In the October 23, 2006 Issue:

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 SSTI Weekly Digest Clean Energy Special Issue
As Americans become more aware of the hazards of dependence on foreign oil and global climate change associated with traditional energy sources, states are turning more attention to clean and renewable sources such as wind, solar, and biomass power. In this issue of the SSTI Weekly Digest, we examine recent efforts across the country to build environmentally sustainable industries and to capitalize on the growing international interest in clean energy technologies.
 
SSTI will continue this discussion next week at our 10th annual conference in Oklahoma City. The conference will feature a panel discussion on Commercializing Clean Energy Technologies that will highlight several regional strategies to bring new ideas to the clean energy market. Panelists include Lee Cheatham of the Washington Technology Center, Kurt Faulhaber of the Austin Clean Energy Incubator, and Steve Rhines of the Samuel Roberts Noble Foundation. Join us in Oklahoma City to learn more about the future of state and regional clean energy programs.

You can find the full schedule of events at http://www.ssti.org/Conf06/schedule.htm.
 
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Pennsylvania Launches $90M to Boost Clean Energy Innovation
Many states are now pursuing seed and venture investment strategies to support the growth of clean energy businesses. Last month, Pennsylvania concluded a year-long series of meetings with private sector investors, financial experts, and nonprofit state energy funds and introduced a $90 million strategy to leverage public and private capital for renewable energy. The plan links economic development and environmental protection in a manner intended to promote the state as a leader in emerging clean energy industries.
 
The centerpiece of this new strategy is the creation of the $40 million Keystone Green Fund (the Fund), which will provide private equity and debt investments, venture capital placements, and project financing for projects related to alternative power sources. The state Treasury Department is pledging $15 million of these funds to support the commercialization of clean energy technologies. Recipients, which must have a direct business connection to Pennsylvania, will be considered for additional investment by Pennsylvania's sustainable energy funds, including the TRF Sustainable Development Fund, the West Penn Power Sustainable Energy Fund, and First Energy's Sustainable Energy Fund.

This will be the first time Pennsylvania's clean energy funds have pooled their resources to promote businesses across the state. The remaining $25 million from the Fund will be invested in companies or projects that offer an attractive return on state investment and offer more general benefits for the state's energy independence.
 
An additional $50 million will be earmarked for equity investments in alternative energy companies and technologies. The Treasury Department will reallocate these funds from existing investment managers to managers who can demonstrate a history of profitable investment in clean energy companies. Treasurer Bob Casey also will develop new investment screens to direct the department's other investments toward companies that adopt sustainable energy practices.
 
Pennsylvania Gov. Ed Rendell also announced $5.1 million in awards through the state's Energy Harvest Grant Program this month. The program, which has existed since 2003, has spent $21 million and leveraged an additional $51.9 million for projects that make use of solar, wind, biomass, geothermal, biodigestion and landfill methane gas technologies. The governor made 27 such awards to updating business facilities and practices to improve energy efficiency and reduce dependence on nonrenewable fuels.
 
Read the Keystone Green Investment Strategy at: http://www.patreasury.org/documents/KeystoneGreenInvestmentStrategy.pdf
 
SSTI reported on the creation of the Energy Harvest Grant Program in 2003. You can access the original report at: http://www.ssti.org/Digest/2003/060603.htm#PA
 
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DOE, USDA Announce $34.5M for Renewable Energy Research
Earlier this month, representatives from the clean energy community in all 50 states met in St. Louis to address the growing need for alternatives to fossil fuels. Advancing Renewable Energy: An American Rural Renaissance, a national conference sponsored by the U.S. Departments of Agriculture (USDA) and Energy (DOE), hosted a range of discussions on the future of renewable energy technologies and President Bush's Advanced Energy Initiative.
 
The event also gave Secretary of Agriculture Mike Johanns and Secretary of Energy Samuel Bodman an opportunity to announce $34.5 million in awards and other funding for renewable energy research and development. The funds will be distributed among the department's ongoing partnerships to support research in biomass genomics, solar energy and cost-effective biomass power.
 
More than $17 million of the funding was awarded for 17 research, development and demonstration projects focusing on biobased products, bioenergy, biofuels and biopower. Most of these awards will support R&D to improve the affordability and efficiency of biomass power at research universities. Highlights from the award list include:

The joint competitive grants program operated by DOE's Office of Biological and Environmental Research and the USDA Cooperative State Research, Education, and Extension Service National Research Initiative will receive $4 million to continue its support of biomass genomics research. The initiative focuses on developing biomass techniques that allow producers to use less expensive methods and poorer quality land. The program's first round of awards was made earlier this year to nine projects receiving $5.7 million in support.
 
On the final day of the conference, Secretary Bodman announced an additional $13 million for research in solar technologies, as part of President Bush's $148 million Solar America Initiative. The funds will be used to develop more efficient photovoltaic cells and to promote the use of solar energy in partnership with utility companies, cities, and states. They also will support a national working group to manage solar codes and standards, and administer a voluntary rating system for solar cells.
 
Read the complete announcements on the DOE website at: http://www.energy.gov/news/85.htm

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Recent Research
Wind Power Promises Big Returns for State Economies
Wind power is the fastest-growing method of renewable power generation in the U.S. This new attention is due to the fact that, over the past 20 years, the cost of harnessing wind for the production of electricity has fallen 90 percent. The relative affordability of wind power has made wind a prime target for investment by states looking to increase their energy independence and to reduce their contribution to global climate change. A recent study suggests there might be another justification for this investment. The National Renewable Energy Laboratory (NREL) reports that wind power offers greater direct economic returns on state investment than other sources of power, including coal and natural gas.
 
The NREL study examines the economic impact of building and operating the various components necessary to introduce electricity generated by commercially available technologies. Coal, natural gas, and wind facilities in Colorado, Arizona and Michigan were used as models to evaluate the economic impact new power generation can have for a state. Having a diverse portfolio of energy sources can attract a wide range of associated businesses and can assist states in leveraging outside funding to commercialize new technologies. This particular study, however, confines its investigation to the direct economic impacts of new plants and distribution networks. This includes all new investment within a state in the construction and upkeep of new facilities, including:

Results differ for each state, depending on the available resources and infrastructure, but wind power investments tend to provide greater economic returns in large part because of the potential state revenue from property taxes. Wind requires a greater number of facilities for production than other methods and tends to rely on in-state workers. Coal and natural gas production also can have a significant impact on a state economy, but only if natural reserves of these resources are available within that state.
 
The report confirms the findings of a study released late last year by the New York State Energy Research and Development Authority (NYSERDA). That investigation suggested the state of New York could expect a return of $9.71 to $10.66 in new capital and employee salaries per megawatt hour of electricity produced by wind projects. The NYSERDA study also observed that, although wind farms are more common on the West Coast, wind projects in the Northeast stand to generate greater economic benefits for state and local economies. Higher land values and property taxes, as well as the regions topography, put Northeast states in a unique position to profit from wind investment.
 
Read the NREL report Comparing Statewide Economic Impacts of New Generation from Wind, Coal, and Natural Gas in Arizona, Colorado, and Michigan at: http://www.nrel.gov/docs/fy06osti/37720.pdf
 
Read the NYSERDA report Major Economic Impacts of Utility-Scale Wind Projects in New York at: http://www.powernaturally.org/programs/wind/MajorEcoImpactsUtilityScaleWind.pdf
 
Links to these papers and more than 4,000 additional TBED-related research reports, strategic plans and other papers can be found at the Tech-based Economic Development (TBED) Resource Center, jointly developed by the Technology Administration and SSTI, at: http://www.tbedresourcecenter.org/.
 
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Michigan, Tennessee Plan for the Future of Renewable Fuels
During his keynote address at this month's renewable energy conference in St. Louis, President Bush informed attendees that the number of U.S. ethanol plants is expected to increase 40 percent in 2007. As the market for biofuels like ethanol grows, many states are creating plans to support businesses and research that can fill the current need for renewable alternatives at the pump. Among the states having taken steps to build a profitable alternative fuels industry and cleaner and safer highways are Michigan and Tennessee.
 
Michigan
Michigan Gov. Jennifer Granholm has made the first round of appointments to the state's recently approved Renewable Fuels Commission. The appointees will oversee Michigan's efforts to promote the production and distribution of petroleum alternatives, as well as the manufacture of vehicles that capitalize on eco-friendly biodiesel and ethanol technologies. The Commission will identify new ways to spur fuel research and recommend alternative fuel strategies to the governor and legislature.
 
Twenty-five representatives from the state's research universities, fuel producers and suppliers, automotive manufacturing sector, corn and soybean growers, and economic development agencies will serve on the Commission. David Cole, chairman of the Michigan Economic Development Corporation's Center for Automotive Research, will represent the state's lead economic development group. The commission, which will exist within the state Department of Agriculture, is expected to issue a report on its findings by next July. Follow-up reports will be published annually through the year 2010.
 
Gov. Granholm approved the commission in July, as part of a seven-bill package to promote the use of ethanol and biodiesel fuel blends. The package also reduces the tax on fuels that contain at least 5 percent biodiesel by 20 percent and lowers the tax on blends that contain 70 percent or more ethanol by 36 percent. Another provision permits the establishment of agriculture renaissance zones to support the construction of new ethanol and biodiesel plants. These zones provide tax breaks for any biomass energy plant or facilities for agricultural and forest product processing that are often necessary for biomass plants. Since the zones were announced in July, Michigan's first two biodiesel plants have opened in Gladstone and Bangor, Mich. Four ethanol plants have broken ground since 2003, and plans for two additional plants were announced in August.
 
The commission will evaluate the effectiveness of these measures and guide the state's financial investment in research and infrastructure to support alternative fuels. Currently, the Michigan Strategic Fund offers matching grants for service stations that install specialized fuel pumps and for bulk fuel plants adapting their equipment to accommodate ethanol and biodiesel blends. In addition, this year's inaugural round of awards from the state's 21st Century Jobs Fund has provided $8.9 million in financial support for four applied research and commercialization projects within Michigan companies.
 
Read the full list of appointments at: http://www.michigan.gov/gov/0,1607,7-168--153361--,00.html
 
Tennessee
Last week, Gov. Phil Bredesen of Tennessee released the details of his plan to increase the production and use of renewable fuels in the state. Bredesen's plan reflects the findings of the Tennessee Alternative Fuels Working Group, a body convened by the governor earlier this year to devise a statewide strategy to promote ethanol and biodiesel.
 
Bredesen's plan would make $1.5 million available through the Tennessee Department of Transportation grant program to establish a network of ethanol and biodiesel fuels outlets throughout the state. Additional funds would be used to educate local governments about renewable fuels and ensure that local automotive fleets meet federal air quality standards.
 
The state's most recent budget set aside $4 million to fund the states alternative fuel initiatives. These funds will be used to establish biofuel demonstration plants and to leverage U.S. Department of Energy investment in research projects at the University of Tennessee and Oak Ridge National Laboratory.
 
Read the governor's press release at: http://www.tennesseeanytime.org/governor/viewArticleContent.do?id=890

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Georgia Strategy Released to Spark Public Debate on Energy
The Georgia Environment Facilities Authority (GEFA) has released the second draft of its State Energy Strategy for Georgia to encourage public discussion about the state's plan to develop an affordable and diverse energy supply. The plan calls for a thorough analysis of the states energy efficiency and renewable energy potential, as well as a statewide technology transfer program to support the commercialization of clean energy research at Oak Ridge National Laboratory and Georgia's research universities.
 
Georgia Gov. Sonny Perdue launched the development of the state plan in March, citing the destruction resulting from Hurricane Katrina as evidence that the state needs to limit its dependence on fossil fuels. The original draft, published in June, attracted 358 comments from the 222 participants who registered to be a part of the process. The second draft has attracted twice as many participants, many of whom also attended one of the town hall meetings held throughout the state earlier this month. The governor's Energy Policy Council will incorporate public comments collected at these meetings into the current draft and release a final document in December.
 
The strategy calls for targeted recruitment of clean energy businesses while improving the states energy workforce through the K-12, vocational and university curriculum. The GEFA plans to coordinate an industrial recruitment strategy in conjunction with other statewide organizations such as the Georgia Allies and the Georgia Industrial Technology Partnership, which will involve periodic workshops with economic development leaders. The draft plan recommends that state programs to support and attract high-tech businesses should give preference to businesses that adopt energy efficient technologies, or use renewable resources. This preference would not only reduce Georgia energy consumption, but also increase the demand for emerging clean energy technologies.
 
In order to support the research being done on clean energy within state universities, the plan recommends grants for energy-related research, the creation of a university-affiliated research park focusing on energy projects, a new advanced energy commercialization center, and expanded services for energy companies at Georgia's business development centers. It also suggests a program to encourage public-private clean energy partnerships based on the Georgia Research Alliance's use of cost-share pools.
 
Last month, Gov. Perdue proposed a sales tax exemption for materials and equipment used in the construction of biofuel facilities to encourage biodiesel, ethanol and butanol production in the state. Facilities producing and processing these fuels will be eligible for a 4 percent tax incentive, leading to an average annual savings of $2 million to $4 million.
 
Read the second draft of the State Energy Strategy for Georgia at: http://www.georgiaenergyplan.org/suppmat/SES_SECOND_DRAFT_FINAL_AUG31.pdf
 
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Useful Stats
Clean Energy Market Will Experience Dramatic Growth over Next 10 Years
Clean Edge's annual report on clean technology trends was released earlier this year and includes valuable data for any state building a comprehensive plan to encourage alternative energy technologies. The research and publishing firm, which actively supports investment in clean energy technologies, predicts rapid growth in clean energy markets by 2015. As these technologies become cost-competitive with nonrenewable sources of power over the next 10 years, the market for biofuels, wind power, solar power, and fuel cells will grow to four times its current size.

Clean Energy Projected Growth 2005-2015 (US $Billions)

Clean Energy Technology

2005

2015

Biofuels

$15.7

$53.5

Wind Power

$11.8

$48.5

Solar Power

$11.2

$51.1

Fuel Cells

$1.2

$15.1

Total

$39.9

$167.2
Source: Clean Edge, Clean Edge Trends 2006.
 
Read Clean Edge Trends 2006 at: http://www.cleanedge.com/reports-trends2006.php
(Summary available through above link; free registration required for full article)
 
Wind Energy Potential
As SSTI reported last year, 2005 was a record year for wind energy installations across the country according to the American Wind Energy Association (AWEA, see the Dec. 12, 2005 issue of the SSTI Weekly Digest at http://www.ssti.org/Digest/2005/121205.htm#Renewable). The industry group now reports that in August 2006 wind energy passed the 10,000-megawatt-per-day mark in the U.S., producing enough electricity to power 2.5 million homes in a single day. This puts wind power in position to meet the projections of the Clean Edge study and makes it the second-largest source of new electricity production after natural gas. President Bush announced earlier this year that this type of power could provide as much as 20 percent of U.S. electricity.
 
Wind power in Texas met a milestone this summer, surpassing California as the country's leading producer of wind energy. Of the top five states for wind production - Texas, California, Iowa, Minnesota and Oklahoma - only Texas ranks in the top five for potential wind energy production, according to the U.S. Department of Energy. A 1991 Pacific Northwest Laboratory Study ranks North Dakota, Texas, Kansas, South Dakota, and Montana as the top states for wind potential. There remains ample opportunity to increase activity in the wind industry in every state.
 
Wind Energy Production and Potential in Selected States

Production

Daily Production (MWh)

Annual Potential Production (thousand MWh)

Texas

2370

1,190,000

California

2323

59,000

Iowa

836

551,000

Minnesota

756

657,000

Oklahoma

475

725,000

North Dakota

128

1,210,000

Kansas

264

1,070,000

South Dakota

44

1,030,000

Montana

147

1,020,000

Source: U.S. Department of Energy, Energy Efficiency and Renewable Energy, http://www.eere.energy.gov/windandhydro/windpoweringamerica/wind_installed_capacity.asp, and the Pacific Northwest Laboratory, 1991.
 
Learn more about state wind power activities at: http://www.eere.energy.gov/windandhydro/windpoweringamerica/state_activities.asp

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SSTI Job Corner
The two position opportunities described below were recently posted on the SSTI Job Corner. More information, including complete details on responsibilities, qualifications and application deadlines (when available), is available at http://www.ssti.org/posting.htm.

Purdue University seeks an individual with vision and demonstrated leadership skills to serve as the Avrum and Joyce Gray Director of Purdue University's Burton D. Morgan Center of Entrepreneurship (BDMCE). The mission of the BDMCE is to facilitate the commercialization of promising Purdue University and Discovery Park intellectual property and technology, to involve and familiarize Purdue undergraduate, graduate, and postdoctoral students with all aspects of entrepreneurship, and to enhance entrepreneurial activities throughout the state of Indiana. The director should hold a doctorate degree, and/or an MBA or its equivalent, and must have demonstrated success in entrepreneurial activities.

The Rosen Center for Advanced Computing (RCAC), a research computing center at Purdue University, seeks a managing director to lead the daily computing activities of RCAC, support Purdue researchers and provide general guidance for a variety of administrative processes. A Master of Science degree in science or business related field is required; a Ph.D. degree is preferred. This position also requires 10 years of progressively responsible experience in science, technology or high-performance computing, with at least five years of experience in a managerial role.

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