Energy Industries Corp
Miles Kubo COO, Energy Industries

Energy Industries Corporation (EI) is a Hawaii-based energy solutions provider that specializes in high value-added, “turn-key” energy conservation programs for commercial, industrial and institutional buildings.  The company helps clients reduce electricity consumption, improve building operation, improve income/cash flow, and reduce carbon emissions.

Since its founding in 1994, Energy Industries has evolved from a regional lighting contractor to a national energy services provider.  Headquartered in Honolulu, Hawaii, the company currently employs approximately 90 people and maintains additional operations in California, Washington, Oregon, and Idaho.

The company’s business model is to help customers unlock “Hidden Profit Centers” within their organizations.  Energy Industries’ unique ability lies in its crafted programs that interest both facility and financial managers by interweaving energy savings with financing instruments.  These programs help to uncover hidden cash flows deep within building systems and monetize the wasted energy streams.

EI provides customers with a “one-stop” source for design, engineering, implementation, maintenance, financing, rebate acquisition, renewable energy and continued system support for energy efficiency.  As a service-based company, the company generates revenues by providing high-value services under prime contracts directly with end-user consumers.  The company focuses on the following key building systems: lighting, heating, ventilation and air conditioning units (“HVAC”), pumps, motors, and controls and photovoltaic (“PV”) systems.

EI educates customers by converting technical data into financial metrics and designing executable strategic energy plans.  Generating awareness and providing accessibility is essential to a successful energy-efficiency program.  Energy Industries guides its customers to make intelligent business decisions concerning energy capital improvements.  Ultimately, the company aids its customers in simultaneously achieving the “three wins”: (1) financial improvements, (2) operational improvements, and (3) a reduced carbon footprint.

A Strategic Approach to Energy Conservation

For its customers, the money saved by replacing energy-wasting equipment often greatly exceeds the cost of financing the replacement.  In energy conservation projects, the internal rates of return can be in the range of 20% to 60%, often higher.    These are excellent project returns that easily outpace returns from typical financial investments.

EI’s customers include companies such as Starwood Resorts, Microsoft, Boeing, Kendall Jackson, FEDEX, Virginia Mason Medical Center, Safeway, First Hawaiian Bank, and Castle & Cooke.

Energy Efficiency (“EE”) is becoming increasingly identified as the most cost effective sector within the rapidly expanding “Clean Tech” industry, which is fueled by the urgency to address increasing demand for energy, environmental concerns and energy security issues.  Energy Industries has positioned itself as a leader in this dynamic sector.

Specific macro-level industry drivers include:
➢    Climate change, now recognized as a real threat to the environment
➢    Rising and increasingly volatile energy prices
➢    Tight delivery capacity for conventional energy supplies
➢    Growing consumer and investor concerns about energy industry responsibility
➢    Studies suggesting that the U.S. must reduce its reliance on foreign fossil fuel
➢    Technology advances have increased electricity demand
➢    Power companies have difficulty meeting anticipated future demand

Key drivers specific to the Company’s target market of commercial building structures include:
➢    Aging buildings consume approximately 65% of power generated and waste billions of dollars in energy consumption
➢    Building managers often lack the time and expertise to engage in energy conservation programs.
➢    The EE marketplace is highly fragmented with many independent participants and technologies

Specific to the markets in which the Company currently operates, the following key drivers affect regional business development strategies:

Hawaii
➢    Highest utility rates in the country
➢    Showcase hospitality/resort industry
➢    Excellent market for photovoltaic renewable energy
➢    Governor signed Hawaii Clean Energy Initiative with U.S. Department of Energy to become a model energy state to achieve 70% renewable power by 2050

California
➢    High energy costs
➢    Strong political will to reduce energy consumption
➢    Enormous EE market
➢    Excellent utility rebates

Pacific Northwest (Idaho, Oregon, Washington)
➢    Excellent rebate programs, as much as 70% of costs
➢    Excellent state tax incentives for photovoltaic systems (Oregon)
➢    Strong environmental consciousness
➢    Bonneville Power Authority (BPA) considers EE to be the number 2 “Source of Power” after hydroelectric power

As awareness of energy conservation grows, businesses, governments and institutions are taking more proactive measure to reduce consumption.  Energy efficiency and renewable energy opportunities will continue to grow due of the confluence of environmental awareness, need for financial cost-savings, and fear of energy dependency.  Energy Industries is well-positioned to provide the intelligent EE solutions that businesses require to reduce energy consumption into quantifiable results.