Cleantech Opportunities on the Rise
25 Apr, 2014
By Mark Kleszczewski
Even as American oil and gas production continues to thrive, the U.S. renewable energy industry is experiencing a surge of its own, led by domestic solar power’s record-breaking gains in 2013.
As consumers demand greener products and services, and companies seek to become more resource-efficient while lowering their carbon footprint, researchers and high-tech startups are forging new solutions in the wide-ranging “cleantech” sector. This is leading to a whole host of opportunities in green R&D and manufacturing, along with new community initiatives and targeted land development to help grow cleantech operations.
Sustainability Jobs Take Off
Clean technology is not only helping to sustain the environment, it’s also sustaining the economy. As demand increases for new green technology and sustainable energy solutions, the number of cleantech jobs is growing in energy generation and efficiency, green buildings and alternative fuels.
According to data from the Brookings Institution, the number of U.S. jobs with a green focus grew from 750,000 to 2.7 million between 2008 and 2011, with 26 percent of those cleantech jobs centered on manufacturing.
As noted in the Copenhagen Cleantech Cluster/Global Cleantech Report 2012, building efficiency materials and smart grid technologies are expected to be among the fastest-growing cleantech segments on a global scale through 2015. The electrical vehicle, maritime cleantech and energy storage industries are relatively new, but are enjoying high growth rates driven by rising fuel prices, new renewable energy infrastructures and evolving regulatory frameworks.
One of the biggest growth segments in clean technology stems from energy generation, where utilities like Montana’s NorthWestern Energy are working both the supply and demand side to meet the state’s renewable portfolio standard goal of 15 percent by 2015.
“We believe strongly in the importance of clean energy, which is definitely driving our current attempt to acquire hydro facilities in Montana,” says Rick Edwards, director of key accounts and economic development, NorthWestern Energy.
Companies will also be able to take advantage of WSU’s new $52.8 million, 96,000-square-foot clean technology laboratory, which will supplement several existing research facilities specializing in alternative fuels, bioproducts and composite materials.
In a bid to diversify its supply portfolios with hydropower, the company submitted its formal request last December to the Montana Public Service Commission to approve the purchase of 11 hydroelectric generating facilities with a total generating capacity of 633 megawatts from PPL Montana. Subject to necessary regulatory approvals and adjustments, the company and PPL expect to complete the $900 million transaction by the end of Q3 2014.
Edwards also reports that NorthWestern’s Spion Kop Wind Project is doing well while the utility’sGreen $ense program has exceeded 1,100 net metered renewable generators and more than 140 projects completed in 2012, including solar PV systems installed at several schools and non-profit facilities. USB funding has continued to expand, and since it’s driven by individual load patterns, as the economy improves, additional usage will result in more available dollars, Edwards says.
In nearby Idaho and Washington, public and private investments are taking existing strengths in scientific research and turning clean technology theory into practice.
“We’re blessed here with tremendous hydropower and wind resources, so we’ve got a strong culture around energy technology and the environment,” says Paul Kimmel, chair, Inland Northwest Partners. “We’ve also got an ecosystem of research excellence and utility innovation that’s gotten us into smart grid technology, advanced metering and distributed generation.”
Kimmel points to groups like the Inland Northwest Economic Alliance, companies such as Schweitzer Engineering Laboratories and institutions like the University of Idaho and Washington State University (WSU) among the many interconnected organizations that make the surrounding Palouse Knowledge Corridor (PKC) a desirable place for cleantech activity. Straddling southeastern Washington and central Idaho, the PKC is divided into five industry clusters covering electronics, biotech, environmental services, advanced materials and information services.
The Palouse Business Center located in Pullman, Wash., is one of the newest resources available for green companies looking for a home in the region. While the 43-acre park features numerous green amenities for tenants, it’s also one of the growing number of private business centers to use wildlife habitats and storm water utilization to drive a long-term increase in value for the neighboring community.
Companies will also be able to take advantage of WSU’s new $52.8 million, 96,000-square-foot clean technology laboratory, which will supplement several existing research facilities specializing in alternative fuels, bioproducts and composite materials. When completed in late 2015, the lab will focus on air- and water-quality, power engineering, renewable energy, greenhouse gas mitigation, and sustainable design and infrastructure.
In California, Greenwise Joint Venture is spearheading an ambitious, six-county effort to double the number of local green jobs and transform the Sacramento region into a hub and regional market for clean technology.
“The demand for renewable technology and fuels has grown, and there’s more attention now on the environment, which is really exciting for us,” says Sarah Leddy, project manager, Greenwise Joint Venture. “We’re in a highly productive agricultural region, so for Greenwise, it’s an economic development strategy tailored to local conditions, and a chance to close the sustainability loop while working toward energy independence.”
Cleantech companies already gaining local prominence in capturing investments and creating jobs are Atlas reFuel, CleanWorld Partners, REII and Sierra Energy. Sacramento is also home to innovative anaerobic digester technology developed at the University of California-Davis, which converts food waste into renewable natural gas, Leddy notes.
As part of its Regional Action Plan, Greenwise is working with local partners to support the waste digester industry and reap the rewards of a green and sustainable food-to-fuel cycle. “We’re showing how a zero-waste plan that diverts food scraps can have value in the marketplace,” Leddy explains.
“Although nobody can predict what exact direction energy as a whole is going to take, the need for it isn’t flattening out — it’s increasing,” says Tom Kucharski, president and CEO, Buffalo Niagara Enterprise. “Geopolitical situations around the world continue to remind us that being too invested in one geography or source of energy is dangerous for our economy. So we see an energy and cleantech cluster as a growth opportunity.”
The region is especially well-positioned to take off in the burgeoning sector now that a memorandum of understanding has been reached between the state of New York and the city of Buffalo for the purchase of 88 acres of city-owned property at a shuttered Republic Steel factory.
Patterned after the strategy used to establish the College of Nanoscale Science and Engineering in Albany, the state’s $225 million investment will turn the former brownfield into a state-of-the-art anchor hub for high-tech and green energy businesses. Two California-based energy companies, Soraa and Silevo, will collectively invest $1.5 billion into the project, creating 1,350 permanent and construction jobs at what will become the Buffalo High-Tech Manufacturing Innovation Hub at RiverBend by Q2 2015.
In addition to the RiverBend complex itself, companies in the cleantech space can take advantage of abundant fresh water sources, low-cost hydropower, industrial capacity and proximity to Canada, Kucharski says. Other features, like local production of solar-grade silicon offered at discounted rates, will also appeal to specific sustainable power production companies.
Midway between Akron and Cleveland, Ohio, public and private partners are finding that pursuing clean technology is timely economic and marketing strategy for attracting the attention of like-minded, high-tech companies.
“The nature of the economy is changing,” says John Shutsa, president, JASA Land Development. “In response, we had a vision for an industrial-based park which stays with the character of the community, protects the environment, and is good for businesses with a green focus.”
Shutsa’s group is behind Seasons Greene, a 136-acre eco-industrial park that offers economically-conscious infrastructure, natural storm water management, and sites for LEED spec buildings. The park was designed for alternative and advanced energy companies and represents collaborative partnerships between businesses, the state of Ohio, Summit County, the city of Hudson, and the wider community, resulting in more efficient and ecological resource use.
As with any industry, renewable energy and green technology will no doubt go through their ups and downs as regulations and markets adapt to new realities. Communities that augment their existing strengths with targeted resources and innovative thinking should find many cleantech opportunities opening up for years to come.
Shutsa says plans for the park call for up to 10 buildings engaged in advanced and alternative energy, eventually leading to nearly 1,000 jobs at the location over time. The park features immediate access to I–80, I–76 and State Route 8, along with rail access to Norfolk Southern, bus transportation, two major airports and the Port of Cleveland.
“Economic development is about the creation of jobs and investment, but we really see Seasons Greene as a tremendous opportunity to be at the forefront of the future,” says Chuck Wiedie, economic development director, city of Hudson (Ohio). “Companies are moving towards an ecology mindset and universities are starting to turn out people who specialize in industries and trades that support that kind of thinking.”
As with any industry, renewable energy and green technology will no doubt go through their ups and downs as regulations and markets adapt to new realities. Communities that augment their existing strengths with targeted resources and innovative thinking should find many cleantech opportunities opening up for years to come.
“I think the future is promising,” Edwards says. “With increasing environmental pressure and the importance of good corporate citizenship, ‘clean energy’ and ‘clean tech’ will continue to be popular as long as they are price competitive.”
“To take advantage of the opportunities in clean technology, we’re approaching the sector with a holistic and comprehensive approach which looks at all sides of the equation, from real estate assets to incentives,” Kucharski says. “But while much of cleantech may be on the cutting edge, the bottom line is that it’s still about quality manufacturing and having a loyal, productive workforce — and we’ve got a strong heritage in both.”
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Illustration by suphakit73 at Free Digital Photos.net
