6. Source: Cleantech Venture Network Annual North American Cleantech Venture Capital Deals and Investment Totals 2001 to 2007 (Millions of US Dollars)
7. Wind Energy Pennsylvania is expected to have between 3,000 and 4,000 megawatts of wind energy installed by 2021, enough to power 850,000 homes
8. Pennsylvania is expected to add 850 megawatts of clean, renewable solar energy capacity by 2021, enough to power almost 80,000 typical homes Solar Energy
9. Pennsylvania has the manufacturing capacity to provide at least 85 million gallons per year of biomass-based fuel Biomass-based fuel
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13. Pennsylvania’s Energy Financing John Sider Deputy Secretary, Technology Investment Office Department of Community and Economic Development
Editor's Notes
Thank you for having me here today. I want to spend 15 minutes talking about the overall picture of the alternative energy investment fund and how it relates to three things:
There are many drivers that push the Alternative Energy economy, but I want to highlight just one: Pennsylvania Alternative Energy Portfolio Standard. Bullet 1: this will equal an estimated 36 million megawatt hours (or 450,000 homes) from our current total of 1.2 million megawatt hours.
If we take a step back, we see we aren’t the only ones who have implemented Alternative Energy Portfolio Standards. Our sister states as well as the federal government have made alternative energy a priority. There is a huge amount of demand clustered around the Northeast and Mid Atlantic making the competition to attract companies looking to offer Alternative Energy resources fierce.
Compliance-based purchasing refers to purchasing of technologies due to legislation or regulatory edict, e.g. to comply with Clean Air Act, Clean Water Act, etc. Today, companies are looking at purchasing cleantech for strategic advantage, to gain market share, to cut operating expenses – and not just to because someone else told them they had to.
Cleantech venture capital deals have increased 10x in 6 years and continue to grow
Through the work of Governor Rendell and the legislature, Pennsylvania has become a leading destination for alternative energy businesses that create jobs and lead to a cleaner environment. Currently there are 600 megawatts in 540 turbines. The strategy to reach this goal has been to attract more global companies to Pennsylvania through resources offered by the Office of International Business Development and the Governor’s Action Team, both housed within DCED. Now, with the AEIF, we can really jumpstart these efforts. Two examples of wind energy companies that have located in Pennsylvania with the help of OIBD and GAT with existing resources: Gamesa , the second largest wind energy manufacturer in the world, has invested over $175 million in Pennsylvania and created at least 1,200 jobs at three Pennsylvania sites, including the only US location for wind turbine generator blades. Gamesa also has its US headquarters and East Coast development offices in Pennsylvania. Iberdorla , the world’s number one wind energy company invested $30 million to enter the US wind market. It now has locations in northeastern and southwestern Pennsylvania. These locations employ about 80 people NOTE – John, as per David Briel Iberdrola is a developer.
The Pennsylvania AEPS contains one of the most ambitious standards for solar power in the nation, requiring that solar energy generate 0.5 percent of all electricity in the commonwealth, an equivalent to powering almost 80,000 typical homes per year in Pennsylvania. AE Polysilicon will manufacture polysilicon, the raw material used to produce the solar cells and modules that convert solar energy into electricity, in Pennsylvania. The company has invested over $100 million to date. It is also expected to create more than 140 jobs.
Lake Erie Biofuels produces 45 million gallons of biofuel per year, making it leading producer of biodiesel in the northeastern United States. The company has created nearly 300 jobs and invested more than $49 million in Pennsylvania. The company has invested more than $250 million in a Pennsylvania plant to produce 100 million gallons of corn-based ethanol when fully operational in 2010. The plant will have about 110 workers, and will be among the largest such facilities in the US. They are also constructing a pilot cellulosic ethanol facility. If we can get to a billion gallons a year of capacity we can offset the amount of foreign oil PA imports every year.
I’ve given you some examples of the projects that were done with existing resources, but now we have dedicated and far broadened our resources of finance that will = position us to grow in the next generation of global lending alternative energy companies here in Pennsylvania. The Alternative Energy Investment Fund was enacted on July 9, 2008 and provides $650 million in funding and tax credits for Alternative Energy and Conservation. This boost will ensure that Pennsylvania is poised and on the right track to be energy independent. These new resources are critically important today from an economic development and job-creating perspective. The passage of the alternative energy investment fund allocates approximately $335 million to DCED to support measures that will create thousands of jobs. Infrastructure (Large generation projects) Economic development projects (job creation) Alternative energy companies (like the examples from earlier) Early-stage activities (start up tech companies and development)
The Ben Franklin Technology Partners are a proven-effective technology based economic development network that has been serving the Commonwealth for 25 years. They have the expertise and infrastructure to capitalize the states inherent resources and to accelerate technology development and commercialization across the Commonwealth. With their $40 million allocation the BFTP will continue to provide: Management support: by recruiting seasoned entrepreneurs with both the functional and technical skills that will be required by emerging clean/alternative energy companies; strategically align executives as mentors with emerging companies; Translational Research: by providing funding for activities to identify and test commercial applications of discoveries emerging from universities, industry and federal laboratories in order to gauge commercial potential Incubation: by providing business and technical support through incubators, which is critical to successful growth and development of new companies. By providing Company Investment/Seed capital: capital is the life-blood of a tech start up. After tapping out private resources, new companies need to emerge into a real venture capital candidate. With seed funds, BFTP will better position companies to make them attractive the venture capital firms.
The Pennsylvania Initiative for Energy and the Environment leverages the commonwealth’s first class research institutions and universities. This is where a lot of innovation and ultimately jobs begin. However, there is a still a lot of work to do: We have to have better batteries and energy storage We have to make solar energy cheaper We have to find a way to sequester carbon dioxide We are working to ensure the technologies that address these issues come from Pennsylvania researchers.
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