Colorado’s clean-tech industry at crossroads

BOULDER – Colorado risks losing its status as one of the homes of the clean-tech industry, and the U.S. could soon be surpassed as other nations invest in developing new technology, a panel of industry leaders said Tuesday.

They gathered to discuss the state and future of the industry at the Boulder County Business Report’s latest CEO Roundtable held May 17.

The clean-tech industry in the state and the nation is approaching a crossroads, but no one seems to know which direction it will take.

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American companies are better than anyone else at developing new technology, but are finding a lack of support from consumers and the government.

 “The U.S. is lagging behind almost all the industrial world and much of the world in general in deploying renewable energy. The dichotomy is we still lead the world in creating these industries,´ said David Hiller, executive director of the Colorado Renewable Energy Collaboratory, a partnership of the University of Colorado, Colorado State University, Colorado School of Mines and the National Renewable Energy Laboratory.

Gridlock in Congress and regulatory inertia is not helping the industry.

“We’re lacking a sense of urgency in the U.S.´ said Sue Kunz, chief executive of BioVantage Resources Inc., a Golden-based company that is developing ways to use algae to turn wastewater into biofuels.

A lack of a national energy policy that promotes the development of the renewable energy industry is holding back the U.S., said Scott Franklin, chief executive of Boulder-based Lighthouse Solar.

“We’re up against countries like Germany, Spain, province in Canada, with a clear policy and platform and direction,” Franklin said. “I feel like we’re in feudal times with all the warlords fighting each other. We’re falling farther and farther behind the rest of the world because we’re spending time fighting about the wrong topics.”

Colorado has been beset by similar problems. The decision by Xcel Energy Co. to change the rebate program for installing photovoltaic systems will shrink the industry by up to a third, Boulder-based Namaste Solar’s chief executive Blake Jones said.

“It’s a shame that Colorado has built all this infrastructure, and has a wonderful story … and we might lose all that momentum,” Jones said.

Companies that make or install photovoltaic systems have left the state or invested elsewhere if they can, said Mark Simmons, vice president and chief operating officer of ClearEnergy Inc. in Greenwood Village. Those that could not move are going out of business.

Boulder’s decision to end its franchise agreement with Xcel Energy and consider municipalizing the power grid is a source of hope, Jones said.

“It would be neat to be in charge of our own destiny,” Jones said.

Whether Boulder could take over and run its own system successful is uncertain, said Roxy Podlogar, vice president of product strategy of Green Energy Corp., a Denver company that makes software to manage energy grids.

The technical challenges might be too much for the city, she said.

“I just wonder how capable Boulder will be to manage their own power systems. That’s a significant feat, if they’ve never done that before,” she said.

Jones said that even if Boulder does decide to continue working with Xcel Energy, the city’s hand is strengthened when it comes to asking for policy changes.

“Now we have a much better bargaining position at the table, and only good things can come from that,” he said.

No matter what government does, clean-tech companies will need to win acceptance from businesses and the public. Companies in the industry need to accept that and find ways of bringing production costs down or bundling equipment to make sales, Simmons said.

“We have to sell. We can’t wait for more incentives. We have what we have,” he said.

“If we’re going to make major progress, it’s going to be selling it on the economics,” Hiller said. “We need to convince the American people that this makes sense for their children and grandchildren. Then we have a prayer.”

The industry is getting help from corporations like Wal-Mart, which are greening their stores. Some are reducing their energy use and carbon footprint for good PR, but many companies are realizing it will improve their bottom line.

“In the last couple of years, companies are definitely opening their wallets more,´ said Quayle Hodek, president and chief executive of Renewable Choice Energy Inc., a sustainability consulting firm located in Boulder.

“It’s a differentiator that translates into economic advantage, and that’s what they need to see,” Kunz said.

While the roundtable participants focused on the challenges, they did see reasons for optimism.

Investors outside Colorado continue to think investing in Colorado companies is a good idea, and there are reasons for optimism, Kunz said.

Hiller said American entrepreneurialism and ingenuity will keep the U.S. competitive.

“We encourage free-thinking in a way most other cultures don’t, and that encourages a lot of innovation,” he said. “They still look to us for a lot of cutting edge technology”

The roundtable was hosted by Ehrhardt Keefe Steiner & Hottman PC and Holland & Hart LLP at the EKS&H’s office in Boulder.