A new state program launched last week combines $40 million in state and federal funds with $40 million in private investment to generate new jobs in advanced and alternative energy.
The Ohio Energy Gateway Fund will invest $30 million in federal stimulus money and $10 million from the Ohio Advanced Energy Stimulus Fund along with matching equity investments from two firms selected to manage the program, says Mark Barbash, assistant director of the Ohio Department of Development.
EnerTech Capital and
Arsenal Venture Partners, which will review applications and make decisions on program awards, will also invest at a dollar-for-dollar match against public funds, Barbash says. The funds will go even further if additional investors are attracted to specific projects, he says.
Columbus-based
USA Energy Advisors will oversee the process.
Barbash says two kinds of projects are anticipated: projects such as new wind turbine or solar field installations -- and established companies that want to move into making components for advanced energy industries. All must be projects that take place in Ohio.
"We're looking for the broad breadth of advanced energy -- wind, solar, geothermal, propulsion -- but we're also going to be looking at projects that can happen quickly."
He says the Department of Development expects about a dozen projects to launch initially, noting that a number are already in the pipeline.
"The important distinction about this fund is this is not a venture capital fund," Barbash says. "There are other programs out there for startup companies, other programs out there for seed capital -- we're looking for mature companies and mature projects."
While the end goal is job creation, Barbash says it's too early to predict how many new jobs will result.
Source: Mark Barbash, Ohio Department of Development
Writer: Gene Monteith