By Ashley Fletcher Frampton
aframpton@scbiznews.com
Published Oct. 28, 2009

South Carolina has the potential to be a leader in the development of renewable energy technologies and jobs associated with them, according to a panel of speakers at the Columbia Regional Business Report’s Energy Summit on Tuesday.

But some challenges remain in the development of nuclear, fuel cell, wind, solar and biomass energy, panelists said.

Fuel cell

Shannon Baxter-Clemmons, executive director of the S.C. Hydrogen and Fuel Cell Alliance, a public-private partnership, said South Carolina is well-positioned to lead research and development of fuel cell technology, a more efficient and reliable energy source for cars, homes and other uses.

Clemson University’s International Center for Automotive Research offers the only doctoral program in automotive research in the nation, she said. And the University of South Carolina has a research center dedicated to fuel cell technology.

Fuel cells have the potential to power cars, homes and more, she said.

“It’s not that we don’t have enough oil and natural gas in the world, but it’s getting harder to get at,” Baxter-Clemmons said.

Oil and natural gas prices also are set by geopolitical forces, not simply free-market principles, Baxter-Clemmons said. That’s one reason the United States should seek energy independence. Sustainability is another reason.

Though research is already happening here, the use of fuel cells for automotive and other uses is limited. Baxter-Clemmons said car manufacturers have yet to produce fuel cell cars and place them in showrooms. She hopes that, by 2015, car companies will be there.

Another challenge is figuring out how refueling will work for those cars — the logistics of refueling stations, for example. And even when those pieces are in place, sales depend on public demand for cars fueled by alternative energy.

“When enough people say, ‘I’ve had enough,’ that’s when we’ll see change,” Baxter-Clemmons said.

Wind, solar and biomass

Erika Myers, renewable energy programs manager at the S.C. Energy Office, said the installation of solar energy panels on individual properties, including homes, businesses and schools, has taken off in the past few years.

The increased demand is reflected in the number of solar panel installers working in the state, she said. In 2006, the S.C. Energy Office knew of one solar photovoltaic installer. Two years later, there were 54.

“We will see continued growth in this industry as there is more demand and interest,” she said.

But use of solar and wind energy by centralized utilities is probably more of a mid- to long-term option, Myers said. One reason is that producing substantial amounts of solar energy has required large amounts of land, she said, leading some utilities to deem solar energy infeasible.

However, newer technology eliminates the need for large swaths of land. Furman University in Greenville recently installed a solar concentrator and will research the energy production potential of that technology, Myers said.

South Carolina has offshore wind that could fuel a wind development in the state. Research and trial efforts for wind energy are in the works, including studies on how to transmit offshore wind energy back for use.

Myers said South Carolina could attract more renewable energy jobs by adopting tax credits for those companies as well as standards requiring utilities to incorporate renewable energy sources into their portfolios.

North Carolina has those policies, Myers said, and companies looking to locate in South Carolina ask her frequently if South Carolina also has them.

“I have to tell them no,” she said. “So they go to North Carolina. That’s the reality.”

Myers said biomass is being produced in South Carolina, but it’s shipped to other countries because there is little in-state demand.

“It doesn’t make sense to me,” she said. “Why don’t we just use it here?”

Nuclear

Scott McFarland, human resources manager for SCANA Corp.’s nuclear operations, said South Carolina could be the center of a nuclear renaissance that creates thousands of jobs.

Two new nuclear energy units that SCANA is developing near Jenkinsville have produced 125 jobs in two years, he said. As the state’s nuclear economy grows, McFarland said it would be best to fill jobs with people already in the state.

McFarland said that the state’s technical colleges are training nuclear industry workers and that the state’s four-year institutions are training engineers.

“We are working to develop the work force to make that (the nuclear economy) viable,” he said.

Ben Cross, nuclear energy programs manager at the Savannah River National Laboratory, said, pointed to a Clemson University study for the Carolinas Nuclear Cluster, released Tuesday, that said nuclear energy operations have a $2 billion economic impact in South Carolina and North Carolina and account for more than 37,000 jobs.

Cross said developers of alternative or renewable energy sources should be working together to advance their efforts, instead of competing.

Other technologies

Barry Toyonaga, chief business officer with Kent BioEnergy Corp., is doing more than talking about the potential for renewable energy technology in South Carolina. His San Diego-based company, which grows microalgae to help reduce pollution from carbon emissions, recently announced an expansion into Charleston.

Kent BioEnergy also has developed strategies that go beyond the removal of unwanted carbon dioxide from air. The company is taking advantage of algae’s ability to process the carbon dioxide into chemical compounds that can be used in place of petroleum crude.

“We are here to make money,” said Toyonaga, whose background is in venture capital investment projects.

He said now is the time to invest in the type of work his company is doing in South Carolina. The natural resources and talent are here already, he said.

For example, technology his company uses to control carbon emissions with microalgae was developed at Clemson University, and several of the school’s engineering graduates work for him in California.

“Why are these people having to leave South Carolina to do what they learned to do here?” he asked.

Reach Ashley Fletcher Frampton at 843-849-3129.