NJ 'green' technology leaders face unclear future

WOODBRIDGE - New Jersey's economic development czar Tuesday encouraged the green technology industry to take advantage of incentives for start-up businesses, but some investors said they want a clear idea about planned changes to the state's energy policy.

Caren Franzini, chief executive officer of the state Economic Development Authority, told an audience of nearly 200 at the Cleantech NJ conference about how the administration a few weeks ago won a commitment from Belgian-based Fluitec to call New Jersey home. The company has sales in 36 countries and offices in the United States, Belgium and China, and is consolidating its U.S. operations and global corporate functions here.

Fluitec develops and sells products that increase turbine efficiency, "which is related to the wind turbine industry,'' Franzini said.

Fluitec will receive a $463,000 grant over 10 years in return for a promise to support 30 new, full-time positions in New Jersey. The company will also receive a loan for building a facility.

"We have different pots of money as incentives,'' Franzini told the crowd.

But Gov. Chris Christie recommended scaling back the state's renewable goals in his draft Energy Master Plan issued earlier this year, and also said the state should shift some of its future initiatives onto new natural gas facilities.

Meanwhile, the market for solar certificates has become unstable, with sharp declines in the money earned by owners of solar systems.

The certificates are sold by the solar system owners to utility companies - which are required to purchase solar certificates - helping make system installations financially viable.

All of which makes it unclear whether this is good time to open up clean technology shops, said investors, noting the softening support to provide subsidies to purchasers of new energy sources.

"Just the underlying tone of it wasn't what our industry wanted to see,'' Jamie Hahn, managing director of Solis Partners, Manasquan, said of the Energy Master Plan being reviewed by state regulators. "However, I'm pretty confident that based on some legislation we're helping to form and push through Trenton it would help stabilize this market.''

Hahn said prices for the solar renewable energy certificates (SREC) are only part of the picture, with multiple other avenues for clean technology available to provide a lift for New Jersey's economy.

"We have to do more in energy efficiency and lower the overall demand, create more efficient buildings and at the same time provide distributed generation at those facilities to help them lower operating costs,'' he said.