We’re in the final countdown towards the Global Marine Renewable Energy Conference 2009. In anticipation, we’re running a series of mini-profiles of our OREC members who will be moderating our conference panels to give you a sense of the quality and substance that we intend to deliver.
Gregory F. Hagood, CFA
Managing Director
Navigant Capital Advisors
What changes have you noticed in the industry since the time that you began working in the field until now?
A. Over the past three years I have seen marine renewable energy progress from theory/design phase to working pilot projects that are delivering energy into the grid. This is best exemplified by Verdant Power’s Roosevelt Island project that is actively generating power in the East River. In addition, the Pelamis projects in UK and Portugal would are illustrating the ability to generate sustainable energy on a meaningful scale from marine renewable technologies
B. The regulatory environment in the U.S. is still difficult but improving. Among the highlights
– DOE has begun to work more closely with both FERC and MMS
– FERC has issued over 30 preliminary permits to study sites
– Studies showing no damage to fish and marine life from Verdant pilot site paving the way for acceptance of new test sites by states
– Feed-in tariff structure Hawaii has put in place as part of the Hawaii Clean Energy Initiative (HCEI) which encourages renewable developers to develop generation resources by requiring the utility to buy the output of these resources at an attractive rate. This should improve the outlook for all types of renewable energy in Hawaii and one should expect, due to the geography, marine renewable technologies such as ocean thermal. Hawaiian Electric has at least 2 ocean thermal projects proposed.
C. Funding from U.S. government, while lagging European government commitments and commitments to other renewable technologies, is improving
– Marine Renewable Energy Research and Development Act of 2007 appropriated $50M for 2008-2012 for research into Marine Renewable Energy and establishing to research centers (Hawaii and Oregon)
– Marine renewable now eligible for Production Tax Credit (PTC). This tax credit has been critical to spurring growth of Wind and Solar projects
D. Growing commercial interest in Marine Renewable Technologies
– GE bought stake in Ocean Power delivery
How do you see the marine renewable industry helping our economy?
– Marine Renewable Technology offers the opportunity to pioneer a new technology that can be exported all over world. This should create R&D and engineering jobs in short term and manufacturing opportunities over the long term
– Also offers opportunity to revitalize coastal communities in many parts of U.S.
What, if anything, makes the marine renewables industry different from other industries that you’ve worked with?
Much broader range of technologies and applications taking advantage of more diverse energy sources (waves, tides, hydrothermal) than other types of renewable energy applications
What do you find most exciting about the marine renewables industry?
It is a decade behind other types of renewable energy (solar, wind, biomass) but has opportunity to catch up quickly.
What, in your opinion, are the top two to three developments needed to bring marine renewables to commercialization?
1) More streamlined regulatory process to make site approval process quicker abd
a. greater cooperation/one licensing process between FERC and MMS)
b. Federal guidelines for EPA and State Fish Wildlife approvals
2) Reduce manufacturing cost of existing technologies to make large scale development more affordable
3) Federal/state mandates requiring utilities to purchase 15%+ of energy from renewable sources
What are your predictions for the marine renewables industry over the next 3-5 years?
Steady growth as i) utilities and corporations look for ways to meet regulatory guidelines to generate/buy clean energy and ii) cost of equipment and regulatory approval declines with experience curve
Gregory F. Hagood, CFA serves as a Managing Director with Navigant Capital Advisors (“NCA”), the Corporate Finance practice group of Navigant Consulting, Inc. Mr. Hagood is Practice Group Leader for the Investment Banking Group at NCA which focuses on providing private placements of debt and equity as well as merger and acquisition advisory services.
Mr. Hagood specializes in working with Navigant Consulting, Inc.’s (“NCI”) Energy Services Consulting Practice where he focuses on raising growth capital for clients in the renewable energy sector.