

To meet the need for a cost-competitive HVDC electric grid, the DOE established the HVDC COst REduction (CORE) initiative. CORE supports R&D to reduce annual levelized cost for HVDC converter stations by 35% by 2035 to $210 per megawatt (MW) per kilovolt (kV).14F

15 DC-GRIDS

will develop disruptive DC converter station technology to enable true multi-port MT-HVDC converter stations. This will lead to MT-HVDC stations being cost-comparable with AC substations, increased system resiliency, and reduced deployment times through the use of existing infrastructure.

Since its inception in 2009, ARPA-E has been a catalyst for breakthroughs in the domain of power electronics, launching the following programs in the past decade:

• Green Electricity Network Integration (GENI);15F

• Agile Delivery of Electrical Power Technology (ADEPT);16F

• Creating Innovative and Reliable Circuits Using Inventive Topologies and

Semiconductors (CIRCUITS);17F

• Building Reliable Electronics to Achieve Kilovolt Effective Ratings Safely (BREAKERS);18F and

• Unlocking Lasting Transformative Resiliency Advances by Faster Actuation of power Semiconductor Technologies (ULTRAFAST).19F

The agency has invested more than $300 million, enabling significant technological progress and subsequent commercialization in power electronics and supporting U.S. technological leadership in advanced power conversion technologies. The goals of this NOFO are complemented by previous and current program activities at ARPA-E. The scope of this program, however, is distinct in that it addresses new challenges related to high-voltage power

14 Kearney, Laila, Seher Dareen, and Deep Kaushik Vakil. “US electric utilities brace for surge in power demand from Data Centers”, Reuters (April 2024). https://www.reuters.com/business/energy/us-electric-utilities-brace-surge-power-demand-data-centers-2024-04-10/.

15 U.S. Department of Energy. “HVDC cost reduction (core) initiative.” Accessed October 28, 2024.

https://www.energy.gov/oe/hvdc-cost-reduction-core-initiative.

16 “ARPA-E’s GENI Program: Green Electricity Network Integration.” ARPA-E. Accessed October 27, 2024.

https://arpa-e.energy.gov/technologies/programs/geni.

17 “ARPA-E’s ADEPT Program: Agile Delivery of Electrical Power Technology.” ARPA-E. Accessed October 27, 2024.

https://arpa-e.energy.gov/technologies/programs/adept.

18 “ARPA-E’s CIRCUITS Program: Creating Innovative and Reliable Circuits Using Inventive Topologies and Semiconductors.” ARPA-E. Accessed October 27, 2024. https://arpa-e.energy.gov/technologies/programs/circuits.

19 “ARPA-E’s BREAKERS Program: Building Reliable Electronics to Achieve Kilovolt Effective Ratings Safely.” ARPA-E.

Accessed October 27, 2024. https://arpa-e.energy.gov/technologies/programs/breakers.

20 “ARPA-E’s ULTRAFAST Program: Unlocking Lasting Transformative Resiliency Advances by Faster Actuation of Power Semiconductor Technologies.” ARPA-E. Accessed October 27, 2024. https://arpa-e.energy.gov/technologies/programs/ultrafast.

https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov https://www.reuters.com/business/energy/us-electric-utilities-brace-surge-power-demand-data-centers-2024-04-10/ https://www.reuters.com/business/energy/us-electric-utilities-brace-surge-power-demand-data-centers-2024-04-10/ https://www.energy.gov/oe/hvdc-cost-reduction-core-initiative https://arpa-e.energy.gov/technologies/programs/geni https://arpa-e.energy.gov/technologies/programs/adept https://arpa-e.energy.gov/technologies/programs/circuits https://arpa-e.energy.gov/technologies/programs/breakers https://arpa-e.energy.gov/technologies/programs/ultrafast https://arpa-e.energy.gov/technologies/programs/ultrafast

Questions about this NOFO? Check the Frequently Asked Questions available at https://arpa-e.energy.gov/faqs. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with NOFO name and number in subject line). Problems with

- 13 -electronics for HVDC not previously supported by ARPA-E. Some of the distinctive elements are the design of power electronics modular valves that stack up to more than half a million volts with kiloampere-level currents, environmentally friendly approaches to gas/liquid/solid insulation for power electronics, and high frequency galvanic isolation methods.

3. TECHNICAL DESCRIPTION

HVDC converter stations have been in operation since 1954.8 These legacy stations traditionally used current-sourced (i.e., relatively constant DC-link current, variable DC-link voltage) converters that do not support black start capabilities or provide ancillary services. These converters are made up of high-power, current-commutated thyristors organized in valves, and require significant harmonic filtering.

Since the advent of high-voltage, high-current, self-commutating transistors, new voltage-sourced topologies have emerged for HVDC converters that require less filtering and can support numerous grid functions. In the last two decades, the modular-multilevel converter (MMC) has increasingly become the preferred option for newer HVDC installations. This is in part due to its ability to stack modules with voltages referenced to adjacent modules rather than to ground, little-to-no filtering needs, and inherent manufacturability and scalability.20F

MMC topologies still require very large single-phase, low frequency transformers for voltage conditioning, galvanic isolation, protection, harmonic filtering, and phase shifting. Large DC-link capacitors are also critical for single-phase operation. The single-phase transformer and bushing structure require long manufacturing times and occupy a very large footprint or volume with complicated permitting and transportation requirements. These factors render HVDC solutions very expensive with long development times and are limiting for space-constrained urban areas and offshore applications.

Un-pressurized air is typically used as an insulator, and it is also a major driver of converter station (commonly referred to as ‘valve hall’) volume. Despite the strict control of HVDC valve hall air quality, the maximum surface field of corona shields is still designed to be less than 20 kV per centimeter.21F

22 This also contributes to the extremely large volume of converter stations. Hence, there is a need to explore other converter topologies and/or different insulation, isolation, and cooling options.

DC-GRIDS supports the development of converter technologies that would bring the initial investment cost of MT-HVDC stations down to levels comparable to AC substations (see

21 Marquardt, R. “Modular Multilevel Converter: An Universal Concept for HVDC-Networks and Extended DC-Bus- Applications.” The 2010 International Power Electronics Conference - ECCE ASIA -, June 2010.

https://doi.org/10.1109/ipec.2010.5544594.

22 Shi, Yuxin, and Zezhong Wang. “Calculating for Surface Electric Field of Converter Valve Shield System with Fast Multipole Curved Boundary Element Method.” The Journal of Engineering 2019, no. 16 (January 15, 2019): 1575–

79. https://doi.org/10.1049/joe.2018.8647.

https://arpa-e.energy.gov/faqs mailto:ARPA-E-CO@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov https://doi.org/10.1109/ipec.2010.5544594 https://doi.org/10.1049/joe.2018.8647

Questions about this NOFO? Check the Frequently Asked Questions available at https://arpa-e.energy.gov/faqs. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with NOFO name and number in subject line). Problems with

- 14 -

Figure 1). This program also aims to significantly increase the power density of future HVDC stations without impacting their lifetimes.

This NOFO assumes that the baseline cost per size of an ±525 kVdc HVDC station is roughly $1 billion per gigawatt at 2 kW per cubic meter offshore and $250 million at 35 kW per square meter onshore.22F

23, 23F

24 However, applicants can propose other cost baselines for their designs with justification.

D. PROGRAM OBJECTIVES

The goal of this program is to support the development of key technologies and control techniques to enable the…