Two University of Michigan start-ups recently made the Ann Arbor area proud, taking the two runner-up slots in the inaugural Clean Energy Prize.

Ikanos Power and Husk Insulation took home nearly a quarter of the $100,000 prize pool - a competition geared toward alternative-energy start-ups, which was sponsored by the University of Michigan and DTE Energy. They plan to use that combined $24,500 to further research into their products.

Husk Insulation tries to convert plant-based agricultural waste into high-grade insulation that is a fraction of the thickness of conventional insulation for the refrigeration industry. Ikanos Power creates efficient, portable and fuel-flexible electric power generators that could be used on vehicles such as military tanks and tractor-trailers.

Ikanos is made up of five principals. They include two serial entrepreneurs from the U-M Business School and three chemical engineering PhDs.

"It's a good blend of the business and engineering schools," Townsend says.

Ikanos (Greek for efficient) Power is trying to raise money right now to further its research and create a prototype. The product is still several years away from becoming reality, but it has a huge upside, according to Townsend.

"This is huge," Townsend says. "We’re looking at a $50 billion market. We’re talking about taking the fire out of the combustible engine when it comes to fossil fuels. That’s huge."

Source: Jason Townsend, CEO of Ikanos Power and the University of Michigan
Writer: Jon Zemke