The X Prize Foundation made its name handing out $10 million awards for cutting-edge innovation in promising but thinly financed fields of research. But now the Santa Monica (Calif.) foundation is targeting one of the most-crowded contests in technology: the race to discover clean alternatives to fossil fuels.

In its richest and largest competition yet, the foundation will divvy up some $100 million for transformations in biofuels, clean aviation fuel, energy storage, the provision of basic utilities for developing nations, and other categories.


The announcement, coming as oil approaches $120 a barrel, is a fresh jolt to the search for a replacement for fossil fuels in transportation and electricity. In terms of profit, a true breakthrough could create the equivalent of a new computer industry, analysts say, and 8% of all U.S. venture capital—about $2.2 billion—was poured into clean technology investment last year alone, according to the National Venture Capital Assn.