Kentucky Green

June 24, 2008

I write this blog to highlight the interesting happenings in Kentucky entrepreneurship, especially the high tech side. Most people, both inside and outside the state, are not aware of the interesting companies and pockets of innovation in a state like Kentucky. One area, however, where I think the state has missed an opportunity is in alternative fuels and technology. Kentucky was well positioned to be a leader in this area. Kentucky is a state with an abundance of coal as well as some oil and natural gas. You might think this would be a negative but what it means is that we have a lot of engineering talent and market experience in the energy sector. The University of Kentucky has an applied energy research program focused on these very areas and a shared reserach agreement with Oak ridge national labs. However at the state level, we have focused on giving large subsidies to large companies like Peabody coal for coal gasification, clean coal and coal liquefaction. While these technologies may have a role to play, our dollars would have been better spent supporting startups and commercializing technologies on the cutting edge of green technology.
Some recent progress has been made. In addition to the state matching SBIR program, the state through KSTC has initiated a grant and investment program focused on green fuels. Alltech, a local biotech company focused on animal health, nutrition and performance received a $30 million grant from the DOE to develop a rural community Bio-refinery.