A Sustainable Energy Industry Cluster
for Mesa Del Sol

7. Major Players

 
  1. Who are some major players in the energy efficiency industries?

    • Cardinal IG of St. Louis Park, Minnesota: Cardinal is a pioneer in low-emissivity window technology.

    • Carrier Corporation of Farmington, Connecticut: A subsidiary of United Technology Corporation, a high technology company with $28 billion in annual revenue, Carrier makes heating, air conditioning and ventilation equipment, including many models that meet or exceed the requirements on the U.S. Environmental Protection Agency's Energy Star program.

    • Enron Energy Services of: A subsidiary of Enron Corporation, an energy company with $21 billion in annual revenue, Enron Energy Services provides energy and facility management for commercial and industrial customers.

    • Honeywell, Inc. of Minneapolis, Minnesota: Honeywell, a leading technology company centered on industrial and electric controls, announced in June, 1999, that it would merge with AlliedSignal, Inc. of Morristown, New Jersey, to form a $25-billion firm. The new firm will keep the Honeywell name.

    • Motorola Lighting, Inc. of Lake Zurich, Illinois: A subsidiary of Motorola, an electronic and communication technology company with $29 billion in annual sales, Motorola Lighting manufactures linear and compact electronic ballasts.

    • Osram Sylvania of Danvers, Massachusetts: Osram Sylvania is the North American division of Osram GmbH, a Siemens company, which enjoys $3.7 billion in world sales and is one of the three largest lamp companies in the world. Osram employs about 12,000 people in North America. Among other products, Osram Sylvania is a leader in electronic ballasts.

    • Owens Corning of Toledo, Ohio: With $5 billion in annual revenue, Owens Corning is a leader in the development of glass fiber insulation.

    • Pulte Corporation of Bloomfield Hills, Michigan: Operating in 28 states and closing 16,000 units annually ($3 billion in annual revenue), Pulte has been the top home builder in the nation in recent years. Pulte works with IBACOS, Inc. (Integrated Building And Construction Solutions), the primary consortium in the U.S. Department of Energy's Building America Program, to incorporate high efficiency features into a significant percentage of their new homes.

    • Sempra Energy Solutions of San Diego, California: A subsidiary of Sempra Energy ($5.5 billion in annual revenue), the new name of the company resulting from the merger between San Diego Gas & Electric and Southern California Gas, Sempra Energy Solutions provides energy efficiency, energy services and facility management to commercial, industrial, governmental and institutional customers.

  2. Who are some major players in the fuel cell industry?

    • 3M of Minneapolis, Minnesota: A diversified materials and manufacturing company with $15 billion in annual sales, 3M makes membranes for proton-exchange membrane fuel cells.

    • Air Products and Chemicals, Inc. of Allentown, PA: A gas and chemical company with almost $5 billion in annual sales, this firm has developed processes to produce hydrogen from natural gas.

    • Avista Laboratories of Spokane, WA. An affiliate of Avista Corp. (formerly Washington Water and Power), a diversified energy company with $3.5 billion in annual revenue, Avista Labs is developing proton-exchange membrane fuel cells for residential applications.

    • Ballard Generation Systems of Vancouver, Canada: Ballard manufactures fuel cells, and enjoys strategic alliances with DaimlerChrysler, Ford, GPU International Inc. of New Jersey, France's ALSTOM SA and Japan's EBARA Corporation.

    • Energy Research Corporation of Danbury, Connecticut: ERC is a manufacturer of fuel cells and batteries with $24 million in annual revenue.

    • Epyx Corp. of Cambridge, Massachusetts: Epyx is a spin-off of engineering consultant Arthur D. Little, and makes multi-fuel reforming technology for vehicular fuel cell applications.

    • H Power of Belleville, NJ: A privately held developer of proton-exchange membrane cells for stationary and vehicular applications, H Power has three strategic shareholders: Quebec's Sofinov Société Financière D'Innovation, Singapore Technologies Automotive, Ltd. and Duquesne Enterprises Inc.

    • International Fuel Cells of South Windsor, Connecticut: A subsidiary of United Technologies Corporation, a high-technology company with $28 billion in annual revenue, IFC has developed alkaline fuel cells for space applications, phosphoric acid cells for stationary power plants and proton-exchange membrane cells.

    • NexTech Materials, Ltd. of Worthington, Ohio: A joint venture between Innovative Materials Technologies and Chemical Materials International, ceramic company Nextech manufactures ceramics for solid oxide fuel cells and membranes for proton-exchange membrane cells.

    • Plug Power, LLC of Latham, New York: This firm was formed as a joint venture of DTE Energy, the parent of Detroit Edison, and Mechanical Technologies, Inc. Plug Power has partnered with GE to form GE Fuel Cell Systems, which will sell, install and service Plug Power's fuel cells worldwide.

    • Siemens Westinghouse Power Corporation of Orlando, Florida: Develops solid oxide fuel cells.

    • W.L Gore & Assoc. of Newark, Delaware and Elkton, Maryland: With $1.25 billion in annual revenue, the makers of Gore-Tex™ also make membranes for proton-exchange membrane fuel cells.

  3. Who are some major players in the geothermal industry?

    • Barber-Nichols, Inc. of Arvada, Colorado: Barber-Nichols sells geothermal powerplant equipment, and design and maintenance and other services.

    • CalEnergy, Inc. of Washington, DC: Initially devoted to geothermal project development, CalEnergy now operates hydroelectric and natural gas projects as well, with $2.3 billion in 1997 revenue and 4,300 employees worldwide.

    • Calpine Corporation of San Jose, California: Calpine recently purchased Unocal's interest in The Geysers, giving it full control of the nation's largest geothermal facility, and

    • Climatemaster of Oklahoma City, Oklahoma: Climatemaster manufacturers geothermal heat pumps.

    • Oxbow Power Services, Inc. of Reno, Nevada: A subsidiary of the Oxbow Group, a privately help group of fossil fuel and geothermal companies with combined assets of over $400 million, Oxbow Power provides geothermal project development, exploration, financing and other services.

    • Philips Driscopipe of Richardson, Texas: A subsidiary of Philips Petroleum ($11 billion in total revenue), this firm makes pipe for geothermal heat pumps.

    • Unocal Geothermal Corporation of El Segundo, California: A subsidiary of Unocal Corp., an oil and gas company with $9 billion in assets, Unocal Geothermal designs and operates geothermal plants and explores for geothermal resources, among other activities.

    • The Trane Company on Minneapolis, Minnesota: A subsidiary of the American Standard Companies ($6 billion in annual sales), Trane makes geothermal heat pumps and other "indoor comfort" systems.

  4. Who are some of major players in the microturbine industry?

    • AlliedSignal Power Systems of Torrance, California: AlliedSignal Power Systems is a subsidiary of AlliedSignal, Inc. of Morristown, New Jersey, an aerospace and industrial products firm. In June, 1999, the parent firm announced a merger with Honeywell, Inc. of Minneapolis, Minnesota, a leading technology company centered on industrial and electric controls, to form a $25-billion behemoth. The parent new firm will keep the Honeywell name. Previously, AlliedSignal Power Systems gave Honeywell exclusive rights to install and maintain its "Parallon 75" microturbine. AlliedSignal Power also has formed partnerships with several energy companies to market its microturbines: Public Service Enterprise Group, Inc., in the northeast; SONAT in the southeast; energy service company New Energy Ventures (a Los Angeles-based subsidiary of AES Corporation) in the west; and UniCom Corp. in the midwest. AlliedSignal hopes to begin commercial production of its 75-kW Parallon 75 at their Albuquerque, New Mexico facility in the fourth quarter of 1999.

    • Capstone Turbine Corporation of Woodland Hills, California: A privately held company, Capstone counts among its investors Ben Rosen, the venture capitalist who helped found Compaq Computer Corporation and Lotus Development, and Bill Gates and Paul Allen, the co-founders of Microsoft. As of May, 1999, Capstone had sold about 40 of its 28-kW "MicroTurbine" units, with worldwide release expected in 1999. Fletcher Challenge Energy has agreed to market Capstone turbines in the Pacific Rim; Williams Distributed Power Services, Inc. will distribute Capstone microturbines as well.

    • Elliot Energy Systems of Stuart, Florida: Elliot Energy is a subsidiary of the Elliott Turbomachinery Company, Inc., of Jeanette, Pennsylvania, a manufacturer of rotating machinery. To market its microturbines, Elliot has teamed up with GE Power Systems, a unit of the General Electric Company.

    • Northern Research Engineering Company of Woburn, Massachusetts: An advanced technology product design and development company, NREC's manufacturers its PowerWorks™ line of turbines-which in contrast to other firms' offerings feature two shafts-in sizes from 30 to 250 kW.

  5. Who are the major players in the photovoltaic industry?

    • Applied Power Corporation of Lacey, Washington: Applied Power was acquired by the Idaho Power Company, a company with $1.1 billion in annual revenue that was the first U.S. utility to offer solar electric service to its customers. Applied Power itself recently acquired Alternative Energy Engineering of California, Ascension Technology of Massachusetts and Colorado, and Solar Electric Specialties of Colorado. Applied Power assembles and sells PV systems for applications such as remote sites in national parks, mountaintop telecommunication systems, solar homes and village water pumping systems in developing countries, etc.

    • AstroPower, Inc. of Newark, Delaware: Originally a government contractor that has become a publicly-traded commercial manufacturer, AstroPower manufactures PV modules, single crystal cells and silicon thin film. Total annual sales equaled $20 million. In June, 1999, AstroPower agreed to develop products for GPU, Inc., a major New Jersey-based utility company; in return, GPU made a major purchase of AstroPower stock.

    • BP Solarex of Frederick, Maryland: In 1999, British Petroleum merged with Amoco, which with Enron Corporation was a joint owner of Solarex, a photovoltaic firm with 600 employees in Maryland, Virginia and Australia, and annual revenue of $58 million. Enron subsequently sold its share to BP Amoco, making BP Amoco sole owner of America's largest photovoltaic firm. It remains unclear how BP Amoco will merge the operations of Solarex with BP's solar arm, BP Solar, a firm with 900 employees in India, Australia, Spain and California, and annual revenue of $95 million. BP Solar projects annual revenues of $150 million, representing 20 per cent of the global market, and the firm seeks $1 billion in annual revenue by 2007.

      Solarex has manufactured both polycrystalline silicon and potentially cheaper-but so far less efficient-thin film modules. Recently, the firm purchased a Swedish and a South African PV module manufacturer, to assemble American-made PV cells into modules ready for installation in growing European and African markets. Meanwhile, BP Solar has built markets in 160 nations, and particularly in developing nations, for its mono-crystalline and thin film technology. A vertically integrated firm, BP Solar manufactures cells, assembles PV systems, and installs and services grid-connected and stand-alone systems.

    • Golden Genesis Company of Scottsdale, Arizona: Kyocera Corporation, the world's largest PV cell producer, acquired Golden Genesis (formerly Photocomm, Inc.) in July of 1999. The resulting merger produces a vertically-integrating PV firm with combined annual sales of $185 million, to be named Kyocera Solar. The merged company will assemble, distribute and install products made from Kyocera cells, including PV power systems for lighting, telecommunications, cathodic protection and data acquisition for oil and gas pipelines, water pumping, etc.

    • Siemens Solar Industries of Camarillo, California: Siemens Solar is affiliated with Siemens AG of Germany and Siemens Corporation of the U.S.; the Siemens Solar Group as a whole enjoys annual revenue of $78 million (1997), employs 475 people worldwide, and has American facilities in California and Vancouver, Washington. Siemens produces both crystalline and thin film PV cells, which are sold wholesale to PV system integrators.

    • Spire Corporation of Bedford, Massachusetts: In addition to its biomedical processing and optoelectronic divisions, Spire is the world's largest producer of PV manufacturing equipment. Spire also supports its production lines with process technology, spare parts, training and equipment warranty. Annual revenue is $14 million.

    • Trace Engineering Corporation of Arlington, Washington: Trace designs and manufactures battery chargers and inverters, which convert the direct current generated by photovoltaic systems into the alternating current used by most appliances and the national electric grid. Trace also manufactures accessories such as cables, charge controllers and remote controls. Trace employs 125 people, and recently acquired the rights to bankrupt Kenetech Windpower's power conversion technology, which it will manufacture as Trace Technology Corporation.

  6. Who are some major players in the solar water heater (SWH) industry?

    The small SWH industry, notwithstanding the technology's favorable economics and large potential market, does not have participation by nationally known firms.

    • Sun Earth of Ontario, California: Sun Earth manufacturers the solar components of SWHs, including flat-plate collectors, thermosiphons, etc., selling approximately 10,000 systems annually. It is owned by Solarray, a Hawaii-based wholesaler of water heating equipment for the Pacific market. Solarray supplies the water heater components for SWHs sold by Sun Earth. Solarray has annual sales of approximately $14 million. Sun Earth distributes SWHs in Albuquerque through Semco, Inc.

    • Energy Labs, Inc. of Jacksonville, Florida: Energy Labs develops solar energy technologies for private firms. It also licenses technologies for others to use. It has a cooperative research and development agreement with Sandia National Labs to create a new, low-cost SWH. It has revenues of approximately $500,000 and 9 employees.

  7. Who are some major players in the wind industry?

    • Atlantic Orient Corporation of Norwich, Vermont: Atlantic Orient manufacturers small (50-kW) turbines, with special expertise in hybrid systems combining wind and diesel engines.

    • Bergen Southwest Steel of El Paso, Texas: Bergen has manufactured almost 2,000 tubular towers for wind turbines for customers worldwide.

    • Bergey Windpower Company of Norman, Oklahoma: Bergey manufactures small wind turbines for electric generation and water pumping, with sales in all fifty states and 80 countries.

    • CH2M HILL of Portland, Oregon: CH2M Hill, the world's largest environmental engineering and project implementation company (gross annual revenue of $1.3 billion and over 7,000 employees) undertakes permitting, design, and construction of wind energy projects for developers, utilities, and institutions.

    • Enron Wind Company of Tehachapi, California: A subsidiary of Enron Corporation, an energy company with $21 billion in annual revenue, Enron Wind encompasses two design and manufacturing units, Zond Energy Systems, Inc. in the U.S. and Tacke Windenergie GmbH in Germany. As the only vertically integrated wind company in the U.S., and the last remaining American manufacturer of large turbines, Enron Wind makes machines ranging in size from 550 to 1500 kW, provides financing, and develops and operates wind projects. Enron Wind has 2.4% of the world market.

    • FPL Energy Inc. of Juno Beach, Florida: The generating subsidiary of FPL Group, Inc. (an energy company with annual revenues of $6 billion, which is in turn the parent company of the electric utility Florida Power and Light Company), FPL Energy is the nation's largest provider of wind energy, with ownership interest in approximately 1,000 MW of windfarms in Texas, California, Iowa and Oregon.

    • Heller Financial, Inc. of Chicago, Illinois: Heller's Project Finance Division provides structuring advice and financing for wind (and other alternative energy) and industrial projects. The firm provides equity, junior and senior construction and term loans, and bridge financing for alternative energy projects. Heller has $1.0 billion in annual interest income.

    • King Wire, Inc. of North Chicago, Illinois: Wire and cable manufacturer King Wire is the largest cable specialist for wind turbine cables in the U.S., Canadian and international markets.

    • Mitsubishi Heavy Industries America of Newport Beach, California: A division of Mitsubishi Heavy Industries, Ltd., a Japanese conglomerate with ¥3.1 trillion in consolidated sales, MHI America manufacturers wind turbines 250 and 450 kW in size.

    • Molded Fiber Glass Companies/West of Adelanto, California: A division of Molded Fiber Glass Companies, MFG/West is America's leading producer of large (> 20 meters) turbine blades.

    • NEG Micon USA of Rolling Meadows, Illinois: A subsidiary of Denmark's NEG Micon A/S, a wind firm with annual turnover of DKK 3.0 billion and 20% of the world market, NEG Micon USA manufactures wind turbines 600 to 1,500 kW in capacity, provides financing and develops and operates projects. In 1998, NEG Micon established manufacturing capabilities in the USA and Canada.

    • SeaWest WindPower, Inc. of San Diego, California: SeaWest undertakes all phases of wind project development and operations.

    • Teledyne Cast Parts of LaPorte, Indiana: Teledyne Cast Parts is an affiliate of Allegheny Teledyne Inc., a diversified specialty metal firm with $3.9 billion in annual sales. In addition to iron castings for locomotive and stationary engine blocks, Teledyne Cast Parts makes gearboxes wind turbines.

    • Vestas American Wind Technology of Palm Springs, California: Vestas American is a subsidiary of Denmark's Vestas, a manufacturer of wind equipment with turbines 225 to 1650 kW in capacity, 19% of the world market, net turnover of DKK 2.8 billion and over 2,400 employees, plus another 700 employees in associated wind firms. Vestas supplied 41 MW of capacity to the American market in 1998, and expects pre-tax growth in profits in 1999 of approximately 60%.

 

A Sustainable Energy Industry Cluster
for Mesa Del Sol

   
  1. Introduction
  2. Defining our Terms
  3. Industry Drivers
  4. Mapping the Sustainable Energy Industries
  5. Selected Finance Programs for Sustainable Energy
  6. What Might Sustainable Energy Firms Seek in a Location?
  7. Major Players