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Experience Talks
July, 2007

Jim Senall
Managing Director, Business Development, Emerging Business Sector, Greater Rochester Enterprise

From Our Green Business Issue


"Cellulosic ethanol is made from non-corn feedstocks, such as corn stover, wood chips, grasses, etc...
Our region is on the forefront of this new technology,
which is very exciting."

Senall serves as director and board member of the Rochester Angel Network, a group of 30 accredited investors interested in seed and early stage business opportunities. Prior to joining GRE, he was a management consultant providing business planning, growth strategy, and fundraising services to startup companies across Upstate New York. Previous to that, he was head of sales and marketing at Advanced Vision Technologies, Inc. Senall holds a bachelors degree in electrical engineering from Rochester Institute of Technology, an MBA in marketing and entrepreneurship from the Simon School at the University of Rochester, and is a member of Beta Gamma Sigma National Business Honor Society.

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Senator Hillary Clinton has stated that western New York could become a mecca for green technology. Do you agree this is really possible?
Yes, absolutely. Our region has a unique set of assets that play across multiple alternative energy sectors, which positions us very well. For example:

1) Biofuels-The biofuels sector is growing very rapidly right now. The Rochester region has both the agricultural and research and development capacity to be a major player. Just last year $287 million of investments in new biofuels projects were announced in our region. How many other industries have had that much investment here lately? And perhaps more importantly, one of those new plants is a next-generation "cellulosic" ethanol facility-the first pilot production scale plant in the country.

Rochester will become an increasingly important part of the [wind power] supply chain, as well as final production of wind turbines.
2) Wind Power-The wind industry is also experiencing tremendous growth right now. In fact, supply can't keep up with demand. There is a two-year backlog in production and delivery of large wind turbines. Our region has the manufacturing know-how and capability to supply many of the components for these turbines-and local companies have already started to enter the industry. Demand will continue, and Rochester will become an increasingly important part of the supply chain, as well as final production of wind turbines.

3) Solar Power-Solar is also a rapidly growing industry, despite the fact that the costs are still higher than some traditional energy sources. Current technology utilizes silicon wafers to make the panels. Most of this expertise is on the West Coast-not in Rochester. However, the industry is currently at a transition point, moving away from silicon panels to thin-film technologies, which will reduce costs significantly. This is an area where the Rochester region has perhaps more expertise than any other region in the world. With expertise at local companies such as Kodak, Exxon Mobil Films, and Bausch & Lomb, our workforce is well trained in the production of coatings and film manufacturing. Because of this we are well positioned to become a leading location for solar R&D and manufacturing.

4) Fuel Cells-This is a technology that is still a few years away from prime time, but our region is already a leader, thanks to the work of GM, Delphi, and our local universities. In May, GM launched the first ever 300-mile demonstration of their fuel cell cars-starting right here in Honeoye Falls. This June, the fuel cell industry descended upon Rochester for the Fuel Cells 2007 national conference. As we continue to build our regional expertise, we again will be well positioned as that industry transitions from R&D to commercialization.
In addition to the opportunities mentioned above, our region is also the first place in America to have a United States Green Building Council (USGBC) certified "Greenprint," or action plan for the region. There is great support from the public sector, including the City of Rochester, several local counties, and at the federal level with leaders such as Senator Clinton. Putting that all together, it's pretty clear we truly can become a "mecca" for green technology. Now, what we all need to do is get out and tell the world every chance we get, as ambassadors and matchmakers for the region.


Of the emerging energy sources, which does GRE think has the greatest market potential?
According to market research firm CleanEdge in their Clean Energy Trends 2007 report, all four sectors are predicted to grow very rapidly in the U.S., with predicted market sizes as follows:

All of them represent huge market potential. Even fuel cells, which will just begin hitting moderate commercialization in the 2015 time frame, represent a $15 billion market opportunity. Our region needs to aggressively compete in all of these sectors, and we have a legitimate play in each.

That said, if I had to pick just one, I would keep my eye on solar. If thin-film technology gets perfected, and the cost of solar drops significantly, that sector will witness explosive growth. Our region could find itself in a great position if we've played our cards right.

What types of incentives to enter the alternative energy/green sector are available from the state, county, etc.? What are the current opportunities?
For companies interested in expanding in the Greater Rochester region, there are incentives at the local and state levels, including the Empire Zone program, which might apply. Specific to alternative energy, there are also many great programs available through the New York State Energy Research & Development Authority. To give just one example, NYSERDA has a current opportunity available that provides up to $1 million for companies that are setting up manufacturing operations for alternative energy products. The NYSERDA Website lists all of their programs, both for business and residential: www.nyserda.org.


Is the High Falls Brewery/ethanol proposal a viable one given the $3-4 million investment?
Without knowing all of the specific project details, it's hard to say for sure, but in concept this makes great sense. Any time you can take a waste stream and turn it into a valuable product, that's a win-win situation. Coors is doing the exact same thing at its plant in Golden, Colorado, and I suspect many other breweries will follow suit.


Where can we find more information about green buildings, wind power, alternative fuels and solar power?
The best starting points are usually industry associations, such as:
US Green Building Council: www.usgbc.org
American Wind Energy Association: www.awea.org
Solar Energy Industries Association: www.seia.org
Renewable Fuels Association: www.ethanolrfa.org
National Renewable Energy Lab: www.nrel.gov


How open are the local towns and villages to green technology initiatives? Could a business owner, for example, put up a windmill if he wanted to, in say, Henrietta?
This really varies from town to town, and it varies by what technology you're talking about. Wind turbines seem to provide the liveliest debates. Some people love them, some people hate them. If you're in a populated area, chances are you aren't going to put up a large turbine. But there are other options. If a business owner wanted to put up solar panels, there would likely be little, if any, debate. Geothermal systems are another option. They utilize the earth's temperature for heating and cooling, and are completely unobtrusive.
The first place a business owner should start, though, is with projects that improve energy efficiency. This is typically the low hanging fruit, and can provide significant cost savings to the company. Plus, there are numerous incentive programs available from NYSERDA for these types of projects.

Saving the environment is great, but businesses need to worry about the bottom line for their shareholders. Why should they care about all this green stuff?
According to the USGBC, on average, green buildings save 40% in water use and 30% in energy use, and result in more productive employees. I'd say "going green" makes pretty good business sense. Visit www.usgbc.org to learn more, or check out the Rochester Region's Greenprint at www.RochesterBiz.com/greenprint.


What kind of car do you drive?
My family has a flex-fuel GMC Yukon XL, and an Impala, which will likely be replaced with a hybrid when the time comes. I also purchase green power from my energy supply company, and I recycle. All of that, and I've never hugged a tree.
BSM