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V O L . X X V N O. X I I I J U N E 2 4 , 2 0 1 9 20 E N E R G Y / E N V I RO N M E N T As Maine's new economy evolves, a large par t of the foundation is clean energy solutions. Innovations and partnerships rising to meet needs. Pika Energy: Going big, staying scalable Like many ideas that bloom into suc- cessful businesses, Pika Energy started in a basement. Former Massachusetts Institute of Technology classmates Ben Polito and Joshua Kaufman, both already involved in green energy innovation, in 2010 part- nered on a way to store power generated by the sun and wind. e partnership, which started in Polito's basement, became Pika Energy. In April, the Westbrook company was acquired by Generac, which designs and manufactures industrial power products and is best known for generators. e terms of the deal were not disclosed. "It was the right team and the right time," says Polito as he sits in the confer- ence room of Pika's busy headquarters. Generac "is a natural partner." Generac President and CEO Aaron Jagdfeld, in announcing the acquisition, said that Pika's integrated battery storage solutions "are a crucial component in developing a compre- hensive system to store and consume clean energy. "e visionary ideas and technol- ogy that Pika has developed give us a considerable edge as we expand into the rapidly developing market for energy storage." e fact Generac acquired Neurio, an energy management technology com- pany, played a part in making the acquisi- tion attractive, Polito says. "Generac's goal is to create mass markets and opportuni- ties to transform the whole grid" from a fossil-fuel dependent system. "Making technology more accessible is part of our mission," Polito says. "e time is right to make battery technology mainstream." Pika has had robust support from Maine investors since its inception. When the acquisition was announced, the Maine Technology Institute called it "a victory for the entire entrepreneurial community in Maine." Investments in Pika have been from the Finance Authority of Maine's Seed Capital Tax Credit Program; MTI ($1 million); CEI Ventures ($450,000); Maine Venture Fund ($700,000); and Maine Angels private equity investor group (30 members collectively invested $2 million). "e great thing about the Pika story is that, while the company benefited from a number of innovation ecosys- tems partners in Maine, the company has also generously given back to the system," said Brian Whitney, president of MTI, citing Polito's involvement in entrepreneur mentorship. Polito says Pika's rapid growth and attractiveness to investors has much to do with its focus. "Wind, sun — those are scalable, they're global," he says. He says the acquisition is so now that currently, "We're working on product integration, team integra- tion," he says. But in general, it means that Pika, which employs 35 and has a national customer base, can move forward faster than planned. "It's all about acceleration," he says. "e vision hasn't changed. [e acquisition] has given us the ability to move faster, to achieve goals. It's a huge opportunity. It's a $5 billion market, and we have great partners." Looking for partners to build an economy e Passamaquoddy tribe's Indian Township Enterprises business arm was formed last year with a focus on providing jobs and building an economy for the 3,200-member nation. It's about more than business in a population that's hard-hit by high unemployment and health care issues that result in a 55-year life expectancy on tribal land, compared to 79.2 in the state overall. Darrin Coffin, CEO of ITE, says the first step to making life better is to attract diverse business and expand the tribe's land base and resources. Clean energy projects, both globally and locally, are a big part of the focus. Clean energy isn't new to the tribe. In 2017 it was named Project Developer of the Year by national group Climate Action Reserve for generating the most carbon offset credits in 2016 by main- taining its forests. With 130,000 acres of land spread across the state, most of it forested, and tribal loggers who have been looking for work since many of Maine's paper mills have closed, biomass is one obvious solu- tion, Coffin says. ITE plans to build a biomass plant that would produce power, biofuel and activated carbon, which is used as a soil additive as well as a clean-burning fuel. Coffin says the carbon sells for $35 a ton in Maine, "So that makes it not competitive." But a plant that also has revenue from producing biomass power and fuel would make producing it possi- ble. ey are talking to possible partners, though nothing is final. P H O T O / T I M G R E E N WAY Mergers and partnerships Clean energy rises to the next level in Maine B y M a u R e e n M i L L i k e n F O C U S Ben Polito, president of Pika Energy, in the research and development lab at the company's Westbrook headquarters. The great thing about the Pika story is that ... it has generously given back to the system. — Brian Whitney Maine Technology Institute

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