KWR International, Inc.

Buffalo Niagara: Where Industry Creates Energy

feedstock such as algae or produce advanced biofuels.
This adds to the more than $1 billion already committed
to government research, development and the demon-
stration of cellulosic biofuels technology.
component manufacturing and processing
Bioenergy requires many manufactured components
due the complex processes used in chemical conversion
and refinement. The supply chain stages are feedstock
production, feedstock logistics, conversion, distribution
and end-use.
Storage tanks, mills, valves, pipes, pumps, motors, heat-
ers, filtration systems, agitators, distillation columns, tur-
bines, centrifuges and laboratory/analytical equipment
are all part of the refining process. Farm machinery is
used in biomass production, and truck and rail trans-
port are required for both the raw material and finished
product. The basic production categories are biomass
characterization; thermochemical and biochemical bio-
mass conversion technologies; bio-based product devel-
opment; biomass process engineering and analysis; and
the manufacture of boiler units and storage tanks.
As an example, the 2005 Renewable Energy Policy
Project (REPP) report concluded the development of
biomass steam-generator technology, generating 8,700
megawatts of energy, would involve, on a national ba-
sis, 12,447 firms, $5,885 billion and create 37,053 new
full-time equivalent jobs. In New York, 1,605 firms
would be involved in creating 2,683 new biomass jobs
and receive $465 million of investment in manufactur-
ing components to supply this emerging industry.

Representative jobs in
the biomass sector:

Jobs created in the biomass sector include:

Harvesters, Collectors, Logistics Industry
Workers, Pre-processing Workers, Chemical
Engineers, Chemists, Chemical Equipment
Operators, Chemical Technicians, Mixing
and Blending Machine Operators, Agricul-
tural Workers, Industrial Truck Drivers, Farm
Product Purchasers, Agricultural and For-
estry Supervisors and Laborers, Agricultural
Inspectors, Accountants, Lawyers, Office
Clerks, Human Resource Managers, Ca-
shiers, and Retail Sales Persons.

Major companies in the sector:

Major companies in the biomass sector in-

clude: Axens—France; Ballestra—Italy;
BioDiesel International—Australia; BioDiesel
Industries—U.S; Coskata—U.S; DuPont Dan-
isco Cellulosic Ethanol—U.S; Ekoil—Ukraine;
Energia—Netherland s; Lurgi—U.S; Renewable
Energy Group—U.S; Sapphire Energy—U.S.

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KWR International, Inc. Buffalo Niagara: Where Industry Creates Energy
fills. In addition to energy creation, biomass refers to
alternative fuel creation for transportation modes.
An additional sector that bears attention is nuclear en-
ergy. Nuclear is not usually classified as a renewable
energy source, despite its lower carbon footprint and an
emission of greenhouse gases lower than fossil fuels.
Nuclear is not a part of the traditional “green energy”
movement because of environmental concerns raised by
opponents and the very real problem of disposal and
storage of radioactive waste generated in the process.
Although the United States does not have an answer to
the disposal problem, Energy Secretary Steven Chu has
noted, “Nuclear is going to be part of our energy future.
It has to be.” The Obama administration has indicated a
willingness to proceed with new nuclear plant construc-
tion as part of a multifaceted plan to reduce dependence
on nondomestic oil. Component manufacturing and con-
struction activity for these new plants—projected to be
20 to 30 in the U.S. alone—is anticipated to yield signifi-
cant job-creation in the years to come.
With the growing understand ing that nuclear must be
a factor in our alternate-energy infrastructure, there is
an increasing need for specialized skills and capacity in
manufacturing, construction and services.
GAS
20.9%
Nuclear
6.5%
OIL
34.3%
RENEWABLES
13%
COAL
25.1%
Nonrenewable
Waste 0.2%
Fuel share of world primary energy supply

II. Green Economy Growth Sectors
a. The Value of Chain of the Green Economy
The Duke University Center on Globalization, Gover-
nance and Competitiveness in a joint study with the
AFL-CIO3, determined it was possible to apply a “value
chain” to alternative energy opportunities by expand
ing the more familiar supply chain approach with addi-
tional layers of information about how and where high-
er-value activities and industrial upgrading can occur.
They determined manufacturing will play a vital role
in green economy growth. This can be determined by
breaking down each technology into its main materials
and components; identifying the main components of
the value chain and their respective end products and
companies; and assessing the labor types required in
the manufacturing process.
For example, many potential manufacturing jobs in the
3
Carbon-Reducing Technologies and US Jobs. Gary
Gereffi, Kristen Dubay, Marcy Lowe. Center on Globaliza-
tion, Governance and Competitiveness. Duke University.
2008.
Tide 0.0004%
OTHER 0.5%
hydro 2.2% solar 0.039%
wind 0.064%
combustible Geothermal
renewables 0.414%
& renewable
waste 10.6%
Source: EIA 2007
KWR International, Inc. Buffalo Niagara: Where Industry Creates Energy

Hydropower in the Niagara River in a 17-mile stretch from

NAICS Industries the Peace Bridge in Buffalo to Grand Island.
Hydro Green Energy, a Texas firm, has also
Distribution in
filed for permits to place 90 hydro turbines
Buffalo Niagara in the river between the Rainbow Bridge in
Region Niagara Falls and the Lewiston-Queenston
Bridge. Hydrokinetic operations may also
Revenue per be able to tap the power of the tides in the
NAICS code region’s two Great Lakes.

buffalo niagara hydropower naics

Fabricated Structural
17% Total Other 8% Industrial Valve 6%
Metal Mfg value chain analysis
10% Electric Power Pump/Pumping All Other Misc Fab
8% 6%
Distribution Equip Mfg Metal Product Mfg
Table IV (page 51) analyzes the Buffalo Niag-
9%
Hydroelectric Power
Generation
8%
Other Measuring/
Controlling Device Mfg 2%
Ovrhd Traveling Crane,
Hoist & Monorail Sys Mfg
ara Hydropower Value Chain by splitting it in
Fluid Power Cylinder/ Plumbing/Heating Equip
terms of revenues and firms. A more detailed
9%
Actuator Mfg
6% Sheet Metal Work Mfg 2% Merch/Wholesalers breakdown is also included in Table IV and in
8% Instr/Related Prod Mfg for the minor NAICS tables in the appendix.
Measure, Display & Control

HYDROPOWER PERFORMANCE No individual NAICS code accounts for more

than 10% of hydropower revenues in Buffalo
OF BUFFALO NIAGARA COUNTIES Niagara, though seven register more than 8%
Actual Revenues/Forecasted Revenues including Electric Power Distribution (9.6%),
Hydroelectric Power Generation (9.5%), Fluid
Power Cylinder/Actuator Mfg (8.6%), Instru-
ALLEGHENY 4% ments/Related Products Mfg for Measure,
Display and Control (8.4%), Pump/Pumping
CATTARAUGUS 60%
Equip Mfg (8.1%), Industrial Valve (8.1%)
CHAUTAUQUA 14% and Other Measuring/Controlling Device Mfg
(8%) respectively. Three others, Sheet Metal
ERIE 131%
Work Manufacturing (6%), Fabricated Struc-
GENESEE 19% tural Metal Manufacturing (5.9%) and All
Other Misc. Fab. Metal Product Mfg (5.6%),
NIAGARA 34% registered over 5%, with the rest below.
ORLEANS 6% As with wind and solar, economic activity
remains centered in Erie County, which ac-
WYOMING 9% counted for about 67.7% of total firms and
almost 92% of total revenues.
Actual Firms/Forecasted Firms
When measuring the percentages of total
firms operating in hydropower against to-
ALLEGHENY 80% tal firms in their respective county, which in
essence corrects for population differences,
CATTARAUGUS 79%
Erie again is operating at 131% above what
CHAUTAUQUA 78% would be expected in terms of revenues
and 113% in terms of the number of
ERIE 113%
firms. Cattaraugus was the only firm op-
GENESEE 75% erating over 50% of anticipated revenues
at 60%, followed by Niagara at 34% and
NIAGARA 89% all of the others under 20%, or in the
ORLEANS 84% case of Allegheny, Orleans and Wyoming
barely visible on the chart above.
WYOMING 54%

52
KWR International, Inc. Buffalo Niagara: Where Industry Creates Energy
geothermal sector
Buffalo Niagara does not have the natural resources for
large-scale geothermal power generation, although geo-
thermal heat pumps are practical in many areas, espe-
cially in the eastern and southern areas of the region.
In Buffalo Niagara there are several equipment and
component manufacturers that focus on the smaller-
scale geothermal industry. In addition, several school
districts and high heat users such as dairies have in-
stalled or are considering geothermal systems.
Cal Research Inc. in Ransomville is a supplier of geother-
mal energy system components and steam calorimetry
instruments, and Caster Drilling Enterprises, LLC special-
izes in the design and installation of geothermal systems
for residential and commercial use, providing services
that include well-field design, loop-field installation, ex-
cavation, test-well drilling and thermal conductivity test-
ing. Phoenix Geothermal Services in Auburn is a designer,
developer, and reseller of geothermal heating systems;
e-Vanhee of Rochester is a full design, install-and-service
company specializing in geothermal systems.
53
iStock photo
Two large architectural preservation projects have cho-
sen geothermal systems in recent renovations: Frank
Lloyd Wright’s Darwin Martin house and “Babeville,” a
performance and art space in the former Asbury Dela-
ware Church.
The Southern Tier West Regional Planning and De-
velopment Board, in cooperation with the New York
State Energy Research and Development Corporation,
has studied possible geo-thermal applications in the
southern portion of Buffalo Niagara. A new $2 million
geothermal heat system for the Salamanca City Central
School District came online in 2008.
buffalo niagara geothermal naics
value chain analysis
Table V on page 54 analyzes the Buffalo Niagara Geo-
thermal Value Chain in terms of revenues and firms. A
more detailed breakdown is included in Table V and in
minor NAICS table in the appendix.
No individual NAICS code accounts for more than 10%
KWR International, Inc. Buffalo Niagara: Where Industry Creates Energy
Oregon Institute of Technology
Research
Oregon Renewable Energy Center conducts research
in photovoltaic power systems, ground-source heating
systems, fuel-cell systems, wind, biomass and inte-
grated systems.
Notable Colleges with Bachelors, Masters, and Ph.D. Programs
ARIZONA STATE UNIVERSITY
Program
Info
Biodesign Institute focuses research on energy and the
environment. Current research includes a new type of
microbal biofuel and creating biohydrogen energy.
Research
78
B.S. in Renewable Energy Engineering.
First degree of its kind in North America
when created. Renewable energy specific
courses in photovoltaics, energy manage-
ment and auditing, wind power, biofuels,
renewable-energy transportation systems,
green building and fuel cells. Resources of
Geo-Heat center available to individuals,
organizations, and companies pursuing
geothermal development.
Program
Info
College of Technology and Innovation
offers B.S. In Electronics Engineering
Technology and M.S. In Technology with
concentration in alternative energy.
Focus on renewable energy through ocean,
wind, solar, geothermal, and biomass
sources.
Engineering programs also incorporate
alternative-energy technologies.
ASU’s School of Sustainability offers B.A.,
B.S., M.A., M.S., and Ph.D. programs.
The National Science Foundation awarded
the Electronic Systems Department at the
Polytechnic campus a $900,000 grant to
develop energy programs and courses in
conjunction with Arizona and Texas com-
munity colleges (compare to programs in
next section).
KWR International, Inc. Buffalo Niagara: Where Industry Creates Energy
Appalachian State University
Appstate Energy Center has a research grant program
to encourage new projects. A new Research Institute
for Environment, Energy, and Economics was recently
announced to further enhance research in these fields.
Research
ogy, philosophy and anthropology. A stand-alone pro-
fessional Masters of Environmental Science is offered
through the Centre’s Scarborough campus. 
Niagara College at Niagara-on-the-Lake is home to the
Environment and Geomatics Centre which was found-
ed in 1991 to provide leading-edge environmental
education for full- and part-time students. The Centre
trains students for professional roles in environmen-
tal management, ecological restoration, environmental
assessment, geographic information systems manage-
ment and environmental field and laboratory work.
Other models
The majority of colleges and universities that have
made successful progress in the field of alternative
energy are, not surprisingly, located in areas where
manufacturing, alternative energy, and sustainability
are gaining the most momentum. In many cases, the
schools were established with grants from organiza-
tions and companies in the alternative-energy field as
well as from state and federal initiatives to increase
alternative-energy sector growth and produce more
jobs. As can be seen by the success of green industries
in the states of these schools, education at collegiate
and vocational levels as well as outstanding research is
necessary to promote green industry.
79
Program Info
B.S. and M.S. in Appropriate
Technologies.
Gives technological foundation
in drafting and design, wood
and metal working, comput-
ers, architecture, construction,
graphic arts and knowledge of
renewable energy technologies,
energy efficient solar building
design and construction, and
waste management.
B.A. and B.S. in Sustainable
Development.
Notable Colleges and Universities with
Bachelor, Master, and Ph.D. Programs
While Buffalo Niagara colleges and universities possess
many research and development programs that have
applicability to renewable-energy development and the
environment, few are aimed specifically at the sector.
This is true even though many of these schools have
advanced engineering and design programs that are
required at virtually all levels of the renewable-energy
supply and value chain. In addition, these schools have
major research programs in biotechnology and nano-
technology where spin-offs into renewable-energy phas-
es are possible. It also has robust, two-year colleges
providing skills training that are integral to supply-chain
development. Specific research and design centers are
located at other universities in upstate New York and
southern Ontario making cooperative partnerships fea-
sible. While Buffalo Niagara has an outstanding educa-
tional base, it can still be improved and better positioned
to meet the needs of the new green economy.
State Incentives
New York’s renewable-energy-specific incentive pro-
grams are highly competitive with other states and
can offer Buffalo Niagara opportunities to attract new
business when marketed to target companies. In most
surveys, New York ranks in the Top 10 of the states