Businesses focus on renewable energy

FLORENCE - Two north Alabama business incubators are starting an outreach program that will target operators of renewable energy related businesses.

The Tennessee Valley Renewable Energy Incubation Outreach Program is being made available through a partnership between the Shoals Entrepreneurial Center, Huntsville's BizTech incubator, The Appalachian Regional Commission, the Alabama Department of Economic and Community Affairs and the U.S. Department of Labor's Wired Program.

"There's just a lot of interest out there," said Shoals Entrepreneurial Center Executive Director Giles McDaniel. "We've had numerous calls from all over the region in Alabama from people who have ideas for developing biofuels from various kinds of feed stocks."

The purpose of the program is to identify the operators of renewable energy related businesses in a 23-county territory in north Alabama and south central Tennessee.

Once the companies are identified, the program will provide business incubation services to these companies to increase their likelihood of success.

"We've put together a committee of individuals with expertise, about as much expertise, as you'll find in the area," McDaniel said.

McDaniel said the program will also help individuals who might have good ideas that are not currently feasible to pursue today.

"If the market is not ready, they're going to lose a lot of time and money," McDaniel said. "There are so many 'got ya's' from the regulations to getting started to obtaining fuel stocks to produce the product."

Seminars in the 23-county area will be the primary outreach tool to inform those who are considering entering the renewable and clean energy field about the current state of the industry. One-on-one assistance will be conducted with those who are identified as serious prospects.

The program will provide an opportunity for the local business incubators and their partners to assist companies in making better decisions about entering the renewable energy field.

McDaniel said much of the renewable energy field will be driven by parameters set by energy companies and industries such as the automotive industry based on the type of technology they plan to pursue.

Rising fuel prices have created a need to pursue alternative energy sources that were not in demand in the past, he said.

Examples of renewable energy are biofuels, or using organic products such as plants or used cooking oil to produce fuel.

"We're looking at energy that's created from products that don't affect the food supply chain and are easily grown and replenished," McDaniel said.

The use of corn to produce ethanol, which is used as a gasoline additive, has caused food prices to increase. McDaniel said there are other crops that can be used as renewable energy sources that would not affect food prices.

The Shoals Entrepreneurial Center and BizTech have provided business incubation services in Colbert, Lauderdale and Madison counties for more than 10 years. The renewable energy program will provide services to an additional 11 Alabama counties and nine counties in Tennessee that currently do not have access to business incubation services and are at risk for renewable energy business failures.

"This is just the start," McDaniel said.

Russ Corey can be reached at 740-5738 or russ.corey@TimesDaily.com.