Montana: Renewables Emerge In Traditional Energy State

While the traditional energy sector continues to dominate in Montana, the state's renewable energy sector is emerging. Montana is also faring well in the technology, manufacturing sectors. What's more, entrepreneurs will find state officials are enhancing capacities to match federal funds to support small business efforts.

Businesses should also take note that Montana is only one of two state governments in the country that are operating in the black, says Evan Barrett, chief business development officer, Montana Governor's Office of Economic Development. The other state is North Dakota.

“We haven't had to make any tax increases, and we haven't had to make dramatic expenditure cuts,” Barrett says. He attributes the state government's strength to prudent fiscal management by Gov. Brian Schweitzer. “Our governor comes from the private sector,” Barrett says, “and he brings a business mentality to the office. We are pro-business democrats that want to do things right.”

Industries And Innovations

Along with its welcoming business environment, Montana is also on the cutting-edge in technology business models. The state has partnered with Rocky Mountain Supercomputer Centers, Inc., a private, nonprofit organization, to manage a supercomputer located in Butte. This process cuts down on the bureaucracy that can occur when scheduling time, where users can work directly with the operating entity.

The supercomputer is part of the IBM on demand network. If a project requirement outstrips the 3.8 teraflop capacity of the machine in Butte, users can utilize unused capacity on its 128-teraflop network in order to work on the project and bring the results back to the system in Butte, says Jim Smitham, executive director, Butte Local Development Corp.

Smitham says the machine sits on a large fiber-optic network left over from a former business, which offers unlit fiber, connecting the supercomputer to the world.

A diverse base of industries makes use of the supercomputer, including tech companies, government agencies, and pharmaceutical and medical companies.

In Bozeman, a cluster of 20 companies focused on laser technologies is in place. The cluster is anchored by technologies developed at Montana State University (MSU), which spun off and commercialized. The community is also home to a software development firm, RightNow Technologies. The firm, started by a graduate of MSU, develops customer relationship software, says Peter Bertelsen, interim executive director, Prospera Business Network, which markets the greater Bozeman area as a place to do business. RightNow Technologies' clients include many Fortune 500 companies.

Bertelsen says entrepreneurs thrive in Bozeman and throughout the state. Entrepreneur says Bozeman is an entrepreneurial hotspot. Fortune says Billings is the best small city for launching a business.

From Bozeman, the TechRanch incubator offers services statewide. The incubator, originally affiliated with MSU, is now an independent organization, providing both physical and incubation space for tech-based startups.

Bertelsen notes that the quality of place factor in Montana attracts people from other locations that are looking to invest in or startup businesses, in the areas of technology and professional services, for example. Although Bozeman's officials have had a difficult time capturing the number of people that have work from home jobs, they know through data that has been collected that a number of people are working nationally and traveling from Bozeman. “We have an airport that is 15 minutes from downtown Bozeman and provides excellent services for the size of the community and the area that allows these workers to do business here,” Bertelsen says. Gallatin Field Airport offers a number of nonstop flights to points throughout the country. The airport is the state's fastest growing, and the second-largest in terms of the frequency of flights.

The creativity and innovative spirit of Montana's workforce also supports the state's advanced manufacturing sector. In Butte, economic development officials are constructing a new test bay for Space and Propulsion Group, Inc., which will test its new 24-inch hybrid rocket engines. The company is currently working in existing buildings to conduct four rounds of testing required for its 11-inch hybrid rocket engines.

In Billings, Berry Y & V Fabricators is fabricating steel to support the oil sands project activity in Canada, Barrett notes. In northwest Montana, Stinger Welding located in Libby to fabricate steel for bridges, as well as the plates that connect the bridges to highways.

This winter, SeaCast of Montana is expected to be operational in Butte, producing specialized castings for a variety of industries, as well as processing titanium from the facility. In another project, local and state officials are putting the final touches on the siting of a wind turbine manufacturing operation, a partnership between Chafin LLC and Fuhrländer, a German manufacturer of wind turbines, Smitham notes.

Energy Giant

The renewable energy sector, both in generation and manufacturing of components, is gaining ground in Montana, although still in the shadow of traditional energy activities. “In regard to renewable power, we just put into operation a wind farm project from NaturEner USA, the largest wind farm in the state at 206 megawatts,” Barrett says. The Glacier Wind Farm sits between Cut Bank and Shelby. NaturEner, an affiliate of a Spanish company, has announced its next stage of development, a wind farm called Rim Rock that will be 309 megawatts. The power generated will feed onto the Montana Alberta Tie Line, which is the first merchant cross-border transmission line between Canada and Montana, which will deliver 600 megawatts of power.

In regard to transmission projects, Barrett says: “We are about to wrap up permitting on the Mountain States Transmission Intertie, a project of NorthWestern Energy that will deliver about 1,500 megawatts of power.” The state is set to start the permitting phase for the Chinook Power Transmission Line, which would carry nearly 3,000 megawatts of power.

In terms of traditional energy sources, Montana has several permits for coal mining operations in play. The state recently opened its first new coal mine in 30 years. Barrett says the Signal Peak development near Roundup involved the development of a 30-mile rail spur to support activities.

Talent And Higher Education

In regard to the workforce, Smitham says Butte's talent pool has a history in working in the mining sector and in the support firms to this industry. Butte is home to Montana Tech of the University of Montana, which features a premier engineering school, feeding engineering professionals with a variety of skills to local industries. And the engineering talent pool features a large base of engineers that work for NorthWestern Energy, which is a large electric and gas utility serving the state.

Engineering, technology companies, and industry overall can tap into Montana State University in Bozeman for collaboration and talent opportunities. Bertelsen says the university is continually rated in the upper tiers among research universities. “MSU reports $100 million in annual research expenditures” he says.

Assets

Montana is the country's fourth-largest state, land wise, and offers plenty of room to grow your business. For example, Butte is home to the Port of Montana business development district, which is a revitalized district that was a former chemical site. Logistics advantages in Butte include a location at the intersection of interstates 15 and 90, as well as the crossroads for two Class I railroads, the only location in the state where this occurs.

Lifestyle

The Governor's Office of Economic Development's Web site notes that Montana's pristine beauty and excellent quality of life don't come at a high cost. The cost of living in the majority of Montana's cities is at or below the national average. For example, the median price for a home is $99,500, which is 84.3 percent of the national average, compared to median prices of $211,500 in California or $166,600 in Colorado.

Written and compiled by Rachel Duran.

For complete details on conducting business in Montana, visit:

http://business.mt.gov