🔒Mergers and partnerships: Clean energy rises to the next level in Maine

As Maine’s new economy evolves, a large part of the foundation is clean energy solutions. Innovations and partnerships rising to meet needs.

Pika Energy: Going big, staying scalable

Like many ideas that bloom into successful businesses, Pika Energy started in a basement.

Former Massachusetts Institute of Technology classmates Ben Polito and Joshua Kaufman, both already involved in green energy innovation, in 2010 partnered on a way to store power generated by the sun and wind.

The partnership, which started in Polito’s basement, became Pika Energy. In April, the Westbrook company was acquired by Generac, which designs and manufactures industrial power products and is best known for generators. The terms of the deal were not disclosed.

“It was the right team and the right time,” says Polito as he sits in the conference room of Pika’s busy headquarters. Generac “is a natural partner.”

Generac President and CEO Aaron Jagdfeld, in announcing the acquisition, said that Pika’s integrated battery storage solutions “are a crucial component in developing a comprehensive system to store and consume clean energy.

“The visionary ideas and technology that Pika has developed give us a considerable edge as we expand into the rapidly developing market for energy storage.”

The fact Generac acquired Neurio, an energy management technology company, played a part in making the acquisition attractive, Polito says. “Generac’s goal is to create mass markets and opportunities to transform the whole grid” from a fossil-fuel dependent system.

“Making technology more accessible is part of our mission,” Polito says. “The time is right to make battery technology mainstream.”

Pika has had robust support from Maine investors since its inception. When the acquisition was announced, the Maine Technology Institute called it “a victory for the entire entrepreneurial community in Maine.”

Investments in Pika have been from the Finance Authority of Maine’s Seed Capital Tax Credit Program; MTI ($1 million); CEI Ventures ($450,000); Maine Venture Fund ($700,000); and Maine Angels private equity investor group (30 members collectively invested $2 million).

“The great thing about the Pika story is that, while the company benefited from a number of innovation ecosystems partners in Maine, the company has also generously given back to the system,” said Brian Whitney, president of MTI, citing Polito’s involvement in entrepreneur mentorship.

Polito says Pika’s rapid growth and attractiveness to investors has much to do with its focus. “Wind, sun — those are scalable, they’re global,” he says.

He says the acquisition is so now that currently, “We’re working on product integration, team integration,” he says. But in general, it means that Pika, which employs 35 and has a national customer base, can move forward faster than planned.

“It’s all about acceleration,” he says. “The vision hasn’t changed. [The acquisition] has given us the ability to move faster, to achieve goals. It’s a huge opportunity. It’s a $5 billion market, and we have great partners.”

Looking for partners to build an economy

The Passamaquoddy tribe’s Indian Township Enterprises business arm was formed last year with a focus on providing jobs and building an economy for the 3,200-member nation. It’s about more than business in a population that’s hard-hit by high unemployment and health care issues that result in a 55-year life expectancy on tribal land, compared to 79.2 in the state overall.

Darrin Coffin, CEO of ITE, says the first step to making life better is to attract diverse business and expand the tribe’s land base and resources. Clean energy projects, both globally and locally, are a big part of the focus.

Clean energy isn’t new to the tribe. In 2017 it was named Project Developer of the Year by national group Climate Action Reserve for generating the most carbon offset credits in 2016 by maintaining its forests.

With 130,000 acres of land spread across the state, most of it forested, and tribal loggers who have been looking for work since many of Maine’s paper mills have closed, biomass is one obvious solution, Coffin says.

ITE plans to build a biomass plant that would produce power, biofuel and activated carbon, which is used as a soil additive as well as a clean-burning fuel.

Coffin says the carbon sells for $35 a ton in Maine, “So that makes it not competitive.” But a plant that also has revenue from producing biomass power and fuel would make producing it possible. They are talking to possible partners, though nothing is final.

ITE is also in discussions with the town of Lincoln, which is looking to develop the Lincoln Pulp and Paper mill site. While the communities are 50 miles apart, Lincoln is close to tribal land, and Passamaquoddy loggers once supplied timber to the now defunct mill.

On a broader level, ITE wants to leverage a 2007 law that allows Maine tribes to set up energy utilities in order to create revenue since no property taxes are charged on tribal land. ITE is in the engineering phase of a solar project that will take tribal government buildings off the grid. The array, owned by a special purpose entity of ITE, will sell less costly power to the tribal government. The next phase will be to sell power to other communities.

“The Passamaquoddy tribe could be one of the biggest power providers and green energy produces in the state,” Coffin says.

Indian Township Enterprises wants to build community with other businesses and organizations with an eye toward helping the state’s economy, as well as the environment, he says.

The tax advantages should be attractive to partners. For the tribe, it’s not only about the past, but about the future. The focus on renewable energy is key, Coffin says.

“We’re connected to Maine, and we’re connected to natural resources,” he says. “We’re good stewards of the land, but we also need to adapt economically.”

Drivers plugging in

Kevin Mattson, of Dirigo Capital Advisors, has been driving an electric car for a few years. It’s an older-model BMW that can get 100 miles a charge using the charger he has at his Freeport home. Since he’s overseeing development projects that stretch from Saco to Waterville, 100 miles isn’t always enough, and he’s always on the lookout for charging stations.

That’s made him realize that, as he sees more EVs on the road, charging stations are a necessary addition to his developments.

When Run of the Mill Lofts in Saco opens next month, there will be a charging station. He also recently installed them at Ballard Center, in Augusta, and Hallowell House, in Hallowell.

He plans to include some in the under-development Seton project in Waterville, which will have 68 apartments as well as office space.

“This is going to be the differentiator with developments,” he says. “EVs are no longer a novelty. [Potential tenants] will be asking, ‘Do they have a charging station?’ In 10 years, electric vehicles will the norm and we have to get ready. In three to five years, charging stations will be commonplace in residential developments, office buildings.”

The Natural Resources Council of Maine reported last year that 1,300 Mainers own electric vehicles. In a survey last year, the council found owners’ biggest concern — 47% of respondents — is the availability of public charging stations.

The Smart Electric Power Alliance estimates that by 2030 there will be 20 million electric vehicles on U.S. roads.

Efficiency Maine is developing a rebate program for individuals and business owners. Estimates are it will put 900 electric vehicles on the road. Details are still being worked out for the $2.25 million program, which will be paid for with the state’s $5.1 million Volkswagen settlement.

The rest of the settlement money will fund incentives for electric vehicle purchases by public agencies and organizations that serve elderly, low-income and special needs residents. Efficiency Maine estimates the money will leverage local funding for 100 electric vehicles.

The state also this summer will install high-speed ChargePoint stations at Maine Turnpike Authority service plazas in Kennebunk and West Gardiner, on U.S. Route 302 near Bridgton/Naples, in Farmington near the intersection of U.S. Route 2 and Route 27, and on U.S. Route 201 in Jackman.

Maine retailers are leading the charge. L.L.Bean in September installed eight Level II chargers (faster than the Level 1 plug-into-an-outlet home chargers) and 8 Tesla Superchargers at its Freeport complex. The chargers are free and open to the public.

Hannaford, in 2016, installed chargers at stores in Augusta, Topsham, Portland, South Portland and York, partnering with Nissan and the EVgo Fast Charging network.

Hannaford recently installed 12 Tesla charging stations at its Forest Avenue store in Portland and expects to have 39 in Maine by year’s end.

The chargers provide “a backbone of fast-charge stations in Maine” as well as “support the growth of zero-emission vehicle use statewide,” George Parmenter, Hannaford manager of sustainability, said when they were installed. Users pay with an EVgo account fob, credit or debit card.

Revision Energy has installed 30 electric vehicle charging stations and hired an electric vehicle coordinator. Central Maine Power offers matching grants for charging installation.

Mattson is starting with Run of the Mill Lofts. While there’s only one so far, “Soon it’ll be unusual for a new development not to have a charging station. Eight will be normal, 16 — it’s going to take a giant leap.”