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Charlotte Business Journal ENERGY INC.



The Charlotte region makes a play to be the nation's 'new energy capital'

The Charlotte region makes a play to be the nation's 'new energy capital'



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    Charlotte Business Journal ENERGY INC. Charlotte Business Journal ENERGY INC. Document Transcript

    • The Charlotte region makes a play to be the nation’s ‘new energy capital’ Platinum Sponsor: Academic Partner: Gold Sponsors: Silver Sponsors: Community Partners:
    • 2 | energy Inc. CHARLOTTE BUSINESS JOURNAL WEEK OF ApRIL 23, 2010 charlottebusinessjournal.com K&L Gates is honored to be a supporter and Platinum Sponsor of the Energy, Inc. summit. This summit confirms the rise of the Charlotte region as a national energy hub and underscores the region’s vital role in our energy future, locally, nationally, and globally. As a law firm with a global energy practice coupled with a significant and long-standing Charlotte presence, we are proud to be associated with many of the energy companies in this area, ranging from long-established companies to newer As our economy continues down the path of improvement, enterprises and businesses recently expanding or relocating to this region. energy is increasingly becoming a part of our everyday K&L Gates salutes their efforts in achieving this national recognition for our region. discussions. Clean energy, being green, and sustainability are words we use in the workplace and at home. Our firm is enthusiastic about the Charlotte region’s continued growth as a major energy hub. As an international law firm with offices on three continents and broad experience in AREVA is pleased to participate in these energy discussions multiple disciplines across the full spectrum of energy sectors, we look forward to playing and to offer solutions to our customers for nuclear energy a prominent role in contributing to that growth. and renewable energy generation, including clean wood biomass, offshore wind and concentrated solar power. These Sincerely, generation solutions will create jobs that will help our economy The K&L Gates Team on this road to recovery, growth and prosperity. Global legal counsel in 36 cities on three continents. The employees of AREVA are proud to be part of the growing and prosperous Charlotte, N.C. business community and many other communities around our nation. And we look forward to making investments to support the resurgence of nuclear energy and the growth of renewable generation for years to come. Energetically yours, AREVA Count on this www.forsiteinc.com The Charlotte Region is beginning to distinguish itself as “The New Energy Capital” and Forsite is proud to sponsor this Energy Inc. conference. Forsite’s contribution to the regions efforts to promote the “Clean Energy Economy” is the development of ReVenture Park, North Carolina’s largest Eco Industrial Park. This 667 acre former textile dye manufacturing plant has 1.4 miles of river frontage along the Catawba River and is currently listed as a [ not the dow ] Federal Superfund Site. Our redevelopment plan is to utilize the sites extensive infrastructure to create large scale renewable energy and clean fuel projects including a biomass power plant, biomass fuel production thermal solar, bio- diesel refining and a green business incubator among others. Crescent A smaller comeback ready for ion When complete, ReVenture could easily create 1000 + new green jobs, enough renewable energy for 50,000 homes and top $900 million in net new investment. reorganizat Developer’sdebt and the plan trims holdings. value of its P11 ING OUT: BRANCH ed rail Forsite has gained national recognition for creating the vision for ReVenture High-spe y to roll SCBT mbia’s plan read How Colu to funding key ground with Stimulus h of faster is gaining ns driving launc h. acquisitio service to Raleig new bank P5 More than 21,000 which is recognized as potentially the largest, multi-faceted energy park currently P3 • $2.00 ing in, ebusinessjou rnal.com USDA mov long? www.charlott but for how property a lab y plans federal agenc but Obama $4.5B in being developed in the United States. polis, . in Kanna future funds readers rely on our Subscribe today for budget cuts P7 on is piling up 5, 2010 fEBRUaRy ER 46 • 24 NUMB ft next up books VOLUME Microso center? N.C. bank for data is scouting solid business news for just $1.81 a week. Tech giant server hub, WILL BOyE region for le. IEL and apple, Goog ADAM O’DAN rS following P5 write Bank This “Eco-Industrial” redevelopment concept is becoming a national model for Staff Dom inion of 30 mer, New t own er Last sum relu ctan ivi- the ished subd beca me rock solid results. an unfin lots in l Char- vacant lotte. north Char , the smal mow s sion in months later Seven bills and ed. still pays never want how dormant industrial sites can be “recycled” to create green jobs, power and lotte bank estate it traced real can be grass for ’s ownership tur ned sour The bank loan that crashed and ine et to a rout housing mark the neighbor- ossroads cy. when the Management, bankrupt budget woes. into Landcraft loper, fell payments, the to deal with is at a cr fuels. increase deve hood’s to collect loan sing a fare CATS is propo Unable losed. rien ce is just CATS bank forec inion’s expe ing issu e for New Dom a grow als ple of profession ss one exam estate s acro and realregion. Bank grap- Of PLANS bankers Charlotte n — are into the ble CHANGE g in the — and the natio ease in the Tapping plan in trou of fundin a review five corridors p incr stry energy indu at beginning the area a shar Is transit 16 caTS is continue buildingit Plan. plin g with ES, PAGE shifting fORECLOSUR rt looks g woes, to options in the 2030 Trans Special Repoeffort to as fundin debate? called for ’s s top the region and research. open new Developer lls grow jobs timelines P19 We believe ReVenture Park is an “Industry Transformer” and will further establish R STAff WRITE ro unpaid tax THE LIST ERG | SENIOR ERIK SPANB izjournals.com s erg@b s acros espanb and townthe 2030 T after cities approved WRITER S LaRGESS Three years Coun ty obsolete. Ey | STAff REGiON’ the Charlotte region as a national energy hub. to DiNG supposed OfficE BUiL urg dy shift- SUSAN STABL Meck lenb it is alrea it tax revenue, ces that was zjourna ls.com P23 Plan, rail line delayed. sjstabley@bi ers in Transit holes in trans regional allian ect Commuter likely be erty own of Gaping uneasy plan to conn 2012 will s of prop owe a total , ines and the rs via open in Thou sand Coun ty unpaid taxes ing timel in question lation cente urg in - have put major popu Meck lenb $70 million Business Jour 12 uptown dors. with a number more than to a Charlotte bills. BaNK NOTES 33 erns on al direc- t according of delinquen year’s combined five corri t months, conc sever w m cLaSSifiEDS 25 In recen emer ged from nal revie more than this library syste - EURS of front s have 17% from That’s county’s s and recre ENTREPREN 13 ue is down in at 2005 for the its park on). tions: budgets on) and GOiNG GREEN tax reven to rema ($37.4 milli3 unpaid tax 26 •Transit and expectedyears. - ($31.8 milli rtment ON THE MOVE peak al lotte r city street 38,32 ation depa 1, there are 10. The number PEOPLE 13 its 2008 the next sever the Char for have led its third fare erate cente operations. As of Feb. t one out of year typically R ciTy levels g expenses est to accel can’t fund POWE 5 •Operatin System to sugg . City wants it abou bills, or tax notices each interest, the aGENDa CATS says QUEEN ciTy sit years le and car, but ty With 8.59. 34 Area Tran the past four , Mooresvil of coun t 371,500.up to $70,616,29 and GUiDE in elius battle totals abou bills add REaDER’S increase ille, Corn their own t , buildings E ROUN DUP 12 •Huntersv now fighting uter rail line. is delinquen taxes on land but many REaL ESTaT are comm line ty Sept. 1, g until 19 Davidson money for a on streetcar blur- Coun were due off payin REPORT al equipment hold h is when SPEciaL 4 for feder osed $450 milli of Charlotte, owners ary whic , •A prop ed by the city and funding. property of Janu TaBLE TaLK 23-24 2030 week the first is applied. devel- being push of priorities ned in the s or t list are TOP 25 LiST 35 lines outli ring the major project ed by six year t- interest on the delinquen rs y 17 OiNT •Every likely be delay ue and heigh yn Flowe Man DELINqUENT, PAGE ViEWP 34 g reven tive Carol iGHTS Plan will se of fallin Chief Execu routes. WEB HiGHL becau ure. represents New CATS avoid cuttin g more et press troubles hopes to Blog Charlotte 2007. ened budg y of transit giddy days of The litan ne from the story at The you the inside decli PAGE 15 a rapid TRANSIT, om | Our reporters give THE site at charl ottebusine ssjournal.c STIMULUS our Web list ings AND YOUR BREAKING NEWS! check Stimulus for proposals and BUSINESS e t requests ulus funds. ibe to th find out abou ded via economic-stim rnal.com. To subscr Journal, contracts awar at charlottebusinessjou Business and On page 14 Charlotte 3-1100 ca ll (704) 97 Call 704.973.1144 to subscribe Tom McKittrick President www.charlottebusinessjournal.com Forsite Development, Inc.
    • WEEK OF april 23, 2010 CHarlOTTE BUSiNESS JOUrNal energy Inc. | 3 charlottebusinessjournal.com Natural Gas: America’s Responsible Energy Choice As we seek solutions to our nation’s energy and environmental challenges, we must understand there is no one silver bullet. The answer is a diverse combination of energy choices, including renewables, new technologies and new ways to look at fossil fuels. An important part of the solution – natural gas – is sitting right in our backyard. Natural gas is clean, efficient, abundant and American. The expanded use of natural gas in all market sectors can help enhance our country’s energy security while creating and retaining jobs and making an immediate positive impact on the environment. Natural gas is clean. Natural gas is the cleanest burning fossil fuel – emitting 45 percent less carbon dioxide than coal and 30 percent less than oil. Natural gas is efficient. Natural gas customers receive 90 percent of the source natural gas delivered to their home or business as useful energy. In contrast, less than one third of the actual source energy used to generate electricity reaches electric appliances in homes and businesses. Natural gas is abundant. Natural gas resources across this nation are abundant and production is rising. Increasing quantities of natural gas will have considerable long-term positive effects on consumers and businesses. Natural gas from U.S. shale basins and responsible on-shore and off-shore drilling can ensure a steady and reliable supply for the future. Natural gas is American. Ninety eight percent of the natural gas that is consumed in America comes from North American sources. And we have a one hundred year supply of natural gas resources under American soil. This helps our economy and reduces dependence on foreign energy sources. Natural gas is uniquely positioned to play a vital role in our nation’s energy future by providing both near-term and long-term solutions to America’s energy and environmental goals. It is truly, America’s Responsible Energy Choice. Thomas E. Skains Chairman, President and CEO Piedmont Natural Gas Company At Wells Fargo Securities, our Energy & Power Charlotte’s Energy Community: Investment Banking group is committed to serving our Demand for energy in the United States is expected to grow by more than 30 percent clients as they embark on an unprecedented period of by 2030. National studies suggest roughly half of the engineers and technicians in the infrastructure investment and regulatory change. energy industry today will be eligible to retire by 2012. Industry leaders are looking toward UNC Charlotte to help address a critical shortage in the intellectual capital necessary to modernize current energy production operations and help develop Our Energy & Power industry expertise combined alternative energy sources. with market-leading execution capabilities provides us with well-balanced perspectives and unique insights Recognizing an opportunity for long-term collaboration that will prove beneficial to the community and industry, as well as reinforce Charlotte’s position as a global to determine optimal strategies for Energy & Power leader in energy production, UNC Charlotte has created the Energy Production companies. We pride ourselves on maintaining a client and Infrastructure Center (EPIC). The expertise brought to bear through EPIC focused-culture and franchise and look forward to each will dramatically increase the region’s supply of trained engineers, and assure the efficiency and reliability of the next generation of power plants and distribution opportunity to present new and existing clients with systems. exciting ideas and solutions. UNC Charlotte, North Carolina’s only urban research university, is uniquely positioned in the heart of a region rapidly becoming “The New Energy Capital” in To find out how we can be a partner in your company’s America. EPIC, slated for completion in 2011, is an example of the many ways in success please contact me or any other member of our which UNC Charlotte supports the region’s economic development. It’s also an dedicated Energy & Power investment banking team example of how business and industry have come to depend upon the University as source of invaluable technical expertise. today. UNC Charlotte is staking its claim to the future of energy production. That’s good news Sincerely, for our energy production sector, the regional economy, and the greater community. James Kipp Cordially, Head of Energy & Power Investment Banking 713-346-2701 james.kipp@wachovia.com Philip L. Dubois Chancellor Wells Fargo Securities is the trade name for certain capital markets and investment banking services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Securities, LLC, member FINRA and SIPC. ©2010 Wells Fargo Securities, LLC. All rights reserved.
    • 4 | energy Inc. CHARLOTTE BUSINESS JOURNAL WEEK OF ApRIL 23, 2010 charlottebusinessjournal.com BUSINESS CHARLOTTE From the Publisher Charlotteans witnessed with amazement the rapid rise of our banking industry in the 1990s. A sleepy Southern town was suddenly thrust onto the global stage as home to two of the nation’s top banks. JOURNAL Kevin Pitts President & Publisher Charlotte again seems to be on the verge of a rapid and stunning transformation, this time in the energy field. The region has aspirations to be the nation’s New Energy Capital. This is more than a Robert Morris Editor catchy phrase — the region wants to be home to any company involved in energy production. David Harris Managing Editor As the stories in these pages will show, this entails a concerted effort by major industry players, Steve Cranford Associate Editor organizations such as the Charlotte Regional Partnership, government officials and entrepreneurs. Sheila Cottringer Advertising Director You’ll read how Duke Energy Corp.’s Jim Rogers jump-started the effort last year with an energy Keeley Brown Tase summit to bring together key players. He has also played a behind-the-scenes role in recruiting firms to Senior Business Development Consultant the region that are giving credibility to the New Energy Capital campaign. Dawn Brown, Gail Dougherty, Frank Harlow Business Development Consultants Charlotte needs success stories to compete against other regions intent on taking the crown. As the Chuck Harris Marketplace Advertising Consultant nation recovers from recession, the capabilities and growth of players such as Duke, Piedmont Natural Amy Thompson Gas, Siemens Energy Shaw Power Group and Areva hold the promise of realizing this vision. , Business Development Coordinator The Charlotte Business Journal is pleased to present this inaugural Energy Maggie Lynn Production Director Inc. publication. We also are pleased to sponsor the Energy Inc. symposium Greg Russell Graphic Designer on April 23 that will allow our guests to hear the views of leaders in the Dale Morefield Circulation Director industry We are grateful to our many sponsors that helped make this event . Dory Rogers Marketing and Events Manager possible. Rick Teare Business Manager These are challenging times, but the promise of the region’s The entire contents of this newspaper are copyrighted by American City transformation in energy makes them exciting. Rest assured the Business Journals Inc. 2010 with all rights reserved. Reproduction or Charlotte Business Journal is committed to following our journey. use, without permission, of editorial or graphic content in any manner is prohibited. The Charlotte Business Journal, ISSN-0887-5588, is published weekly by American City Business Journal Inc., at 1100 S. Tryon Street., Charlotte, NC 28203. Subscription rate is $94.00 for a one year subscription, $172.00 for a two-year subscription, $203.00 for a three-year subscription. Subscriptions mailed outside of the continental United States are $442 for a one year subscription. Periodical postage paid at Charlotte NC under USPS Per. #1564. The Charlotte Business Journal is a publication of American City Business Journals Inc. The Charlotte Business Journal is an equal opportunity employer. Postmaster please send address changes to: Charlotte Business Journal, Kevin Pitts 1100 S. Tryon St., Suite 100, Charlotte, NC 28203. President & Publisher Publisher: Kevin Pitts Phone: (704) 973-1100 or (800) 948-5323 Fax: (704) 973-1102 Internet: charlottebusinessjournal.com E-mail: charlotte@bizjournals.com New Century Systems, Inc. Wishes to thank all of our Exceptional Customers for supporting Charlotte North Carolina based Diversity Small Businesses over the past 15 years... During those 15 years, New Century Systems, Inc., an HP Elite Diversity Partner, has strived to provide our customers with the very best Information Systems Solutions from Digital Equipment Corporation, Compaq Computer, Microsoft, and Hewlett-Packard. NCS has combined 50+ years of staff experience with major Information Technology Providers to deliver superior business solutions. Our customer’s long term commitment to support NCS and other Diversity Companies has been instrumental in our continued success as a Charlotte based business. We are very grateful for your continued business and support. Frederick L. Denton President/CEO New Century Systems, Inc. 704-523-2515
    • WEEK OF april 23, 2010 CHarlOTTE BUSiNESS JOUrNal energy Inc. | 5 charlottebusinessjournal.com energy capital arises poWer players 6 Making its case 18 shaw’s growing role The Charlotte region’s expertise in power production inspires Jeff Merrifield oversees Shaw Power Group’s campaign to be the nation’s new energy capital. efforts to design and build power plants. 7 Duke’s rogers provides spark 20 a French accent Duke Energy CEO Jim Rogers gets behind effort French firm Areva prepares for a rebirth of to develop the Carolinas as center of energy nuclear power at its Charlotte-based operations. Merrifield industry. 20 other voices 8 gaining momentum Six executives in energy sector discuss the growth prospects of Siemens joins a growing cluster of energy com- their firms and the region. panies that are expanding or locating here. Rogers 22 alternatives seek traction 8 research backs industry Leaders at Charlotte’s small renewable-power companies say UNC Charlotte’s research center set to play a leading role in this part of the energy industry faces challenges. advancing energy industry. 9 training a work force What they are saying Central Piedmont Community College partners with business to 25 partnership’s push offer curriculum needed to build, operate power plants. Charlotte Regional Partnership is taking lead 11 Benefits of diversification role in promoting the region as the new energy capital. With banking and finance badly hurt by the recession, the rise of the energy sector takes on heightened significance. 25 chamber’s energy agenda 12 policy considerations Charlotte Chamber outlines changes in federal and state policy that are needed to foster Proponents say state needs to make some regulatory changes to development of the industry. advance various components of energy production. Bryant 26 tax credits need revision 13 Working with legislators State policy on treatment of tax credits is curbing enthusiasm for Conservation measures won’t progress much without help from investments in renewables. the General Assembly. 27 new purpose for industrial parks 24 Funding energy projects The nation’s huge inventory of unused industrial properties can Charlotte firm Abundant Power gears up to finance clean-energy house energy projects. projects. 27 solar power’s promise top 25 list Solar energy is poised for growth, but some regulatory changes and financial incentives are needed for it to fully realize its poten- 16 top area energy companies tial. photo NANCy PiERCE AVAILABLE – Entire building available – +/-182,000 sq. ft. of Class A office space for lease or purchase ACCESSIBLE – Located at the intersection of Billy Graham Parkway and Tyvola Road – Minutes from I-77, I-85, Charlotte Douglas International Airport and center city Charlotte AFFORDABLE – Large, flexible floorplates in high-quality and attractive building ACTIVE – Outdoor amenities including lakes, trails and proximity to Renaissance Park Golf and Recreation Center CORPORATE CENTER ONE 2320 Cascade Point Blvd Learn more about LakePointe at LakePointeCorporateCenterOne.com or call 704.342.9000
    • 6 | energy Inc. CHARLOTTE BUSINESS JOURNAL WEEK OF ApRIL 23, 2010 charlottebusinessjournal.com energy Capital arises A concerted effort to foster the growth of the energy industry in jobs and significant capital investment in its first year. Led by the region is bearing fruit, despite the stiff challenges of the Duke Energy Corp. and a coalition of business and political recession. A formal effort to recast the Charlotte region as the leaders, the initiative seeks to build on existing strengths and nation’s New Energy Capital can boast the addition of 1,000 remove obstacles to the industry’s development. Region hungry to be national leader Concentration of talent in engineering, operations, management, construction can act as lure to industry john Downey | Senior Staff writer show movement in the right direction. jdowney@bizjournals.com But he thinks government and the big banks have to get more involved. Fragile. Hampered by the recession. “There’s a lot of people playing in this But very, very real. space,” he says of the energy industry. That’s the thumbnail sketch for Char- “It has to be kick-started by the govern- lotte’s New Energy Capital initiative a ment.” year after the summit that kicked it off The state and local gover nments in 2009. should encourage development of ener- The announcement last month that gy from renewable sources, he says. Siemens Energy Inc. is turning Char- Such regulations led to a boom, at lotte into its U.S. manufacturing hub least for a while, in the wind and solar should end all questions about whether markets in Germany and Spain, for the effort to make the region an energy instance. “In Europe there is a real atti- development and production center is tude of support for these industries,” serious. he says. “I don’t know if we have that The 825 jobs are welcome news to the here.” economy. Beyond that, Mark Pringle, The federal government could help general manager for Sie- as well by allowing stimulus money for mens’ local operations, energy to go to foreign companies with says Charlotte’s grow- a large presence in the region. ing importance in the Everyone involved in the effort says energy industry was an Charlotte cannot afford to take any- important factor in the thing for granted. Calling the Charlotte Berlin-based parent’s region an energy center does not make decision to expand here. it one. And other regions also are busy “All of my superiors trying to sell themselves as hubs for the knew about the energy power industry . Pringle initiative here, and we Rogers acknowledges the competi- wanted to grow with it,” tion. He says Michigan has staked itself Pringle says. “We’re seeing that ball to energy, particularly in alternatives gather momentum.” and battery technology Colorado also is . Charlotte will be the only site where establishing itself as a center for alter- Siemens has operations for all of its native resources. traditional energy generation manufac- But he says the Charlotte region has turing — gas turbines, steam turbines a strong base in the traditional sources and electric generators. And Siemens for generating electricity — fossil fuels can continue to grow here. “We think with Siemens and Shaw, and nuclear we will see a lot of activity in the next with Areva, Westinghouse, The Bab- few years,” he says. cock and Wilcox Co. and Toshiba. That On April 6, 2009, Duke Energy Corp. creates a magnet for energy firms and Chief Executive Jim Rogers convened a also attracts renewables, economic summit of regional energy companies developers say . in Charlotte. Representatives of dozens Solar startup Sencera has announced of large and small companies attended, it wants to grow here. Forsite Develop- and Gov. Bev Perdue spoke to give the ment Corp. wants to build an energy meeting an extra kick. Rogers proposed park centered around a biomass plant the region’s economic developers build that burns gas produced from garbage. on the growing presence of the industry Kenny McDonald, who promotes the to establish Charlotte and the Carolinas The expertise needed to design and build the expansion area for Charlotte Regional Partner- as a center for energy development and of Duke Energy Carolinas’ coal-burning Cliffside plant is ship, says there is growing awareness manufacturing — at least for the South- largely local. The presence of energy companies is seen overseas of the role Charlotte is play- east and possibly the nation. as a strength for a region bent on attracting more. ing. But that’s still in the early stages. The effort has been embraced by local He was in Germany when Siemens photo nancy pierce political and business leaders. Pringle made its latest announcement. That is involved in the initiative’s commit- tough times in the economy,” he says. company had hoped when it announced caught the attention of smaller compa- tees organized by the Charlotte Region- “So to pick up 800-plus jobs, more than in 2007 the relocation nies that supply Siemens overseas and al Partnership. State leaders have been 1,000 jobs total recently, in the region — of its power division’s got them thinking more about Char- involved with recruiting large facili- that’s a pretty good pickup in a down headquarters here. lotte, he says. ties. Those include the Siemens manu- economy .” Dan Fogel, a professor It’s that second tier of power com- facturing expansion and the 226 engi- Jeff Merrifield, a top executive at at Wake Forest Univer- panies the partnership sees as a sweet neering jobs the company announced the Shaw Power Group here, says the sity’s Babcock School of spot. The large players are generally a year ago, as well as 194 jobs Toshiba recession clearly slowed the pace of Management in Char- wooed by the state and Duke. announced last year it would add to its expansion. lotte, has been watch- The region counts nearly 200 com- nuclear division. Areva NP shelved plans for a major ing the effort from the panies involved in the power industry. But progress has been a little slower expansion last year — although its outside. He says the sup- That’s a lot of companies beyond the than had been expected. Even Rogers footprint continues to grow slowly Fogel port of Duke, Shaw, Sie- half-dozen or so marquee names. “They admits he expected things to move in Charlotte — because of reduced mens and Areva with can be substantial companies, some- more quickly “We are making progress, . demand for power-plant construction. the growing presence of Westinghouse but the fact of the matter is these are Shaw has grown more slowly than the Electric Co. and its parent, Toshiba, initiative, PAGE 10
    • WEEK OF april 23, 2010 CHarlOTTE BUSiNESS JOUrNal energy Inc. | 7 charlottebusinessjournal.com Duke’s Rogers gives credibility to energy-capital tag John Downey | Senior Staff writer trip. “The truth of the matter let’s move forward collectively to er a list of all the companies here, and jdowney@bizjournals.com is that when something is make a national impression.’ ” the number of engineers and the number successful, the one way to Duke played no small role in of people total employed in the industry , Duke Energy Corp.’s Chief Executive ruin things is to raise your getting Shaw — its contractor on and I said, ‘Hell! We have the making of Jim Rogers got the ball rolling on the hand and take credit for the $1.8 billion Cliffside Steam Sta- an energy hub here.’ ” region’s New Energy Capital initiative something,” he says. tion expansion, two planned gas Local observers say it took the clout a year ago. That’s when Duke organized The energy-capital ini- plants and the likely choice for the of Rogers and his company to assemble the region’s first summit of key business tiative has been a group Lee Nuclear Station contract — to the major players and Gov. Bev Perdue to and political leaders who want to see the effort. It has involved the consider putting its power group make the energy summit a success. industry blossom here. state governments of the here. Shaw announced that In the following year, Rogers has been The Charlotte Regional Partnership Carolinas, local govern- move in fall 2007. glad to let others take the lead. But he and quickly stepped up to take responsibil- ments in the region, And dominos Duke remain actively involved. ity for executing the strategy But Rogers . the regional partner- f all from there. “I might even say, ‘If you want to do and Duke have remained a force in the ship, the Charlotte S h aw i s a 2 0 % business with us…,’ well, I think I’ve said effort. Sometimes it’s been obvious. Chamber and a lot owner of Westing- enough,” he says. Rogers worked a plug about Charlotte’s of the players in house Electric Co., Kenny McDonald, an growing nuclear industry into a Wall the energy indus- which designed economic developer at Street Journal op-ed piece — even call- try already the AP1000 reac- the partnership, says ing his home city a regional energy hub. here. t o r S h aw ’ s t h e Duke’s leadership was Duke has talked with some of its new But those principal con- critical in getting the Chinese partners about considering the involved give tractor for. In fall effort going. region for operations or a U.S. headquar- Rogers credit. 2008, Westinghouse “It would have been ters. And it’s stepped up to propose a pilot “I think announced it would hard to get any weight offshore wind program that could help what Jim Rog- move 300 employees behind it without them,” create a market for generator manufac- ers did was here by 2014. About he says. “They’ve really turing in the state. sor t of like six months later, West- put their shoulder to the McDonald But Rogers has also flown under the going to the top inghouse’s principal wheel on some of these radar at times. of the mountain and o w n e r, T o s h i b a , efforts.” As Siemens Energy Inc. considered planting the flag,” says announced it would Rogers insists the effort is much big- where to put a manufacturing plant, Rog- Jeff Merrifield, senior bring almost 200 jobs ger than Duke and the Charlotte region. ers met more than once with Siemens vice president of the here as a national Duke’s role is that of a collaborator. U.S.A. Chief Executive Randy Zwirn to Shaw Power Group. engineering center He says developing the energy indus- lobby for a Charlotte plant, says Mark “Jim recognized a for its American try anywhere in the Carolinas works to Pringle, general manager for Siemens’ lot of that activity was nuclear- energ y the benefit of Charlotte’s ambitions to manufacturing operations here. moving forward” in unit. be a center for energy development and “He was pushing hard for it,” Pringle the energy industry Ro gers first manufacturing. says. h e re, h e s ay s. “ H e began to think “I have learned about the politics of east Hard enough to use his influence in wanted to use the bully about Charlotte as and west in North Carolina, and I want the courtship of Siemens, say recruiters pulpit of his position a potential energy both to work together on an approach involved in the successful effort. Siemens to rally the folks and center shortly after the to provide jobs,” he says. “Charlotte is will bring a $135 million gas-turbine say ‘Hey we really need , Shaw decision. clearly at the heart of it, but not to the plant and 825 workers here. to make something “A b o u t t h at t i m e, exclusion of the eastern part of the state Rogers declines to give details about the meaningful of this and someone pulled togeth- or Upstate South Carolina.” photo FILE A l” PARk STRI -INDU “ECo ChARloTTE’S FIRST Forsite Development, Inc. is the lead developer of ReVenture Park - the redevelopment of a dormant industrial complex that will create multiple renewable energy and alternative fuels projects. ReVenture Park is proud to be a part of Charlotte USA – The New Energy Capital. To learn more about ReVenture Park contact: Tom McKittrick, President Forsite Development, Inc. 5320 Old Pineville Road, Charlotte, NC 28217 www.forsiteinc.com 704-364-9100
    • WEEK OF april 23, 2010 CHarlOTTE BUSiNESS JOUrNal energy Inc. | 7 charlottebusinessjournal.com Duke’s Rogers gives credibility to energy-capital tag John Downey | Senior Staff writer Rogers declines to give make something meaningful of this “About that time, someone pulled jdowney@bizjournals.com details about the trip. “The and let’s move forward collectively together a list of all the companies here, truth of the matter is that to make a national impression.’ ” and the number of engineers and the Duke Energy Corp.’s Chief Executive when something is suc- Duke played no small role in number of people total employed in the Jim Rogers got the ball rolling on the cessful, the one way to ruin getting Shaw — its contractor on industry, and I said, ‘Hell! We have the region’s New Energy Capital initiative things is to raise your hand the $1.8 billion Cliffside Steam making of an energy hub here.’ ” a year ago. That’s when Duke organized and take credit for some- Station expansion, two planned Local observers say it took the clout the region’s first summit of key business thing,” he says. gas plants and the likely choice of Rogers and his company to assemble and political leaders who want to see the The energy-capital ini- for the Lee Nuclear Station con- the major players and Gov. Bev Perdue to industry blossom here. tiative has been a group tract — to consider putting make the energy summit a success. The Charlotte Regional Partnership effort. It has involved the its power group here. In the following year, Rogers has been quickly stepped up to take responsibil- state governments of Shaw announced glad to let others take the lead. But he and ity for executing the strategy But Rogers . the Carolinas, local that move in fall Duke remain actively involved. and Duke have remained a force in the governments in the 2007. “I might even say, ‘If you want to do effort. Sometimes it’s been obvious. region, the regional And dominos business with us…,’ well, I think I’ve said Rogers worked a plug about Charlotte’s partnership, the f all from there. enough,” he says. growing nuclear industry into a Wall Charlotte Cham- S h aw i s a 2 0 % Kenny McDonald, an Street Journal op-ed piece — even call- ber and a lot owner of Westing- economic developer at ing his home city a regional energy hub. of the players house Electric Co., the partnership, says Duke has talked with some of its new i n t h e e n e r- which designed Duke’s leadership was Chinese partners about considering the gy industry the AP1000 reactor critical in getting the region for operations or a U.S. headquar- already here. Shaw’s the principal effort going. ters. And it’s stepped up to propose a pilot But those contractor for. In fall “It would have been offshore wind program that could help involved give 2008, Westinghouse hard to get any weight create a market for generator manufac- Rogers credit. announced it would behind it without them,” turing in the state. “I think move 300 employees he says. “They’ve really McDonald But Rogers has also flown under the what Jim Rog- here by 2014. About six put their shoulder to the radar at times. ers did was sort of like months later, West- wheel on some of these efforts.” As Siemens Energy Inc. considered going to the top of the inghouse’s princi- Rogers insists the effort is much big- where to put a manufacturing plant, Rog- mountain and plant- pal owner, Toshiba, ger than Duke and the Charlotte region. ers met more than once with Siemens ing the flag,” says Jeff announced it would Duke’s role is that of a collaborator. U.S.A. Chief Executive Randy Zwirn to Merrifield, senior vice bring almost 200 He says developing the energy indus- lobby for a Charlotte plant, says Mark president of the Shaw jobs here as a try anywhere in the Carolinas works to Pringle, general manager for Siemens’ Power Group. national engineer- the benefit of Charlotte’s ambitions to manufacturing operations here. “Jim recognized a ing center for its be a center for energy development and “He was pushing hard for it,” Pringle lot of that activity was American nuclear- manufacturing. says. moving forward” in energy unit. “I have learned about the politics of east Hard enough to make at least one trip the energy industry Ro gers first and west in North Carolina, and I want to Germany to meet with the parent h e re, h e s ay s. “ H e began to think both to work together on an approach company’s top executives, say recruiters wanted to use the bully about Charlotte as a to provide jobs,” he says. “Charlotte is involved in the successful effort. Siemens pulpit of his position to potential energy center clearly at the heart of it, but not to the will bring a $135 million gas-turbine rally the folks and say shortly after the Shaw exclusion of the eastern part of the state plant and 825 workers here. ‘Hey we really need to , decision. or Upstate South Carolina.” photo FILE A l” PARk STRI -INDU “ECo ChARloTTE’S FIRST Forsite Development, Inc. is the lead developer of ReVenture Park - the redevelopment of a dormant industrial complex that will create multiple renewable energy and alternative fuels projects. ReVenture Park is proud to be a part of Charlotte USA – The New Energy Capital. To learn more about ReVenture Park contact: Tom McKittrick, President Forsite Development, Inc. 5320 Old Pineville Road, Charlotte, NC 28217 www.forsiteinc.com 704-364-9100
    • 8 | energy Inc. CHARLOTTE BUSINESS JOURNAL WEEK OF ApRIL 23, 2010 charlottebusinessjournal.com The pieces ThaT are driving The neW energy capiTaL How research is core part of Michael pitch to build for the future Suess, chief executive of the fossil-power generation division of Laura WiLLiams-Tracy Siemens Energy CONTRIBUTING WRITER Inc., announces a $170 million Demand for energy in the United investment in States is expected to grow more than Charlotte in 30% during the next 20 years. That March. prospect is compelling industry leaders photo JEN WILSON to search for better ways to generate, deliver and use power. A good part of that research is taking place in this region. At UNC Charlotte, the Energy Production and Infrastruc- ture Center is working with the engi- neering school’s energy program on critical topics. UNC Charlotte researchers also work with more than 200 scientists, engi- neers and support staff at the nearby Electric Power Research Institute Inc. Those additional researchers conduct and oversee research on generation, Expansions put manufacturing on growth curve delivery and consumption of electricity It’s an independent, nonprofit organiza- tion that has worked for 30 years with . regional power companies to boost the Laura WiLLiams-Tracy The region’s base of engineers has where the company got its start, and efficiency of the industry . CONTRIBUTING WRITER the power to attract manufacturers and loyal employees who are committed “When we talk about suppliers that want to be close to the to stay with the company. “We have Charlotte being a new If Charlotte had a megawatt for every design process. no plans to move out of the Charlotte energy center, it’s not engineer employed here, the lights “It helps hugely for the same reason region,” Jewett says. about producing energy would always be on. Boeing came to Charleston and BMW Hiring skilled workers hasn’t been for our own region but Until recently, though, the energy sec- is in Greenville,” says Mark Fecteau, a challenge for manufacturing giants to be an energy-tech- tor in the region has largely comprised managing direc- such as Siemens, Pringle says. “That nology center for the service-oriented firms. “We think tor for strate gic was a key point in being able to sell (to rest of the world,” says Shaw Power Group and French reac- programs at West- decision makers) the gas-turbine piece tor manufacturer Areva made head- more inghouse. “We’re we just announced.” Steve Patterson, direc- tor of EPIC and a pro- Many former textile workers have lines by boosting their local presence in recent years. Westinghouse Electric manufacturing t r y i n g t opicture that same paint been retrained for hour- Patterson fessor in the Lee College of Engineering. Corp. and Toshiba are also service-engi- neering companies. The firms design will come to the energy sec- tor and get more ly jobs with Siemens. “We can retrain them To meet that goal, EPIC has a dual mission. It provides students with the power plants around the world. here. We are suppliers here.” as long as they have skills necessary to contribute to the Less well-represented in the mix have Even though the mechanical aptitude,” growing energy sector. It also encour- been companies that make products for definitely region’s history as Pringle says. “Whenev- ages research that supports energy pro- the energy sector. a manufacturer is er we put jobs up, we are That’s changing. building tied to textiles and inundated with résumés duction and infrastructure businesses. In M a rch , S i e m e n s E n e r g y I n c. critical fur niture rather and always end up with Toward a smart grid announced it would invest $170 mil- than turbines, good people.” EPIC is the storefront for research lion or more to expand its gas-turbine manufacturing facility in Charlotte mass.” those in the indus- try say the manu- Fecteau For engineers, Sie- mens is enthusiastic happening in a number of different university departments. and create 825 jobs during the next five facturing skill is about the impact of UNC Charlotte’s One growing area of research at UNC Mark Pringle years. The plant will become a global transferable. Energy Production and Infrastructure Charlotte is smart-grid technology, Pat- production hub. Siemens Energy “I compare it to Center. The center’s faculty addresses Inc. terson says. There’s demand among The announcement marked the larg- textile manufac- issues of importance to the generation energy companies such as Duke Energy est industrial project in Charlotte since turing,” says Rusty of power and works with utilities on Corp. and large users, such as the U.S. IBM Corp. located a plant here in 1978. Jewett, chief exec- applied research. Navy, to develop low-cost monitoring After the expansion, the company will utive of Sencera, “There aren’t other cities that have methods and devices. This technology be Mecklenburg County’s largest man- a seven-year-old that focus,” Pringle says. “So for us, the can provide information about energy ufacturer. Charlotte-based timing is just right.” use to allow users and producers to “We’ve been here 40 years and have manufacturer of The energy industry is waiting to see avoid spikes in demand. 780 folks right now and probably $350 photovoltaic pan- what new energy regulations come from Additional monitoring capacity can million in annual sales,” says Mark els. “Textile manufacturing is actually the Obama administration. Regulations provide feedback on operations, such Pringle, Siemens director of operations. quite technologically intensive, and that make it less economical for power as when an air-conditioning unit is low The company makes steam turbines we’re comparable to that. Also, we’ve companies to operate coal plants could on refrigerant. That can allow more and generators for nuclear plants. got good work ethic in spades here.” be a boon for Siemens. That’s because efficient operations and reduce demand Yet Pringle admits Siemens stands as Sencera has 15 employees. Jewett the company focuses on manufacturing for power. a giant among mostly smaller manufac- says once financing deals are firmed up components for combined-cycle power turers in the energy field. to borrow $24 million for equipment, he plants. Such plants join two gas tur- using nanotechnology “The volume of our employment in expects the company to quickly ramp bines and use their heated exhaust to Another area of research at EPIC the energy sector comes from service up production to 400,000 panels a year. make steam that powers a turbine. is the design of photovoltaic systems companies,” says Kati Hynes, vice That would require hiring 65 workers. And unlike nuclear plants, which can at the materials level. The goal is to president of economic development at Sencera is producing the panels, but take 10 years to build, combined-cycle increase light interaction and absorp- the Charlotte Chamber. at slower speed with far less automa- power plants can be operational in two tion. A broader circle around the region tion than what’s planned. years. “We think more manufacturing “If researchers can treat surfaces includes other key players. In Wilm- “We have been told that we will be will come here,” Pringle says. “We are using nanostructures to increase light ington, General Electric Co. prepares able to sell everything that we make definitely building critical mass.” absorption, then they can have impact nuclear fuel. Columbia, S.C., is home to by several groups interested in buying on net energy production,” Patterson Westinghouse Electric Co.’s headquar- U.S.-made panels,” Jewett says. Laura Williams-Tracy is a Charlotte-based free- says. ters for manufacturing operations in The company enjoys rents of 20% lance writer who can be reached at laura@ the United States. what they would be in San Francisco, lwtcommunications.bz. research, PAGE 10
    • WEEK OF april 23, 2010 CHarlOTTE BUSiNESS JOUrNal energy Inc. | 9 charlottebusinessjournal.com Companies turn to CPCC for building a work force Laura WiLLiams-Tracy Richard Zollinger, vice president of CONTRIBUTING WRITER learning at CPCC, says the capacity at the college is readily being transferred to The energy sector’s favorite new color the growing energy industry . may be green, but one of its biggest chal- “We have really struck gold with our lenges is gray . nondestructive evalu- More than 25% of the employed popu- ation prog ram to the lation is approaching retirement age, and point that it’s a narrowly that graying of the work force is acutely defined program servic- impacting engineering fields. ing that industry,” he With the lull in construction of energy says. plants in recent decades, fewer students Getting relevant train- are majoring in energy-related fields. The ing programs in place is dwindling supply of engineers comes critical, but so is the tim- when demand for power is growing. ing, Zollinger says. “We Zollinger Should we rush out to engineering are providing programs school? Yes and no, experts say . that lead to jobs, but we “The general misnomer is that we are have to know when the jobs will arrive.” going to need lots and lots of nuclear To better gauge industry demand, CPCC engineers. That’s not the case,” says has an advisory board that helps the col- Mark Fecteau, managing director at lege establish curriculum and keep it rel- Westinghouse Electric Co. in Columbia, evant. CPCC has accelerated its welding S.C. program with the help of recent JobsNow What will be needed in generous sup- funding, an initiative of Gov Bev Perdue, . ply are welders, instrumentation techni- and federal-recovery funding. cians, radiation-control technicians and CPCC also is working with local ener- other skilled employees to build, main- gy-sector employers, including Liburdi tain and operate the plants. Dimetrics, a Mooresville company that Prompted by the growing cluster of makes orbital welding products. The energy companies in the region, Central partners are developing a course in Piedmont Community College is set to advanced welding, a skill required in receive $525,000 in federal funding to help nuclear plants to meet industry stan- establish the Carolinas Energy Train- dards for safety and reliability Two cer- . ing Center. The center will collaborate tificate courses are on track for approval with regional partnerships of employ- by the state. ers, educators, economic developers and “In our conversations with power com- work-force development boards to pre- panies, they all have a different sense of pare qualified candidates for the energy the urgency,” Ray says. “Some say they sector. see a tsunami coming with the graying The grant is from the U.S. Department of the work force — there will be a huge of Energy. It will enable the college to experience and technical gap. When expand laboratories, buy equipment and photo courtesy CENTRAL PIEDMONT COMMUNITY COLLEGE power plants are approved for construc- create specialized programs in welding, tion, they think demand for skilled labor Central Piedmont Community College offers training in industrial skills needed for the energy electrical and mechanical engineering. to do the design and engineering will cre- sector. Here a student learns metalworking in its machine shop. It will bring the faculty up to date on the ate a very large shortage of folks. Others energy industry’s needs, says Chad Ray , Some promising areas of focus include prepared for power-plant construction. say the need is less urgent.” dean of science, technology engineering, , renewable forms of energy, smart-grid For three years, the college has been Zollinger has 20 years’ experience at math and sustainability programs. technology and smart metering for resi- developing a nondestructive evaluation CPCC and says, “We’ve never run this The faculty within the Carolinas Ener- dential customers. Demand for work- program, the only one in the Southeast. It fast. These are jobs that are out there. gy Training Center will develop training ers is also expected to be generated by allows technicians and engineers to look The challenge is to retrain the dislocated programs for high school graduates and development of systems for commercial at infrastructure, such as bridges and work force and fit them into these jobs.” displaced workers seeking careers in and residential customers to control nuclear power plants, to determine their the field. The school also will customize electrical consumption. And there will be structural soundness. The program uses Laura Williams-Tracy is a Charlotte-based free- programs to help workers advance their a tweaking of instruction in traditional radiology to test steel and other materi- lance writer who can be reached at laura@ careers. skills, such as welding, so workers will be als. lwtcommunications.bz. Give antique wood a second life ... ... every floor will have a story to tell. 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    • 10 | energy Inc. CHARLOTTE BUSINESS JOURNAL WEEK OF ApRIL 23, 2010 charlottebusinessjournal.com research: UNC Charlotte is central to growth of new energy technology FrOM PaGe 8 EPRI conducts some research within its lab facilities and contracts some Despite a tight budget, the univeristy research with universities. It has grown won $76 million in state funding for the its presence here by 50 employees since EPIC facility Construction is under way . 2005. on the northeast Charlotte campus. “Charlotte is a good EPIC’s researchers will work with area for us because it key energy partners including Areva, is closer to existing Duke Energy, EPRI, The Shaw Group, nuclear plants in the URS Washington Group, Westinghouse Southeast, and most Electric Co., and Siemens Energy Inc. of the new plants that The building is scheduled to open in are going to be in Geor- November 2011. gia, South Carolina The university is spurring the indus- and maybe F lorida,” try’s evolution by focusing its curricu- Modeen says. lum on energy topics. Modeen “We’ re close to the “There are a lot of skills which have people that are going to become less popular since the early use the technology .” (nuclear) plants were built,” Patterson In Charlotte, EPRI’s 200 employees says. “To a certain extent, education operate a collaborative R&D organiza- programs chase what’s more popular in tion. They conduct and oversee a broad the market. In the 1980s and 1990s, the base of research. They test transmis- big thing was electrical design of inte- sion lines to determine ways to mini- grated circuits and cell phones.” mize loss of power, examine devices Patterson says current students are that assess transformer failure, use interested in energy generation and ultrasound to detect cracks in metal, sustainable energy sources. The uni- and research welding methods and versity is looking at energy concentra- materials to make plant components tions within the context of mechanical, more sound. electrical or civil engineering degree “Most of our transmission system was programs. built in the ’70s and ’80s and of course While research dollars are focused on it’s getting old now,” says Andrew Phil- new, sustainable forms of energy, Pat- lips, director of transmission at EPRI. terson says the overwhelming source “The only way to extend its life is to of energy in the near term will come monitor it and try to squeeze a little from semi-traditional forms of power more years out of it. If we can monitor generation. it, we can push it closer to its limits and “You need to grow alternative tech- get the full potential out of our assets.” nologies but at the same time support EPRI also researches ways to opti- traditional technologies,” he says. “It’s mize coal plants and build efficiency very important that we train the kinds there, says Tom Alley, director of gen- of engineers who can grow the 80% eration for EPRI. energy base.” “Many of these plants were built in At EPRI, researchers have been work- the 1940s through the 1960s,” Alley says. ing for 30 years to support the energy “We are researching how to understand sector. Their work supports renewable- when components might fail and how energy sources, nuclear-power genera- we can repair those components.” tion and the delivery and utilization of electricity, says Dave Modeen, vice Laura Williams-Tracy is a Charlotte-based free- president of nuclear power. He’s also a lance writer who can be reached at laura@ board member at EPIC. lwtcommunications.bz. InItIatIve: One year in the making, energy effort is showing big promise FrOM PaGe 6 Organizations focusing on nuclear engineering, renewable power or more times a $500 million company or some- generally on energy professionals have thing like that,” McDonald says. “They been started or revived in the last year provide services, they provide software, or so. they provide hardware.” “We have been doing this all on a bit And they provide jobs. The announce- of a shoestring, with people just pitch- ments by the big companies breed inter- ing in and getting things done,” McDon- est in the region among smaller firms. ald says. The model, he says, is the way support “We are moving now to make this ini- services sprung up around Charlotte’s tiative a more formal thing. And that’s big banks. what I think you will be seeing in the Scott Carlberg, who has been the next few months.” point man for organizing region’s mes- Ultimately, everyone involved in the sage on the energy capital, says creat- initiative emphasizes it’s about creat- ing the right environment for new ing jobs in Charlotte and the region. power-industry companies is also key. That includes large swaths of the Caro- There have been a number of solar and linas, developers say, because energy renewable startups in the region, he development in both states reinforces says, building on expertise in construc- Charlotte’s efforts. tion, architecture, site development But those involved know it’s going to and engineering. take a lot more work. Siemens’ Pringle “The real key to success is not what says the industry is beginning to take one, two or three people are doing, notice, but the region has a long way but how many other people we can get to go to carve a significant place in involved in the effort,” he says. energy . So small signs should not be over- “I think it’s just a budding aware- looked, say people involved in the ini- ness,” he says. “Once you get outside tiative. The growing number of energy of Charlotte, people have not heard so conferences that come to Charlotte much about what is going on here. It’s and the region reflect the appeal of the happening, but it’s going to be a few energy initiative and reinforce it. years yet.”
    • WEEK OF april 23, 2010 CHarlOTTE BUSiNESS JOUrNal energy Inc. | 11 charlottebusinessjournal.com Energy becomes fundamental to diversification effort With growth stalled in URS Corp. opened a regional headquarters with 1,100; and Flextronics International Ltd., with 830. for its nuclear division in the former home More than 1,000 energy jobs have been financial services, region of HSBC Corp.’s now-defunct mortgage announced each year since 2007, accord- unit in Lancaster County. ing to the partnership. Major announce- looks in a new direction ments include a 1,000-job expansion of Shaw Power Group, 300 new jobs for julie bird Southern Power Co., and 400 for URS CONTRIBUTING WRITER Corp., which opened a regional head- quarters in the former Lancaster County Charlotte’s potential as an energy capi- offices of HSBC Corp. tal could rival its strength as a financial- The energy sector’s momentum is not services center, economists and industry being dampened by the recession. This watchers say . year has seen the announcement of 289 “We’ve got real critical mass here in jobs at battery manufacturer Celgard Charlotte, and it seems to be gaining and 825 office and manufacturing jobs at momentum,” says Mark Vitner, Wells Siemens Energy Inc., which is launching Fargo Securities senior economist. He a $130 million expansion. identifies energy as one of the likely “It’s hard to find another industry drivers of Charlotte’s future economy. where we have gained that many jobs and photo FILE Growth in the sector has already been had as many announcements in the last offsetting weaknesses in finance, he al economy as long ago as 2004, says are expanding significantly in Charlotte. several years,” says Kenny McDonald, adds. Mike Walden, an economist at N.C. State “Companies ultimately vote with their executive vice president at the partner- The Charlotte Regional Partnership University. That figure did not include dollars,” says Scott Carlberg, spokesman ship. “If anything, we might be under- says energy is the third-largest business related manufacturing, engineering or for the Carolinas Nuclear Cluster. selling what we have.” sector in the 16-county area, behind support businesses. Not surprisingly Fortune 500 company , The partnership is intentionally cast- financial services and transportation. Other clues about the energy sector’s Duke Energy is the top energy employer, ing a wide net to attract more energy The partnership has identified more growing economic clout come from a 2009 with roughly 7,700 workers locally. Its jobs, McDonald says. Charlotte’s “inno- than 21,000 energy jobs and close to 200 study commissioned by the Carolinas McGuire Nuclear Station on Lake Nor- vation capacity” is in power genera- energy companies in the region. The list Nuclear Cluster, an advocacy group made man employs 1,250; the Catawba Nuclear tion, from coal and hydro to nuclear and continues to grow. Most are small compa- up of industry participants. The study Station in York County has about 1,000. renewables, he says. That leaves ample nies with a few employees. found the nuclear industry contributes Duke also is driving much of the nucle- room for recruiting efforts. But the financial impact of the energy more than $2 billion in payroll and more ar industry’s expansion. It proposes a Within that wide net are four main sector on the local economy is an elusive than $4.7 billion in spending annually in $19 billion investment in nuclear plants targets: figure. the Carolinas. in the next decade. With utilities getting •Nuclear-engineering firms, service “It’s hard to put a quantifiable num- The study doesn’t break out the impact encouragement from Washington to providers and product manufacturers. ber” on the economic impact, says David by state or market. But the Charlotte expand nuclear power, the city is attract- •Solar and bioenergy product manu- Swenson, the partnership’s vice presi- region clearly benefits from energy pro- ing engineering, construction and ser- facturers. dent for economic-development services. duction. Duke Energy Corp. operates vices companies hoping to cash in on •Energy storage. “I do know a lot of dollars are being spent nuclear plants on Lake Norman and favorable regulatory treatment. •Energy efficiency which ranges from , in the area.” Lake Wylie. Engineering firms that cater Other top employers in the energy household energy savers to smart-grid Power-generation facilities alone were to the nuclear industry such as Areva NP , sector include Conbraco Industries Inc., contributing $1 billion to the region- and Toshiba America Nuclear Energy, with 1,200 employees; Shaw Power Group, impact, PAGE 24
    • 12 | energy Inc. CHARLOTTE BUSINESS JOURNAL WEEK OF ApRIL 23, 2010 charlottebusinessjournal.com Key policy issues cut across the region’s power lines John Downey | Senior Staff writer But Toben says the concentration of jdowney@bizjournals.com major energy companies around Char- lotte makes this region one of the most Charlotte could be the principal ben- likely to benefit from effective policies eficiary of an effort to reinvent the N.C. that attract new players. With that in Energy Policy Council as part of the mind, the policy committee of the New state’s efforts to attract industry. Energy Capital initiative And locally, leaders involved in the is completing a list of New Energy Capital initiative are look- desirable policy changes. ing to have a say in the kinds of energy Charlotte Chamber policies the state will adopt. President Bob Morgan Tim Toben, chairman of the Energy says they include addi- Policy Council, says Gov. Bev Perdue’s tional money for the push to move the near-moribund coun- Energy Production and cil into the N.C. Department of Com- Infrastructure Center at merce was conceived as an economic- Morgan UNC Charlotte. development program. EPIC is seen as one It was codified by Gen- of the key components eral Assembly action last rendering courtesy UNC CHARLOTTE for developing the region as an energy year. He says the Energy Full funding for the EPIC facility at UNC Charlotte is seen as one of the key components for research and manufacturing center. Sie- Policy Council is focus- developing the region as an energy research and manufacturing center. mens Energy Inc. and other companies ing on what he calls an that have moved or expanded here have affordable, low-carbon credit have yet to get much traction. green-energy industries. And she sees cited plans for that project as an impor- energy economy . Much of Charlotte’s growth in energy opportunities for jobs statewide. tant consideration in their investment “But one of our met- jobs has been in anticipation of a wave of John Morrison, assistant secretary for decisions. rics is jobs-per-megawatt nuclear construction in the country But. energy in the commerce department, The state already approved funding for of capacity he says. “If Perdue ,” Duke Energy Corp. and Progress Energy sees potential for bringing manufactur- the $76 million facility which is to open , we cannot deliver jobs, Inc. won’t commit to building nuclear ing of wind-turbine parts to the coast. To in November. But UNC Charlotte asked we will not have done what we set out to plants until North Carolina changes its that end, the state has sought to encour- for $5 million a year for operations. So far, do.” law regulating how utilities can recover age the development of offshore wind- the state has approved only $2 million. North Carolina business and political their construction costs. mills. It has set rules for constructing Other policy targets are eliminating leaders have shown enthusiasm for the Officials are looking to target wind- such projects. And Duke Energy Caro- conflicts between state and federal cred- idea. What’s been hard is figuring out generator manufacturing as an industry . linas is involved with UNC Chapel Hill its for energy development and changing what policies will attract industries and But the state has resisted efforts to soften in a proposed pilot to site and test three American-only provisions in the federal finding the consistent political will to a ban on commercial windmills in west- windmills off Ocracoke Island. stimulus package. Local leaders would adopt them. ern North Carolina. That’s a strategy with promise. Jacques like foreign-owned engineering and The state encourages renewable energy Setting policy always involves trade- Besnainou, chief executive of Areva’s energy firms — such as Westinghouse by requiring utilities to sell power from offs. And if it’s not clear exactly where U.S. operations, says his company is look- Electric Co., Areva, Siemens and Toshiba renewable sources, and it gives tax cred- North Carolina will come down on such ing for an East Coast location for such a — to qualify as long as they provide sig- its for the renewable-power production. issues, it also may not be clear where it plant. He says a key consideration will nificant employment in the region. But a tax credit for manufacturers that should come down. But the state is begin- be ease of access to customers. States Almost everyone agrees the state made make products for the renewable indus- ning to grapple with those questions. engaged in offshore wind development a good start with the renewable-energy try expired in 2006. Efforts to revive the Perdue has focused particularly on would clearly have a leg up. ContinUeD on neXt PaGe The bounce you need. Make 2010 your comeback year with the help of Charlotte Business Journal’s annual Book of Lists, the ultimate guide to Charlotte’s business leaders. The same resource our subscribers use to get ahead can put you ahead of the competition too: A single ad makes a strong marketing statement that gives year-round results. » call 704-973-1138 for details.
    • WEEK OF april 23, 2010 CHarlOTTE BUSiNESS JOUrNal energy Inc. | 13 charlottebusinessjournal.com N.C. legislators still play a deciding role on efficiency JOhN DOwNEy | SENIOR STAFF wRITER Tim Toben, chairman of the Energy jdowney@bizjournals.com Policy Council, acknowledges Save-A- Watt’s treatment has been “a thorn in the State experts are looking at making side of the utilities” in North Carolina. energy efficiency a centerpiece for creat- Duke had proposed the initiative as ing jobs and holding down power costs. a new way to give utilities an incentive But they figure that’s going to mean to maximize efficiency Duke planned to . paying power companies more for effi- offer a range of conservation measures, ciency than regulators have been willing to allow. And that means the N.C. General including a program to shift consump- tion away from expensive peak times. Mission Critical Metallics® Assembly will have to get involved. Duke wanted to charge customers 90% of For The Energy Industry The American Council for an Energy- the costs for plants it did not have to build ATI offers over 300 metals, alloys, and products: Efficient Economy released a study last because of the energy savings. month that said North Carolina could cut Environmental groups, consumer • Stainless and Specialty Steels its energy demand 24% and create 38,000 advocates and industrial-customer repre- • Nickel-Base Alloys jobs by adopting aggressive efficiency sentatives objected, saying Duke wanted • Titanium and Titanium Alloys policies. too rich a reward. When it became clear • Exotic Alloys (Zr, Hf, Ta, W, V) The proposals include new policies for it could not get regulatory approval of • Powders and Chemicals transportation and stronger building the original proposal, Duke compro- • Cast, Forged, Cut, and Machined Products codes. But electricity would account for mised. It accepted 50% of avoided gen- • Cutting and Milling Tools more than half of the savings and many eration costs for conservation programs of the jobs, American Council represen- and 75% of the avoided costs for peak- ATI’s unsurpassed manufacturing capabilities deliver tatives told the N.C. Energy Policy Coun- shifting programs. Mission Critical Metallics® as foil, slab & plate, sheet, cil at a presentation in March. Even with the new terms, Duke is seek- ingot, billet & bar, rod & wire, tube & pipe, cast- At that meeting, council member ing clarification on the commission’s ings, and forgings. ATI is a leading global supplier to Simon Rich, a principal at private-equity conditions. the world’s energy industry. firm Fuqua Rich Weeks, asked fellow Toben says the agreement isn’t enough council member George Everett, Duke to achieve the high level of efficiency Energy Corp.’s top legislative liaison, if needed for the savings and jobs forecast state incentives are sufficient for utilities by the American Council. “It motivates to reach the aggressive targets. Everett them to do a little bit, but not a lot,” he says. 2020 Ashcraft Ave. responded by referring to Duke’s experi- P.O. Box 5030 ence with its Save-A-Watt proposal. He says state policy will have to “turn © 2010 ATI Monroe NC 28110-5030 USA “We identified what we needed and the dial up on the return utilities can 704-289-4018 made our request,” Everett said grimly . make,” while continuing to protect cus- www.allvac.com “It was given a haircut by the (N.C. Utili- tomers. But that means paying more for ties) Commission.” efficiency — a funding formula between Neal Elliott, associate director of the amount approved by the commission research at the American Council, told and Duke’s original request. the group the state needs a new approach “This is one where the legislature is to efficiency. Conservation proponents going to have to step in,” Toben says, have talked about putting efficiency on a acknowledging regulators will not move level playing field with plant construction. further without statutory requirements. He told the group the state needs to give “If we want a more robust energy-effi- power companies an incentive to invest in ciency agenda, it will have to go to the © AREVA Inc./ Warren WRIGHT/Corbis efficiency rather than new plants. General Assembly .” What we generate: CONTINUED FROM PRECEDING PAGE If the state creates enough demand to American clean-energy portfolio standard adopted in 2007. That law requires power from renewable bring manufacturers here now, he says, the companies will make this a regional hub when other states in the Southeast solutions. sources to account for a minimum share establish their requirements. of the electricity utilities sell in the state. That starts with 0.3% of sales this year Joel Olsen, a principal at Charlotte solar developer O2 What we create: and ramps up to 12.5% by 2021. That has already created a modest mar- Energies, says the state also needs policies that Thousands of American jobs. ket for solar-energy development in the encourage utilities to buy state and may also help develop chicken- power from companies and hog-waste projects. But that is only that produce energy from a start. renewables. Toben’s group, for instance, is consider- Under current law, util- ing whether the state could increase its ities do not make a profit targets along with recommendations for on power they buy from everything from energy-saving lighting to Olsen other producers. They cars that don’t depend on fossil fuels. are allowed to pass only That could increase the market for the actual costs on to customers. That renewable energy here and encourage gives utilities little reason to buy renew- manufacturers to locate their facilities able energy for resale. in the state. The N.C. Sustainable Energy Asso- Toben cites the example of Cree Inc., ciation has a long list of policies it would based in Durham, which makes highly like to see the state adopt, says spokes- efficient lighting. During an event featur- woman Julie Robinson. ing Vice President Joe Biden in March, They include a feed-in tariff, which Toben heard Cree Chief Executive Chuck sets a minimum that utilities would pay Swaboda explaining why the company producers for renewable energy. The AREVA is America’s largest supplier of innovative solutions for has large operations in China. group also wants changes in state law carbon-free energy. AREVA is the biggest employer in our sector “He was talking to a few people after- that currently reduces the tax savings for with 6,000 highly skilled American workers in 20 states. Thousands more jobs depend on us through our 5,000 American suppliers. ward, and he said, ‘It’s all about the renewable-energy projects if producers AREVA’s investments in America’s energy infrastructure also mean market. If the market’s here, we will get stimulus money . new jobs. Our planned $2.5-billion Eagle Rock enrichment facility build manufacturing here,’ ” Toben says. The organization also would like to will help create another 5,000 jobs, and enhance our nation’s “China is 40% of their sales. The U.S. is see the legislature reconsider the ban energy security. And the new $360-million AREVA Newport News facility, a partnership with Northrop Grumman, will add another 500 just 20%.” on windmills in the state’s mountains. It high-wage U.S. jobs building state-of-the-art EPR™ reactors for But North Carolina can build on its also wants local communities to have the America and the world. lead as the first Southeastern state to authority to regulate windmill construc- Building a new American generation for energy generation. adopt renewable-energy requirements. tion in the western part of the state. Visit us at us.areva.com us.arevablog.com
    • 14 | energy Inc. CHARLOTTE BUSINESS JOURNAL WEEK OF ApRIL 23, 2010 WEEK OF ApRIL 23, 2010 CHARLOTTE BUSINESS JOURNAL energy Inc. | 15 charlottebusinessjournal.com charlottebusinessjournal.com Biofuels. it’s not science fiction. Genome ReseaRch. it’s colleGe. Photovoltaic technoloGy. UNC Charlotte is a hotbed for innovation in science and technology. Take our Global Challenge team. Based on their work in revolutionizing solar energy, our team was selected as finalists in a worldwide competition for creating market-viable energy technologies. With our award-winning faculty, notable alumni, and 24,700 forward-thinking students, UNC Charlotte is cultivating world-changing ideas, right here in your backyard. Stake your claim to a university that’s light years ahead of the pack. Dr. Mohamed-Ali Hasan, Associate Professor, Optoelectronics and Optical Communications Leader of the UNC Charlotte Global Venture Challenge Team UNC Charlotte has a history of supplying professional talent to energy and engineering firms. The Energy Production and Infrastructure Center heightens the university’s ability to respond to important energy industry and economic development needs.
    • 16 | TOP 25 LIST CHARLOTTE BUSINESS JOURNAL WEEK OF APRIL 23, 2010 charlottebusinessjournal.com a different view Largest area energy Companies Just missed the list ranked by number of full-time local employees 26. Pike Electric Corp. (132 full-time local No. of Company Phone full-time local employees) Rank address Web site employees Top local executive General business description 26. General Microcircuits Duke Energy Corp. (704) 382-2355 7,600 Jim Rogers An electric power holding company whose regulated utility operations serve Inc. 1 526 S. Church St. Charlotte, N.C. 28202 duke-energy.com approximately 4 million customers. Its commercial power and international business segments own power-generation assets, including renewable-energy (110) assets, in North America and Latin America. The Shaw Group Inc. (704) 343-7500 1,240 Frederick Buckman Global provider of full-service, value-added engineering, design, procurement, 26. Westinghouse Electric Co. 2 128 S. Tryon St., Suite 600 Charlotte, N.C. 28202 shawgrp.com construction and maintenance services to the energy industry (100) Conbraco Industries (704) 841-6000 1,212 Cal Mosack Manufacturer of ball valves, actuators and mixing valves used in plumbing and 3 701 Matthews-Mint Hill Road Matthews, N.C. 28105 apollovalves.com heating products, water gauges, pop safety valves, relief and marine fittings and backflow-prevention devices Siemens Energy Inc. (704) 551-5100 780 Mark Pringle Manufacturing and service of steam turbines and electrical generators for power 4 5101 Westinghouse Blvd. Charlotte, N.C. 28273 siemens.com generation Piedmont Natural Gas Co. Inc. (704) 364-3120 660 Thomas Skains Natural gas distribution 5 4720 Piedmont Row Drive Charlotte, N.C. 28210 piedmontng.com PPG Industries Inc. (704) 434-2261 640 Tim Mathis Two area plants manufacture fiberglass materials used in wind-turbine blades 6 940 Washburn Switch Road Shelby, N.C. 28150 ppg.com Areva (704) 805-2000 600 Tom Franch Nuclear vendor that produces nuclear fuel and provides refueling, engineering, 7 7207 IBM Drive Charlotte, N.C. 28262 us.areva-np.com inspection and maintenance for commercial nuclear energy. Designs and builds nuclear power plants. Developing a portfolio in renewable energies. Parsons (704) 529-6246 571 Michael Walsh Provider of engineering, construction and project management services to the 8 4701 Hedgemore Drive Charlotte, N.C. 28209 parsons.com energy, transportation, water, health care, education and environmental markets Duracell (803) 285-8401 500 Nancy Gipson Battery manufacturer 9 1551 Highway 9 Bypass W. Lancaster, S.C. 29720 duracell.com Celgard LLC (704) 588-5310 390 Mitch Pulwer Manufacturer of membranes used in lithium batteries for notebook computers, 10 13800 S. Lakes Drive Charlotte, N.C. 28273 celgard.com digital cameras and other devices. Developer of batteries for electric cars. FMC Lithium (704) 426-5300 322 Jonathan Evans Provides lithium products, services and technology to air treatment, construction, 11 2801 Yorkmont Road, Suite 300 Charlotte, N.C. 28208 fmclithium.com energy, fine chemicals, glass and ceramics, greases and lubricants, polymers, pool water treatment and specialty markets SPX Corp. (704) 752-4400 250 Chris Kearney Manufacturer of technical, industrial and flow technology products. Products 12 13515 Ballantyne Corporate Place Charlotte, N.C. 28277 spx.com include cooling systems for power plants, flow process equipment for oil and gas exploration, distribution and refinement and power transformers that allow utility companies to regulate electric voltage, transmission and distribution. Electric Power Research Institute (704) 595-2000 218 Michael Howard Conducts research and development relating to the generation, delivery and use of 13 1300 W. W.T. Harris Blvd. Charlotte, N.C. 28262 epri.com electricity. Addresses challenges that include reliability, efficiency, health, safety and the environment. IMO Pump (704) 289-6511 200 Bill Roller Manufacturer of fluid-moving pumps used in oil refining 14 1710 Airport Road Monroe, N.C. 28110 imo-pump.com GE Security Inc. (828) 695-4000 195 Phil Wekenmann Supplier of security technologies for energy infrastructure such as pipelines, 15 3211 Progress Drive Lincolnton, N.C. 28092 gesecurity.com refineries, generation plants and transmission lines notes Toshiba America Nuclear Energy Corp. (704) 548-7999 194 NA Nuclear reactor vending, construction and maintenance services Information was compiled from survey questionnaires, telephone interviews with 16 3545 Whitehall Park Drive, Suite 500 Charlotte, N.C. 28273 toshiba.co.jp company representatives, company Web Fluor Corp. (704) 526-3500 180 Trey Wills Full-service provider of engineering, procurement, construction, commissioning sites and Charlotte Regional Partnership’s energy cluster inventory. 17 6060 Piedmont Row Drive S., Suite 1000 Charlotte, N.C. 28287 fluor.com and maintenance for power plants Number of local employees include the EnergyUnited (800) 522-3793 174 Wayne Wilkins Member-owned residential energy services company following counties: Alexander, Anson, Cabarrus, Catawba, Chester (S.C.), 18 P.O. Box 1831 Statesville, N.C. 28687 energyunited.com Chesterfield (S.C.), Cleveland, Gaston, Iredell, Lancaster (S.C.), Lincoln, Liburdi Dimetrics Corp. (704) 892-8872 166 Joe Liburdi Manufacturer of power supplies and welding equipment and systems Mecklenburg, Rowan, Stanly, Union and York (S.C.). Employee counts from the 19 404 Armour St. Davidson, N.C. 28036 liburdi.com Charlotte Regional Partnership were used Boston Gear Co. (704) 588-5610 150 Ed Novotmy Power transmission technology *20 for companies that did not respond to the 701 Carrier Drive bostongear.com survey. Charlotte, N.C. 28216 *indicates a tie Cogentrix Energy Inc. (704) 525-3800 150 Tom Bonner Independent power producer NA - not available or applicable *20 9405 Arrowpoint Blvd. Charlotte, N.C. 28273 cogentrix.com Researched by Amy Shapiro Metso - Power Business Line (704) 541-1453 150 Gene Christiansen Bioenergy products and services for energy, pulp and paper and recycling ashapiro@bizjournals.com *20 3430 Toringdon Way Charlotte, N.C. 28277 metso.com/energy industries Rutherford Electric Membership Corp. (704) 435-5401 150 Randy Ward Electric distribution cooperative *20 518 Hepzibah Church Road remc.com reprints Crouse, N.C. 28033 Saertex USA LLC (704) 464-5998 150 Christian Kissinger Manufacturer of reinforcements made from glass and carbon fiber for composite *20 Details about commemorative plaques, reprints of the list or Web permissions can 12200-A Mt. Holly-Huntersville Road saertex.com materials used in the wind industry to build blades be obtained from Scoop ReprintSource at Caldwell, N.C. 28078 (800) 767-3263 or scoopreprintsource. Zapata Inc. (704) 358-8240 150 Manuel Zapata Full-service engineering including power generation from wind, sun, landfill gas and *20 com. No other companies offering similiar 6302 Fairview Road, Suite 600 zapatainc.com biomass services are affiliated with American City Charlotte, N.C. 28210 Business Journals. BOOKofLISTS The essential tool for doing business in the Charlotte region Available toOn CD! Makes mass mailings decision makers easy! Call 800-486-3289 to get your copy.
    • WEEK OF april 23, 2010 CHarlOTTE BUSiNESS JOUrNal 17 charlottebusinessjournal.com
    • 18 | energy Inc. CHARLOTTE BUSINESS JOURNAL WEEK OF ApRIL 23, 2010 charlottebusinessjournal.com Power Players A look at the executives driving the agenda for the New Energy Capital Jeff Merrifield has put Shaw at center of power play John Downey | Senior Staff writer jdowney@bizjournals.com Jeff Merrifield was one of the key Shaw Group executives who helped place the company’s The Shaw Group Inc.’s 2007 announce- power group in uptown Charlotte. ment that it would move its Shaw Power Group headquarters to Charlotte and add as many as 600 employees over five years was Charlotte’s first high-profile power-industry relocation. The impact led to the energy indus- try’s rise to economic-development prominence, manifested in the New Energy Capital initiative kicked off a year ago in a summit called by Duke Energy Corp.’s Jim Rogers. Shaw named Jeff Merrifield senior vice president of the power group in August 2007, just a couple of months before the relocation announcement. He took part in the final decisions that brought the unit to the uptown tower it now occupies. Merrifield says it was a great move for Shaw and for Charlotte. He admits the company has not grown as fast as it once thought it would — the actual Charlotte head count today is only about 100 workers more than it was before the announcement. But he notes the 2009 recession has slowed the growth plans of a lot of companies. And he says Charlotte is still a place where Shaw sees the opportunity to expand. He talked with the Charlotte Busi- ness Journal about the Shaw Power Group, what brought it to Charlotte and photo NANCY PIERCE what role the company is playing in the effort to turn Charlotte into a hub control work, as well as building the Lake Norman, when you show them the involved in designing the facilities. for energy research, development and Cliffside unit, it made a lot of sense for many opportunities Charlotte has avail- But we also have a variety of other manufacturing. Edited excerpts from us to be here. able to it, that’s very attractive. individuals in project management, in that conversation follow. Additionally from a nuclear stand- procurement and the myriad of capa- point, the Southeast is clearly the locus What’s the breakdown of your operations bilities we would need to have for the of where the greatest and earliest work that we do to deploy power plants What about Charlotte made it a good nuclear development is going to hap- here now? of all types. place to base the Shaw Power Group? pen in the United States. We’re close to The power group has four main ele- There are a variety of reasons that our clients at Scana, which is Sumner ments. We have our fossil and renew- When did you get to Charlotte? Charlotte made a lot of sense to us. The Nuclear Station; Vogtle, which is the ables division. We have our nuclear I arrived in Charlotte in August of first one was we were able to pull in a Southern Co. project in Georgia, and division, which is responsible for the 2007. We made our formal announce- number of people who used to work for then obviously the ongoing discus- deployment of the AP1000 nuclear ment within a couple of months after Duke/Fluor Daniel (which dissolved in sions we’ve had with Duke to hopefully units (chosen by Southern, Scana and that. 2004). So there was a nucleus of folks build the Lee Station just south of the Duke). We have our construction divi- That’s a decision that I don’t think around whom we could build an opera- border. sion, which actually is responsible anybody regrets. We’ve come to feel a tion here in Charlotte. And finally Charlotte is a great place for constructing the myriad facilities, part of the Charlotte family of compa- And the other one, and I think more to attract people to. When you have indi- both fossil and nuclear we are involved nies and have become very involved importantly, this was the locus of viduals who don’t live in the area, and with, and our maintenance division. in a variety of the activities to be pro- where our clients were located. First you’re trying to bring them to a new We have about 1,000 folks here in motional as far as Charlotte’s effort to was Duke. With all the work we were location, when you take them through our office. One of the largest parts of doing with them in terms of air-quality the uptown area, when you show them that contingent is engineers who are ContinUeD on neXt PaGe experience. knowledge. perspective. That is what you can expect from PricewaterhouseCoopers. © 2010 PricewaterhouseCoopers LLP. All rights reserved. “PricewaterhouseCoopers” refers to PricewaterhouseCoopers LLP (a Delaware limited liability partnership) or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and independent legal entity. CH10-0102 Charlotte Engery In Ad V1.indd 1 4/1/2010 4:57:06 PM
    • WEEK OF april 23, 2010 CHarlOTTE BUSiNESS JOUrNal energy Inc. | 19 charlottebusinessjournal.com CONTINUED FROM PRECEDING PAGE the effort on that, well assisted by Bob www.northcarolina-innercircle.com Morgan and the folks at the chamber. move forward as an energy hub. I’m also on the board of advisers for UNCC’s Energy Production and Infra- When you first announced the headquar- ters here, you announced that Charlotte structure Center. Then we can also throw in the Caroli- When you are at the center of might get up to 1,600 employees. Is that nas Nuclear Cluster. There are a lot of North Carolina business, you better be green. still possible? entities that have come together to try I think that one of the things that to really move forward on recognition has changed since we designated Char- that Charlotte has become a center of Up to one third more people live within a 60 mile  lotte as the headquarters of our power energy . radius of Salisbury Rowan County than our better  operations is we as a country have known  neighbors,  including  Charlotte,  Raleigh,  gone through a significant economic So is Charlotte being recognized as an Greensboro,  or  Greenville,  SC.  Almost  twice  as  event. It would be inaccurate to say energy center? I mean, is there any sign many as Richmond, VA! That puts us at the center  that hasn’t had some impact on what that this effort is becoming real? of North Carolina business. It also means we have  we do as a company . a  responsibility  to  work  with  our  businesses  to  I think some of the power plan- I think it’s becoming real. And I think it’s becoming real for a couple of open doors to the “green marketplace.” ning undertaken by utilities has been pushed a little further to the right — reasons. One, if you notice the number of (expansion) announcements that And  thanks  to  a  veritable  think  tank  in  our  own  meaning that the increases in power back yard, businesses in Rowan County are learning that it really is easy (and profitable) to  demand that we had postulated are have been made by the chamber in the last year that are companies related be green. This partner, the Catawba College Center for the Environment, functions more  probably going to be a few years away like a non profit organization than an educational institution. from where we originally thought. to the energy arena. A notable one So we’re in a business cycle. We would be the large announcement by Siemens. Through  workshops,  one on one  sessions  and  community  programs,  the  Center  keeps  hope that going forward that’s going area business leaders, elected officials and the community attuned to the environmental  to change and we are going to have the I think these are companies that have decided this a logical place to grow issues we face and how business can be a partner in addressing our future together. opportunity for that growth here in Charlotte. I think it may not happen their energy business. And I think they have come to the conclusion that See what inner circle members like Square D, Toyota Racing Development, and Food Lion  quite as quickly as any of us would have already discovered – Salisbury Rowan is the place for growth… have liked. we came to a long time ago — that the Southeastern United States was likely and the place to be green! to be one of the largest areas of poten- Duke, of course, has pushed out its tial growth in the energy arena. Contact Robert Van Geons, completion date for the Lee Nuclear Sta- And so it makes a whole lot of sense Executive Director, tion to 2021. People talk a lot about the to use Charlotte as your hub as a com- RowanWorks at 704 637 5526 “nuclear renaissance.” There is some pany for the focus of your activities. Email: Robert@rowanworks.com sense now that it’s going slower than Now with that comes a recognition Contact Dr. John E. Wear, Jr. once had been thought. Has that affected that as those companies come together, there are additional suppliers and sub- Founding Director you? suppliers of those companies that will Catawba College Center for the Environment It’s interesting. Prior to coming to 704 637 4727 Shaw Power Group, I spent 10 years as also recognize that movement towards Charlotte and will move here as well. Email: centerforenv@catawba.edu a commissioner on the Nuclear Regu- latory Commission and had seen how And I think that’s what we’re begin- this whole cycle has built towards the ning to see right now. nuclear renaissance. I would finally add the state clearly Catawba College Center for the Environment Back in the early 2000 time frame, recognizes this role of Charlotte. First, we were talking mainly about shutting obviously, the governor is to be cred- down plants in the United States. And ited for a lot of the support she’s shown then by the 2007 time frame, it really for Charlotte and its efforts to be recog- became evident that we were going to nized as an energy center. And the leg- build a fair number of them. islature has supported UNC Charlotte The NRC has 18 applications for over with a $50 million building, the EPIC 30 units, utilities moving forward and building. saying we want to consider down the And I think it is noteworthy that the road building these plants. I think, EPIC program was one of the few that based on that level of activity, a lot of received additional money outside the people felt we would see more plants original budget from the folks in the being built and would be having engi- legislature. That’s quite meaningful, neering, procurement and construction given the fact that we were in a quite of plants by this point. That has been difficult economy last year and this pushed out a little bit by the economic year. uncertainty . That said, utilities recognize there is You know this industry. Is there signifi- strong concern about global warming. cant awareness outside the state that There is obviously a commitment to Charlotte might be an energy center, or renewable technologies, like wind and is that a few years down the road? Development of higher solar. efficiency solar films It depends. When people talk about But those very same utilities recog- Charlotte as an energy center, I think nize that today, 80% of our carbon-free some of that is more developed than energy comes from nuclear power. other elements are. It’s safe. It has been very economical. I think in terms of some of the more And it is a technology, which, I think, traditional, large-scale technologies — many Americans have become quite coal, nuclear, gas which are really the comfortable with. bread and butter of the U.S. and inter- So for that reason, as things go for- national utilities — I think we’ve got ward, I think we certainly hope and an excellent reputation. expect more utilities will come to the conclusion that nuclear power needs Not only of the manufacturers and is a proud sponsor of Energy Inc. the technology providers. But also to be an increasing part of their port- engineering, procurement and con- folio. And hopefully that will result in struction companies like Shaw. increased activity for us down the road. • Manufacturer of In that regard, when you talk to I want to talk about the New Energy Capi- utilities in the United States, I think Thin Film Solar Modules there is that growing recognition of tal initiative. Have you been involved the importance that Charlotte plays, • Low Cost Solar Solutions since the first summit a year ago? certainly in the U.S. marketplace and, Roof & Ground Mounted As far as being at that first summit, I increasingly, internationally . Commercial Scale was not. Since then, I have been, for the In terms of some renewable technolo- most part, the point person for Shaw gies, Charlotte has a smaller footprint. • Charlotte Based Manufacturing Power Group in interacting with Duke But one which is clearly growing. Ground Mount Installation: and other major entities here in the Look at a company like Sencera — RayLen Vineyards, Mocksville, NC Charlotte area to push that movement that’s a terrific message for the city, forward. where we have the development of As you know, the Charlotte Regional solar-manufacturing capabilities here Partnership has taken the lead. Ron- that can be deployed around the coun- 704.393.1951 try. nie Bryant and his team are leading info@sencera.com
    • 20 | energy Inc. CHARLOTTE BUSINESS JOURNAL WEEK OF ApRIL 23, 2010 charlottebusinessjournal.com Areva slows Charlotte growth but has big plans for future John Downey | Senior Staff writer China in deploying both. biomass. It is putting together a And what about solar? jdowney@bizjournals.com fleet of biomass plants across the We just actually purchased a com- I think we — I say “we” because I U.S., mostly in the Southeast and the pany called AUSRA. It is in Mountain- am a new American — we are lagging, Jacques Besnainou became chief exec- Northwest. That is where you find view, Calif. And they are the leading honestly, in both areas. I think we’re utive of Areva SA’s U.S. operations two the trees, actually, because biomass company in what they call concen- underinvested in both areas. I think years ago. The French multinational is from trees. So this is one line of trated solar energy And they have a . the new administration here is getting company designs and builds nuclear the business. demo project in California that is work- the message. plants and has three lines of renewable- We have two other lines of busi- ing very well. So we bought them just In renewables, the new administra- energy businesses — solar, wind and ness. One is wind. We have a com- a month ago. I was recently with my tion is trying to help companies to do biomass. pany called Multibrid in Germany. boss, Anne Lauvergeon, in California R&D now and also to start projects. Areva is the operating partner of This is specializing in manufactur- to rename it Areva Solar, because they Projects in renewables could be very Adage, a joint venture ing and building offshore windmills. are going to be the headquarters of the expensive. We are talking about bil- with Duke Energy Corp. We build the largest windmills on business unit worldwide. lions. So it could be a very expensive formed in 2008 to develop the planet. You have to think of the So our idea is to supply not only the proposition, a solar plant. biomass plants in the Washington monument and a 747 at U.S. with this technology, but the entire And some states are more advanced United States. Duke and the top of it. They are tens of miles world, and we’ll do it from Mountain- than others. California, for example. Areva are also discuss- off the coast. We have installed six view. It’s concentrated thermal (using It has a renewable portfolio standard, ing the possibility of a of them, I guess, in the North Sea, convex mirrors to concentrate solar and they have agreed by 2020 to have, partnership to develop a north of Germany. They are working energy and heat a fluid). And the fluid I think, 33% of renewables. So I see in nuclear power plant in very well. They are producing elec- we’re using is very simple. It’s water. the next few years a very speedy devel- Piketon, Ohio. tricity almost 24-7. We use the water in a highly efficient opment of renewable energy That’s . T h e c o m p a n y h a s Besnainou The beauty of offshore is twofold. scheme. It is very economical. We why we are making these investments about 6,000 workers in First, you avoid the not-in-my-back- think we can reach the least costly (in renewables). the United States, includ- yard syndrome, because you don’t alternative for solar that exists on the But in nuclear as well, we see also the ing 600 employees, mostly engineers, see them. And you don’t hear them. planet. renaissance coming. I think the words in Charlotte. The majority of the work Second, because they are offshore, of the president during the State of involves nuclear projects, including the you have strong and more constant And on nuclear, where does the EPR the Union were very positive. And it’s design for the U.S. European Pressurized winds. So it’s much more predict- more than words now. The loan guar- stand now on approval from the NRC? Reactor. able. So you can have your windmill Besnainou expects that Charlotte num- antees that have been issued — the first work 24-7 almost. Are you close? one was issued not too far from you We are doing very well, actually ber to grow. He says Charlotte is devel- Because the main issue with wind guys in Georgia to Southern Co. (for thanks to the people in Charlotte. Most oping an international reputation for energy is that it’s not predictable. You the Vogtle project). I am very happy for of that work is being done in Charlotte. business and is beginning to be seen as need backup. And the backup is very Southern and Shaw (Power Group) and We have applied for design certification an important center for the energy indus- polluting, because usually it’s gas or Westinghouse (Electric Co., the princi- for the U.S. EPR. We have invested so try But Areva has shelved plans, for now, . coal. So we say we are going to bring pal contractors). And I hope that Areva far $250 million of our own money We . to expand its U.S. nuclear operations by this technology to the U.S., we are dis- and our main customer, Constellation, will be maybe the first or second to get 500 or so workers either in Charlotte or cussing this with several states with will see a loan guarantee very soon. As design certification, and it says it will Lynchburg, Va. Besnainou took time to a shoreline on the Atlantic, and I soon as we get these loan guarantees be at the end of 2011 or the very begin- talk to the Charlotte Business Journal in guess North Carolina is one of them. issued, I think we are on our way to ning of 2012. advance of his appearance as part of the rebuild nuclear plants in this country . CEO Forum at the Energy Inc. confer- Are you talking about building in Germa- ence here this week. ny and bringing the windmills here? The Nuclear Renaissance has not rolled Describe the Adage biomass venture out as fast as some people expected. Did It would be too expensive to do that. How do you see the nuclear and renew- Areva has with Duke. And what else do that impact your decision not to expand We’re looking at manufacturing in the ables market shaping up in the U.S.? you have in renewables? U.S. I don’t think we want to bring the The U.S. is fairly far behind Europe and Adage is focused, as you know, on windmill across the Atlantic Ocean. ContinUeD on neXt PaGe what other Key PlayerS in the enerGy CaPital are SayinG Gene Michael tom franch Christiansen howard Mark Pringle Chris Kearney Senior Vice president, Engineering Manuel Zapata General Manager, Service - Senior Vice president, Director of Operations Chairman, president and CEO & projects North America president North America Research and Development Siemens Energy Inc. SpX Corp. Areva Zapata Inc. Metso - power Business Line Electric power Research Institute What are your company’s local What are your company’s local What are your company’s local What are your company’s local What are your company’s local Is Charlotte getting the criti- expansion plans in the next expansion plans in the next expansion plans in the next expansion plans in the next expansion plans in the next cal mass of energy companies year? year? year? year? year? needed to have weight in the Siemens Energy Inc. is adding Over the past five years, we We are sized appropriately We have won several large Metso’s local expansion plans energy industry? a new plant with $170 million have more than doubled the for our current projects and contracts with the Department would be classified as moderate, Charlotte continues to build a investment. The total site will number of people working in anticipate future expansion as of Defense, so we will be adding based on market demands in diversified business and techno- eventually have 1,800 people and SPX’s Charlotte headquarters forecasted projects materialize personnel in Charlotte as well North America. logical base to serve the energy over 1 million square feet. from approximately 95 in 2005 and become part of our baseload as in our offices in Colorado, industry worldwide. Advances in to more than 250 employees business. South Carolina and Hawaii. We Is Charlotte getting the criti- electricity technology, operations, Is Charlotte getting the criti- today. To accommodate these are executing seven projects outcal mass of energy companies materials sciences and other cal mass of energy companies additional personnel, we leased Is Charlotte getting the criti- West in Nevada and California needed to have weight in the areas can increasingly be traced needed to have weight in the additional space in a building cal mass of energy companies prospecting for deep hot rocks energy industry? to people and companies here in energy industry? directly across the street from needed to have weight in the for geothermal power plants. Yes. I believe the Charlotte area Charlotte. Yes. It already has a nucleus and our main offices in Ballantyne. At energy industry? is developing into an energy cen- can become the leading center this time, we have no immediate Definitely. Many large compa- Is Charlotte getting the criti- ter, bringing in new growth and for energy in the U.S. plans to expand, although we are nies in the energy industry are cal mass of energy companies development opportunities, along always looking at strategic acqui- proud to call Charlotte home. needed to have weight in the with the development of our UNC sitions to improve our ability to We are seeing a steady increase energy industry? Charlotte-EPIC program and serve customers. in energy companies in this Not yet, but I think we have a other local community colleges region and a consolidated effort good start. It is imperative that gearing up to support the emerg- Is Charlotte getting the criti- to raise awareness of North Duke Energy and Piedmont Natu- ing energy work-force demands. cal mass of energy companies Carolina’s role in solving the ral Gas make every effort to con- needed to have weight in the energy challenges of America. As tract with local firms to expand energy industry? a result, we’re attracting talented our energy capabilities. We are Yes, absolutely. Charlotte has employees to the area. With also currently designing and will become an increasingly impor- Charlotte’s proximity to airports, build three wind farms in Mas- tant hub in the U.S. energy educational resources and other sachusetts and two landfill gas sector and continues to attract energy experts, I can only see the plants in Chile. We would love to business investment/expansion demand for energy and engineer- do a local project. as well as highly skilled talent. ing expertise continuing to grow.
    • WEEK OF april 23, 2010 CHarlOTTE BUSiNESS JOUrNal energy Inc. | 21 charlottebusinessjournal.com CONTINUED FROM PRECEDING PAGE division works for the Department of Energy on different projects. more in Charlotte or Lynchburg, or was I was in Charlotte a couple of times in that decision just based on the slowdown the last two months. I think it’s a great in the economy? location for our work force. It’s very Our customers are hurting right well centrally located in the U.S. Very now. Because of the downturn in the economy, for the first time in many business friendly Very family friendly as I understand. . , I think if we continue to be successful Smart Energy Ahead years the demand for electricity in the U.S. dropped. Which never happens. — and we are going to be very success- The demand for electricity in the U.S. ful — I hope this year we will be hiring is plus 3% every year — bang, bang, more people in Charlotte. bang, bang, bang. And for the first time The gist of it is Areva has 6,000 it dropped. It had a direct effect on our employees in the U.S. And we look at customers and on us. the U.S. not only as a market but as a platform for exports. We are investing a lot of money in this economy . So you don’t think that the renaissance We are starting a manufacturing has flagged? plant in Virginia for parts for nuclear No. I do believe that actually what the plants. We are going to build reactors current administration is doing is the here, but most of the parts come from right thing and will help tremendously . overseas because the U.S. stopped The reason is very simple. In nuclear, building them here for so long. So now what you really need — and it explains (Areva) will build the components the success of the French program — here. We are building a very large is a bipartisan approach and support. enrichment plant in Idaho. The engi- Because a nuclear project takes 10 years neers for that project are in Charlotte. (to build), it goes beyond the term of Charlotte should become the engi- one president. It goes beyond the term neering center for Areva in the U.S. of one Congress. So for a company like us, or our Charlotte is trying to ramp up the pres- customers, to be confident in building ence of the energy industry here. Is this a new nuclear plant, what we need is an effort that you see as realistic? the bipartisan support. We have the Oh yeah. You guys, I don’t know what support of the Republicans. What we it is you have. Maybe it’s the weather, need is the Democrats. And that’s what or the food. I don’t know. You should we’re getting right now. So I think it’s tell me, because you are really doing very encouraging. something good. All the international companies want Can you describe the performance of to locate in Charlotte now. And for us your Charlotte operations? it’s a very good location. Very centrally We have two main operations. We located. A good work force. And the have the people that report to our universities in North Carolina are reactor-solution division. They are sup- very, very good. A very good airport porting the design and the engineer- — an international airport. There is a ing for the reactors. And we have our new service now to Paris direct, which Areva Federal Services Division. This helps me, actually . Duke Energy is the power behind one of the nation’s fastest growing markets – Charlotte, the New Energy Capital. But we offer more than electrons. Our rates are well below the national average, our reliability is Being ahead of the curve is no longer enough well above, and our business customers rank us in the nation’s top five for overall satisfaction. When you come to the Carolinas, you’ll find that Duke Energy is more than a utility. We’re your business partner, and we’re just down the road. We can help select just the right site for your business. Then we’ll provide dependable and affordable energy to run it, and work with you to find smart new ways to operate efficiently. Find out more at www.considerthecarolinas.com. In the face of an unstable economy, cost cutting measures and an uncertain future, you must accelerate business performance at every touch point. That’s where we come in. NouvEON is a management consulting firm that works with clients to deliver innovative solutions in strategy, organizational change management, delivery management, process excellence, and systems integration. Our focus on optimizing business value can transform your business operations into a true sustainable strategic asset. To find out how we can help your business set the new standard of performance, visit us at www.nouveon.com or call us at 704.944.3155 A “New Era” in Consulting Services
    • 22 | energy Inc. CHARLOTTE BUSINESS JOURNAL WEEK OF ApRIL 23, 2010 charlottebusinessjournal.com Growth promise has industry looking at alternatives Charlotte doesn’t yet have a reputation for its base of renewables Julie Bird CONTRIBUTING WRITER When SBM Solar founder Osbert Cheung gets his solar-panel production line going in Concord, he hopes to use as many local suppliers as possible. But that may be a challenge. Although 93% of his components come from the Unit- ed States and 30% from North Carolina, his closest supplier is in Greensboro. While the green-energy sector is growing in Charlotte, Cheung’s dilem- ma suggests it is far from robust. North Carolina’s renewable-energy and energy-efficiency industries gen- erated $3.5 billion in revenue during the year ended in July, according to an October report from the N.C. Sustain- able Energy Association. The indus- tries also employed an estimated 10,250 full-time workers in July. About 43% work in renewable energy. Employ- ment grew 6% in that year at a time when overall employment in the state dropped 5%. Despite that promise, the local renew- photo nancy pierce able-energ y supply chain remains Sencera is one of the few manufacturing companies working on renewable-energy solutions in the region. CEO Rusty Jewett’s focus has been underdeveloped. production of a low-cost solar panel. The company is seeking a federal grant to help build a 127-job, 50-megawatt-capacity plant here. “We need to create jobs and attract business to Charlotte that will build this we must have a market that makes survey, 99 were in Mecklenburg County, has been growing quickly,” says Ivan a supply chain for renewable-energy it financially viable to develop renew- behind Wake County with 141 firms. Urlaub, executive director of the sus- manufacturers, developers, installers able-energy power plants in our state Buncombe County was third, with 57 tainable-energy group. “The question is and training,” says Olee Joel Olsen, and in the Charlotte region.” companies. who’s going to come out on top.” managing director of O2energies, a Of the 548 renewable-energy and “What we’ve seen is the Triangle has renewable-energy consultancy. “To do energy-efficiency firms identified in the had firms for a long time, but Charlotte CONTiNued ON NeXT PAGe CENTRAL PIEDMONT COMMUNITY COLLEGE Delivering SolutionS for a new generation WE RESPOND TO THE NEEDS OF THE Engineering, Procurement, Construction and Commissioning expertise. ENERGY WORKFORCE The energy sector is growing exponentially across Charlotte, nC: 704.526.3500 the Charlotte region. www.fluor.com In response, Central Piedmont Community College (CPCC) has emerged as a critical community partner, creating innovative job training programs. CPCC addresses the local business community’s needs and produces skilled workers prepared to enter today’s energy workforce. www.cpcc.edu ENERGY ENERGY ENERGY ENERGY ENERGY ENERGY ENERGY ENERGY ENERGY ENERGY ENERGY ENERGY ENERGY ENERGY ENERGY ENERGY ENERGY ENERGY ENERGY ENERGY © 2010 Fluor Corporation ADHO059110
    • WEEK OF april 23, 2010 CHarlOTTE BUSiNESS JOUrNal energy Inc. | 23 charlottebusinessjournal.com photo FILE Duke Energy Corp.’s 213 photovoltaic panels at a south Charlotte site are part of a pilot project for Duke’s future smart-grid approach to distributing energy — a virtual power plant that’s serving 100 customers enrolled in the test program. CONTINUED FROM PRECEDING PAGE Solutions. “At the end of the day, the utilities control the conversation.” Top players in the Charlotte region Still, utilities and solar companies include solar manufacturers SMB are not necessarily “diametrically Solar, Sencera International Inc.; Car- opposed,” he says. Publicly owned dinal Solar Technologies and Daetw- utilities have to comply with a state yler-Clean Energy. Several companies law mandating 12.5% of the energy provide solar and related installation, they sell by 2020 comes from renewable engineering and consulting services. sources. Duke Energy Corp. and other They include Southern Energy Man- area utilities are building solar farms agement Inc., Argand Energy Solu- and biomass generators in response. tions, Optima Engineering, Perigon But most of those lucrative contracts Engineering and Calor Energy Con- have gone to large, out-of-state compa- sulting. nies such as SunEdison of Beltsville, And Cogentrix Energy, Pathfinder Md. Capital Advisors and Abundant Power “Charlotte has a lot of big companies. Group finance renewable-energy com- I wish they could help small companies panies and projects. Green-energ y like us more,” Cheung says. grants from the state also have helped Local companies are still hoping to promising companies including SBM get in on the planned $13 million solar Solar and Sencera with manufacturing farm at Charlotte/Douglas Internation- startup costs. al Airport. The residential solar market One financing challeng e is that is flat, so winning commercial and util- renewable energy traditionally has ity projects is crucial, says Eric Blom- not generated high returns, says Bill endale, director of commercial sales at Taylor, vice president for global busi- Southern Energy Management Inc. ness development at Daetwyler-Clean The N.C. Department of Energy could Energy. Taylor recently formed a local help by accelerating distribution of chapter of the Renewable Energy Busi- federal block grants for green-energy ness Network, which has several dozen installation, Blomendale says. “It’s the members. mother lode of the money that’s out “Part of our mission is to stimulate there.” the economy and build a network of State or local rebates for installing complementary companies,” Taylor solar systems also would help, he says, says. “The high-level drivers are policy “anything that could help incent the There are many and financing. Because the market is so end users to help offset the costs.” Some new, we don’t have a lot of traction, we cities help homeowners finance solar ways To go green. don’t have a lot of depth, we don’t have installation, and then recoup the cost a lot of experience.” over several years through property some eVen InCLUDe Olsen says on a scale of one to 10, he taxes. would rank the Charlotte-area’s renew- Meanwhile, Blomendale says, strug- ComForT anD sTyLe. able-energy supply chain a six. gling renewable-energy manufacturers “We have all the ingredients. What we aren’t getting “the kind of support don’t have is a catalyst,” he says. “The that’s going to make them want to stay Natural Gas can make your catalyst is market demand. That comes very long.” Green-energy manufactur- home and your environmental from having a more transparent policy ers cut jobs by 18% last year, according allowing people to build and finance to the N.C. Sustainable Energy Associa- conscience completely com- tion census. “The intent and the vision renewable energy .” are there, but I don’t see any move- fortable because Natural Gas North Carolina’s regulatory structure favors large, regional, utility-owned ment.” can help reduce your carbon power plants, Olsen says. Renewable- Several other states offer energy energy companies build small plants manufacturers aggressive incentives, footprint up to 46%. Now you close to customers, but they need to be says David Swenson, vice president for can go green with comfort able to sell the energy produced to the economic development services at the utilities. There’s little incentive for util- Charlotte Regional Partnership. “We and style. See for yourself. ities to purchase that power, he says. have competitive incentives, but we Visit the Carbon Calculator “What we’re experiencing now is could probably do a little more in creat- we’ve opened the door, but we can see ing strategic incentives here,” he says. through our website below. the wall on the other side,” he says. A renewable-energy manufacturing The industry is pushing for feed-in tax credit could help, Urlaub says. The tariffs that require utilities to buy the governor and N.C. Department of Com- energy produced by renewable-energy merce have expressed interest and were sources at a small premium. Without considering including funding in the such a mechanism, industry sources fiscal 2011 budget. If they do, “it’s just argue, there’s no incentive for develop- going to make sense for end-product ing those second-generation facilities. “The solar-energy industry in par- manufacturers to locate in Charlotte and North Carolina,” he says. piedmontng.com © 2009 CRE ticular is very, very small and has very little clout,” says Eric Lensch, presi- Julie Bird is a Belmont-based free-lance writer dent and co-founder of Argand Energy who can be reached at hedline@carolina.rr.com.
    • 24 | energy Inc. CHARLOTTE BUSINESS JOURNAL WEEK OF ApRIL 23, 2010 charlottebusinessjournal.com Firm gears up to fund energy projects John Downey | Senior Staff writer gas project. Sam McNeil at River Capital olina — have approved such programs. jdowney@bizjournals.com says about 40% of its deals are in clean They allow a tax district — often munici- energy . palities — to issue bonds to create loan Capital will be key to developing the But Abundant stands apart in its dedi- pools for renewable-energy and efficiency new-energy economy in the Charlotte cation to clean energy and its division projects. All the projects are voluntary region and the Southeast. And that’s focusing on municipal efforts. The only for property owners in the districts. The where Shannon Smith directly competitive company, Smith loan is attached as a property lien, and and his Abundant Power says, is in Berkeley Calif. , the payment is made as part of the prop- partners plan to pay an For now, Abundant Power has two erty’s tax assessment. important role. divisions. Abundant Power Capital deals Abundant is designing turnkey pro- Formed in early 2009, with energy developers. Led by managing grams for municipalities that it can the firm expects to close partners Greg Montgomery and Roger administer for them. Besides Charleston, as many as three deals Bredder, it will provide investment capi- it’s talking with more than 50 munici- in clean-energy invest- tal for projects with proven technologies. palities across the country “There is no . ments in the next three Eventually this division will make invest- , upfront cost for the property owner, and months. It’s working ments from the energy fund Abundant the payback period is structured to be with Charlotte/Douglas Smith plans to raise. For now, it’s using money cash-flow positive with the savings on International Airport on invested by the partners and institutional energy bills more than covering the pay- a solar-power project. It also is negotiat- investors. Its Clean Source Project Fund ments,” he says. ing with Charleston, S.C., on a proposal to will also take advantage of federal tax This removes the large initial costs use bonds to pay for clean-energy projects credits that encourage development of for property owners who want to install in homes. clean-energy projects that create jobs in solar panels or efficiency projects. And it And later this year it plans to begin low-income areas. That could include removes fears they will pay in the short raising money for an investment fund small solar projects in North Carolina. term for benefits that might be reaped by of $250 million to $400 million for clean- All told, Smith says, his firm has talked someone else if they decide to sell. energy investments. to more than 100 developers, most of He says such programs will “turn “We want to provide the capital to them in the Southeast. The firm intends green-jobs theory into green-jobs real- transform the Southeast to a low-carbon to target middle-market companies. It’s ity” for communities that implement economy,” says Smith, a veteran Char- looking at investments of $5 million to them. He sees the potential for similar lotte investment banker who founded $50 million. programs with municipal power compa- Blue Point Capital in 2001. “We are proj- The other division, Abundant Power nies, electric coops and utilities. “We can ect-oriented because projects are where Solutions, works chiefly with munici- implement them with any kind of ‘on you create jobs and projects are where palities. Its goal is to develop renewable bill’ financing,” he says. you lower the carbon footprint.” projects operated by local governments. Abundant Power also plans to establish Other Charlotte financial groups are Led by Managing Partner Larry Ostema, a nonprofit fund, Abundant Hope, to sup- working in energy Boutique investment . it has worked on landfill-waste projects port faith-based and organizations to bank Fennebresque & Co. is working and solar programs, among others. A provide clean energy for impoverished with Alternative Power Output Group, key focus will be property-assessed clean communities overseas. a company that’s developing a process energy bond projects. “We intend to put some of our profits to convert carbon from coal plants into “This is the most transformational into that effort,” he says, noting the com- a biofuel. River Capital Partners here idea we have seen in clean energy Smith ,” pany’s sense of mission and stewardship was recently involved in a $10.3 million says. in clean energy “But we have to get some . investment in a Baton Rouge, La., landfill- So far, 18 states — including North Car- profits first.” Use your mouse impact: Duke has been key to the to get Charlotte recruiting effort from paGe 11 finds financing, it will invest about $36 Business Journal technologies. million in a production facility for com- ponents of solar panels. updates. Manufacturers hold great promise, McDonald says, from the generators and “The great thing about Charlotte in general is when business and govern- turbines made by Siemens for power ment get behind a good idea, it gets plants to components for wind turbines done,” Weaver says. “From a regional Charlotte Business Journal and solar panels made by smaller firms. standpoint, Charlotte’s ahead of the Web site – FREE! Duke Energy also is working to attract game. I think we have strong business manufacturers and green-energy compa- and political leadership that is certainly nies. The efforts are part business devel- capable of taking us to the upper tier.” opment — attracting manufacturers Economist Walden says Charlotte’s that will buy Duke’s electricity — and quest may be hampered by having only part economic development. The idea is one research university, UNC Char- to develop the sector by attracting engi- lotte. Its new Energy Production and neering firms and other employers, says Infrastructure Center likely will help, Clark Gillespy, Duke’s vice president he says. Its contributions to the develop- Daily e-mail updates – FREE! heading recruitment efforts. ment of the sector depend on what kind “In this particular field, companies of resources it offers the industry, and like to cluster around one another and its ability to attract research grants and build up a critical mass,” Gillespy says. top faculty . Being part of a large energy cluster can The energy field is crowded with com- only help Duke, he says, especially as it petitors. “Everyone wants to be on the expands renewable-energy production. cutting edge of development in energy ,” Duke is working with the partnership Walden says. “UNC Charlotte is think- and the Charlotte Chamber in business- ing in the right direction.” development efforts. The Electric Power Research Institute BUSINESS If you’re not CHARLOTTE The N.C. Sustainable Energy Associa- Inc. is another key resource for the using the tion in Raleigh also is collaborating with burgeoning energy sector. The non- JOURNAL free Charlotte Charlotte leaders on industry develop- profit group’s research and development Business ment. Ivan Urlaub, the association’s activities are based in Charlotte. The Journal Web executive director, says Charlotte is research focuses on energy generation, site and daily well-positioned for component manufac- transmission and distribution — the e-mail updates, you’re missing out on turing. The city stands to benefit from primary focus of the region’s power the best business tools in Charlotte. overseas demand for those goods. producers. The Web site is updated the moment “People are starting to talk all over McDonald says its presence in Char- news breaks. And the free daily updates push the most important news to you the country about the rise of Charlotte,” lotte “says a lot” about the region’s ener- once a day keeping your mailbox free. , Urlaub says. gy infrastructure. “I feel like we’re in a To sign up for the daily e-mails, look Britt Weaver, chief operating officer of better position than almost anybody .” for “Email Alerts” on the home page at Sencera International Inc., says several CharlotteBusinessJournal.com. Don’t mid-tier energy companies are rising in Julie Bird is a Belmont-based free-lance writer miss another day! Charlotte. Sencera could be one — if it who can be reached at hedline@carolina.rr.com.
    • WEEK OF april 23, 2010 CHarlOTTE BUSiNESS JOUrNal energy Inc. | 25 charlottebusinessjournal.com What they aRe sayinG aBout neW eneRGy capital: Bringing companies together to set powerful agenda Ronnie BRyant it; using, transporting or storing it; and in our regional energy industry, and ence asked the meeting planner why Guest Columnist even researching more about it. an average of 1,000 new energy jobs the event wasn’t being held in Char- Although most of these firms were are created each year. The attention we lotte. That started the ball rolling. A year ago, Duke Energy Corp. Chief around before last year, they now are attract helps fuel the sector’s growth. Companies, innovative people and Executive Jim Rogers invited busi- pulling together on a common goal With the regional energy industry’s great ideas have made our 180 energy- ness leaders from the under the Energy Capital umbrella. growth, we attract more attention. oriented companies in the Charlotte Charlotte area to dis- Working together, they understand the Being the New Energy Capital is about region successful. Our New Energy cuss how to leverage others better. It’s creating previously more than companies. It’s also about the Capital initiative taps into the tremen- regional capital — both unrealized synergies that reach into people who make up that industry Two . dous momentum they have created to human and material — untapped potential for the companies years ago, the trade group Women in highlight our expertise in the industry to accelerate our devel- and the region. Nuclear held its conference in Charlotte. and the way we welcome new compa- opment as an energ y New businesses, such as Greenfield The meeting attracted 500 attendees — nies. hub. The response was Power, a comprehensive solar company, several hundred more than the meeting We each play a part of this effort. overwhelming. More are starting up, and other, long-estab- held near Disneyland the year before. By talking up the industry, we help than 125 executives from lished ones, such as Toshiba America We heard one reason was because Char- the buzz grow. If you know of a com- about 100 firms took the Bryant Nuclear Energy, are moving to the lotte is known for its nuclear expertise pany within the energy-supply chain, first steps in the New Charlotte region. Understanding our — it’s a place to be. invite their representatives to regional Energy Capital initiative. corporate energy resources gives us a Last November, the Charlotte Region- energy meetings. Introduce them to our That first energy summit launched powerful story to tell as we recruit jobs al Partnership was approached to orga- region. We find that once they meet our the effort that continues to gather and investment to the region. nize a German-American Transatlantic energy professionals, they catch the momentum. To some, one of the most Our growing energy cluster attracts Climate Change Conference here. The excitement. surprising things is the number of com- other businesses that see opportunity . program, which featured renewable- Our region is emerging as the loca- panies involved in the industry. Just Our reputation as an energy center is energy innovation and policy sessions, tion of choice for energy interests. The take a look at the lists and bylines of spreading. The Charlotte region has a packed the house. talent in Charlotte USA is blazing new this Charlotte Business Journal supple- wealth of energy engineering, nuclear This year, London-based EyeforEn- trails in energy technologies and poli- ment for the Energy Inc. event. You will skills, natural gas leadership and an ergy is holding its first meeting in cies. We are the New Energy Capital. see names of people and companies you eagerness to move into renewable-fuel Charlotte with a nuclear focus. The best may not know. And they are all talking generation. Success breeds success. news about this event is that a partici- Ronnie Bryant is president and chief executive about energy — making it and saving More than 21,000 people already work pant in last year’s Washington confer- officer of the Charlotte Regional Partnership. How public policy plays critical role in growth here BoB MoRGan The competition to become the center included funding for about half the reduce cost and increase reliability and Guest Columnist of alternative sources is wide open. needed staff and faculty. Full funding transparency . The New Energy Capital effort, spear- of those staff resources will aid in the •Support investment credits at the The New Energy Capital effort ulti- headed by the Charlotte Regional Part- research needed by the energy industry federal and state levels for a consis- mately is about recruiting energy-relat- nership, has a public- and will lead to more jobs locating close tent policy for all energy sources. As ed jobs to the Charlotte region. policy component that to where that research is happening. we compete against other regions to Since last year’s summit, we have I have been pleased to •Support carry-forward financing for attract these jobs, we need investment seen significant strides toward that end lead. energy-facility (electric and gas) con- credits that are consistent for all ener- with several job-creation announce- The federal gover n- struction at the state level. Also called gy sources. ments. Celgard is expanding its facility ment and the state of construction work in progress, it is a •Support policy that permits the use in southwest Charlotte as well as build- North Carolina can term used to refer to a fixed facility of stimulus funds for foreign-owned ing a facility in Cabarrus County This . improve policies that used for generation, transmission or energy or engineering firms that pro- will add 289 jobs and investments of up affect cost, supply, envi- distribution services that is under con- vide significant employment in the to $91 million. ronmental issues and struction or not yet in service. Under region. There is at least one company in Morgan Siemens created the largest single other important facets most conditions, these costs cannot the Charlotte region already providing industrial announcement since IBM of the energy industry . be factored into customer rates until jobs that is denied access to stimulus in 1978 by announcing as many as 825 We believe a unified legislative agen- the project is complete or in service. funding because it’s foreign owned. jobs and investment of up to $170 mil- da across varied organizations creates The energy industry needs flexibility •Identify and aggressively pursue lion in construction, machinery and a more effective policy-changing effort because of the enormous cost of plant state and federal funding for energy equipment. CoaLogix will establish a than if there were only individual and construction and re-engineering of projects in the region. We should be second research and development facil- unstructured approaches. Issues to be transmission corridors. advocating for public funding that will ity, creating 60 new jobs and a capital addressed include: •Support an upgrade to regional and allow for the creation and growth of investment of over $12 million. •Support the full funding of UNC national electric and gas distribution energy projects. In our quest to be an energy center, Charlotte’s Energy Production and and infrastructure systems. This is Everything we do to grow Charlotte the presence and leadership of Duke Infrastructure Center. The N.C. General a federal issue and is often referred and the region as an energy hub adds Energy Corp. and Piedmont Natural Assembly has provided the funding for to as a smart-grid system. A smart- healthy diversification to our economy . Gas Co. Inc. give us a competitive advan- the construction of the building on the grid delivers electricity using two-way tage with companies focused on fossil Charlotte Research Institute campus at digital technology to control appliances Bob Morgan is president of the Charlotte Cham- fuels, nuclear production and gas. UNC Charlotte. In 2009, the state budget at consumers’ homes to save energy, ber. Accountants and Consultants www.bdo.com “I know exactly who you should call.” For 100 years...People who know, know BDO. The experienced and dedicated professionals of BDO’s Energy Practice offer a full range of services tailored to help address the changing needs of companies in all segments of the energy industry. 1001 Morehead Square Drive, Suite 300 | Charlotte, NC 28203 | 704-887-4236 www.bdo.com/industries/energy © 2010 BDO Seidman, LLP. All rights reserved. CHAR-BizJournalAd3-10.indd 1 4/5/10 2:10 PM
    • 26 | energy Inc. CHARLOTTE BUSINESS JOURNAL WEEK OF ApRIL 23, 2010 charlottebusinessjournal.com How N.C. renewable tax credits drive investment Jonathan Gross and Lee Peterson and rules it constitutes public funds. Guest Columnists This reduces the amount of the N.C. renewable credit that a taxpayer is The federal and state governments entitled to when that taxpayer elects to are encouraging the development of receive the federal 1603 grant instead of renewable energy through their tax the investment tax credit. codes by using credits to entice private This interpretation is preventing investment in the tech- federal renewable-energy policy from nology . being implemented by virtue of with- These incentives are drawing state support for the federal used with an N.C. law program and cut- that requires a certain ting the N.C. credit percentage of the state’s by 10% to 30%. Legislative energy generation come This has instant- change is from renewable resourc- ly reduced the es, known as a renew- number and size of needed able portfolio standard. renewable-energy Gross Fe d e r a l i n c e n t ive s projects in North to free up generally take the form Carolina. of two types of tax cred- P r o j e c t s s u c h the federal its: as solar photovol- •Production-based taics, which have stimulus tax credits, which are tight margins even dollars and based on the amount of with the full incen- renewable electricity tives, have been put investor produced. on the back shelf •Investment tax cred- u n t i l t h i s i s s u e equity that its that range from 10% is resolved. It is to 30% of the amount unclear why such a fills the invested in qualified Peterson position holds sway property, such as solar in North Carolina funding panels. today, but clearly gap for There are also a number of acceler- the situation is ated federal income-tax deductions h a r m f u l t o t h e renewable- for energy efficiency and renewable state’s economic energy. In many cases, federal benefits development while energy alone can pay down 40% or more of the not creating or sav- capital costs of equipment, which may ing existing jobs. projects This searchable version of the Charlotte Business Journal ’s Book be in addition to the 35% N.C. renew- Fortunately, there able energy tax credit. The American are opportunities and in turn of Lists is a new resource to help you build business. You can use Recovery and Reinvestment Act of this year to greatly creates jobs 2009 also created a 10% to 30% tax-free improve the N.C. federal “1603” renewable-energy grant Renewable Energy in north this tool for sales prospecting, career networking and business Tax Credit pro- from the U.S. Department of Energy and U.S. Treasury . g r a m , m a k i n g i t Carolina. research. Start growing sales now by going to our website. Technically, tax accountants face the more user-friendly complicated reality that such credits and bringing more come in many brands and flavors. The equity dollars into main brands are federal and state, the state. Special Searchable Enhanced Data and divide into transferrable and non- allocation provi- sions, similar to transferrable, specially allocable and Searchable by company, by executive and by non-specially allocable. Incentives can t h o s e a l re a dy i n business ranking also vary by the type of tax they off- place for the N.C. set, such as income, sales, property, or Historic Tax Credit another special tax, such as the gross and N.C. Mill Reha- premium tax that insurance companies bilitation Tax Cred- 24/7 Updates pay. Depending on the specifics, there it, would create greater investor flexi- Updated information on company profiles, will be differing federal income-tax bility in structuring these transactions. treatments of the state tax credit. In They allow for a “state credit” equity contacts and news some cases, the federal tax credits can partner that was primarily interested be taxable, as can the state credit. in the N.C. program along with a much These highly complex tax-accounting smaller share (as low as 1%) of the fed- Company Alerts rules become relevant to those seriously eral tax benefits and other economics. Legislative change is needed to free intending to go green because Congress Identifying updates on “favorite” companies and North Carolina are implementing up the federal stimulus dollars and that you choose renewable-energy policies through investor equity that fills the funding their respective tax codes. gap for renewable-energy projects and In North Carolina, progress for renew- in turn creates jobs in North Carolina. able energy was made last year with the Revisions to the N.C. statute protecting CRM Drag & Drop Function passage of House Bill 512 that included the intent of the federal 1603 renewable- Use to export contacts and connect with extension of the renewable energy tax energy grant program would help. credit through Jan. 1, 2016. It also added Also needed are provisions for special decision makers geothermal heat pumps as eligible, and allocation of the credits, along with allowed the credit to be taken against other proposed clarifications for the the gross premium tax that insurance N.C. Renewable Energy Tax Credit. BUSINESS CHARLOTTE companies pay, opening the door for These changes will increase demand their investment. by better matching investors to the However, recent hiccups have stunt- amount of tax benefits they need and JOURNAL ed the growth of the industry. Until the dollars they are willing to invest addressed through legislation, experts in North Carolina renewable-energy expect a pull-back on renewable energy projects. capital investment. That’s because the N.C. Department Jonathan Gross is a consulting principal and of Revenue has recently changed its Lee Peterson is a consulting senior manager at Visit our Web site for more information: positions for the federal investment tax Reznick Group. They can be reached at jona- http://www.charlottebusinessjournal.com/ibookoflists/ credits. It interprets the N.C. statute than.gross@reznickgroup.com and lee.peter- differently for the federal 1603 grant son@reznickgroup.com.
    • WEEK OF april 23, 2010 CHarlOTTE BUSiNESS JOUrNal energy Inc. | 27 charlottebusinessjournal.com Energy parks can remake old manufacturing sites Tom mcKiTTricK facility which was a textile dye manufac- , about 490,000 of these sites — occupy- mitting, planning, political and public Guest Columnist turing plant, is a perfect example. This ing 15 million acres — across the United support required for ReVenture Park is 667-acre parcel west of Charlotte is the States. astonishing. Happily, the cooperation The Southeast is littered with dormant largest underutilized industrial site in According to the EPA, these lands are from the city and county staff, elect- industrial complexes left in the wake of Mecklenburg County . environmentally and economically ben- ed officials and our neighbors is truly manufacturing’s mass My firm plans to transform the site eficial for siting renewable energy facili- refreshing. Our stakeholders understand exodus. These proper- into a renewable energy eco-industrial ties because they: the opportunity we share for enhanced ties can often be brought park dubbed ReVenture Park. •Often have infrastructure in place, energy and economic independence. back to life as energy ReVenture is one of the most ambitious including electric service, transmission Old and unused manufacturing facili- parks, where multiple and multifaceted energy-park projects lines, roads and water, and are adequate- ties should not be liabilities. Developing renewable-energy and being contemplated in the United States. ly zoned for this kind of development. an energy park on a dormant industrial alternative-fuel projects Our project will include a 49 megawatt •Are economically viable for reuse. complex is a rare instance when the pri- are created on one site. biomass-power plant, a 4 megawatt solar Cleanup costs have already been invested vate sector, public policy and environ- An energy park is a project, bio-diesel refining, a propane and the sites are ready for brownfield mental interests align to promote the property with multiple, fleet-vehicle conversion facility ethanol , agreements. clean-energy economy. As we create integrated power-gener- McKittrick transloading, a green wastewater-treat- •Can provide clean-energy job oppor- energy parks on old sites we transform ation facilities that also ment facility and a 160-acre conservation tunities. liabilities into an asset — the essence of enhance the environment and provide easement. •Take the stress off undeveloped lands recycling. employment. They create places where When fully developed, the project could for new energy facilities, preserving the ReVenture exemplifies a new vision to resources are maximized, where the use create more than 1,000 green jobs and land for other uses. reclaim our proud industrial heritage. of the word waste is forbidden. $900 million in net investment. Developing an eco-industrial energy We’ll demonstrate how to create an eco- Old manufacturing sites are good ener- The U.S. Environmental Protection park is no small task. Air permits have to nomically viable energy park and rein- gy-park candidates because of their exist- Agency and the U.S. Department of be secured, power-purchase agreements force to our nation that Charlotte is the ing heavy infrastructure. These sites are Energy’s National Renewable Energy negotiated, environmental-remediation New Energy Capital. often unused, contaminated and generate Laboratory are evaluating formerly plans approved, communities informed, no income or products. contaminated, dormant properties for financing obtained and permits secured. Tom McKittrick is president of Forsite Develop- The former Clariant Mount Holly East renewable-energy production. There are The amount of collaboration, per- ment Inc. Three factors will drive the advent of solar power Tom Kepper In the end, solar energy has to compete Think back to the early 1980s and the communications technology . Guest Columnist effectively on a cost-per-kilowatt basis Princess phone. Deregulation and innova- Power policy, economics and technol- to make sense, and increasingly do it on tion were happening in telecommunica- ogy is in its Princess phone phase. How The market for solar energy seems to its own merits. Solar professionals look tions at that time. well we open these doors for solar and be taking root, but successfully managing to grid parity — when solar costs match In 1981 — the same year Xerox Corp. other energy technologies will determine three market drivers will make the differ- the cost of electricity from a large utility introduced something it called a com- how far and how fast these technologies ence in how far and how fast it grows in plant. That is the magic number for real puter mouse and IBM Corp. introduced become a reality . North Carolina. Those three catalysts are competition. the world’s first mass-produced computer policy economics and technology develop- , The National Renewable Energy Lab — few of us would have predicted the Tom Kepper is president of Charlotte-based ment. says we will be at grid par- iPhone, e-commerce or a Kindle in tele- Greenfield Power. ity nationally in 2015. I see policy considerations two reasons we can reach All energy is subsidized in some way . this number. First, solar For the important needs of safe, consis- manufacturing costs will tent and ample electric supply for decades drop. Think of the expen- we have opted for a regulated system, and sive hand-held calculator Serving energy clients it has worked well. Natural gas wells are you may have purchased Abu Dhabi often drilled with tax credits. Renewable- in the mid-1980s that is Atlanta energy projects and natural gas wells are now an impulse purchase Austin entitled to accelerated depreciation. for under $5 at the check- Policy-based subsidies take varied forms, such as protected business ter- Kepper out counter of a retailer. Solar technology has the in the Carolinas and Charlotte Dubai Frankfurt ritories, temporary tax credits, grants or same ultimate trajectory . throughout the world Houston tariffs. The goals of subsidies are often The cost of a solar system that can London noble — reducing foreign-energy depen- power an American house has dropped New York dence, kick-starting technologies, build- almost 20% in the past year. The cost Paris ing supply or encouraging conservation, reduction is starting. Riyadh for instance. Problems arise when the effects of Technology is advancing San Francisco Silicon Valley subsidies don’t match their intent. Take Technology is the second driver for Washington, D.C. a look at the ethanol subsidies of the grid parity The efficiency of solar pan- . mid-2000s. Material costs and corporate els is increasing quickly In the past five . share prices skyrocketed only to drop years, photovoltaic panels have gone precipitously. Corporate share prices from 8% efficiency to 18%. That’s an that more than quadrupled in some impressive jump, and research promises cases now sell for a fifth of their original even greater improvements. price. In the end, ethanol-fuel capacity, Our electric-distribution grid is also its use, efficient investment of dollars going to change. Our current hub-and- and infrastructure has not reached the spoke system has large plants making predictions. energy sending power out from a central , King & Spalding’s energy practice has received international At one time the prediction was that location. Solar energy can produce some recognition: we would get half our motor fuel from power on a large and centralized basis, though solar’s big attraction is to use it -- One of the top energy and natural resources firms - Chambers ethanol. In the end, the policy framework for where it is made and reduce the depen- Global (2009) ethanol was not constructive for a reli- dence on the grid to carry it. -- Ranked in Euromoney’s (2009) “World’s Leading Energy and able national energy market or long-term The distributed-generation framework Natural Resources Lawyers” business planning. is the essential challenge of the smart grid — the next big thing in our electric economics of tax credits system. It is the next big thing. The smart King & Spalding is a leading international law firm with more Policies affect market economics. Poli- grid will displace our 50-year-old system than 800 lawyers in 14 offices across the U.S., Europe and the cies such as tax incentives drive much and integrate latest-generation technolo- Middle East. of the renewable market today Solar has . gies. A mature smart grid allows individ- a 35% N.C. tax credit. There is a 30% fed- uals and businesses to use grid electric- eral grant for the price of a qualified solar ity sell to the grid or be independent of it. , unit. A $15,000 retail cost of solar can The smart grid is where the three drivers actually be a $5,000 out-of-pocket expense. of the new energy age — policy econom- , These policies make the final per-kilowatt ics and technology — all converge. cost lower and drive investment. We have models of such convergence.
    • Where does corporate America find its go-to energy law firm? K&L Gates is proud to provide the legal power to the companies that power your world. More than 100 lawyers in 25 of the firm’s offices advise clients in all facets of the power generation, energy sales, and utilities industry. Our clients occupy virtually every energy sector: • Clean coal • Wind • Nuclear • Solar • Natural gas • Hydro • Cogeneration • Biomass From large multi-national investor-owned utilities to clean-tech start-ups, our lawyers have advised on the development, siting, construction, operation and management, retrofitting, tax credits, sale and acquisition of facilities generating more than 30,000 MW in more than 40 U.S. states and dozens of countries - enough to power more than 6.75 million households. To learn more, visit our web site at www.klgates.com. Il Grande Disco Arnaldo Pomodoro Mint Museum of Art, Charlotte, North Carolina Gift of Independence Square Associates. 1978.89 Anchorage Austin Beijing Berlin Boston Charlotte Chicago Dallas Dubai Fort Worth Frankfurt Harrisburg Hong Kong London Los Angeles Miami Newark New York Orange County Palo Alto Paris Pittsburgh Portland Raleigh Research Triangle Park San Diego San Francisco Seattle Shanghai Singapore Spokane/Coeur d’Alene Taipei Tokyo Warsaw Washington, D.C.