Central Texas Digest

Compiled from staff and wire reports

Wednesday, November 13, 2002

CLEAN ENERGY

Group works to make Austin industry leader

The Austin Clean Energy Initiative launched its economic development push Tuesday.

The informal group, founded by local entrepreneurs Chip Wolfe and Steve Guengerich and allied with the University of Texas at Austin's IC2 Institute, wants to see Austin become a clean energy hub for an industry that so far hasn't settled into any one city.

According to the group, the Austin-San Marcos metropolitan area has 80 clean-energy-related companies, most of those in consulting and manufacturing. Those companies employ about 2,600 people.

The group wants to "prepackage" local and state incentives to attract more companies. Organizers said the biggest challenges will be finding investors and having an economic development program for all industries in town.

Compiled from staff and wire reports.

15:27 EST Tuesday

Report indicates promise for 'clean energy'

Austin is on its way to becoming an economic center for the growing "clean energy" industry, according to a report released Tuesday by the Austin Clean Energy Initiative and the University of Texas' IC2 Institute.

Already, Central Texas is home to 80 clean energy companies and organizations, such as Green Mountain Energy Co., Active Power Inc. [Nasdaq: ACPW] and the IC2 Institute's Clean Energy Incubator.

According to the study, the clean energy presence in Central Texas generates more than $250 million in annual revenue and employs 2,600 people.

"The race is on, and Central Texas is positioned to take the lead in this rapidly growing industry," says Steve Guengerich, co-founder of the Austin Clean Energy Initiative.

Existing clean energy businesses and organizations; natural resources; and Austin's reputation as a technology-focused region are among benefits Central Texas can offer to clean energy businesses, according to the report.

"Central Texas is already miles ahead of other markets in the race to be the clean energy champion," says Michael Tomsu, an energy partner in the Austin office of law firm Vinson & Elkins LLP.

The current worldwide clean energy industry is estimated at $142 billion a year and is expected to grow to $450 billion by 2020, according to the report.

Clean energy relates to renewable natural resources that reduce energy costs, such as solar, wind and geothermal power.

The report — "Enriching Economy and Environment: Making Central Texas the Center for Clean Energy" — was underwritten by Austin Energy, the Lower Colorado River Authority, Vinson & Elkins, the Texas State Energy Conservation Office and AngelouEconomics Inc.

Posted on Tue, Nov. 12, 2002

Study: Central Texas poised to be clean energy center
Associated Press

AUSTIN - Existing "clean energy" infrastructure and organizations have Central Texas poised to become an economic center for the growing industry, according to a study released Tuesday.

About 80 of the state's 335 clean energy enterprises are in Central Texas, the report states.

Those Central Texas businesses generate more than $250 million in annual revenues and employ some 2,600 people.

Clean energy as defined in the report focuses on renewable natural resources and technologies that reduce energy costs, increase availability and decrease pollution and waste. Categories include renewables such as solar and wind; increased energy efficiency; fuel cells, which convert hydrogen into power; and the quality and management of power resources.

Worldwide the clean energy industry is estimated at $142 billion per year, with growth of up to $450 billion annually expected by 2020, according to the report. In Texas, the wind energy market alone is predicted to grow from $300 million in 2002 to $3.1 billion by 2020.

The study was conducted by the Austin Clean Energy Initiative and a University of Texas center for technology commercialization.

Underwriters of the report are Austin Energy, the Lower Colorado River Authority, the Texas State Energy Conservation Office, Angelou Economics and Vinson & Elkins.

http://www.miami.com/mld/miamiherald/business/4503162.htm

11/12/02 - 4:51 pm
Clean Energy Could Spark Austin Economy

The economic downturn has displaced thousands of Central Texas workers. There may be a new economic boom just over the horizon, and an Austin group is working to make it happen.

Texas has a long history as an energy giant. Now a group of entrepreneurs, investors and business owners plan to make Austin the clean energy capital of the world.

Tuesday, a study by the Austin Clean Energy Initiative and the UT IC Squared Institute shows Central Texas can make it a reality.

They say the fast-growing clean energy industry creates jobs at all levels from manufacturing to research and engineering.

"The market is even bigger than we thought. We knew it was going to be a large market, but it turns out that it's even bigger than our optimistic expectations," Chip Wolfe with the Austin Clean Energy Initiative said.

While hi-tech brought thousands of people to Central Texas and unprecedented prosperity, that industry is prone to the economic boom and bust cycle. Some say the next big thing is right around the corner -- clean energy.

"There is no region in the U.S., so far, that can claim to be the home of clean energy, and we have an opportunity to be that home," Wolfe said.

"We already have a good reputation for business climate and environment. So putting the two together is a natural mix," James Scott with Cielo Wind Power said.

Clean energy companies are those that use renewable resources like solar and wind power and geothermal, but also non renewable energy sources like fuel cells.

The research shows about 80 clean energy companies are already here putting some 2,600 people to work.

"We now know with much more specificity what we have on the ground already and how we can best support it and grow it and recruit others to join us," Dr. Eliza Evans with the UT IC2 Institute said.

"Why not take advantage of what we're already doing? Our citizens already buy clean energy, disproportionately. Our companies already buy clean energy. We have this great pool of talent. We have a great research university," Austin City Council member Will Wynn said.

They hope to create the next boom in the Central Texas economy.

"By the end of the year, Austin could have the kind of reputation in clean energy that it had in software when MCC came to town," Wolfe said.

Clean energy advocates say the next nine months are a crucial time for Austin in this emerging industry. At least five different industry conferences are coming to town featuring leading companies in wind power, solar power and clean energy technology.

It's a unique opportunity for the city to plant the seeds of future economic growth.