Good story on what may very well become a major part of the Sacramento region’s business future.
'Green' energy firms get tips on how to help industry grow
By Clint Swett - Bee Staff Writer
Published 12:00 am PDT Friday, October 12, 2007
While the Sacramento region has many basic ingredients to become a hub for the "green" energy movement, success will depend upon expanding access to investment capital, streamlining government regulations and mustering broad government support, industry veterans told attendees at a Davis conference Thursday.
A procession of speakers at the Sacramento Region Clean Energy Showcase on the UC Davis campus praised the region's exuberant entrepreneurs and their collaboration with researchers at local universities. It's estimated that roughly 80 regional companies are now focusing on clean energy products.
The public, increasingly aware of global warming issues, is ready to embrace and pay for solutions to environmental problems, experts told 300 attendees. Now it's up to local governments and businesses to adopt the technology fostered in the area, said Ben Finkelor, program manager of the UC Davis Energy Efficiency Center, which focuses on bringing energy technologies to the marketplace.
Still, there is some progress along those lines. Rocklin, Loomis and Roseville have adopted resolutions committing their city governments to increasing the use of green energy products.
Local venture capital firms have made significant investments in the region's green technology companies. Folsom-based Velocity Venture Capital, for instance, has partnered in funding three local companies to the tune of $7 million in the past year, said Jack Crawford Jr., a general partner in the investment firm.
"It takes a lot of money for research and development and a lot more for demonstration projects and implementation," said Dennis Schuetzle, president of the Renewable Energy Institute International in Roseville.
"We trail the Bay Area in how much funding is available," said Jacob Jorgensen, a Velocity Ventures partner, who estimated that Sacramento VCs have only about 5 percent of the capital that their Bay Area brethren receive. "Success begets success. You have to start small and work toward building companies here."
Even as entrepreneurs chase capital, they must also attempt to persuade regulators to give new ideas a try. In the building industry particularly, business owners say, the rules have not kept up with advances in green tech construction.
