MINDING YOUR BUSINESS
Alternative energy firms seek powerful beginning
Rising natural gas, oil prices fuel
hopes of increased demand
By Ann Meyer
Special to the Chicago Tribune
Published November 14, 2005
Soaring energy prices might be
bad news for most people, but Mike Taggett hopes the
situation fuels interest in his Henry Cyclone invention.
The Henry Cyclone system is designed to reuse the heat from
a vehicle's exhaust to increase its fuel efficiency by about
15 percent, the Chicago entrepreneur explained.
"For every horsepower that a car engine makes, there's two
horsepower that's lost to the environment because of excess
heat" from exhaust and the radiator, said Taggett, president
of Henry Engine Inc.
Taggett's Henry Cyclone is just one of several Illinois
alternative energy innovations trying to get to market. With
oil and natural gas prices in the stratosphere, other
entrepreneurs see big potential in wind power and solar
energy.
"We have the sun and the wind available to us for free. We
might as well use it," said Bruce Papiech, vice president of
Sublette, Ill.-based Forever Power and Construction
Services, also called FPC Services, which designs and
installs wind- and solar-powered systems for residential and
commercial use. Sublette is about 50 miles southwest of
DeKalb.
But gaining widespread acceptance remains a challenge for
most of these alternative-energy innovators. To succeed on a
large scale, the entrepreneurs must win over a skeptical
marketplace, and that involves convincing more people of the
merits of their technology.
"The auto industry is a hard industry to break into. It's
hard to get meetings," said Taggett, who hopes to license
his technology to other companies for implementation.
Changing the way homes and buildings are heated isn't much
easier. Often, the upfront costs are a show-stopper. But by
explaining how the initial cost of a wind-powered energy
system will pay for itself over time, homeowners and
businesses often become more interested, said Joyce Papiech,
president of FPC Services.
While FPC's wind-powered systems for residential homes often
cost about $40,000 to purchase and install, most people
recoup those costs in 8 to 12 years, Bruce Papiech said. The
systems typically last more than 30 years.
"Some people like to think of it as a retirement plan,"
Joyce Papiech said, because the investment you make today
will save you money later.
Interest in the firm's renewable energy solutions is
growing, she said. "Sometimes we haven't been able to keep
up."
As demand rises for new energy systems, the costs should
come down, said William Worek, director of the Energy
Resources Center at the University of Illinois at Chicago.
"Economies of scale will lower the cost," he said.
"Sometimes you need a push, either through incentives, a
rebate or a grant, to give you the critical mass to bring
the costs down."
Utility companies have received a nudge in the form of
government mandates to diversify their energy production
with renewables, such as wind power. And that's been a
ticket to growth for Invenergy, a Chicago-based energy
company focusing on large-scale wind-power development, said
Michael Polsky, president and chief executive. His company
develops wind sites and sells the wind power to utilities.
"Where there's no mandate, there's practically no demand,"
Polsky said. "There has to be some government intervention."
But start-up Aerotecture Ltd. is encouraged by early
interest from businesses and individuals in its new wind
turbine, which works better in urban areas with sporadic
wind conditions than conventional windmills do, said
Lesleigh Lippitt, partner in the Chicago-based business with
her husband, BilBecker, an associate professor in industrial
design at the University of Illinois at Chicago.
The company has received inquiries from Ireland, Africa,
Sweden, China and the Philippines, not to mention
domestically, but it is proceeding slowly, Lippitt said.
"We're making sure we're prepared for the things that await
us," she said.
While demand can spur a company to act quickly, rushing a
product to market too soon "could be a death blow for a
technology," agreed Worek. "Sometimes it's better not to get
it to the marketplace too early, even though the market is
probably clamoring for it."
Aerotecture has a working prototype of its AeroTurbine,
which is being tested in several locations across the
country. It hopes to move into mass production soon, Lippitt
said.
The AeroTurbine units can be mounted vertically or
horizontally on a building for a smaller profile than most
windmills. The blades operate in all directions, so the
units require lower wind speeds to operate effectively. They
self-regulate, making them ideal for urban areas with
sporadic wind, Lippitt said.
Meanwhile, Taggett still needs to run more wide-scale tests
on his engine system before it will make it to market.
Besides the Henry Cyclone system, he has been working on a
small-scale rotary steam engine, called the Henry Engine,
that can be used in some air-conditioning systems, he said.
Solargenix Energy LLC, based in Raleigh, N.C., is among
those interested in the engine.
"Mike's work is important in that it will get us into
thermal-electro power production for small systems, which is
useful for residential building applications," said Tom
Henkel of Solargenix. Most existing steam turbines start at
about 500 kilowatts, he said, which is too large for
residential applications.
Taggett formed Henry Engine Inc. in 1994 and has financed it
using the proceeds from a business he sold. He has tinkered
with alternative energy inventions for about two decades.
He needs a steam supply to test his rotary engine prototype
for more than 1,000 hours or so, he said. He hopes a
manufacturer that generates steam as a byproduct will allow
him to tap in.
"Everyone keeps saying the timing sure is good for what I'm
doing," Taggett said. "But nothing has really jumped in
terms of a business relationship."
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2005, Chicago Tribune