ConocoPhillips hub seen as boon for Colorado energy research

DATELINE: DENVER

Score one more for the "New Energy Economy."

ConocoPhillips' announcement last week that it would open a renewable-energy research hub and corporate learning center in Louisville was hailed by state officials as another example of Gov. Bill Ritter's work to make Colorado a leader on alternatives to fossil fuels and create what he calls the New Energy Economy.

Economic development officials and researchers said ConocoPhillips' announcement will go a long way in attracting more like-minded companies.

"Having a well-established company in this industry with the wherewithal to do what they say they're going to do will certainly lend to our ability to attract other companies to Colorado's New Energy Economy," said Matt Cheroutes, spokesman for the state Office of Economic Development and International Trade.

"We will have a global center for research and development in our back yard," he said.

Cheroutes said he was unaware of any conversations about grants ConocoPhillips could receive, but said it was still early.

"As long as there's no government subsidy or corporate welfare, I think it's fantastic," said Jon Caldara, president of the Independence Institute, a conservative think tank. "Unfortunately, renewable energy is one of the largest recipients of corporate welfare. What government does for one industry it needs to do for all."

ConocoPhillips has long worked with research institutions in Colorado, including the National Renewable Energy Lab in Golden, on renewable energy. More recently, it was one of the early sponsors of the Colorado Center for Biorefining and Biofuels, known as C2B2. That center allows companies to share in biofuels research by NREL, Colorado State University, the University of Colorado at Boulder and the Colorado School of Mines.

The Governor's Energy Office said ConocoPhillips' decision validates the institutions' work.

"We're looking forward to seeing Colorado being recognized as an international leader in renewable energy," said Megan Castle, a spokeswoman for the office.

ConocoPhillips has not said how many jobs would be based at the campus, which is scheduled to open in 2012.

However, Ritter said thousands of employees each year were expected to visit the corporate learning center, which would serve as the company's worldwide training center. The company's Global Technology Center, meanwhile, would be a hub for company research on renewable energy and high-tech carbon fuels recovery, Ritter said.

University of Colorado chemical and biological engineering professor Alan Weimer said the big winners would be university students researching renewable energy.

Since Ritter's election in 2006, the Legislature has created a $7 million clean energy fund. Ritter recommended that half be dedicated for economic development purposes, such as luring renewable energy businesses.

A year ago, he signed an agreement forming the Colorado Renewable Energy Collaboratory, setting up a research relationship among the NREL, CSU, CU-Boulder and the Colorado School of Mines.

Five months later, the state launched C2B2. Its budget is about $1.5 million to $2 million a year but is expected to reach $3 million to $5 million within a few years with a combination of fees from member companies and state matching funds, said Weimer, executive director for C2B2.

Weimer expected ConocoPhillips' support for C2B2 would continue even as it adds its own research facility.

The culture also is changing. Even as the oil and gas industry booms in Colorado, the state has passed laws requiring state fleet vehicles to use biofuels and investor-owned utilities to get 20 percent of their power from renewable sources by 2020.

Weimer said the ConocoPhillips center could be a catalyst for other energy companies to house research in the Denver area, much like high-tech companies flocked to northern California.

"That's how Silicon Valley got started. That may very well happen for the Denver, Colorado, area, that it ends up being the same thing for energy research," Weimer said.