< PreviousWSU TAKES OFF Located about an hour south of Salina, Wichita State University’s National Institute for Aviation Research (NIAR), among 14 other recipients, was awarded a $50 million grant from NASA in March 2023. The funding stems from NASA’s Hi-Rate Composite Aircraft Manufacturing (HiCAM) project, which strives to increase the production rate of composite structures within the U.S., contributing to the country’s goal to reduce carbon emissions in aviation. This project concentrates on three key manufacturing concepts: next-generation thermosets, resin-infused composites and thermoplastic composites. The newly awarded funds will support the assessment and development of these concepts on a smaller scale, encompassing experiments in material processing, assembly techniques, inspection methods and structural performance. WSU has received several awards from NASA over the last few years, the most recent being in November. WSU was selected as one of three university-led teams to receive funding for a two-year research term exploring aviation maintenance challenges related to NASA’s strategic vision for aeronautics. The awardees, including Clemson University and University of California, Davis, will research new maintenance techniques and procedures and discover how aviation maintenance programs at technical schools could alter and expand their curriculum to include these new practices. According to the National Science Foundation’s most recent Higher Education Research and Development Survey, which displays data from FY2021, WSU ranked among the top 20 universities in the U.S. in engineering research and development funding. In total aerospace R&D expenditures, WSU ranked third with $153 million and fi rst in industry- funded aerospace R&D with a total of $75 million. “ This transformative technology is set to revolutionize every facet of industry, from education and storytelling to public safety. ” — Joshua Wexler, Founder, Pure Imagination Studios 38 KANSAS: THE NEW GOLD STANDARDRESOURCES FOR GROWING BUSINESSES FAST he U.S. Economic Development Administration awarded Tech Hubs designations in October to 31 entities around the U.S., making them eligible to apply for Tech Hubs Phase 2 Notice of Funding Opportunity grants worth $40 million to $70 million across several projects. Among them is the Kansas City Inclusive Biologics and Biomanufacturing Tech Hub (KC BioHub) operated by BioNexus KC. The designation adds credence to the region’s strength in human and animal healthcare and biomanufacturing. by MARK AREND T INCUBATORS & ACCELERATORS 40 KANSAS: THE NEW GOLD STANDARD The 30,000-sq.-ft. Hays MicroFactory will house up to six small manufacturers at a time. Image courtesy of Grow HaysKANSAS: THE NEW GOLD STANDARD 41 Startups hoping to join that industry cluster and others in Kansas have no shortage of resources to help them get going. The Kansas Innovation & Technology Enterprise (KITE), for example, has several resources for helping entrepreneurs find access to capital and facilitate commercialization. A Proof of Concept incentive fills the funding gap between federal research grants and venture funding. It helps establish entrepreneurial ventures and commercialize innovations developed at public universities in Kansas. Twelve Small Business Development Centers in Kansas help businesses with fewer than 500 employees with advisory services in such areas as registration and business plans. More than 250,000 small businesses operate in the state. The Kansas Department of Commerce administers the Kansas Angel Investor Tax Credit Program that facilitates equity investment in the early stages of product development. It requires a business applying for the tax credit to be involved in developing an innovative or proprietary product or service. HIGHER EDUCATION CONNECTIONS Small Business R&D Acceleration Grants, approved by the Kansas Legislature in 2022, help small businesses on the road to commercialization. They can help a small business modify a product to enter a new market. “It partners smaller businesses with Kansas public higher education institutions who will support the business through engagement and mutual benefit,” the Department of Commerce explains. “Prospective grant recipients who work with a public higher education institution to conduct research and development can receive a 50/50 matching grant up to $25,000 for research and development cost at the public institution.” Meanwhile, Kansas was one of five states to receive State Small Business Credit Initiative funding from the federal government in 2022. The Sunflower State was awarded more than $69 million for its GROWKS Loan Fund and the GROWKS Angel Capital Support Program that make capital more available in underserved areas. GROWKS loan programs match funding from financial institutions and target minority, women-led and economically disadvantaged businesses among other borrowers. GROWKS is administered by the Department of Commerce and NetWork Kansas, a non-profit agency that connects startups and existing businesses to growth resources. In October, ground broke in Hays for the Grow Hays MicroFactory, a 30,000-sq-ft. incubator for manufacturers. It’s one of 35 projects funded by the Department of Commerce’s $100 million Building a Stronger Economy (BASE) grant program. The MicroFactory will be a launch pad for small manufacturers to get their businesses up and running before moving to their own premises. “The facility will be designed specifically to meet the need of manufacturers with various amounts of space allocated to tenants as needed,” said Doug Williams, executive director of Grow Hays Inc., at the event. “Rental rates for the space will be well below market rates to ensure businesses have every opportunity to succeed and grow.” ore than 150,000 Kansans do not have access to high-speed internet, according to the Kansas Office of Broadband Development (KOBD), an agency created by Governor Laura Kelly in 2020 that resides in the state’s Department of Commerce. Lack of access is due mainly to unserved or underserved Broadband Serviceable Locations, low enrollment in the state’s Affordable Connectivity Program and residents without access to internet- ready devices. “Access to reliable high-speed internet is no longer a luxury — it’s a necessity for education, healthcare, economic growth and overall quality of life,”said Governor Kelly in August when KOBD submitted its Broadband Equity Access and Deployment (BEAD) Five-Year Action Plan (FYAP) to the National Telecommunications and Information Administration (NTIA). “This plan moves us toward achieving universal broadband availability in Kansas, ensuring everyone from business owners to students can succeed in today’s digital age.” NTIA has allocated $451 million to Kansas to support the state’s broadband initiatives; it requires a five-year action plan outlining how the state will use the funds. by MARK AREND M How Kansas Is Bridging the Digital Divide BROADBANDKANSAS: THE NEW GOLD STANDARD 43 ACTION PLAN OBJECTIVES KOBD’s BEAD plan has four main objectives, each of which has specific goals and metrics for achieving them. The first is ensuring broadband coverage to all of the state’s businesses, homes, farms and community anchor institutions. Second is to apply what it calls future-proof technologies for broadband accessibility and use. The third is to evolve Kansas’ digital economy with broadband certifications, training programs and career pathways. Fourth is to enable residents to work or learn from any location in the state. When fully implemented, BEAD will benefit education with digital learning, transportation with smart traffic systems and connected vehicles, commerce in terms of business development and remote working, healthcare through remote diagnostics and telehealth, and agriculture with smart farming and Internet-enabled equipment, among other broadband applications. “The BEAD FYAP outlines a strategic approach to leverage existing programs, partnerships and resources toward the goal of universal broadband access,”said Kansas Lieutenant Governor and Secretary of Commerce David Toland in the BEAD announcement. “By combining public and private efforts, we can maximize the impact of our investments and create a robust broadband infrastructure that supports economic growth and innovation for decades to come.” RESOURCES FOR STATEWIDE BROADBAND In May, Governor Kelly established the Lasting Infrastructure and Network Connectivity (LINC) program that makes $30 million available for initiatives that build infrastructure for delivering broadband to homes and businesses throughout Kansas. LINC is designed to lower internet costs and improve performance and availability. Funding is intended to support three types of infrastructure: broadband that enables internet access at 100/20 Mbps or higher speeds, internet exchange points and middle-mile broadband infrastructure. Service providers bring matching funds to the program, boosting overall funds to nearly $34 million. In November, 12 broadband infrastructure providers in locations across Kansas were granted LINC awards worth $28.5 million. More than 2,300 premises, or customers of the service providers, will benefit from the grants. “LINC is another step forward in our promise to connect all Kansans, including in rural areas, to high-speed internet,”said Governor Laura Kelly in a statement. “We are empowering communities with high- speed broadband infrastructure, unlocking greater economic growth, increased access to telemedicine and expanded educational opportunities.” In June, Kansas launched the Broadband Acceleration Grant Program 3.0 with $5 million from the Eisenhower Legacy Transportation Program to bridge the state’s digital divide. The application period took place during the summer, and applicants included a variety of authorized broadband service providers. The program is designed to deliver high-speed internet to areas with insufficient broadband access and economically challenged areas. “We recognize the urgent need to bridge the digital divide so households and businesses across Kansas can succeed now and in the future,”saidLieutenant Governor Toland at the grant program announcement.“With the wide range of entities that are eligible for these funds, we are encouraging collaboration and innovative approaches to getting more Kansans and communities connected.” “ We are empowering communities with high-speed broadband infrastructure, unlocking greater economic growth, increased access to telemedicine and expanded educational opportunities.” — Laura Kelly, Governor of Kansas44 KANSAS: THE NEW GOLD STANDARD live-action model of the clean energy economy’s circularity can be found in Kansas, where common- sense, middle-of-the-road policy and costs complement the state’s middle-of-the-country location and sensibility. They also complement the goals of a $4 billion megaproject. Kansas is around the middle of the pack nationally when it comes to industrial power costs, according to the U.S. Energy Information Administration (EIA). Industrial customers paid an average rate of 8.3 cents per kilowatt-hour in 2022, making the state the 30th lowest by cost. A settlement agreement in the rate case submitted by major utility Evergy and approved by the Kansas Corporation Commission (KCC) in November 2023 shows a state that will go to the mat for economic development and consumers in the clean tech sector and beyond. The agreement includes a 4.53% rate decrease in Evergy Kansas Metro territory, which includes Lenexa, Overland Park, LaCygne, Ottawa and other communities near the Kansas City metro area — including the community of De Soto, where Panasonic is investing $4 billion and creating up to by ADAM BRUNS A How Kansas Supports the Climate and the Business Climate All At Once ENERGY & UTILITIES Boehringer Ingelheim in 2021 signed a 10-year contract with Evergy to buy energy generated at Cimarron Bend Wind Farm in Clark County for its 1,000-employee animal vaccine manufacturing site in nearby St. Joseph, Missouri. Photo courtesy of Boehringer IngelheimKANSAS: THE NEW GOLD STANDARD 45 4,000 new jobs at a new EV battery plant whose energy requirement, noted the Kansas Recorder, “Evergy likened to a small city.” Evergy in September 2023 was named a 2023 Top Utility of Year in economic development by Site Selection magazine. In filing the utility’s long-term resource plans in June, David Campbell, Evergy’s president and CEO, said, “Our service area is experiencing some of its most robust electricity demand growth in decades, including very large projects like the Panasonic electric vehicle battery manufacturing factory and the Meta datacenter, as well as broad-based economic development in both Kansas and Missouri. Aided by well-coordinated efforts by state and local organizations, these projects are successfully bringing in investment and jobs across our region.” “This now-approved settlement is a strong result for our Kansas customers,” said Campbell in November, noting that Kansas customers’ average rates will have increased by only 1% in the last five years — well below inflation and electric rate increases in neighboring states over the same time period. “This decision also allows Evergy to recover investments made to strengthen the electric grid and provide reliable, affordable and sustainable service to our customers across the region.” Evergy says Kansas customers have “shared in the more than $1 billion in operating cost savings” since the Westar/KCP&L merger. “Despite record U.S. inflation of more than 20% since 2017, Evergy’s Kansas rates have remained well under inflation and steady over the same period, increasing only 1% since 2017,” Evergy said in announcing the rate case agreement. “That is in contrast with neighboring states, where during the same period regional rates increased 12.7%.” WIND IN THEIR SAILS In spring 2023 the Kansas Legislature passed a new law that requires public utilities to assess regional rate competitiveness and the impact current and proposed rates have on economic development. Its passage was backed by the Kansas Industrial Consumers Group and the Kansas Chamber. The industrial sector accounts for nearly two-fifths of the state’s total energy use, according to the EIA. In testimony about the bill, Chuck Caisley, The average annual solar energy falling on one square mile in central Kansas is about four billion KWh or 15 trillion Btu — the equivalent of 2.5 million barrels of oil. Map courtesy of Kansas Corporation Commission Source: U.S. Department of Energy46 KANSAS: THE NEW GOLD STANDARD senior vice president of public affairs for Evergy, brought historical perspective to the reasons behind the transmission delivery charge (TDC), noting that TDC legislation was originally adopted to address concerns in Kansas about the lack of new investment in transmission as well as the reliability of the transmission system. “Those investments have benefited the state of Kansas by enabling the development of a major new multi-billion-dollar industry in wind generation and to begin the refresh of the aging backbone of Kansas’ electric grid, some of which has been in place and serving Kansans since World War II,” he told the Kansas Senate Committee on Utilities. “More directly, customers throughout Kansas have benefited from not only better reliability, but investments that have made it possible for large businesses, universities and residential customers to benefit from Kansas wind.” Kansas ranks in the top five states in the U.S. for wind power, generating enough renewable energy in 2022 to power about 3.2 million households. Kansas wind power grew in September 2023 when Ørsted started operations at Sunflower Wind, a wind farm located in Marion County with capacity to power more than 70,000 homes. Ørsted said then it had “pioneered a landmark supply chain decarbonization effort to deliver renewable energy access and bundled renewable energy credits from Sunflower Wind, working with Schneider Electric to enter into power purchase agreements with Amcor, PepsiCo, Stryker, Citizens and Walmart’s Project Gigaton cohort, which includes Amy’s Kitchen, Great Lakes Cheese, The J.M. Smucker Co., Levi Strauss & Co. and Valvoline Global Operations. Wind has been the largest source of electricity generation in Kansas since 2019, when it surpassed coal’s contribution. “That trend continued in 2022,” the EIA says, “when wind accounted for 47% of the state’s total net generation.” Meanwhile, the same sun that helps Kansas lead the nation in wheat and sorghum production is helping the state grow its clean energy profile too. Among the 10 sunniest states in the country, Kansas “has a small but growing amount of utility-scale (1 megawatt or larger capacity) solar generation, which was six times larger in 2022 than in 2019,” says the EIA. What Kansas Stands to Gain from the Inflation Reduction Act A ccording to a White House document, these are among the clean energy benefits available to the Sunflower State economy as a results of the Inflation Reduction Act: • “In 2021, there were already 23,821 Kansas workers employed in clean energy jobs. The Inflation Reduction Act will expand these opportunities, bringing an estimated $10.6 billion of investment in large-scale clean power generation and storage to Kansas between now and 2030. It provides a historic set of tax credits that will create jobs across solar, wind, storage and other clean energy industries.” • “Manufacturers employ 160,400 workers in Kansas, and the Inflation Reduction Act will help us make the technologies of the future at home — supporting local economies and strengthening supply chains. The Inflation Reduction Act will boost U.S. manufacturing of clean energy and transportation technologies, as well as investments for a new Advanced Industrial Facilities Deployment Program to position America to lead the growing global market for clean steel, aluminum, cement and more.” • “The Inflation Reduction Act supports climate-smart agriculture practices, which will help Kansas’s 58,600 farms lead on climate solutions and reward their stewardship. Electric cooperatives, which serve about 300,000 homes, businesses, and other customers in Kansas, will for the first time be eligible for direct-pay clean energy tax credits. And this legislation dedicates investments for rural electric cooperatives to boost resiliency, reliability, and affordability, including through clean energy and energy efficiency upgrades.” Photo: Getty ImagesKANSAS: THE NEW GOLD STANDARD 47 Battery storage, among other technologies, is expected to help renewable power generation address concerns about intermittent availability. But it’s the transmission system that provides the bedrock for growth of all kinds — including within the utility workforce itself. Analysis by E2 of clean energy job growth in the United States between 2021 and 2022 found that Kansas was No. 8 in the nation in the rate of clean energy job growth at 51% when traditional transmission and distribution jobs are included. By 2035, Evergy plans to add more than 3,300 megawatts (MW) of renewable energy and retire more than 1,900 MW of coal-based fossil generation, while investing in approximately 1,300 MW of hydrogen-capable advanced combined cycle generation. To date, Evergy has retired 2,200 MW of fossil-fueled generation and compiled a wind portfolio of more than 4,400 MW. Today, Evergy’s carbon-free generation resources produce the equivalent of about half of its retail customers’ energy needs, the utility reported last summer. Quick Kansas Facts from the U.S. Energy Information Administration • A snapshot in June 2023 showed Kansas had the 17th lowest residential retail electricity prices in the nation. • In 2022, Kansas accounted for about 1% of both U.S. proved crude oil reserves and U.S. total oil production. The state’s three petroleum refineries provide 2% of U.S. refining capacity and can process a combined 404,000 barrels of crude oil per calendar day. • Kansas is the eighth-largest ethanol-producing state, and its 12 ethanol plants have a combined production capacity of about 601 million gallons a year. • In 2022, wind energy accounted for 47% of Kansas’s electricity net generation, which was the third-highest share of wind power for any state after Iowa and South Dakota. • The City of Conway is a major hydrocarbon gas liquid products storage and pricing hub for propane and ethane. • Kansas consumes about twice as much natural gas as it produces, and the state has 16 natural gas underground storage fields that can hold 283 billion cubic feet of natural gas, equal to about 3% of U.S. storage capacity.Next >