Colorado's place in the sun

State's weather advantages battle strength of regional co-ops in competition for investors

Gargi Chakrabarty

Saturday, January 26, 2008

Dennis Schroeder / The Rocky

Two blades on the ground frame the Westinghouse 600-kilowatt wind turbine undergoing inflow testing Tuesday at NREL's National Wind Technology Center in Golden.

Dennis Schroeder / The Rocky

NREL tests wind turbines Tuesday at its National Wind Technology Center in Golden. Manufacturers are Southwest Windpower, Distributed Energy Systems and Atlantic Orient Canada.

Dennis Schroeder / The Rocky

A replacement blade is ready for the Westinghouse 600 wind turbines - three-bladed and two-bladed in background - being tested at NREL's wind center in Golden on Tuesday.

One year ago, the governor set out to make Colorado the renewable-energy capital of the world.

"Let's start by being bolder than any other state when it comes to renewable energy," Gov. Bill Ritter said in his inaugural speech on the west steps of the state Capitol. "Let's commit right now to making Colorado a national leader . . . a world leader . . . in renewable energy. Let's create a 'New Energy Economy' right here in Colorado."

This "New Energy Economy" called for harnessing the sun, wind, and plant and animal waste. And more important, all the energies can be found on the state's soil.

But does Colorado have the financial muscle or the cheap labor to compete with Texas, Ohio or Michigan to draw renewable-energy investment?

Over the past year, bigwigs and startups - from London to Spain to Denmark - flocked to Colorado, betting the state is undergoing a seismic shift in the way it develops energy for the future.

"There has been a sea change in Colorado," said Ken May, a graying former scientist at NREL who now is division director at Abengoa Solar, a subsidiary of Seville, Spain-based Abengoa. "It's been pretty incredible."

Abengoa Solar, with U.S. headquarters in Lakewood, plans to triple its size in the next year. London-based Camco International wants to work on local projects to develop and aggregate carbon credits. And Danish company Vestas is putting the finishing touches on its first U.S. wind turbine plant in Windsor.

Clearly, investor interest is on the rise.

A Spanish delegation comprising about a dozen wind and solar companies is visiting Feb. 12 through 14 to check out Colorado's renewable-energy portfolio. Executives from Iberdola and Abengoa will spend an entire day at the National Renewable Energy Laboratory in Golden.

Spanish companies plan to spend $7 billion to $10 billion in the United States on renewable- energy projects over the next few years, said Paul Bergman of the U.S. Department of Commerce in Denver, which is organizing the delegation's visit next month.

Even local companies Ascent Solar, AVA Solar, PrimeStar Solar and Sunflower Solar are poised to become important players. FPL Energy, a subsidiary of Florida Power & Light, is scouting for office space in and around Denver and plans to hire about a dozen employees this year.

Scientific prowess

Colorado's advantages are obvious: 300 days of sunshine in a year, strong winds sweeping the eastern plains and plenty of biomass, or plant and animal waste.

It has the political will, evidenced by voters approving that a portion of their electricity should come from renewable resources. That Colorado can boast of NREL, a formidable force in renewable-energy research, is its "jewel in the crown," Bergman said.

Colorado School of Mines, Colorado State University and the University of Colorado not only add to the scientific prowess but also catapult the spinoffs and startups to commercial success.

But can the state translate those advantages into a tangible success at drawing renewable-energy investments?

Denver has an inherent drawback in that it competes with "megapolitans" such as Silicon Valley in California; Portland, Ore.; and Seattle, which have banded together to attract investors.

Moreover, Colorado can't offer financial incentives like Texas' or Ohio's to attract undercapitalized startups.

"Our biggest challenge is other states that do not have the wealth of resources, that do not have a lot of sunshine or wind, have financial resources to draw fledgling startups that we don't have," said Tom Clark, executive director of Metro Denver Economic Development Corp.

"We have to understand renewable energy is a big opportunity for Colorado. We have to compete with other states. And we have to up the stakes in a bidding war."

State takes action

Colorado's frenzied focus on renewable energy has taken scientists and supporters, long disappointed by the federal government's years of neglect, by surprise, especially since NREL has been around for about 30 years, and wind, solar and biomass technologies have existed even longer.

Colorado's biggest change, most observers say, has been its policy makeovers in past years. Voters forcing utilities to obtain a portion of their electricity from solar, wind or biomass has created an instant market for the fledgling industry, ensuring companies ready buyers for their products.

World-class institutions such as NREL, Colorado School of Mines in Golden, CSU in Fort Collins and CU in Boulder are pioneering cutting-edge research, intent on lowering the cost of renewable-energy technologies. They serve as magnets for startups needing help upfront with research and finance.

Most important, Ritter has been an ardent fan.

Important stimulus

"The governor's visibility on the issue has driven some of the (investment) decisions," Clark said.

One of the first bills Ritter signed doubled Colorado's goal for renewable energy, requiring utilities to get at least 20 percent of their electricity from renewable resources by 2020. He signed another bill that allows utilities to propose transmission lines and recover those investments from electric ratepayers fairly expeditiously.

Meanwhile, Xcel Energy - Colorado's biggest utility, which serves 1.7 million gas and electric customers - has been expanding wind and solar farms since voters passed Amendment 37, the original renewable-energy goal, in November 2005. That Xcel CEO Dick Kelly wants the company to become a green utility helps.

Ritter has appointed renewable-energy proponents Ron Binz and Matt Baker to the Colorado Public Utilities Commission, an agency charged with approving power projects to keep pace with the state's energy demand.

Another important stimulus, some say, came from Congress last year when it approved a $100 million infusion for NREL, reversing years of budget cuts and layoffs.

Before then, the lab was languishing on the back burner. In an article from Jan 25, 2007, The New York Times wrote:

"Thirty years after it was founded by President Jimmy Carter, the National Renewable Energy Laboratory at the edge of the Rockies here still does not have a cafeteria.

"Evaporation chambers for new solar energy systems look like they belong in an H.G. Wells movie. Technicians had to knock out a giant door from a testing facility to fit modern wind turbine blades, which now stick out like a bare toe from an old sock."

That was a far cry from today, as NREL hires scores of scientists and builds multimillion-dollar facilities to advance research. The lab's budget jumped 50 percent to $309.6 million last year and will be higher this year.

NREL still doesn't have a cafeteria.

Skilled labor scarce

But dark clouds are hovering over Colorado's renewable-energy future.

Companies say the availability of a qualified work force is a big concern. For example, Vestas wants to double its wind turbine plant in Windsor. That means it would need to employ about 650 skilled workers - an issue that company executives discussed with the Colorado Department of Labor and Employment.

"The challenge is that we still have a low unemployment rate here, say, compared with Michigan," said Jim Reis of the World Trade Center in Denver.

Moreover, Colorado is not a union state, so labor is comparatively less expensive here. So nonunion labor could be a draw for foreign investors, Reis said.

"The Japanese investors wouldn't touch Michigan with a 10-foot pole," Reis said. "We have the advantage, but that's not the only factor."

The fact that Colorado needs to nurture a viable work force to attract renewable companies is gaining traction among state officials.

David Griffin of the Department of Labor and Employment said his agency is working with companies to train people required at wind or solar farms.

Colorado could find it hard to compete with richer states such as Ohio and Texas that can offer huge financial incentives to draw companies. Those incentives are crucial for startups that need help upfront but may not be a big lure for mature companies.

Moreover, Colorado also doesn't offer much of a presence outside the U.S., except for a lone trade office in Mexico. That could become an issue if one considers that foreign companies, especially in Europe, have made big leaps in the invention and marketing of renewable energy and related products in past years.

Denver's biggest hurdle is that it is competing against other megapolitan areas, Clark said.

Megapolitans such as North Carolina, South Carolina and Atlanta, or the Interstate 35 corridor stretching from Texas through St. Louis., or even Arizona with Southern California can combine their financial and infrastructure resources to attract and retain investors.

"The challenge for us is that major metro regions in the United States are getting together," Clark said. "Denver is by itself; we cannot create a megapolitan area with Casper or Pueblo.

"The big challenge is to realize the vital importance of the Denver International Airport as our premier asset for competing in the global economy, and attention needs to be turned toward its expansion."

chakrabartyg@RockyMountainNews.com or 303-954-2976

Major power player

Colorado has become a magnet for renewable-energy companies. Its 300 days of sunshine annually, gusty winds and tons of biomass, plus top-notch research institutions and universities, along with an ardent supporter in Gov. Bill Ritter prompted many companies to set up shop here.

* Seville, Spain-based Abengoa Solar

U.S. headquarters: Lakewood

No. of employees: 20

What it is doing in Colorado: Abengoa plans to triple its size in Colorado by hiring more employees in the next year as it begins to work on utility-scale solar projects in the state and nationwide.

* London-based Camco International

U.S. headquarters: Douglas County

Employees: 14

What it is doing in Colorado: The company, which develops and aggregates carbon credits worldwide, plans to work on local projects and expand its staffing level in the coming months.

* Copenhagen, Denmark-based Vestas

U.S. headquarters: Portland, Ore.

Employees in Colorado: Estimated 650

What it is doing in Colorado: Vestas is building its first wind turbine plant in the United States near Windsor, 50 miles north of Denver. The plant is expected to be running in March.

* National Renewable Energy Laboratory

Headquarters: Golden

Employees: About 1,000

What it is doing in Colorado: The federal lab is hiring 100 highly paid scientists and support staff, building a $100 million research center and preparing to start work this year on a $55 million facility to expand its research into renewable-energy technologies.

* Ascent Solar Technologies

Headquarters: Jefferson County

Employees in Colorado: 33

What it is doing in Colorado: The company, which expanded from 10 employees in the beginning of 2007 and still is hiring, is a developer of thin-film photovoltaic modules. Hydro, a Fortune Global 500 based in Norway, owns a 23 percent stake in the company.

• January 26, 2008

  8:06 a.m.

  Suggest removal

  Froward69 writes:

  Really the only hurdle is the reluctance of Exel, Exxon/Mobil and the Republicans who subsidize them.

• January 26, 2008

  8:13 a.m.

  Suggest removal

  SASQUATCH writes:

  JIMMIE CARTER ERA ALTERNATIVES STILL B.S.

  What a crock, the energy alternatives of decades ago still remain alternatives today. If $100 crude couldn't do the trick, then they ain't ever going to happen, such alternatives are doomed to continue to make their tiny single-digit contribution to our energy requirements. Among the worst is ethanol that enjoys a 51 cent taxpayer subsidy per gallon at the same time government tariffs of 54 cents per gallon on ethanol imports prevent such from reaching the USA. Not to mention the associated massive fertilizer polution, 1000 gallons of water needed to produce 1 lousy gallon of corn ethanol and rampant food inflation. Generation old B.S. remanins today's B.S. B.S. is B.S.

  Meanwhile, 85% of the energy-rich outer-continental shelf is out of bounds, ANWR is out of bounds, nuke power plants have been out of bounds for 30-years, crude refineries have been out of bounds for 30-years, coal gasification projects are out of bounds, new shale projects are out of bounds and our own Vermillion and Roan are bottled-up in spite of a pipeline that will tap into CO's NG supplies and push our NG bills up by 12%.

  Its time for America to grab control of what it can control and start pumping. I would hate to see my grand children reading recycled stories about windmills, biofuels and solar energy--the same old alternative of a prior century.

• January 26, 2008

  8:38 a.m.

  Suggest removal

  Theoldguy writes:

  Since the "government" can't convince the utilities to get on the stick perhaps by helping "Joe Blow" to use solar on his roof and sending the surplus back to the power companies they may very well get the drift. Solar is now in its fourth generation and the silicon cells have been reduced to thin film. So, what's the hold up now? A dc/ac rectifier is a one time item and the film may have to be replaced in 10-15 years. But people in Colorado sell before something like that comes due.
  If for any reason it would be nice to be "off the grid" for security and true independence. Then an electric car would be a nice investment to drive around town. Free electricity everywhere.

• January 26, 2008

  8:54 a.m.

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  RainbowWarrior writes:

  If the next federal administration takes away the subsidies the fossil fuels get and redistributes them to the alternatives, we won't refer to them as alternatives for very long! There is a vision of a better future that has been held back for too long now. We owe many thanks to the people that have kept this vision alive for many decades against the beligerant obstructionist types like Mr. Bigfoot.

  I'd suggest the authorites keep an eye on that one, he's the type that would commit acts of terrorism against solar panels and wind mills to maintain the status quo.

• January 26, 2008

  9:58 a.m.

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  Earl writes:

  so they are going to put up wind turbines in denver? I doubt that but they will go to the country to put them up as they wont have to look at them. solar has been around for years and all I want to know is why all the fans of green and solar dont already have them in place? so rainbow do you have an all green life style? the stuff is here now and you just have to get it. must not be much of a market if the government has to mandate private business do their wishes. when is the govs free home going to be all green? shouldnt he lead the way if he says we have to be like california?
  I do like the comment of taking eveything from 'big oil' just a hillbillary has stated she would do as far as their profits, and giving it to someone else. if this is such a great thing and the demand is so high why is no one aout there doing it. we do have algore and his carbon credit company putting bs out and sending money to india for solar but nothing at home, i guess because it the governments job to put the money into it.

• January 26, 2008

  12:08 p.m.

  Suggest removal

  RainbowWarrior writes:

  I live in SW Colorado in a 1,350 square foot load bearing straw bale home w/ interior and exterior natural earth plaster walls. It was built from materials on site or within 75 miles for less than $80.00 per square foot. The walls are R45 and the roof is R30. My PV panels have generated a $500.00 credit on my electric bill this season, and my passaive solar rammed earth floors heat the whole house when the sun shines. I have a 74% effecient Odel stove that we have to be careful not to over fire in cold weather, because the surrounding thermal mass adobe wall picks up and generates so much heat we have to open windows...
  I am debt free, and have put the maximum amount possible in my wife's and my IRAs for 5 years now. We have contracts to build sustainable homes in the area through 2009. I have a back flow septic system that runs off the PV system that puts out almost potable water, that is used for an organic garden, fruit trees and grape vines. There is no water on my ridge so we have a collection system w/3000 gallon capacity that filled completely this past summer and fall. We use less than 200 gallons per week for 2 people and shower every day. I drive a 1976 VW campmobile that has a bio-desiel converted engine that gets 27 miles to the gallon and over 600,000 miles on it. It is in such great condition because of the climate down here I've had offers to sell of up to $20,000 from Californians passing through that see it. I was a founding sponsor of Built Green in Denver over a decade ago now, and that program has become an International Standard. There are many components of that program that have become so basic to modern construction that people don't even know the difference and the old methods or materials are no longer used; OSB engineered roof trusses and floor joist are but one example.

  I could go on and on to make bone heads like you look even more back dated and stupid than you are, but what's the point? I lead by example and through sharing knowledge. I prefer to wage peace, but as you can see I fight to win. You choose to fight for the status quo with lies and mis-in-nformation. While guys like me are already changing the world and building a beetter future for anyone who only has to ask. I stand under the big tent, while you will be left out in the cold to suffer the fate you have brought upon yourself.

  AHO!

• January 26, 2008

  12:26 p.m.

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  RainbowWarrior writes:

  One more dig, Jimmy Carter's Habitat for Humanity is one of the greatest Presidential legacy programs of our times. My load bearing straw bale system is in developement to become a packaged system and is being considered for use by this wonderful organization. If Regan had not been elected in 1980, this country would be in much better shape, the conservative movement is now dead after your boy Bush and the Repugs have had control of all three branches of government. Look at our eceonomy and the new guilded age that has been created. Look at the value of the dollar and how the international community looks upon us with election fraud in 2000, 2002, and 2004. TORTURE in our names, endless wars and wasteful stupid consumption that has raped the planet and has almost destroyed every ecosystem known. Greens should get compensation from fossil fuel industries and supporters to clean up the huge mess they've been able to make for the past 30 years!
  What comes around goes around. You can dish it out but now that the tables are turning you can't take, what a bunch of poor loosers.

• January 26, 2008

  12:41 p.m.

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  SASQUATCH writes:

  I live in a 1,350 squ/ft straw bale yurt, enjoy outdoor bathroom facilities, whipe with leaves, eat berries, roots & shots, and occassionaly catch a trout or take antelope, wild turkey, quail or rabbit. I get my water from a local stream where I bathe monthly with borax, don't wear clothes and make my furniture out of animal bones and fallen trees. I don't have a telephone, cell phone, automobile, bicycle or an 80 inch-plasma HDTV, but I have a windmill that powers my grist mill. I gave up motor cross, sky diving, tobacco and martial arts years ago but I still enjoy a little wiskey and women. I am both debt free and at peace with the universe. Whenever nature calls, I am ready.

  May the force be with you.

• January 26, 2008

  12:52 p.m.

  Suggest removal

  Theoldguy writes:

  RainbowWarrior

  If you know Bob south of Stonewall call him for my email address. Tell him I'm his old partner. Let's talk.

• January 26, 2008

  12:57 p.m.

  Suggest removal

  SASQUATCH writes:

  I have been know to sneak into the city at night and hang in the Civic Center with folks who look just like me. I enjoy the Denver food stores and can't get enough bean sprouts, tofu and all-natural, organic, no MSG, no articicial coloring, range fed, no preservatives added Australian spinach. I am partial to granola bars, carry a back pack and wear birkenstocks.

  If you see me, don't tase me bro!

• January 26, 2008

  3:13 p.m.

  Suggest removal

  RainbowWarrior writes:

  Stonewall is around Pitkin North of Hwy 50... I am south of Hwy 160 almost in New Mexico. You mock me and my good intnetions, why would I trust you?

  Thankyou for showing everyone how one side of this delema we share opperates at the expense of the other. Congradulations for making me feel sad today, about something that should make everyone proud and happy.

  As the Sun sets I will do a smudge and make prayer to Great Spirit as I have done for many years now that good intentions will always be met with a smile and understanding. For strength to be a path finder and a gate keeper for the seventh generation yet to come... to never pray for myself but only to be able to help others and make the world a better place than I found it... for our differences to make us strong and not tear of apart. To always be able to give back more than I take, and forgive those that cause pain to others for their own amuzement.

  I am a warrior, you have helped make me stronger today than I was yesterday, even though this is just a silly little war of words. Actions and deads will always speak louder than words lost in space.

• January 26, 2008

  5:55 p.m.

  Suggest removal

  sqjnk writes:

  sasquatch ,
  your childish actions bring shame to all bigfoot and yeti everywhere.

  raibow warrior,
  you are an inspiration who truly lives the words of ghandi,
  "be the change you want to see in the world"

  peace be with you both.

• January 26, 2008

  9:45 p.m.

  Suggest removal

  hakj writes:

  But does Colorado have the financial muscle or the cheap labor to compete with Texas, Ohio or Michigan to draw renewable-energy investment?

  Well I know we have the cheap labor. They're called illegal immigrants.

• January 26, 2008

  10:13 p.m.

  Suggest removal

  prk166 writes:

  I love how at the end it's snuck in that the key to all of this is expanding the airport.

• January 27, 2008

  4:55 a.m.

  Suggest removal

  italiaboy9 writes:

  Yeh, so what, they want to expand the airport. Duh! Why do you think it was built out in Kansas?

• January 27, 2008

  4:59 a.m.

  Suggest removal

  SteveM writes:

  Yes, the airport is at capacity and was planned to be expanded in 2020 when it was predicted to be at capacity. They were only 12 years off in their predictions--what happened is sort of the same thing as when you realize your kid's foot has filled his shoe. You buy him a size bigger and his foot grows two. Stapleton was like that too small shoe, and DIA was a size bigger. Fortunately, the airport has had a beautiful master plan with the ability to double in size, so that shouldn't be a problem. Moreover, the airport has proven wildly successful--recall that Southwest came and left and is now back and growing.

  Anyway, can someone explain why Texas and Ohio have more money to invest and lure companies in this field? I'm lost on that one. Maybe if instead of letting the energy companies rob us of our birthright rather than stockpiling the fees that New Mexico and Wyoming are collecting from energy companies pumping out their oil and mining their coal, we would have money to use on these plans.

  Finally, for the brilliant people who are still wondering why if solar and alternative-energy is so great and works so well how come we aren't already using it, you need to take some courses in economics right away before you destroy this nation with your ignorance. Is it lost on you the amount of money the oil and gas industry spends to ensure that you continue to use their product? If we all had solar panels on our roof, and cars that ran on compressed air that we could refill ourselves at night for pennies from the batteries charging during the day from our solar cells, then how exactly would Exxon Mobil make $3 billion in profits last quarter? Huh? Here's an idea for you, rent and watch “Who Killed the Electric Car” which will blow your mind and open your eyes to how this all works. See with your own eyes how GM bought the patents on the world’s best electric car batteries and then shut down the research from the poor sap of a scientist who spent his entire life perfecting the batteries and thought GM was really going to use them in their cars. He now has had to start from scratch on new technologies that won’t violate his own original patents.

• January 27, 2008

  7:46 a.m.

  Suggest removal

  Froward69 writes:

  Thank you SteveM.

• January 27, 2008

  5:54 p.m.

  Suggest removal

  Houstongolfnut writes:

  For the benefit of SteveM, Exxon Mobil makes $3 billion profit last quarter because they sell a lot of what they sell. However their margins are less than McDonalds. So if Mickey D. sold that many fries would you find fault with them? Probably so. More than half of Exxon Mobil's sales are foreign. So whatever we do here to discourage their success will not have much effect on their profits.

• January 27, 2008

  9:24 p.m.

  Suggest removal

  Charles_B writes:

  Good thread people!

  SASQUATCH, you are but a clever pessimist.

  I'll take the resourceful optimist any day.

  The company Ascent Technologies is really on to something- and apparently a sound investment as well:

  http://colotech.wordpress.com/2007/03...