Green energy project, jobs at standstill in Danville

U.S. Green Energy is running behind on creating jobs and building its Cane Creek Centre facility, but company leaders say they will make it happen.

The company and local economic development officials estimate the company is a year behind on investing $30 million and creating 372 full-time jobs as announced in October 2010.

“We made a commitment to Danville and we’re going to keep that commitment,” said CEO Bob Bennett.

“We may be a little late but we’re going to catch up,” added President and Chief Operating Officer George Peterson.

Around Thanksgiving, the company laid off employees working at its Piedmont Warehouse space as it sought more orders for solar roofs or other solar building products.

Now, the company is down to two administrative employees, seven employees who are helping install product in Richmond, and four sales representatives, Bennett said. While not manufacturing product, the company is still focusing on sales and marketing. In an arduous process, it has certified some “novel products” to be announced in the future.

More orders are in the pipeline, and Peterson hopes to land two large contracts soon to bring people back to work within weeks.

Finishing the 27,000-square-foot building in Cane Creek Centre was also put on hold, as the owner of the future facility, an investment group, looks to secure financing, Bennett said. U.S. Green Energy’s original plan to finish the facility involved using a new market tax credit, but that fell through.

The company spent $600,000 grading and improving the Cane Creek site. The building would cost between $1 million and $3.2 million depending on whether or not a large-scale solar roof is installed, Bennett said. After completing the facility, the company can receive $400,000 over five years in a local technology grant that had been awarded.

U.S. Green Energy received $1.6 million through the Virginia Tobacco Commission, which helped the company move from the research and development phase to the startup phase. The money was spent on equipment, materials and tools and production labor. The company had garnered $1 million in investment when it applied for Tobacco Commission money, and now has $2.5 million in private money and time invested, Bennett said. Peterson and Bennett are not yet taking a salary out.

“We’re going to make this happen. We’re going to do everything we possibly can,” Peterson said. “We’ve got it started now just got to get it to the next level. I’ve got some dreams I want to accomplish.”

U.S. Green Energy is also concentrating on building dealer relationships to ensure consistent orders long-term and plans on making its own materials to host the solar panels to keep costs down for customers and remain competitive.

The city is hoping it will be clear within the next few months whether U.S. Green Energy will be successful, said Danville City Manager Joe King.

The company’s plan, product and understanding of the market was good, but like any new startup, it’s difficult to get into a level of production that can sustain operations, he explained. In that sense, it was wise to pull back on building the facility until other pieces were in place.

“We feel confident they are doing everything they can to make their project succeed and they’ll be very honest and straightforward with us,” King said.

One customer sees the potential in what U.S. Green Energy and the U.S. solar industry can offer.

When Metis Medical Management Systems bought its new headquarters and data center in Chester in September, it planned to replace the roof anyway, said Metis CEO John Wiseman. U.S. Green Energy’s “SuperRoof” will serve not only as a roof for the 15,000-square-foot building, but also as at least a 70-kilowatt energy generator.

Metis ordered the system after one of the orthopedic practices it manages in Colonial Heights bought one and cut its electricity bill by more than half, Wiseman said. Plus, Metis is eligible for one-third of the project cost to be covered with a federal tax rebate.

Because of net metering, or selling power back to the grid, Metis hopes the building will have net-zero energy use in the long run, especially as it equips the building with other efficiency measures.