Energy Challenge could bring millions in investments to Lea
Levi Hill/News-Sun
Looking to bring energy-related companies to Lea County and even those involved in the budding space industry could bring millions to Lea County.
That was the message at a recent public information workshop in Hobbs where New Horizons Foundation Executive Director Dennis Holmberg highlighted what Q Station’s energy challenge could do for Lea County.
“Through their efforts they have been able to build about $500 to $600 million in investments,” Holmberg said of a similar type challenge Q Station put together in the Albuquerque area previously. “We have hired them to put together the Energy Challenge. This isn’t just oil and gas and the jobs we have now, but what could come our way.”
“There is no guarantee here, but we have the ability to pick people who are a fit here with us,” he added. “There is a lot that can happen there. We are not the economic development corporation. Our goal is to enhance and advance economic development in Lea County. I do believe that if this succeeds, it could be like Urenco coming. New Horizons Foundation has pledged $250,000 to make this work.”
Toni Balzano, vice president of communications and strategy for Q Station, said the company is working across the globe with energy sector companies, start-ups and tech developers and is working to recruit 20 or so energy sector companies to bring to Lea County for a 90-day accelerator.
“How do we get them to a place where they can raise money or get their technology a little further advanced,” she said. “We are going to expose them to southeast New Mexico and how to do business in southeast New Mexico. Really the goal of this is to develop this long-term pipeline of energy. How do we make the Permian the innovation leader in energy innovation in the country?”
“Our goal is to get the most innovative energy solutions,” she said. “It could be around battery storage or small modular nuclear reactors. It can be around solar and wind as well. Those technologies are not going anywhere.”
She said the goal is to get the 20 or so companies focused on how to either develop their tech or get it to market and then have a “pitch” day in Hobbs where they show off their products and look for local partners.
“After the showcase we continue our work with them over the next year,” she said. “This is not a relocation program, although I want them to relocate here. And it is not a replacement for oil and gas. This is true, hard work economic development. Realistically, I think we could see two businesses locating here.”
She said 10 companies are already signed up for the energy challenge and once the roster is full, Q Station will narrow down the pool to the most valuable and ready to be pitched companies.
“How you support this really matters,” she told a small group of local political and government leaders. “The turnaround on these companies is often three to five years.”
Holmberg said two technologies that could find a home in Lea are semi-truck-sized batteries with 20-year lifespans to help with the area’s energy shortage, particularly in rural areas of the Permian Basin, and an enhanced oil recovery system that is being developed that works on a closed-loop system used during the hydraulic fracturing stage of drilling an oil well.
“They are showing a 500 percent increase in production,” he said.
In regards to the modern space race, he said rocket fuel could be created at Navajo Refinery between Hobbs and Lovington and be closer to launch sites in New Mexico and Texas, reducing fuel loss from evaporation as rocket fuel is currently trucked to the region from Florida.
“Texas offered $600 million to Space Force for them to bring things in and they (the government) said ‘yes,’” he said. “Space is a domain of commerce.”
The “pitch” day is slated to occur this fall once the 90-day incubator is completed.
For more information on the Energy Challenge, contact the New Horizons Foundation at 492-4712.
