< Previous58 JANUARY 2025 SITE SELECTION planting the flag. Founded as a two-person startup by USask grads Amit Gupta and Trent McConaghy, the company rapidly evolved into an indispensable partner to the world’s biggest producers of semiconductors, including NVIDIA, Intel and TSMC. Solido, Genest explains, “found a missing gap” in the emerging market of circuit verification. As the size of microchips continued to shrink, increasingly dense levels of computer modeling were needed to assess their viability during development. To accomplish that, Solido leveraged machine learning, an emerging technology that at the time, Genest says, was thought of as “smoke and mirrors.” The company’s daring paid dividends. “Our competitors were able to do all kinds of statistical extrapolation, but they couldn’t tell their customers up front whether or not they had the right answer. So, the secret sauce was that we could tell our customers, ‘yep, it’s verifiably correct,’ or ‘no, you’re going to need to run some more simulations.’ It turned out,” Genest says, “to be worth a lot of money.” Saskatoon Is Alive When Siemens acquired Solido in 2018, the multinational conglomerate cited what it called a “technology-friendly environment” in Saskatoon and the engineering department at USask as strategic assets. Employment at Siemens Saskatoon now surpasses 300, up from 40 at the time of acquisition. The university, says Genest, is the company’s “primary labor source.” Transplants from Asia, Africa and Europe — admitted under Canada’s immigrant-friendly labor policies — add muscle to Saskatoon’s tech-focused workforce. “Up until about 20 years ago,” says Genest, “we had been exporting our talent to the Bay Area and to other countries around the world. But we had an inflection point with the founding of a group of scale-ups that have since grown to employ hundreds of people. That really signaled the start of building here. It all seemed to stick at the same time, and once the ball gets rolling, it just keeps rolling.” Innovation Place, home first to Solido and now Siemens Saskatoon, has emerged as a popular hub for startups, engineering firms and research facilities. It’s one of the two technology parks — the other in Regina — developed by the provincial government and managed by the university. Siemens’ neighbors include companies such as the employee scheduling company 7 Shifts and Vendesta, a marketing software startup. SkipTheDishes, an online food delivery service founded in Saskatoon, was acquired for $110 million in 2016 by a UK-based competitor. “Saskatoon,” says Genest, “has awoken to become a very interesting place. It shows that ideas can come from rural communities as easily as they can come from major centers.” Siemens, for one, he says, is “committed to continue investing here.” Alberta Sees Its Future When Amazon Web Services announced plans for a $3.5 billion data center in Calgary in 2021, the company told provincial officials that it would need to develop a pipeline of data specialists for the hundreds of jobs the project would create. In response, the Alberta government funded a program through the University of Calgary that now trains engineers from the oil and gas industry to migrate into big data. “Oil and gas has always been very technology driven, and those engineers are already highly The University Bridge in Saskatoon Photo by sprokop: Getty Images60 JANUARY 2025 SITE SELECTION skilled,” says Rick Christiaanse, CEO of Invest Alberta, the provincial business attraction arm. “It makes the transition relatively simple.” The migration of energy workers into data sciences is emblematic of a larger shift that is occurring in Alberta, Canada’s fastest-growing province (population 4.8 million with a bullet) and a traditional energy powerhouse that is evolving into a significant player in the digital space. Nowhere is that more pronounced than in Alberta’s ambitions to build out a network of hyperscale data centers. The most recent victory came in October, with the announcement of a $750 million project just north of Calgary from eStruxture, Canada’s largest data center provider. “We see Calgary as absolutely one of the key linchpins to Canada’s foray in driving AI demand north of the border,” said Todd Coleman, eStruxture founder and CEO. “We believe that the ultimate ecosystem of AI is going to find its way into Alberta in a rather significant way.” Invest Alberta’s Christiaanse sees data centers as “easily another $75 billion to $100 billion opportunity” for Alberta. He spoke to Site Selection in November, ahead of meetings with potential investors in Japan, Hong Kong and South Korea. Of Alberta’s potential reach, he says, “It’s worldwide, OK?” And he believes there’s reason for that. “There’s really only three places in North America that have the energy, the land, the zoning and the fiber grid that supports hyperscale data centers. And that’s Texas, West Virginia and us.” Alberta’s cool climate is a valuable attraction, as well, and it’s earthquake safe. Manitoba: Arctic Char is Coming to You To comprehend the capacity of an aquaculture facility in the works just north of Winnipeg, consider that the project’s owner plans to produce some 5,000 metric tons of Artic char — a white- fleshed fish good for grilling, baking and broiling — each year. That’s enough to put fish on close to 60 million plates. Sapphire Springs, the venture behind the $145 million project, says the facility to open in 2026 has the potential to bolster the worldwide SITE SELECTION JANUARY 2025 61 supply of Arctic char by an astonishing %. e -acre complex is to rest upon a site formerly occupied by the Canadian Government’s Department of Fisheries and Oceans in the rural outpost of Rockwood. e site benefi ts from access to a glacial aquifer. As the project aligns with the Manitoba government’s eff orts to support sustainable innovation, Sapphire Springs was awarded a $. million repayable loan to get it going. e company says the facility is to create full-time jobs, with an indirect projection of more. “With our Rockwood facility,” said CEO Ken Blair, “Sapphire Springs aims to become a leader in sustainable aquaculture, contributing to the long-term viability of Canada’s seafood industry and enhancing our province’s reputation as a a hub for innovation.” Boeing Deal Bolsters B.C. In August, Boeing announced investments totaling $ million in two British Columbia aerospace enterprises, part of the company’s Industrial and Technological Benefi ts commitment to Canada for selecting Boeing’s P-A Poseidon as its long-range, multi-mission aircraft. e deal, agreed to in late , was valued at $. billion for an initial airplanes, with an option for Boeing to deliver two more. While most of the investments are going toward Boeing Vancouver, whose downtown Boeing Vancouver Labs specializes in software and consulting services, Indigenous-owned COTA Aviation is receiving $ million for indigenous skills training and equipment. e funding, said Boeing in a release, “will enable COTA to establish a dedicated hands-on aerospace manufacturing training facility.” Founded in by aerospace entrepreneur Dorian Cota, who hails from a fi shing family on Vancouver Island, COTA is committed to increasing Indigenous representation in the aerospace and defense industries. Having graduated from fl eet maintenance to manufacturing, COTA operates from a ,-sq.-ft. facility it acquired in . Salvelinus alpinus, a cold-water fi sh in the family Salmonide, is native to the Arctic and subarctic. Image by FedBul: Getty Images62 JANUARY 2025 SITE SELECTION Biomanufacturing Pioneer Selects Queensland for Its First Industrial Facility A first-of-its-kind biomanufacturing facility is coming to Mackay, Queensland, Australia. On October 2, 2024, global hyper-fermentation company Cauldron Ferm received support from the Queensland Government through its Industry Partnership Program (IPP) to develop what will be the first and largest end-to-end contract manufacturing facility for precision fermented bioproducts in the Asia-Pacific region. Launched in 2021, the $350 million IPP incentive has strengthened industry development in Queensland by facilitating private sector investment, supply chain development and job creation. In August 2023, an additional $53.5 million in funding was announced to bolster projects that align with the Queensland new- industry development strategy which aims to develop industries that will be in demand as the world decarbonizes, such as renewable energy manufacturing, critical minerals, biofuels and sustainable aviation fuel, and battery production, among others. Cauldron proved to be a perfect fit for this endeavor. The company’s “hyper-fermentation” technology, a breakthrough continuous fermentation process, enables large-scale fermentation production to be five times more cost-effective compared to current industry standards. This allows more sustainable bio-based products to achieve price parity with other, less- sustainable options on the market and become more widely adopted. Precision fermentation has the potential to play a vital role in increasing food production without expanding agricultural land, solving one of the most important barriers to food sustainability and national resilience. In addition to food production, the Cauldron Bio-fab in Mackay will have the manufacturing capacity to produce more than 1,000 metric tons a year of bioproducts to be used as ingredients in nutrition, materials, beauty, personal care, chemical and biofuel-related sectors. Cauldron plans to develop a global network of industrial facilities, with the MacKay Bio-fab being the first one in the queue. The company currently runs its operations out of a 25,000-litre demo facility in New South Wales. “We are honored to be receiving support from the Queensland Government to develop our first industrial-scale operations in Mackay,” said Michele Stansfield, co-founder and CEO of Cauldron. “This funding enables us to scale our innovative technology as a major milestone in our journey to redefine the scope of biomanufacturing.” by LINDSAY LOPP lindsay.lopp@siteselection.com AUSTRALIA & NEW ZEALAND Cauldron Ferm has decided to locate its first industrial facility in Mackay, a city on the eastern coast of Queensland. Photo: Getty Images SITE SELECTION JANUARY 2025 63 The Case for Cooperation: Advancing Green Technology In a De-risking Era G reen technology has emerged as a critical trend in the global effort to combat climate change and promote sustainability. Where cooperation must be increasingly prioritized to advance multilateral goals, synergy between Western innovation and Chinese production capabilities will be pivotal to making green technology accessible and affordable worldwide For the last four years, the renewable energy sector has accounted for the largest share of global cross- border investment, with US$348 billion expended in 2023. Investments in electrical components, including batteries, have also surged. Beyond just renewable by HERMINIO ANDRES ALIJA, GENERAL MANAGER, TRACTUS ASIA LTD. (TRACTUS) CHINA ENERGY TRANSITION “The share of U.S. trade, capital, and information flows involving China has fallen by about 26% since 2016, and the share of China’s flows involving the U.S. has fallen by roughly 20% over the same period,” UN Trade and Development reported in early December. Yet even so, much of the world continues to look on with some degree of admiration as China’s clean-tech economy grows and its energy transition continues. The Helsinki-based Centre for Research on Energy and Clean Air even found that 44% of surveyed experts (up from 15% in 2022) say carbon dioxide emissions in China — once looked to with regret as the smoke- belching manufacturing capital of the world — could peak next year. “China’s efforts to curb emissions are crucial not only for achieving its goal of carbon neutrality by 2060 but also for meeting global climate targets,” said a release from AmCham China on Thanksgiving Day. “The country’s significant investments in renewable energy and policy support for electric vehicles are key components in this endeavor,” even as challenges remain. As a new U.S. presidential administration comes in promising major tariffs on Chinese goods, it can be worthwhile to examine how pervasive Chinese clean tech has become. Here we present a perspective written in fall 2024 by Herminio Andrew Alija of Tractus Asia Ltd. on how the world can choose to engage with China and Chinese organizations as the energy transition unfolds. — Ed. The regeneration of Shenzhen Guanlan Riverside Plaza designed by LAY-OUT Planning Consultants Co., Ltd. earned the top prize for Landscape of the Year at the 2024 World Architecture Festival in Singapore. Photo courtesy of LAY-OUT Planning Consultants Co., Ltd. and v2com newswire64 JANUARY 2025 SITE SELECTION energy and storage, however, green technology encompasses all practices and products designed to reduce environmental impacts and promote sustainability. The primary goals are to minimize carbon emissions, conserve natural resources and protect the environment for future generations. According to the International Energy Agency (IEA), China was the largest public spender on energy R&D in 2023, accounting for one-quarter of global public investment in this sector. Chinese private- sector firms including CATL, BYD and Huawei are at the forefront of developing advanced green technologies, each investing billions of U.S. dollars. On August 11, the Chinese authorities generated a 33-point document aiming to “establish a green, low- carbon and circular development economic system” by 2035. They set ambitious goals for as early as 2030, such as raising the share of non-fossil consumption to 25% and gradually increasing the annual utilization of bulk solid waste, reaching about 4.5 billion tons. By that year, the Chinese government estimates that the scale of China’s energy conservation and environmental protection industry will reach about 15 trillion yuan ($2.09 trillion). China’s green manufacturing efforts reflect a commitment to sustainable development and addressing environmental challenges while maintaining economic growth: • Renewable Energy: China is a global leader in the production and export of renewable energy technologies, such as solar panels, wind turbines and energy storage systems. Chinese companies have significant global market shares in solar photovoltaic (PV) panels and wind power equipment. According to the IEA 2022 report, China’s share in all stages of solar panel manufacturing exceeds 80%. Based on manufacturing capacity under construction, the same report states that China’s share of global polysilicon, ingot and wafer production will soon reach almost 95%. Chinese manufacturers also captured 65% of the global wind turbine manufacturing capacity in 2023, a significant milestone that propelled four Chinese wind technology companies into the top five global rankings for the first time. Sungrow and Hyperstrong, both Chinese companies and leaders in energy storage systems, are now among the top five system integrators globally due to substantial growth in China’s domestic energy storage market. Among battery manufacturers, CATL (Contemporary Amperex Technology Co., Ltd.) achieved a 43% global market share by 2022, while BYD and Eve Energy secured the second and third positions, with market shares of 12% and 7%, respectively. Another critical area in renewable energy in which China has invested enormous efforts is hydropower, with massive projects like the Three Gorges Dam. The world’s largest hydropower project, China’s Three Gorges Dam hydroelectric power project on the Yangtze River has generated over 1,600 terawatt-hours of clean electricity since its first generator unit was implemented in 2003. This energy has saved over 480 million tons of standard coal and reduced carbon dioxide emissions by about 1.32 billion tons. • Energy efficiency: Chinese companies are involved in exporting advanced metering infrastructure (AMI), grid management systems and energy storage solutions, mainly composed of smart grids to optimize energy distribution and reduce wastage. Chinese companies have also become larger producers and exporters of energy-efficient appliances — namely air conditioners, refrigerators and washing machines — with effective use of IoT technology. Moreover, China is a leader in the promotion of green buildings with sustainable materials and energy-efficient designs, exporting energy-efficient windows, insulation and sustainable construction products. Cost Comparisons and Economic Implications The cost dynamics of green technology projects vary significantly depending on the manufacturing Here a wind turbine manufactured by Chinese company Goldwind is installed at a wind farm in Italy in 2021. Photo courtesy of Goldwind SITE SELECTION JANUARY 2025 65 source. Understanding the financial impact of using Chinese-manufactured green technology components versus Western-manufactured ones can be achieved through the examination of a few key categories: Wind Turbines European companies have been at the forefront of engineering innovative green technologies, often utilizing cost-effective Chinese-manufactured components. One prominent example is the European offshore wind farms that use turbines produced by Chinese companies such as Goldwind and Mingyang. These collaborations have enabled Europe to expand its renewable energy capacity efficiently and economically. According to BloombergNEF, prices for Chinese-made wind turbines delivered outside mainland China are 20% lower than those of U.S. and European companies, allowing significant savings and broader deployment of wind energy projects. In 2023, steep turbine price reductions enabled China- based firms to commission 1.7 GW of wind projects in 20 markets overseas, including five EU member states. Solar Panels Chinese-manufactured solar panels and batteries are also considerably cheaper than their European counterparts. More than 90% of solar panels deployed in the EU are still imported from China, primarily because of their low price. Per a February 2024 Bruegel report, Chinese solar panels were estimated to be the cheapest globally at $0.26/watt, while German panels were approximately 40% more expensive at $0.38/watt. The disparity was driven primarily by higher input costs and labor, among other factors. Chinese solar panels have reportedly since dropped to as low as $0.15 per watt, while European panels cost nearly double , and U.S. solar panels even more. Battery Storage Systems Battery storage system prices have also fallen, nowhere as dramatically as China. According to the BloombergNEF’s 2023 battery price survey, China boasts the lowest price of battery packs at $126/ kWh. In the United States and Europe, the cost was 11% and 20% higher, respectively. While this gap has lessened in recent years, it reflects the “relative immaturity of these markets, higher production costs, lower volumes and the diverse range of applications.” Cost advantage has made Chinese products highly attractive for large-scale projects, despite concerns over quality and geopolitical implications. Integrating Chinese-manufactured components into European and American projects demonstrates a pragmatic approach to achieving cost-effective solutions while maintaining high engineering and project management standards. Mitigating Global Concerns Despite China’s impressive advances in green technology, global investors are understandably wary. Forced technology transfers and IP appropriation had an essential role in the launch of the Chinese green technology giants. In addition, the government maintains direct and indirect influence in many Chinese corporations, and financial policies and subsidies as well as national security and compliance concerns give Western companies serious pause when partnering or contracting Chinese firms. The difficulty in distinguishing between public and private companies in China due to the links to the Chinese Communist Party (CCP) and differences in stock market reporting from the West transform due diligence into more of an art than a science and a must-have in any relationship with Chinese companies. Moreover, the increasing prevalence of political acceptability — including compliance with the Committee on Foreign Investment in the United States (CFIUS) guidelines and assuaging cybersecurity concerns — as a critical factor in site selection and inbound investment decisions has added a layer of complexity to already opaque investment waters. In an era where climate change threats go beyond borders, worldwide intervention is needed. Historical precedents like the Kyoto Protocol and the Paris Agreement demonstrate the importance of international collaboration in addressing global challenges. Yet the importance of collaboration goes beyond policy. We can accelerate green technology adoption and implementation by leveraging the strengths of different countries, such as Western engineering innovation and Chinese manufacturing capabilities, with innovative multinationals leading the way. Success lies in differentiating which companies from China can be helpful to the projects without endangering the integrity of the Western participants and their business and ethics principles and legal compliance. This cooperation ensures shared technological advancements, cost management and scalable solutions, benefiting both developed and developing nations. Herminio Andres Alija is the General Manager of the Tractus Asia Ltd. (Tractus) China office. For more information, visit www.tractus-asia.com.66 JANUARY 2025 SITE SELECTION How to Know the Right Megasite When You See It by MARK AREND mark.arend@siteselection.com MEGASITES n , North Carolina’s General Assembly created the Megasite Readiness Program to quantify existing and potential sites that are suitable for large projects in such industries as EV assembly and batteries and semiconductor fabrication. Demand for such sites around the country was booming at the time, and state offi cials did not want North Carolina to miss out. e Legislature also directed the Economic Development Partnership of North Carolina (EDPNC) to task a site selection fi rm with identifying megasites in the state appropriate for advanced manufacturing operations. JLL got the nod and worked with two additional fi rms to produce the NC Megasite Readiness Program Report, completed in May . e report says local developers submitted proposals for sites around the state looking to be deemed megasite ready. Eleven were selected by the JLL-led team for in-person visits to inspect the sites. Of those, the report identifi ed one competitive, shovel-ready megasite, the Kingsboro Business Park in Edgecombe County. Sites in six additional counties — Brunswick, Wilson, Nash, Pitt, Cumberland and Rowan — were named the state’s best potential megasites. e Edgecombe County edge convinced Natron Energy to announce in August a nearly $. billion sodium-ion battery gigafactory in the Kingsboro Business Park, the fi rst of its kind in the United States. It will occupy . million sq. ft. and will create more than , jobs. e project is forecast to boost the state’s economy by $. billion over the next years. It’s no wonder North Carolina and states across the country are eager to grow their inventories of megasites. Following is an email interview with JLL Executive Managing Director, Brokerage, Meredith O’Connor,who explains how megasites are evaluated, eliminated from consideration or chosen by companies like Natron Energy. Were you involved in preparing the NC Megasite Readiness Report? O’Connor: Yes, we were an enthusiastic contributor, with our local partners at Timmons and Maynard Nexsen, to the NC Megasite Readiness report. As with all our economic development counterparts, EDPNC is an invaluable partner. We were eager to assist them in strengthening their megasite inventory, especially as we face a dwindling supply of qualifi ed megasites across the U.S. We believe our participation was mutually benefi cial, helping North Carolina leverage our expertise to attract new mega projects while creating new real estate opportunities for our site selection clientele. Megaproject requirements will vary depending on the industry. What are some megasite attributes that must already be in place to be considered by companies in any sector? O’Connor: When considering megasite attributes for industrial development across various sectors, several key factors are typically required to be in place for a site to be considered viable. ese attributes are universal, regardless of the specifi c industry, and include: Natron Energy will build its sodium-ion battery gigafactory at this site in the Kingsboro Business Park in Edgecombe County, North Carolina. Photo courtesy of Natron Energy SITE SELECTION JANUARY 2025 67 Large contiguous land area: Typically, a minimum of 500+ acres or more of developable land is required to accommodate large-scale facilities and future expansion. Connectivity and transportation infrastructure: This includes proximity to major highways, rail access and potentially access to seaports or airports, depending on the industry’s needs. Reliable and abundant utilities, which encompasses: • Sufficient electrical power capacity and redundancy • Ample water supply and wastewater treatment capabilities • Natural gas availability • High-speed fiber optic networks and telecommunications infrastructure Environmental and geotechnical suitability: The site should have minimal environmental concerns and be geotechnically sound for large-scale construction. Zoning and permitting: The site should be zoned for industrial use or have a clear path to rezoning, with a streamlined permitting process. People and place: • Availability: A broad and proven talent pool in the area. Sufficient local workforce supply without risk of depletion. Competitive local wages and benefits. Manageable commute times for recruitment and retention. • Sustainability: Established pipelines for future talent through vocational programs and secondary education institutions. Favorable migration patterns that support workforce growth. Alignment of local educational offerings with industry needs for a sustainable talent supply. • Retainability: Balanced competition for key skillsets among local employers. Attractive quality-of-life factors for employees. Adequate availability and quality of local amenities. Strong performance of public schools. Competitive housing market with sufficient supply to support the workforce. • Partnerships: Quality collaboration between public institutions and the private sector. Collaborative local business community. Opportunities for strategic partnerships and community engagement beneficial to the organization. Due diligence: • Completed preliminary due diligence. • Existing plans to address potential development barriers. • Awareness and engagement of key stakeholders (public officials, utility providers, landowners). • Strong support for the project from local authorities and the community at large. These attributes collectively contribute to making a megasite attractive across various industrial sectors, providing the foundation for efficient, cost-effective and scalable development projects. What are the development challenges that tend to eliminate megasites from consideration? O’Connor: Several development challenges can eliminate megasites from consideration. These challenges often stem from complex issues that are difficult, expensive or time-consuming to resolve. Here are some of the most common: Environmental concerns: • Presence of protected species or habitats • Contamination from previous industrial use • Wetlands or other sensitive ecosystems requiring mitigation Infrastructure limitations: • Insufficient electrical power capacity or lack of redundancy • Inadequate water supply or wastewater treatment capabilities • Poor or nonexistent road and rail access Topographical issues: • Steep grades or unstable soil conditions • Flood plain locations • Extensive rock formations requiring blasting Land assembly complications: • Multiple property owners unwilling to sell • Unclear titles or property disputes • Presence of easements or rights-of-way that fragment the site Meredith O’Connor, Executive Managing Director, Brokerage, JLLNext >