Understanding Technology Readiness Levels (TRLs) in Climate Tech

  1. TRL is an acronym you cannot avoid in the climate tech ecosystem, and it becomes a bit tricky to understand the various levels of TRL (1 to 9). In this short blog, I will explain what TRL is, why it is important to understand, and what the various TRL levels mean.

  2. TRL stands for Technology Readiness Level. The TRL framework was initiated by NASA in the 1970s to evaluate the progress of technological solutions from their nascent stages to full commercial deployment.

  3. The TRL framework was created to understand the maturity of innovations, as it was important for developers, investors, and regulators to understand the risk at various stages of development and contribute to its development.

  4. Lower TRL technologies have higher risk as they are not proven, whereas higher TRL technologies have lower risk. Depending on the risk level, these technologies are funded with equity, debt, or a mix of both, depending on where they lie in the TRL spectrum. Typically, equity comes between TRL 3-7, and debt or debt + equity comes later on.

  5. By the 2000s, the TRL framework was adopted by the U.S. Department of Defense and later recommended by the European Commission for EU-funded research and innovation projects in 2010.

  6. The TRLs are divided into 9 levels. Each level is a key step in the maturation of the technology.

  7. TRL 1-3: Conceptualization and Validation

    • TRL 1: Basic principles observed and reported.
    • TRL 2: Technology concept and/or application formulated.
    • TRL 3: Analytical and experimental critical function and/or characteristic proof of concept.
    • For instance, consider the early stages of wind turbine technology. At TRL 1, the basic physics of wind energy conversion is understood. By TRL 2, specific designs for turbine blades to optimize efficiency are formulated. At TRL 3, small-scale models of these blades are tested in wind tunnels for feasibility.

  8. TRL 4-6: Development and Demonstration

    • TRL 4: Component and/or breadboard validation in a laboratory environment.
    • TRL 5: Component and/or breadboard validation in a relevant environment.
    • TRL 6: System/subsystem model or prototype demonstration in a relevant environment.
    • Taking the example of bioenergy with carbon capture and storage (BECCS), at TRL 4, components like the carbon capture system are validated in lab settings. By TRL 5 and 6, these components are integrated and demonstrated at pilot plants, showcasing the potential for full-scale operation.

  9. TRL 7-9: Implementation and Commercialization

    • TRL 7: System prototype demonstration in an operational environment.
    • TRL 8: Actual system completed and qualified through test and demonstration.
    • TRL 9: Actual system proven through successful mission operations.
    • In the context of electric vehicles (EVs), TRL 7 involves the deployment of prototype vehicles in controlled public environments. By TRL 8, the vehicles are fully manufactured, meeting all regulatory standards and undergoing extensive testing. TRL 9 is achieved when these vehicles are widely adopted and have a proven track record of performance and reliability.

  10. In a nutshell, the TRL framework serves as a vital tool in the development and deployment of climate technologies. By providing a clear roadmap, it helps stakeholders make informed decisions, allocate resources efficiently, and mitigate risks associated with the commercialization of new technologies.