Energy Forecast: Finding Power To Overcome | Energy firms predict growth even as economy worsens
WBJ File
Wind turbines
From major industry players to small companies still putting plans together, everyone seems optimistic, saying Barack Obama’s presidential win, tax incentives and a worldwide customer base should help them compete.
“With the new administration and the emphasis on stimulating the economy, I do think it will still be a solid economy for renewable energy,” said Ilze Greene, sales and marketing director for SolarOne of Framingham, which manufactures solar-powered street lights. “The area that may be hit hard is the area that depends on residential business.”
Evergreen Solar of Marlborough was the region’s fastest growing clean energy company this year, hiring nearly 500 employees for its new Devens plant. The company plans to add 300 more in 2009 after completing a second phase of building, bringing its total Massachusetts workforce to about 1,000 people, said Chris Lawson, the company’s director of marketing and communications. Devens has years of contracts lined up, protecting it from next year’s slowdown.
“The plan is to complete Devens and reach profitability in 2009,” Lawson said. “That’s the objective for us.”
Self Justification
SolarOne has just 12 employees, but also predicts a big year after wrapping up work on New England’s largest solar-powered street lighting installation at Mass Maritime Academy in Buzzards Bay.
SolarOne hopes to grow next year by saving customers more than just fuel costs. The company’s street lights save money on installation costs because there’s no wiring, digging up pavement or repaving, Greene said.
“The systems can justify themselves without the energy savings,” Greene said.
Then there’s American Superconductor Corp. of Devens, which will spend 2009 overseeing the $39 million Project HYDRA in New York City for utility company Con Edison and the Department of Homeland Security.
AMSC is deploying its new “Secure Super Grids” superconductor technology to prevent massive blackouts like the city experienced back in 2003. Superconductor wires can carry up to 150 times more electricity than copper wires and are more efficient.
AMSC anticipates major growth as the project nears completion in 2010 and other communities see the benefits.
“From a business perspective, it doesn’t take a lot for this to turn into a lot of dollars,” said Jason Fredette, director of investor and media relations. “A couple miles of cable could turn into big dollars for our company. There’s huge potential on the superconductor cable side.”
The 444-employee company manufactures superconductor wiring at its Devens headquarters, but also has operations that design and manufacture wind turbine parts in Austria, China and Wisconsin. Most of the wind turbines are bought for foreign markets like China.
“Those markets remain intact, so we’re not anticipating any significant impact to our business thankfully,” Fredette said.
Light Wind
Mass Megawatts Wind Power of Worcester is a much smaller player in the wind energy business, with just a handful of wind plants under its belt.
But CEO Jonathan Ricker sees things changing. He said the company is now working on a $125,000 unit for the U.S. Army and plans to unroll smaller units selling for $15,000 in 2009.
The company redirected its focus because the $700 billion bailout offers buyers a 30 percent tax credit, bringing the cost down to $12,250, Ricker said. His company has already received 100 inquiries from interested homeowners across the country, he said.
Ricker also sees potential in the small business market.
“Primarily we’ll be targeting the small businesses because they have higher electric bills than houses and they’re located in places where you don’t have a zoning issue,” Ricker said. “Like right now, I can’t have one because zoning would not approve it.”
Clean energy companies seeking investors admit they enter the new year in a holding pattern.
“Investors are a bit like normal people in that they see things around them,” said Jeff Bentley, CEO of CellTech Power of Westborough. “Everyone noticed $4 gas prices.”
CellTech Power was formed in 2001 after Thomas Tao created the first liquid tin anode fuel cell in his Hopkinton basement. Today, the nine-employee company is developing a fuel cell generator that reduces carbon dioxide emissions in half or operates on cleaner fuels like hydrogen and methanol. Other technologies being developed only operate on clean fuels, requiring users to fill-up at special filling stations or mail away for fuel until the nation changes its ways, Bentley said.
“Al Gore would like us to stop using coal immediately,” Bentley said. “That’s a lofty goal, but that’s just not going to happen.”
CellTech Power, which will initially market its generator for military uses, is currently researching how to limit CO2 emissions through contracts with the Electric Power Research Institute and the Department of Energy, Bentley said.
He expects CellTech Power to be a candidate for more funding if Obama follows through on commitments to regulate CO2 emissions and for investors to turn attention back to clean energy companies.
“Having the Obama administration focused on alternative energy in general, it’s going to be a better investment environment,” Bentley said. “There’s going to be more people working in (the field). It’s just going to be good for the industry generally.”
Sara Withee is a freelance writer based in Millis.
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