Energy-Inc. Helps Fuel Economic Recovery in Elkhart

10/15/2009

After the collapse of the local RV industry, the Elkhart area received significant national publicity for the dubious distinction of having the highest unemployment rate in the nation. However, the area is making a comeback, according to local economic development officials—assertions that are backed up by positive investment numbers.

In September, the Economic Development Corporation (EDC) of Elkhart County reported $105 million of new investment and 2,600 new jobs so far in 2009. Just a handful of days later, the region solidified another significant win when Energy-Inc., a Nevada-based advanced thermal conversion technology company, announced it will build its first U.S. manufacturing facility in Elkhart County.

"The recent investments have been fantastic—much needed," says Dorinda Heiden-Guss, president of the EDC of Elkhart County. "It's been more than challenging for me in my role, but even more so in the hearts and minds of our citizens who are trying to secure employment, feed their families and sustain themselves. We're thrilled to be able to share positive news, embrace new opportunities, continue to diversify our marketplace—which has been the goal—and raise the income levels of our citizens." Listen

Energy-Inc. has developed energy management projects for corporations around the world, but has only been in the United States for six months. The company plans to invest $96 million to convert a vacant building in Middlebury into its first U.S. manufacturing facility, which will build the equipment used for the thermal conversion process of turning waste into energy.

"We can take municipal solid waste—the stuff you set out at the curb of your house—agricultural waste, old tires, sewage or sewage sludge, then super heat it in the absence of oxygen—this is not incineration—and convert it into a gas," says Energy-Inc. President and Chief Executive Officer Kim Kirkendall. "That gas is then purified, and it can be used to generate electricity, make hot water, steam or even a biofuel like biodiesels and bioethanols." Listen

The manufacturing operation is expected to create about 500 jobs with an average annual salary of about $45,000. Kirkendall says the facility will also be one of the first factories in the U.S. to be entirely self-sufficient and have a zero carbon footprint. Listen

The company chose Elkhart County for two main reasons: work force and location. Raw metal material is the main component needed to build the thermal conversion technology units, and Kirkendall says the county's close proximity to steel mills in Detroit, Toledo, Chicago and Gary will help cut costs.

"We also considered where we could get the labor force we needed; highly qualified, technical people that could actually put this equipment together for us and be the good employees that we need to run a successful company," says Kirkendall. "Ultimately, that came out to be Elkhart."

As a native Hoosier born and raised in north central Indiana, Kirkendall also felt a close connection to Elkhart's economic plight, especially during President Barack Obama's visits to the struggling region.

"You always want to do positive things for the country, and with my personal ties to Indiana, your roots certainly tug on you when you have the opportunity to bring a technology like this forward," says Kirkendall. "But all companies must make money to survive, so you also have to have a positive business case, and Elkhart brought that formula to us." Listen

The Elkhart County Council approved the company's request for a 10-year partial tax abatement for the property. Heiden-Guss says, most importantly, Energy-Inc. will help diversify the local economy, which will lead to stability and longevity.

"We'd like to stay away from the cyclical-type businesses that have hit us hard in the past," says Heiden-Guss. "We've experienced four straight months where our unemployment rate has been dropping. We're still the highest in the country, but the reporting of that is typically 60 days behind. We definitely foresee brighter days ahead." Listen

Energy-Inc. is also part of a broader trend in "green" job growth that's happening statewide. A recent study by the Pew Charitable Trusts documents 18 percent growth in green jobs in Indiana over the last decade, and as of early August, the state had attracted $416 million in federal energy grants, the second-highest total of any state.

Energy-Inc. is in the process of renovating the facility and expects to start production in early November. While the manufacturing operation will leave a zero carbon footprint on the environment, Energy-Inc. and local economic leaders are hopeful the young company will leave a positive footprint on the community as Elkhart makes its economic comeback.

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