ALTERNATIVE ENERGY OPPORTUNITIES IN VIRGINIA JERRY W GILES

ALTERNATIVE ENERGY OPPORTUNITIES IN VIRGINIA JERRY W. GILES MANAGING DIRECTOR TECHNOLOGY, ENERGY AND CORPORATE SERVICES VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP

BUSINESS DEVELOPMENT SECTORS

VIRGINIA’S ENERGY INDUSTRIES

WORKFORCE IN VIRGINIA • Virginia’s 4 Million Employees are Highly Trained and Maintain a Strong Work Ethic-Ranked 7 by Forbes. com • Virginia is Home to over 14, 800 High. Tech Establishments employing 270, 800 High-Tech Workers (1 st in the US per capita-Cyber. States Magazine) • Virginia Ranks Second in Number of Nuclear Engineers-1330 • Virginia’s Annual Labor Force Growth Includes Over 18, 000 Skilled Workers Exiting the Military Annually • High Concentration of Energy Research at Federal Labs, Universities and Private Industry • Virginia’s Worker’s Compensation and Unemployment Insurance Rates are Among the Lowest in the US

OVER 31, 000 EMPLOYEES IN VIRGINIA’S ENERGY SECTOR

UNIVERSITY ENERGY R&D

INDUSTRIAL ENERGY R&D

FEDERAL ENERGY R&D

VIRGINIA NEW ENERGY R AND D INFRASTRUCTURE ($40 MILLION BUDGET- TIC FUNDED)

FOLLOW THE MONEY Yearly VC Investment Top VC Clean Technology in 2009 (North America, Europe & Israel, China, India) Source: Cleantech Group (Cleantech. com) 2002 $908, 269, 409 Technology Sector Amount Invested % of total Solar $1. 2 billion 21% $1. 1 billion 20% 2003 $1, 259, 665, 762 2004 $1, 321, 871, 203 Transportation (including electric vehicles, advanced batteries, fuel cells) 2005 $1, 994, 122, 434 Energy Efficiency $1. 0 billion 18% 2006 $4, 519, 108, 949 Biofuels $554 million 10% Smart Grid $414 million 7% Water $117 million 2% 2007 $6, 053, 192, 844 2008 $8, 465, 483, 542 2009 (preliminary) $5, 640, 928, 988

Source: Cleantech Group (cleantech. com FOLLOW THE MONEY Full-Year 2009 Top Five Most Active Clean Technology Venture Funds Venture Capital Firm # of rounds Kleiner Perkins Caufield & Byers 19 SAIL Venture Partners 15 Rock. Port Capital Partners 14 Khosla Ventures 12 Element Partners 11 Draper Fisher Jurvetson 11

Virginia’s Offshore Wind Potential is Large; Is it Cost-Competitive with Fossil Fuel Generation? Fentress VCERC identified 25 MMS lease blocks that appeared to have minimal conflict with existing uses by the Navy, NASA-Wallops, commercial shipping, or commercial fishing. These are all beyond 12 nautical miles offshore and in water depths less than 100 ft, and could support 3, 200 MW of wind capacity generating 11 TWh/yr, or 10% of VA’s annual energy demand.

Direct Rail Access: connection with CSX and also Norfolk Southern via the Norfolk and Portsmouth Belt Line Railroad Portsmouth Marine Terminal

MID-ATLANTIC REGION • Virginia has the most workers in the Mid-Atlantic Region for the sectors of Shipbuilding & Repair, Marine Construction, and Transformer Manufacturing • Virginia has significant numbers of workers in the sectors of Manufacturing of Fabricated Structural Metal, Mechanical Power

VEDP’S LEGISLATIVE PACKAGE: CEMIG • New Clean Energy Manufacturing Incentive Grant – $50 M / 200 jobs in non-distressed localities – Thresholds can be reduced in 125% unemp. Localities – $10 M / 30 jobs thresholds for wind energy suppliers – Renewable, nuclear, conservation, grid efficiency equipment manufacturers qualify – Total of $36 M of performance grants

VALUE PROPOSITION FOR ENERGY “COMMON MESSAGING” 1. “Best State for Business”-Means Sustained Economic Returns for your Company 2. Virginia Fields a Diverse and Deep Energy Workforce 3. Virginia Incents Both the Supply and Demand Sides of the Energy Equation 4. Virginia Rewards High-Impact and Collaborative, Energy R&D

Thank You Jerry W. Giles Virginia Economic Development Partnership jgiles@yesvirginia. org 804. 545. 5703