New administration should focus on renewables to power the state
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With a new gubernatorial administration set to take office in 2025, now is a good time to both reset and expand the renewable energy discussion within Indiana. The renewable energy industry’s momentum has pushed the state forward in significant ways. Yet many disagree over whether the state should focus on incentivizing renewable energy and what role the state should play in attempting to regulate the development and expansion of renewable energy projects.
In the past 15 years, Indiana has made substantial leaps in the volume of both renewable energy and renewable fuels generated within the state. I first began working in the energy and utilities space as an attorney in 2007. At that time, coal generated approximately 95% of the state’s energy needs. By 2023, that number had been reduced to 52%; causing one of the steepest declines in greenhouse gas emissions in the country.
While most of the public’s focus is on renewable electricity like wind or solar, Indiana has emerged as a leader in renewable fuels. This advancement should receive attention in the hallways of the statehouse, particularly because of the outsized effect on the state’s economy. According to a report released last year, the renewable fuels energy sector employs more than 80,000 people in Indiana.
The state’s robust agriculture sector, particularly corn and soybeans, provide valuable feedstocks for both ethanol and renewable diesel. Additionally, renewable natural gas continues to make strides in the state with several developers headquartered in central Indiana. The Department of Energy also recently provided a $1.5 billion loan guarantee for a low-emissions ammonia facility in Indiana,
As Indiana prepares for the Braun administration to take office, it’s crucial for the state to continue building on the progress made in the past decade. The state should find ways to invest in homegrown projects in the same way it has utilized its own investment dollars to incentivize the healthcare, manufacturing and software industries. Indiana should also leverage public retirement funds and push its large public and private endowments to invest in profitable energy projects that benefit the state. And entrepreneurs who are starting companies with missions to address greenhouse gas mitigation and renewable energy production should be invited to build here.
We can’t continue to rely solely on public utilities to grow the renewable energy sector in the state. Public utilities are, by design, created to provide essential services at reasonable rates. By nature, utilities focus is on stability and not innovation. They are not structured to take on the pricing, construction and reinvestment risks associated with new energy projects.
That said, utilities can be important partners for these projects. As a former employee of the state’s largest power utility, I know they take their duty to their customers seriously. Public utilities can provide power, gas, water and sewer services on expedited timelines and at rates that might be discounted for a short period of time. Most utilities are already utilizing this tool bag of incentives, but more can certainly be done.
As a renewable fuels entrepreneur, I have seen firsthand the stiff competition Indiana faces in this sector. Investment teams for renewable fuels are often based in Texas, California, or the East Coast, making it tempting to locate leadership teams in those areas. I chose to establish our business in Indiana here because I am a Hoosier and believe in the state’s potential to attract and retain top talent.
Regardless of state or local political preference, renewable sources of fuels and energy will continue to proliferate in the Hoosier state due to market forces rather than anything the state does or doesn’t do. By investing in our own companies and entrepreneurs, we can ensure Indiana remains at the forefront of the renewable energy revolution.