SAN DIEGO S CLEANTECH INDUSTRY AT A GLANCE

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1 Cleantech Editor s Note: The San Diego Regional Economic Development Corporation (EDC) would like to credit CleanTech San Diego as the principal contributor to the following industry overview. CleanTech San Diego and Bank of America commissioned San Diego Association of Governments (SANDAG) to compile regional data and statistics on the industry which are presented within the following pages.

2 SAN DIEGO S CLEANTECH INDUSTRY AT A GLANCE San Diego has emerged as a leader in the cleantech industry with world renown research institutions, collaboration of industry and San Diego s natural canvass. The region s cleantech industry encompasses alternative energy through clean, green, renewable and alternative technologies that offer competitive returns for investors and customers while providing solutions to global, environmental and security challenges. The San Diego region is home to more than 800 companies with headquarters, R&D, manufacturing services or sales functions, spanning a wide range of technology products and services. Some are well-established science and engineering firms such as General Atomics and SAIC, while others are national and international leaders in their markets, such as Sapphire Energy. DIRECT ECONOMIC IMPACT Cleantech Sectors Economic Activity* Employment Wages* Algae Biofuels $56,200, $28,800,000 Clean Transportation $311,300, $92,600,000 Clean Energy Storage $133,900, $56,300,000 Energy Efficiency $299,800, $89,600,000 Smart Grid $91,500, $37,200,000 Solar Energy Generation $517,600,000 1,133 $134,200,000 Total* $1,410,300,000 4,627 $438,700,000 *rounded to the nearest 100,000 SAN DIEGO OUT ON TOP The greater San Diego region is a state leader in solar energy, as it is home to more than 200 solar energy businesses. According to the California Solar Initiative, San Diego has the greatest solar Photovoltaics (PV) adoption rates in the state and currently holds the designation as the Number One Solar City, due to the number of solar PV rooftop installations. Much of the region s success in the solar sector is due to a strong partnership between the local universities and private sector companies. UC San Diego serves as the Co-Lead for the CA Solar Collaborative on behalf of the CA Energy Commission which is chartered to integrate the needs of the private and public sectors regarding their respective interests in meeting the California Renewable Portfolio Standards. UCSD is a pioneer leader in the emerging field of solar forecasting with state and federal funding to enable utilities and transmission operators with the ability to mitigate the operational issues due to the intermittency of solar energy. UCSD and SDSU also serve as incubators for private sector solar beta testing. UCSD is a leader in electricity and thermal energy storage in order to improve the efficient operation of the regional grid and to raise the economic valuation of variable renewable energy resources such as solar energy. UCSD has secured $3.4M in funding of large scale electricity energy storage and separately signed a memorandum of understanding for research, education and demonstrations on campus with one of the largest global companies in PV integrated storage. Proposals have been submitted to turn UCSD into a CA Center of Excellence in Energy Storage, including the use of second life stationary applications of used Lithium ion batteries from electric vehicles. These innovative university programs serve to seed the greater San Diego solar market in order to accelerate innovation, commercialization and installation of solar energy in the region. The critical focus on energy storage engages the materials science and high tech sectors in the region. Page 36

3 San Diego County's role as a hotbed of clean technology innovation received official recognition from the State of California when then Governor Schwarzenegger designated our region an official California Innovation Hub. The designation allows the 35-member consortium that runs the San Diego ihub program to apply for federal funding from President Barack Obama's economic stimulus plan. The consortium consists of academic institutions, economic development groups and local trade associations. The consortium will concentrate on three areas with the most potential to turn research into jobs including biofuels and solar power/energy storage sectors. Launched in March 2010,California s ihub Initiative provides a platform for research clusters, startup companies, government entities, business groups and venture capitalists by leveraging assets such as research parks, technology incubators, universities, and federal laboratories to foster innovation and job creation statewide. For decades, San Diego's research corridor has served as a springboard for technological and entrepreneurial business development that helps generate and transform innovative ideas into viable products and companies. The experience San Diego will bring to the table as a flourishing ihub is expected to be a tremendous asset to the statewide network. The California Department of Labor awarded the San Diego region a $4 million grant to implement new workforce training programs for careers in the emerging biofuels industry. A first of its kind in the nation, The San Diego Biofuels Initiative was created, a collaborative effort including CleanTECH San Diego, BIOCOM, San Diego Regional EDC, San Diego Center for Algae Biotechnology (SD-CAB) and the San Diego Workforce Partnership. Educating and Developing Workers for the Green Economy (EDGE Initiative) provides education, training and placement services to unemployed and dislocated workers within San Diego and the Imperial Valley. The EDGE Initiative designed a career-directed approach to help workers gain both employment and the skills and training necessary to move up the career ladder in an industry that will continue to flourish as governments and consumers worldwide seek cleaner alternatives to fossil fuels. The EDGE program curriculum was designed and developed with industry experts alongside with academic professors from UCSD. Industry partners include the largest clean technology employers in the region General Atomics, Synthetic Genomics, Sempra Energy, Sapphire Energy, and Verenium. These partners are committed to facilitating and providing internships, on-the-job training and employment. OUR GROWING BIOFUELS/INDUSTRIAL BIOTECHNOLOGY INDUSTRY A recent analysis, conducted by SANDAG, reports that for the algae sector alone, the industry provides our region with 410 direct jobs, $56 million in direct economic activity and $108 million in total economic activity annually. According to results from the CA Industrial Biotech Workforce Survey, industrial biotech companies grew 19 percent between 2009 and Over the past five years, this unique segment grew 50 percent. Page 37

4 SAN DIEGO CLEANTECH RESOURCES CleanTech San Diego CleanTECH San Diego is a private, non-profit member organization formed in As one of the nation's premier cleantech clusters representing over 800 companies, its mission is to position the region as a global leader in the cleantech economy. CleanTECH San Diego serves as a catalyst for a diverse group of stakeholders to advance a common agenda. Scripps Institution of Oceanography With more than a century of exploration and discovery in global sciences, Scripps Institution of Oceanography is one of the oldest, largest, and the world's preeminent center for ocean and earth research, teaching, and public education. Research at Scripps Institution of Oceanography encompasses physical, chemical, biological, geological, and geophysical studies of the oceans and earth. A department of UC San Diego, Scripps' leadership in many scientific fields reflects its continuing commitment to excellence in research, modern facilities and ships, distinguished faculty, and outstanding graduate and undergraduate students - and the horizons continue to expand. San Diego Center for Algae Biotechnology The San Diego Center for Algae Biotechnology (SD-CAB) was established in 2008 as a consortium of researchers from the University of California, San Diego (UCSD), Scripps Institution of Oceanogra-phy (SIO) and San Diego State University (SDSU), in partnership with private industry. The Center incorporates international research scientists from the fields of biology, chemistry, engineering, economics, and policy. It also trains young scientists, educates the public, collaborates with private sector partners, and facilitates discussion with regional, state and national policy mak-ers regarding the use of algae for energy independence and conservation of land and water, while encouraging the highest standards of academic excellence and objectivity. UCSD Environment and Sustainability Initiative The UC San Diego Sustainability Solutions Institute grew out of an earlier Environment and Sustainability Initiative and is a cross-campus platform to facilitate interdepartmental research, education, and outreach. SSI builds on the need for interdisciplinary approaches to solving pressing environmental problems. SSI typically creates collaborations involving faculty, students at all levels, and the University's professional management staff and links them with extramural community partners. Energy Policy Initiatives Center The Energy Policy Initiatives Center (EPIC) is a non-profit academic and research center of the University of San Diego School of Law that studies energy policy issues affecting the San Diego region and California. EPIC integrates research and analysis, law school study, and public education, and serves as a source of legal and policy expertise and information in the development of sustainable solutions that meet our future energy needs. EPIC currently offers a law school course on Energy Law and Policy and is in the process of conducting legal and policy research into the following areas: renewable energy credits, distributed generation, solar laws, advanced electricity grid technology, and public interest program funding. In addition, EPIC monitors regulatory and legislative activity related to energy policy issues affecting the San Diego region and California. The California Center for Sustainable Energy The California Center for Sustainable Energy ( CCSE) is an independent, nonprofit 501(c)(3) corporation that helps residents, businesses and public agencies save energy, reduce grid demand and generate their own power through a variety of rebate, technical assistance and education programs. CCSE also provides the community with objective information, research, analysis and long-term planning on energy issues and technologies. The California Center for Sustainable Energy promotes change for a clean energy future. Page 38

5 San Diego Regional Economic Development Corporation (EDC) is supported by more than 150 of San Diego s largest companies and most influential business leaders. EDC s business development program supports significant corporate outreach and retention, while nurturing emerging industries and attracting new corporate investment through targeted marketing initiatives. EDC strives to attract high-wage, technology-driven companies to the region from around the world and assist those here with expansion plans, and to champion foundational efforts to improve the region s competitiveness. Contact us for more information! San Diego Regional Economic Development Corporation Office (619) Fax (619)

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