It's coming.
You'd be forgiven for thinking that the slow economy, low energy prices and high job loss in the Midwest would make the Queen City a less-than-desirable home for environmentally minded entrepreneurs. But think again.
"There's a huge opportunity here," said Rick Kieser, managing director of Clean Wave Ventures, a venture capital and advisory firm with offices in Cincinnati and Indianapolis. He explained that the Midwest's history as an industrial center means there is factory space, transportation infrastructure and a skilled labor pool that could easily shift from traditional manufacturing to domestic production of solar arrays, geothermal heat systems and wind turbines.
"Despite [investment on the coasts], the manufacturing is going to be in the Midwest," he said.
But the region's green revolution won't just come in the form of re-tooled factories. A growing number of green- and clean-tech players, from non-profit startups to small businesses and even established companies, already call Cincinnati home. Here are just four of them, all of which stand out for their recent innovation.
Clean Wave Ventures
One could argue that Kieser came into the renewable energy industry with the perfect balance of business insight and industry experience. After working in finance and as a consultant for the energy and utility industries, he spent nine years working with River City Capital, a Cincinnati-based $390 million organization. The move to Clean Wave Ventures allowed him to put his utilities experience to use alongside his development knowledge.
"It's very unique here, because you have to have relevant expertise," he said. "You have to understand the supply chain and working with utilities."
Clean Wave Ventures focuses on growing and developing new companies in the renewable/clean energy sector, a wide field that covers everything from manufacturing to materials technology and transportation. The firm also advises clients on a range of topics related to the industry, a service that Kieser said has become a large part of the business during the past year's poor investment climate.
While investors recover from the economic downturn, he said many businesses are still interested in renewable and energy efficient technology.
"You're going to see a push for more efficiency, more photovoltaics (solar power), more wind turbines," he said.
SmarterGreen.org
This Cincinnati-based non-profit is taking a different track to funding the clean technology revolution. President Charles Tassell explained that the grant funding organization's unique plan rests on a much-hyped idea: carbon credits.
"I looked around and saw all these carbon credits," he explained. "If you captured those credits that are ongoing, each project you help can help other projects for years to come."
Tassell explained that carbon credits awarded to businesses for reducing their carbon output could be donated to SmarterGreen.org just like any tax-deductible donation made by a business. SmarterGreen.org then sells the credit – and subsequent annual credits awarded to the donor company for continued carbon reduction – to fund environmentally focused projects in the region. The donor company receives a tax credit, and the funded project creates more carbon credits that enter the cycle to fund additional projects.
"It [came out of] looking at what was one of the most powerful tools for starting projects, which is tax credits," he said.
Thanks to part of a Department of Energy grant awarded through Hamilton County, the non-profit is ironing out the legal and marketing details that accompany any groundbreaking initiative.
"It's a new idea, so there's lots of details to work out," he said. But he added that he is hopeful SmarterGreen.org will start awarding grants some time in 2010.
OTR Electric Car Company
Like Clean Wave Ventures, this small company is based in Cincinnati for what the location offers. Specifically, Over-the-Rhine Electric Car Company president Bryan Vielhauer explained that the historic neighborhood offers a combination of a solid labor force, buildings that would affordably house the company and access to major highways.
"I think it really has everything we need to be successful," he said.
Success for the company may come due to its innovation as much as its location, though. OTR Electric Car Company is not focused on reinventing the electric car. Unlike companies such as Arizona-based Tesla Motors, which has spent millions of dollars to develop its electric cars, OTR Electric Car Company is a direct-to-consumer provider that converts existing cars, trucks and fleet vehicles to electric or plug-in hybrid power. The company's prototype all-electric vehicle, a Toyota pickup, has been on the road for 18 months, and a diesel-electric hybrid van prototype took to the Cincinnati streets in late August.
The two vehicles are different - a small truck used for commuting and a cargo van designed for fleet use - and they represent the modern state of clean transportation, said Vielhauer.
"For a lot of years there was a very good campaign to get people thinking they can't depend on electric power," he said. "What we have to do is change that way of thinking." Events such as Northside's 4th of July Parade, in which Mayor Mark Mallory rode in OTR Electric Car's prototype, are making a difference in that, leaving Vielhauer optimistic about the future.
"We're basically looking for people who look at EVs as something they can get behind and support," he said.
Melink Corporation
This HVAC testing and equipment manufacturing company has been in business since 1987, and with a recent expansion aimed at mainstreaming renewable energy technology, Melink Corporation is showing it can walk its talk.
"We didn't just want to preach what you should do," said marketing manager Jennifer Sivak. "We want to inspire others to act."
She explained that the company's building, which was the first building to achieve LEED Gold certification in Ohio, features a 30-kilowatt solar array on its roof, a 6.5-kilowatt wind turbine, natural lighting, extensive recycling and a continuously growing list of features designed to make it a healthy, low-impact workspace. As a result, she said staff sick days have dropped significantly, as has employee turnover.
"We really took renewable energy a step further. We wanted to create a happy, healthy environment," she said.
Sivak said the company's renewable energy development and consulting arm hopes to eventually offer both pre-planned packages and custom development of renewable energy solutions for businesses and homes.
"Our goal one day is to have these wonderful out-of-the-box solutions to make it more mainstream," she said.
In the meantime, Melink is completing an application for LEED platinum certification. This step will include integrating composting into its waste management - the company's break room already features corn-based biodegradable silverware - as well as refining the building's energy efficiency. Once completed, the company could soon
boast that its building is the first existing structure in Ohio to achieve this level of clean-building certification.
Matt Cunningham is a freelance writer based in West Chester, Ohio. When not doggedly pursuing a Master’s degree in professional writing and editing at the University of Cincinnati, he writes for Soapbox, CityBeat and Cincinnati Magazine.
Photography by Scott Beseler
Windmills on the horizon
Rick Kieser, Clean Wave Ventures, provided
Windmill
Over-the-Rhine Electric Car Company
Melink Corporation, provided