Energize your Cleantech and Energy Cluster

International Economic
Development Council
Cluster Crash Course Part 3:
Energize Your Energy Cluster!
November 18, 2014
IEDC’s Mission
Provide worldwide leadership and
excellence in economic development for
our communities, organizations, members
and partners
Kenneth Alston
Special Advisor for Finance, Office of the Secretary, US
Department of Energy
Washington, DC
Don Schjeldahl
Principal, Don Schjeldahl Group
Hendersonville, NC
David Myers
Executive Director, Ponca City Development Authority
Ponca City, OK
Kenneth Alston
Special Advisor for Finance, Office of the Secretary
US Department of Energy
Washington, DC
•Oversees financing of
projects and technologies
energy
–Initiatives for the President’s Climate
Action Plan
–DOE’s $32 billion Loan Program
•Formerly with White House
National Economic Council, energy
and entrepreneurship portfolios
•Private sector experience
–Simbol Materials
–Editas
–Booz Allen Hamitlon
5
Presentation to IEDC Energy
Clusters Webinar
Ken Alston
Special Advisor for Finance
U.S. Department of Energy
November 18, 2014
Agenda

Overview of the U.S. Department of Energy

U.S. Energy Trends

Resources

Follow-up Information
6
U.S. Department of Energy Overview
Department of Energy at a
Glance:
 The mission of the Energy
Department is to ensure
America’s security
and prosperity by addressing
its energy, environmental and
nuclear challenges
through transformative
science and technology
solutions.
Dr. Ernest Moniz, U.S. Secretary of Energy

$27.2 billion budget (FY
2014)
7
Department Of Energy National Laboratories
DOE’s 17 National Laboratories are the largest supporter of
basic research in physical sciences in the United States.
8
Technology Maturity
Least
Technology Maturity
Most
DOE Programs Support the Full Arc of Commercialization
Most
Initial Commercial
Deployment:
DOE Loan Programs
Office (LPO)
Commercial
Financing:
Private Sector
Financing
(Banks &
Bond Market)
Equity: Private
Debt: US Gov’t
Equity: Private
Debt: Private
Grants
Grants
R&D:
DOE Labs; ARPA-E
Demonstration:
DOE Applied Science Programs
• Energy Efficiency & Renewable
Energy (EERE)
• Fossil Energy (FE)
• Nuclear Energy (NE)
Technology Risk
Commercial Maturity
Least
U.S. Energy Sector Trends

Shale Gas and Oil Development

Action on Climate Change

Falling Costs of Renewable Energy

Infrastructure Resiliency and Movement toward
Distributed Generation
10
U.S. Shale Gas Map
11
Resources: DOE Energy Finance Portal
Available at
Energy.gov/finance
12
Resources: Financing Opportunities
13
Resources: EIA Maps (I)

Visit: EIA.gov/maps
14
Resources: EIA Maps (II)
15
Resources: EIA State Energy Profiles
16
Follow-up Resources

Additional Information:
 DOE
Financing: energy.gov/finance
 Federal
Government Grants: Grants.gov
 U.S.
Energy Information Administration:
EIA.gov

Email Me: [email protected]
17
Don Schjeldahl
Principal
Don Schjeldahl Group
Hendersonville, NC
•Founder, Don Schjeldahl Group
–manufacturing
–distribution
–office facilities
•27 years site selection at the
Austin Company
•Sierra Nevada Brewing, Mills
River, NC sustainability initiatives
•more than 300 location strategy
assignments in North America
and Europe
Clusters Crash Course 3:
Energize Your Cleantech & Energy
November 18, 2014
Don Schjeldahl, Principal
New Energy Economy – who is at the table?
Just about everyone.
New Energy Economy
10,001 ways new energy is
changing the world.
New Energy
Economy:
A global revolution in how we produce,
distribute and use energy
Achieving economic growth through a new energy
economy cluster strategy:
1. Identify local assets, opportunities, and challenges
through a New Energy Economy filter.
2. Target what’s right for your community
3. Ready your community for targeted investment.
What is Right for Your Community?
Projects that
grow your
economy.
Gr
Our Energy Future:
Expect “all of the above.”
•
•
•
•
•
Natural gas
Coal including “clean coal”
Nuclear (SMRs)
Hydro
Renewable
– Bio-fuels (field crops, algae,
wood pellets, other)
– Wind – onshore, offshore
– Solar – thermal, PV
– Geothermal (heat pumps,
hot water thermal power)
– Ocean
• Natural gas share of
U.S. electricity
generation double from
16% in 2000 to 30% in
2012.
• U.S. wind energy grew
15% in 2010 to 40
gigawatts
• World solar PV grew to
18.2 gigawatts in 2010,
up 139% Y/Y
Domestic Natural Gas
Will this be “The Natural Gas Century?”
Robust Supply Chain
• Drilling Equipment
• Pipe
• Rail Tank Cars
• Truck Trailers
• Pumps
• Valves
• Chemicals
• Containers
• Fracking Sands
Natural Gas Fueled Base Load
Power Generation
Mitsubishi Power Systems Savannah, GA
Packaged power plants
market are growing
worldwide. Recent major
investments in
manufacturing plants:
• Mitsubishi
• Siemens
• General Electric
• Alstom
• Areva
• ABB
Smart Grid is the Glue of a
New Energy Economy
Smart Grid: Capture and act on real time data.
Midwest
Independent System
Operator (MISO),
“We Take all the
wind we get and
build delivery
around that.”
UPS – a window on the
New Energy Economy
All new tractor-trailers purchased this year will
run on liquefied natural gas
Indianapolis Kinetrex
Energy will serve parcel
shipper UPS with LNG fuel
to run 1,000 semitrailer
trucks. Project partner
Cummins Engine
Green Building Systems
IDI advances green design in large
footprint speculative warehouse
buildings. Building materials are
often manufactured locally to serve
regional markets.
Clockwise:
underground
cistern, insulated
tilt-up panel,
roofing insulation,
solar panels.
Energy Driven Innovations
• Transport optimization – “there’s an AP for that”
• GE Aviation – matrix ceramics composites – cowling
allows engines to run hotter (more fuel efficient)
reducing the need for compressor size reducing weight
(saving fuel)
• Borg Warner – turbo chargers – delivers same
performance with smaller engine – fuel savings. Ford
Motor’s “Eco-Boost”
• Elan Musk – Tesla – investing $5
billion / 6,500 employees Reno,
NV “GW battery plant”
Has the time come to pursue
“scale economies?”
Saving Energy* through Material
Science
“Body in white”
• Alcoa retools rolling mill in TN
• $150M rolling mill under
construction in Bowling Green
KY - Constellium N.V. & UACJ
Corp.
Carbon fiber & composites
• $1.8 billion project now looking
• BMW expansion of Moses
Lake, WA
* 2016 CAFE standard for cars 37.8 mpg, for trucks 28.8.
Example of
Cluster Analysis
The wind industry is a
low volume market for
specialized products.
 Global = compete globally
from a single factory
 North America = compete
in North American from a
single plant
 Super Regional = plant
serves a super region, 2
plants serve North America
 Regional = 3+ regional
plants serve North America
Onshore Wind Supply Chain
Is Your Community Ready to
Support this Sector?
• Certified “project ready” sites and buildings are
aligned with sector requirements
• Utility infrastructure in place, priced appropriately
• Training resources aligned with sector needs
• Active industry association in support of industry
targets is present
• Community is green oriented, including programs for
recycling of industrial waste stream
• INCENTIVES are targeted to unique requirements of
targeted sectors
Local Programs that will Support
Sector Growth
1. Boost Entrepreneurship
a. Support incubation
b. Encourage networking
2. Foster Existing Businesses’ Growth
a. Promote global connections
b. Support access to financing
3. Ensure a Skilled Workforce
a. Involve employers in design and deliver
b. Develop sector strategies - supply chain
4. Set an Example – local adoption of new energy systems
Help Existing Industry to Prosper in a
Changing Energy Landscape
1. How is the new energy economy manifesting itself in
this industry?
2. Has climate change already altered this industry? Will
it in the future?
3. Does the changing business landscape threaten this
industry? Create opportunities?
4. Is your community aligned with the changing needs of
this industry?
5. Are you engaged enough with this industry to address
local business challenges?
D
Effective Investment Attraction is a Team Sport
Thank You
Don Schjeldahl, Principal
Don Schjeldahl Group
www.DonSchjeldahlGroup.com
David Myers
Executive Director
Ponca City Development Authority
Ponca City, OK
•Executive Director, PCDA, since
2003
•Prior positions
–Greater Antelope Valley
Economic Alliance
–Los Angeles County Economic
Development Corporation
•Oklahoma Economic
Development Council professional
of the year, 2008
David Myers, CEcD
Executive Director
Program Goal
To help Ponca City’s industrial
companies win more contracts
What ICAP Does
1) Education about how to become
certified (and in what);
2) Technical assistance in preparing for an
audit;
3) Mock audits;
4) Pay up to $5,000 for the cost of the
audit itself;
Budgeted
1) Staff Time (BRE Director);
2) $10,000 a year budgeted;
Results
Five Companies certified to date on three
different international certifications
Program Goal
To make Ponca City’s industrial facilities
the most cost competitive plants
What Lighten the Load Does
1) Show companies the value (savings);
2) Connect them with the participating lighting vendor
3) Connect them with the participating bank
4) Coordinate Rebate Checks
Budgeted
Staff Time (BRE Director)
Results
$500k in annual savings at 15 companies
Bonus
2014 Henry Bellmon Sustainability Award
Goal
1) Fill skilled positions
2) Encourage dynamic training
in companies;
3) Mobile training;
4) Inspire kids in math, science
and hands-on skills
Budget
$375k Capital
Results
40 hires
50+ schools, 20,000 visitors
Utility knifes for major company
Program Goal
To make Ponca City more competitive
on workforce by providing a tool to
companies to help fill key roles
What Ponca Works Does
Provides a dedicated and free
headhunter for local companies;
How
1. Assistance with job development
2. Connections with state networks
3. Social Media
4. Job Fairs
5. Word of Mouth
Budgeted
1) $65k payroll (loaded)
2) $20k in hard costs
Results
1) 170 Placements
2) $4.5 mi. in annual payroll
Manufacturing in
Oklahoma
1. Tulsa
400,000
2. Oklahoma City
610,000
3. Broken Arrow
104,000
4. Lawton
97,000
5. Ponca City
27,000
Manufacturing News, 2012
Proposed Action Items
1. Feasibility Studies
2. Build Wind Energy Inventory
3. Launch Solar Power Industry Initiative
2010
4. Revolving Loan Fund for GSHP
5. Wind Energy Election Promotion
6. Installing GSHP in Industrial Facilities
7. Load Management Leadership
8. Smart Grid
9. CNG and Plug in Hybrid Stations
SAGE Backbone
•
•
•
•
•
100% Free City Wide Wireless
Smart Meters installed
Technical Training-Pioneer Technology Center
Project Lead the Way and OSSM at PTC
Instrumentation Technology program
at Northern Oklahoma College
• Oklahoma State and OU programs
• Business Infrastructure support (connections)
• Workkeys Orientation and Testing
In Operation
166 Turbines (1,700)
295 MW (3134 MW)
Under Construction
94 Turbines
150 MW
Planned
175 Turbines
377 MW
“Connie Lou”
PCDA Owned/Developed
22,500 Steel Building
Added Lease Cost w/GSHP
$1,400 per month
GSHP Add Budget
$278,000
Net Utility Cost Savings
$3,400 per month ($40k annual)
Result
Log10
20k industrial space
2,500 office space
Four acres
Bottom Line: Ponca City
Energy Company Growth 2010-Present
Mertz-Expansion
K&C Manufacturing-New
Consolidated Oil Well Services-New
MJ&H Manufacturing-New
T. Rowe Pipe-New
Continental Technologies-New
Precision Tool and Die-Expansion
Company X-Expansion
David Myers, CEcD
Ponca City
Development Authority
[email protected]
www.goponca.com
Q&A
Future IEDC Webinars
November 25: Advancing Your Manufacturing Cluster
– Angelos Angelou, AngelouEcononomics; Sue Helper, Department of
Commerce
December 2: Flying High with Aerospace and Defense Clusters
– David Brandon, Site Selection Group
December 9: Informing and Communicating Your ICT Cluster Strategy
– Daniel Kah, Greyhill Advisors
December 17: Spirited Businesses - Growing Your Region's Craft
Distillers
January 21: Transforming Your Elected Officials into Champions for
Economic Development
Stay in touch!
Thank you
for joining us
today!
Please email us questions at:
[email protected]
Or visit IEDC website:
www.iedconline.org