AUTUMN 2008 | Vol. 2 | No. 3
James A. Croce, President/CEO, NextEnergy
 Nearly six months ago, I informed NextEnergy's Board of Directors and my staff that it was time for me to leave our great non-profit organization and return to the for-profit sector where I began my career nearly 25 years ago. After nearly five years at the helm, I am proud of the accomplishments of NextEnergy's capable Management and staff in delivering against its mission of accelerating the alternative energy economy in Michigan.
As for me, it was time to climb new mountains. Although not entirely clear where I would end up in this next phase of my career, I knew my strong passion for energy entrepreneurship would guide me. For me, it was time to take a carefully conceived and calculated personal and professional risk. Much has happened over this 6 month transition period. We have lived through a substantial worsening of the national economy, including a meltdown of the financial markets, a slow grind towards eventual passage of Michigan's energy restructuring legislation, and a local leadership crisis that hampered the progress of our great city of Detroit.
From a personal perspective, during these past six months of national and local duress, my prospective business partner was stricken with a debilitating bout of cancer, too many dear friends and family have suffered job loss, and I have sent my first child off to college. So the challenges of our time, both macro and micro, have been real and heartfelt. Yet, notwithstanding all the above, this six month period of transition and uncertainty has been among the most rewarding times of my life.
I share this personal detail with you for a very specific reason, and that's because I believe there is a lesson we can all internalize in my recent journey. And that is this. Every day, we each are provided with opportunities to engage in risk-taking. We can either let the fear of failure paralyze us into inaction...or we can accept risk and move forward with faith, hard work, quiet confidence, and optimism. It's our choice. We have to respond.
Leadership sometimes compels you to leave your comfort zone to begin what your gut and your God, declares is a worthwhile journey. Especially harrowing is the inability to see your ultimate destination. That is the essence of accepting risk. It's scary. It's exciting. But most of all, it is essential...for both personal and professional growth. This has been my personal story over this past six months...months fraught with uncertainty, but also, months blessed with some compelling career paths, each leading to altogether different destinations.
My own journey took several unexpected turns before ultimately bringing me to an amazing destination...the Lipten Company. Lipten is an emerging Michigan-based powerhouse in the energy services industry. As President and COO of this great Michigan model for business diversification, I am partnering with Lipten's CEO, Jim Spencer, in capturing the numerous opportunities for engineering and construction services brought about through the worldwide acceleration of energy infrastructure development.
I had no means of seeing this outcome when I announced my departure from NextEnergy in March, but could not be more pleased with the destination in Lipten and, equally as important, the invigorating journey of professional and personal self-discovery that accompanied the adventure.
Like the countless number of Michigan businessmen and women NextEnergy has helped, my next contribution to Michigan via the economic activity of Lipten Company, is a product of NextEnergy's efforts to diversify and grow Michigan's struggling economy. It has been a privilege and an honor to work alongside the NextEnergy team. With both pride and respect for the organization, I can safely say that NextEnergy's leadership team, including Dave McLean, Ken Fiema, Dan Radomski, Jim Saber, and Mark Beyer, along with their respective expert staffs, are well prepared for the road ahead.
With this team in place, along with NextEnergy's excellent Board of Directors, led by Chris Rizik, CEO of the new Renaissance Venture Fund, I look forward to NextEnergy reaching new heights...and to continue energizing Michigan's energy economy through sound growth based on hard work, progressive thinking, and responsible environmental ethics.
No "Good-byes" from me, instead...Godspeed...and I'll see you soon. |
Strategic Energy Solutions started as a storefront in Ferndale, MI, and is about to move into their new headquarters a few miles away in Berkley. What's the big difference? Besides more room for this growing company, the new SES building will feature the GeoExchange heating and cooling technology that Strategic Energy Solutions designs and constructs for office buildings, schools, and health services facilities throughout the state and beyond. Company President Steve DiBerardine is quick to point out the difference between geothermal power generation technology and the less well-known GeoExchange space heating and cooling alternative. "With geothermal power generation, you have to drill down hundreds or even thousands of feet into the earth's crust to obtain the high temperature heat desired for that technology. With GeoExchange you only have to go down 6 to 8 feet for a horizontal system. Vertical systems are installed at depths up to 300 feet. It's a different concept entirely, and one that's been around for decades."
GeoExchange heating and cooling systems work by using the earth as a constant temperature thermal mass to draw heat from or reject heat to, depending on whether the system is in the heating or cooling mode. GeoExchange systems operate at a 30-60 percent cost savings, as well as being earth-friendly, comfortable, dependable, safe, and can provide water heating as well.
The science itself is simple. In lower Michigan, the temperature of the earth is a relatively stable 50 degrees Fahrenheit beneath the frost line. The earth maintains this temperature year round, no matter how hot or how cold it is above ground.
GeoExchange systems work by taking advantage of this constant temperature. Fluids circulate in a closed system of pipes that pump earth-cooled liquid up to the surface during hot days and earth-warmed liquid up the surface during cold days. While in heating mode, GeoExchange systems draw heat from the earth by pumping a solution of antifreeze and water through long piping systems, or loops, placed in the ground. Inside the building a ground source heat pump uses a refrigeration cycle to extract heat from the anti-freeze solution in the heating mode. The refrigerant passes through a radiator where the air absorbs the heat and the refrigerant condenses. This cycle is continuously repeated, heating the air within the building in the process. To cool a building during the hot season the process is simply reversed.
One of the most common questions regarding GeoExchange is; how much does it cost to install a GeoExchange system? In general, the construction cost to install a GeoExchange system ranges from 10% to 40% additional cost compared to conventional HVAC systems. However, this cost is usually recovered within four to six years in energy cost savings. When financed, the energy savings can often more than offset the additional financing costs.
Strategic Energy Solutions offers comprehensive energy and economic feasibility studies; implementation of energy conservation measures; energy management systems; facilities management consulting and other energy related services. Click here for more information regarding GeoExchange systems, or to reach Steve DiBerardine at Strategic Energy Solutions please contact steved@sesnet.com |
On September 18th and 19th, NextEnergy hosted several dozen of the nation's leading hydrogen fueling station experts for an in-depth conference featuring, among others, a keynote address from Carl Rivkin from the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) focusing on hydrogen activities currently underway at the DoE, which encompass creating a national template for vehicle systems and refueling facilities, applied research in this area being supported by the DoE, including materials compatibility and risk assessment. On Day 2, Residential Home Fueling was discussed with moderator Jess Schneider from Chrysler moderating the discussion featuring Steve Mathison (Honda), Max Dorflinger (NextEnergy) and Marcus Newborough (ITM in the UK) describing the advances in hydrogen home fueling technology and practice in the U.S. and England. For more information about NextEnergy's Hydrogen Codes & Standards Conference 2008, please contact Ryan Smith at ryans@nextenergy.org |
Since the heady days of the early 1900's when Tesla's ingenious Alternating Current battled, and soundly defeated, Edison's distance-challenged Direct Current for market domination, the majesty of The Grid has provided a virtually ceaseless flow of AC electrons from massive power plants to end users many miles away at the most distant outposts of the developed world. That scenario is on the verge of change. Hybridization might be a better word. The Grid is not going away anytime soon, but advances in the development of "micropower" technology; such as onsite distributed generation in the form of solar cells, wind turbines, geothermal and geoexchange technology, and the advent of hydrogen fuel cells for stationary (non-transportation) generation are opening the world's eyes to the possibility that, in the future, municipalities, subdivisions, campuses, hospitals, office buildings, and even individual residences may be able to generate much, if not all, of their own electricity on site. An example of this clear trend is NextEnergy's tenant, Nextek Power Systems Inc. Nextek recently received a U.S. Department of Energy award for Solar Energy Grid Integration Systems (SEGIS). Nextek is a pioneer in DC power networks for buildings which integrate on-site power at dramatically higher efficiencies. Its success bolsters the argument for "micropower" as demand for energy increases, our giant coal burning baseload power plants become more antiquated and less reliable, and the costs of building new, clean coal plants and new, safe nuclear plants rise exponentially.
"Micropower" isn't established yet, but tremendous advances in hydrogen fuel cell technology present the most tantalizing possibilities. These safe, manageable power plants can and do provide suitable amounts of electricity to run a small building and are being developed in sizes that could fit into one side of a two car garage. Already, some progressive architects and builders are deploying successful micropower generation, as can be seen in Manhattan's Conde Nast publishing headquarters, where two whirring stationary hydrogen fuel cell generators combine with arrays of skyscraper-mounted solar cells to electrify the offices of The New Yorker, Vogue, and Vanity Fair. Of particular note is the market for these micropower plants in the developing world, where the grid, within some nations or regions, may not exist at all.
But as Clarence Cazelot, Jr., the Chairman of Marathon Oil Corporation, stated when referring to global energy demand in the foreseeable future, "We'll need more of everything.," referring to oil, coal, solar, nuclear, hydrogen, wind, geothermal, hydropower and all other technologies that the human race can harness to produce the necessary flow of electrons. Micropower is one correct answer. But there have to be many more. |
Three-time Pulitzer Prize winner and New York Times columnist Thomas Friedman delivered the keynote address September 17th at Michigan Business Review's Innovations event at Eastern Michigan University sponsored, in part, by NextEnergy. Mr. Friedman's remarks, based on his new book, "Hot, Flat and Crowded" drew a capacity crowd at a luncheon event which focused on making green power the next great global industry.
"Hot, Flat and Crowded: Why We Need a Green Revolution -- and How it Can Renew America" Friedman's follow up to the bestselling "The World Is Flat," declares energy as not only one of the top election year issues, but the fundamental issue facing the continuance of human civilization for the foreseeable future. He noted that that our country needs a green revolution and "it's not a revolution until someone gets hurt, and nobody's gotten hurt yet. So what we are having now is a party; a Green Party." Friedman, the Times' foreign affairs columnist who has done his research in many countries around the world, argues that a population explosion, a "flattening world'' with China, India and their rising middle classes, as well as climate change have all converged.
The event was organized by the Washtenaw Economic Club, the Michigan Business Review and Michigan's University Research Corridor (The University of Michigan, Michigan State University, and Wayne State University.) The University Research Corridor will soon make available a new report offering a break-out on Michigan's opportunities for developing green technologies. Learn more about Michigan's University Research Corridor at urc.org. |
At the end of August NextEnergy went "live" with an all-new, more informative, and far more interactive website at www.nextenergy.org. The new website includes success stories, Industry Services tracks, password protected technical data, a university linkage database, Testing & Validation resources, and the SalesForce Customer Relations Tool. Visitors to nextenergy.org are instantly asked to self-identify from a drop down menu of nine categories which, based on your selection, guides you immediately to the pages on the site which you seek most. Visitors to our Services & Programs page will learn how to engage their business with NextEnergy, gain entrepreneurial support, and otherwise take advantage on NextEnergy's many business development offerings, including Venture Support, Supplier Diversification, and Technology Development. Alternative Energy News and Events available to attend are also offered, as well as a comprehensive archive of NextEnergy publications. To learn more, please visit www.nextenergy.org |
A July survey distributed by NextEnergy to 846 contacts (suppliers, OEMs, and economic development agencies) achieved a 21% response rate with 177 companies completing the survey. The following chart depicts the categories of respondents:
 Others include: technology developer/ventures and some professional service providers.
112 of the respondents attended some of NextEnergy's AET diversification events. Out of those who attended, over 91% rated NextEnergy's events positively. 50% identified the session as "very good" and 41% as "good". The remaining 9% stated the sessions were moderate or less than expected, however no respondent stated the events were not informative.
103 of the respondents stated that interaction with NextEnergy influenced their decision to advance the growth of their company into AET sectors.
124 respondents stated that interaction with NextEnergy provided intelligence that was valuable in advancing them to move into AET sectors.
84 of the respondents actually quoted on AET work in the past two years as a result of NextEnergy's influence. The quoted work equated to $1.5 Billion, with an average of $17.5 M per applicable respondent.
55 of the respondents stated they were awarded AET work in the past two years as a result of NextEnergy's influence. Put another way, 65% of the companies who quoted work were awarded work. The work awarded equated to $377 M of total work awarded, with an average of $6.8 M per applicable respondent.
The following table outlines the number of companies that were awarded work per AET sector (please note some companies were awarded work in multiple AET areas):
AET Sector |
# of Companies awarded work |
Wind |
29 |
Solar/Photovoltaic |
20 |
Bio-energy |
14 |
Advanced Energy |
14 |
Survey respondents identified the following top 5 challenges for suppliers when looking to diversify to AET:
- Ability to identify the correct AET customer prospects (53% respondents)
- Investing the time and resources to develop relationships with Alternative Energy companies/OEMS (42%)
- Understanding how their capabilities fit into AET supply chains (41%)
- The level of investment required to purchase new machinery or equipment (32%)
- The effort required to develop strategic business plans for new AET markets (28%)
Of the 177 respondents, 112 (64%) had positive comments about the overall value that NextEnergy and its partners have provided in helping them understand AE markets and business opportunities.
The following identifies some of the comments from the survey regarding the overall value NextEnergy has provided through our Supplier Development efforts over the last two years:
- NextEnergy has helped us better understand the OEM designs and processes for many of the alternative energy technologies. The alternative energy resource kit was well done and very helpful
- NextEnergy has provided an exceptional opportunity to network in this industry
- As a university, we are appreciative of the work NextEnergy has done in advancing all forms of AE, EE, and sustainability. Opportunities in these go beyond manufacturing in their benefits to the state
- Very good overall perspective and connections providing networking and discovery opportunities
- NextEnergy provides a good venue for manufacturers to understand the industry and meet other interested parties
- NextEnergy is a primary catalyst in developing a viable alternative energy market in Michigan. It is an economic engine.
- NextEnergy has been instrumental in introducing us to potential AE customers
- The value translates into saved time and resources. By providing current and organized information NextEnergy saves us the time and resources it would take to research this potential growth segment.
- A reliable source for understanding the alternative energy markets, regulations and growth potential
- We value the services of NextEnergy, and the promotion they bring to Michigan to enhance the awareness AE programs that are offered
- Invaluable. NextEnergy is doing a great job for the state
- They have been a good resource allowing our company to interface with AE companies, some of which we would have had little chance to meet without NextEnergy and its partners
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Robert Pearce has joined NextEnergy as Facilities Engineer. He has maintained and improved facilities for high tech commercial and industrial companies for 20 years. A strong desire to help Michigan solve major energy problems and make life better and safer for his children and grandchildren is one of the motivating factors that brought Rob to NextEnergy. In his spare time he rebuilds classic cars and hot rods and enjoys woodworking. He is a native Detroiter who has lived around the country as well as in Germany, and is happy to be back in The Motor City. |
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Ken Fiema has joined NextEnergy as Chief Financial Officer. Ken holds a MBA with 16 years experience in financial management and CFO experience. He is a results focused leader with proven ability to control growth and sustain financial strength in a variety of economic climates and client conditions. His skills and experience will continue NextEnergy's trajectory of stable financial growth. Ken most recently was Vice President and CFO of Global Technology Associates LTD, and Ernst & Young before that. Ken is a family man and a music lover who is very involved in his church and his community.
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On September 24th, NextEnergy worked with the Michigan Clean Cities Coalition to support the first ever Michigan Clean Transportation Expo & Awards Show at the Rock Financial Showplace in Novi, Michigan. In addition to awarding approximately one dozen organizations and individuals for Clean Fleets, Clean City, Clean Fuels, and other commemorations, the event featured a technology showcase where numerous cleantech companies had the opportunity to inform attendees of breakthroughs in advanced powertrains, alternative fuels, and vehicle electrification, among other technologies. A highlight of the event was the trio of keynote speakers: John Hertel, CEO and General Secretary, Regional Transit Coordinating Council, who outlined in detail Detroit's forthcoming Woodward Light Rail Transit System; David Berdish, Manager, Ford Urban Mobility, who described how cellular-based IT will transform commuter transportation globally, and John Hieftje, Mayor of Ann Arbor, MI, who described his city's ongoing efforts to become "The Greenest City in America."
Partners in the event included NextEnergy, Clean Energy Coalition, the West Michigan Clean Cities Coalition, the Ann Arbor Clean Cities Coalition, and the Lansing Clean Cities Coalition along with WWJ NewsRadio 950.
EVENTS:
National Energy & Sustainability Conference
October 31st thru November 2nd
Oakland University
The Fifth Annual U.S. Conference on Peak Oil and Community Solutions
Presentation:"Plan C: Individual and Community Survival Strategies for the Energy Crisis". Learn to cut energy use and create resilient communities that will be able to weather the coming economic and ecological storms.
To see the agenda, register, or get more information, go to www.plancconference.orgcall Upland Hills Ecological Awareness Center at 248-693-1021 or email info@plancconference.org. 
AET Connect & Collaborate 2008
NextEnergy Center
461 Burroughs - Detroit, MI 48202
Friday, October 10, 2008 - 8:00AM - 4:00PM
This is a unique event where alternative energy researchers will present a brief snapshot of their work in a "pitch-style" format to select industry representatives who are interested in, and actively looking for opportunities to collaborate with university researchers. Confirmed company participants currently include: Dow Chemical, DTE Energy, Delphi, and Eaton.
This event is in partnership with MEDC, NextEnergy's Statewide AET Network university partners, and Shepherd Advisors.
Fees: Free
Space is limited!
For more information, please contact:
Pam Hurtt - pamelah@nextenergy.org
or register at www.nextenergy.org on the "Events/2008" page
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HOLD OCTOBER 21 & 22 OPEN!
The Michigan Sustainable Energy Coalition and the Fraser Law Firm in cooperation with the Michigan Public Service Commision is planning a Conference on the new RPS law in Michigan October 21 & 22. Please hold the dates open and join us in Lansing for this important and informational conference.
Here is the vital information:
What: Two day conference and seminar entitled: "Michigan's New Rewnewable Energy Laws... Challenges, Compliance and Opportunities"
Who: Sponsored by: The Michigan Sustainable Energy Coalition and Fraser Law Firm with the support of the Michigan Public Service Commission. All three commissioners will address the conference. We have invited the Governor to give the keynote address.
When: Tuesday October 21 & Wednesday October 22.
Where: Holiday Inn South in Lansing, MI (on Cedar Street just south of I-96) Free Parking.
Tuition: Registration for the two day conference for the general public is $395.00 Registration for MSEC Members and Government employees is $295.00 This includes; Continental breakfasts and lunches both day and all supporting material
More information and an agenda will be available next week on the MSEC website www.michigancleanenergy.com You will also be able to register on line at the website beginning next week. |
Get you own copy of NextEnergy's new, updated Michigan Alternative Energy Technology Resource Guide by visiting www.nextenergy.org and clicking on Industry Resources. |
From The CEO
Strategic Energy Solutions Builds GeoExchange Systems From Ground Up
NextEnergy hosts Hydrogen Codes & Standards Conference 2008
Distributed Generation May "Micropower" The Future
Innovations and Thomas Friedman Get Green in Ypsilanti
NextEnergy upgrades nextenergy.org
NextEnergy Survey Illustrates Growth In Michigan AET Industry
New at NextEnergy
NextEnergy Co-hosts Michigan Clean Transportation Expo & Awards Show
HOLD OCTOBER 21 & 22 OPEN!
NextEnergy Tools and Resources
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