MORGANTOWN – West Virginia’s — and the nation’s — clean energy future is being driven by a number of factors, said Nathan Flesher, partner in the energy analysis and research firm McKinsey and Company.
The Morgantown native led off a series of experts addressing how West Virginia can prosper from the energy transition during the fifth annual Focus Forward symposium, organized by the West Virginia Public Education Collaborative and the Claude Worthington Benedum Foundation.
One factor is that the U.S. and Canada are committed to the Paris Climate Accord and the Intergovernmental Panel on Climate Change’s goal to limit global warming to 1.5 degrees Centigrade by reaching net zero CO2 emissions by 2050.
Meanwhile, he said, the world’s center of population growth is shifting to South Asia and Africa — the middle class will grow, increasing energy demand. Usage of renewables will increase sixfold; and technologies will need to adapt: power, transportation, industrial heat, buildings among others.
A companies face increased pressure for sustainability, he said, they must balance that with security of supply and cost effectiveness. For instance, the solar panel industry is concentrated in China and it would cost double to make them here, but costs can be leveled considerably by considering transportation, tariffs and construction costs.
A rapid workforce scale-up for new energy technologies will require 590,000 new jobs, he said. But we also need permitting reform and improved transmission infrastructure to get energy from where it’s generated to where it’s needed.
Ted Wiley is co-founder and president of Form Energy, which expects to start construction of its Weirton factory this year and begin manufacturing iron-air battery systems in 2024 for broad commercialization.
He talked about his search for an ideal site, which began in West Virginia, starting in Ravenswood and going up the Ohio River to Weirton. Though he had more states on his list, Weirton sold him. It radiated an energy to come back, thrive and be part of what’s next. “It had this buzz; this is a place poised for a comeback.”
He was part of a panel discussion that fielded a question on what the education system needs to do to meet the demands of the new energy world.
He said 550 jobs of the roughly 750 new jobs at the site will be non-degree positions. It will require people who are dedicated and can be counted on and are good with their hands. The iron-air process is brand new and will require a new training program to teach the workers, which will require a partnership with higher education. He wants a workplace that creates circumstances to help the employees thrive.
John Farris, vice president and general manager of Nucor, cited the wisdom that good employees need to be responsible, open to feedback and bring a sense of gratitude to the workplace. “There’s no company on Earth that can beat a team of people that exhibit those three things.”
Nucor is the largest steel producer in the United States and a Fortune 150 company based in Charlotte, N.C. It produces steel by recycling scrap metal in electric arc furnaces, making the company North America’s largest recycler of any material.
Nucor wants to encourage women to work there, Farris said, and is committed to removing barriers to make that possible – such as offering on-site child care. Another goal is providing career opportunities for people who are on the recovery path from substance abuse. This is a new approach for Nucor, he said.
Arria Hines is CEO of Allegheny Science & Technology and prime partner in the Appalachian Regional Clean Hydrogen Hub group seeking to bring a hub to the state. “This is an unprecedented time for Appalachia,” she said.
The USDOE wants to have its hubs come fully operational in 10 years, so that means they need to start talking with 8-year-olds now about possible career paths and give kids an image of what types of careers will be out there. “Not everybody needs to go to college.”
Hines said 20% of the application score will be based on its community benefits package – the DOE requires that 40% of the benefits from the hub go into disadvantaged communities.
That factored into a question from the audience: How will these new energy companies guarantee that they won’t take the money and run, like the old out-of-state coal barons did.
Farris said, “We’re here to stay. We’re not going to take the money and leave.” About 15% of the Nucor team will come in from other Nucor operations, but the rest will be local hires, with the intent to reflect the heart of the community. “I really look forward to seeing what that’s going to look like in West Virginia.”
Wiley agreed: “The way to create prosperity is to create good paying local jobs.”
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