The Global Impact of Renewable Energy in Kentucky
Episode 13: Today, Dr. Omar Ayyash, President and CEO of the World Trade Center Kentucky interviews Adam Edelen, Founder and CEO of Edelen Renewables in Lexington, Kentucky.
Meet Adam Edelen
Adam had a long career in government and politics, before becoming an entrepreneur. The idea of “legacy” was a driving factor in his political career and one that easily transitioned into the work he and the team at Edelen Renewables pursue, on a daily basis. It’s way of having a lasting impact on communities throughout Kentucky, the nation and on a global basis.
Adam explains that there’s an opportunity to bring the benefits of the green energy revolution to the forgotten places in America. He describes how the focus of the next 50 years is going to be the electrification of everything. It will present a significant opportunity to drive wealth, economic activity and jobs for many communities who are willing embrace this evolution. It’s why the team at Edelen Renewables is so excited about the work they do.
Finding a Solution to the Problem
Dr. Ayyash teaches courses at the University of Kentucky Gatton College of Business and Economics. A core theme in those courses revolves around identifying a problem and becoming the solution to it. He uses this as a segue into the conversation with Adam.
During his time in government, Adam saw how the Appalachian region of Kentucky was being used and discarded. In Kentucky, Appalachia forms part of the eastern boarder of Kentucky and is a very large coal mining region. This area has been hit hard over the years as the economy has begun shifting away from coal. The lack of plan for economic diversification has place a huge strain on much of Appalachia. Many of these communities have been economically hollowed out. Adam and others feel a sense of debt to the people and region who traditionally powered much of America’s industrial revolution.
Coal to Solar
The green energy revolution offers a new perspective and a range of solutions to benefit Appalachia and communities facing similar challenges. The first, large-scale coal to solar project in the US is taking place in Martin County, Kentucky. Edelen Renewables is playing a significant role in the development and implementation of this concept. The project is a $231,000,000 private capital investment, which will result in the production of 200 megawatts of renewable energy on a former mining site.
The project is a result of years of effort collaborating with economic and workforce development agencies, educational institutions and local resources. They are focused on hiring locally to improve the skills of the local workforce to empower them to leverage the economic opportunities at hand.
Edelen Renewables is currently working on multiple projects in 13 states ranging from coal fields in Pennsylvania to pine lands in South Georgia to tribal communities in New Mexico. It’s a path to expanding the social impact mission focused on bringing modern, economic opportunities to communities that powered the old economy.
Adam goes onto explain that in central Appalachia alone, there are 1,000,000 acres of mountaintop removal sites. The energy transmission infrastructure was initially built to power these coal mining operations. It still exists and can be repurposed in new ways to move the green electrons produced to the population centers of the east coast.
Edelen Renewable’s coal to solar concept is underway in 6 other projects. The social impact approach is being replicated in the Permian Basin oil and gas field communities. It’s a means to ensuring people and communities aren’t left behind as the economy shifts. Now, there’s a business model with profitable results leading to new and innovative solutions.
Renewable Energy Certificates
Adam explains that companies are able to source the green electrons and use them as an offset, “in a very credible way,” in a move toward achieving carbon neutrality. Most, if not all, of the Fortune 500 companies have adopted sustainability commitments. One means for achieving sustainability is via the Virtual Power Purchase Agreement. By buying green-produced electrons, there’s a win-win, including “greening our grid” as a result.
Adam notes that the adoption of green energy is a result of private-sector market forces, rather than a governmental initiative.
Challenges to Renewable Energy
The engineering challenges of installing a solar array on a mountaintop removal sites are complex puzzles to be solved. It necessitates the involvement of innovative partnerships and approaches to an a-typical project environment.
Securing financing for these types of projects can also be a challenge. It took Edelen Renewables 7 years to get to the proof of concept phase. Toyota Motor Manufacturing’s commitment to the Martin County project was a significant factor in the project’s ability to move from concept to implementation. They also teamed up with Savion for engineering support.
Adam comments on the burden borne by any pioneer in a concept. People are naturally skeptical, until it’s proven out over time. Now, the opportunities are much more plentiful, but it definitely wasn’t the case from the outset.
The Impact of Government Regulation
The Inflation Reduction Act, passed roughly 2 years ago, changed the trajectory of the US toward becoming a global leader in renewable energy. It caused massive investment in the renewable energy sector.
During the initial business planning, Adam explains they assumed a maximum of 20% investment tax credit. The Act increased the floor to 30%. Because of the local environments these projects are being developed (coal areas, oil and gas fields, etc.), Edelen is realizing a 40% tax credit. This single factor has acted as a magnet for attracting private capital investment.
However, regulations at the state-level present their own, unique challenges. Kentucky is extremely difficult when it comes to renewable energy projects. The prevailing perspectives haven’t focused on renewables as a complement to the coal industry. Adam shares that we’ve finally arrived at the point in which renewable energy is the cheapest form of power. It’s becoming a true market force for Kentucky’s manufacturing future, as evidenced by the new Ford plant and Toyota’s commitment. The industrial consumers are demanding a source of renewable energy, both now and going forward into the future.
The Department of Energy recently gave $500,000,000 to an aluminum smelting plant to be located in the Ashland, Kentucky area. It’ll be powered by green energy.
Local Impact on Communities
When the put together a job fair for the Inez, Kentucky community, Adam was advised to expect 50-100 people. They actually had 500 people show up. He explains how the majority of participants were people who formerly worked in the coal industry, but had to move away to find work. This renewable energy project has provided an opportunity for many of them to move home.
Dr. Ayyash explains how he sees the World Trade Center Kentucky as a startup with a legacy. It’s about having the right mindset, enabling you to recreate and to focus on new opportunities.
Global Impact for Edelen Renewables
Adam discusses how the World Trade Center Kentucky helped in this pursuit. Jim Golsen, at the time, was the Commercial Ambassador of the United States for Saudi Arabia and Bahrain. Adam was invited to be the keynote speaker at a conference in Doha, Qatar, which was sponsored by the US Chamber of Commerce of Qatar. He later met with leaders from Dubai and other emirates in the UAE. Later, he was the keynote speaker for a green energy conference in Riyadh, Saudi Arabia.
Saudi Arabia is investing billions in green energy. Kentucky should follow this example in the diversification of its energy resources.
Adam discusses the important role the World Trade Center Kentucky plays in connecting businesses with members of the State Department’s commercialization team is crucial. Kentucky has a rich heritage of global commerce. In 2023, Kentucky exported $40 billion worth of products. The WTCKY has a wealth of resources for any business that’s looking at opportunities via international trade.
Advice for Kentucky Companies Regarding Global Trade
Adam encourages other businesses to rely on the guidance of organizations like the World Trade Center Kentucky. The WTCKY is ready and able to make valuable introductions across the globe. International trade begins with relationships, built over time.
Edelen Renewables serves in an advisory capacity for many countries, including the Middle East and Europe.
Advice for Young Entrepreneurs
Dr. Ayyash closes the episode by asking Adam to comment on advice he might offer to young entrepreneurs. Passion is a foundation for any new enterprise. It has to be about something more than simply profit. Resist the temptation to only be transactional. If you find a mission that involves a way to innovate and to responsibly disrupt, profit will come.
The most inspiring entrepreneurs are vision-, mission- and values-driven. Young people should strive to follow that model. The private sector is very efficient. It’s a fascinating time in which to be alive.
Kentucky’s entrepreneurial ecosystem is alive and growing. Adam urges business leaders to get involved to positively impact the culture in Kentucky. Failure is a key element of entrepreneurship. It’s how we learn. It’s why we iterate. It’s the process through which many ultimately succeed. Adam recognizes that we need more formal capital networks in Kentucky. We need a way to raise more Kentucky-based capital, instead of chasing capital from the east coast and west coast. Adam closes with an observation. When we can finally grow our own capital network, we’ll truly be able to create a sustainable prosperity in Kentucky, for generations.
To Contact Adam Edelen:
Website: https://edelenrenewables.com/adam-edelen
Upcoming WTCKY EVENTS:
- 06/26/24 – Global Executive Forum – Navigate the Future of Supply Chain
- 10/12/24 – Global Trade Mission 2004 – Dubai, UAE
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