Ioxus investments could bring area jobs

By Jake Palmateer, The Daily Star, Oneonta, N.Y.

April 15--ONEONTA -- Local tech firm Ioxus has secured $21 million in investments to develop its technology and expand sales, marketing and manufacturing.

The multimillion-dollar boost will help support up to 60 jobs in the community by summer and maybe more by the end of the year, Ioxus Chief Executive Officer Mark McGough said.

The company manufactures ultracapacitors for use in the transportation, alternative energy, medical, industrial and consumer product markets.

"We're excited about the area. The future is bright," McGough said.

According to Ioxus: Ultracapacitors are electronic components that excel at releasing and absorbing bursts of high power for short periods over many more charge and discharge cycles than batteries. When paired with batteries, ultracapacitors provide peak power, such as for hybrid electric vehicles to capture energy during braking. Ultracapacitors help temporarily store intermittent energy produced by solar, wind and wave energy projects, and they deliver the power to the grid when needed.

Ioxus employs 42 people, which includes 10 to 20 hired since the company closed on a deal earlier this year with Otsego County Development Corp. to use the former National Soccer Hall of Fame building as a production site, she said.

The payroll will increase to 60 people in the next few months as new production shifts go online, according to McGough.

"It could be well beyond that by the end of the year," he said.

The production line positions have benefits, and the rates are in the $10- to $12-an-hour range, according to Melissa Cohen of Metis Communications, which is handling public relations for Ioxus.

McGough said when the company set out on its drive for investors about five months ago to fund the expansion, it was expecting to raise $15 million to renovate and refit the former Soccer Hall into a "world-class production facility."

Ioxus has been a great addition to Oneonta, Oneonta Town Supervisor Robert Wood said.

"We're very pleased to hear they are going beyond their projections they released earlier," Wood said. "I think it improves our economic outlook substantially."

The utilization of the Soccer Hall building is also good news for the town of Oneonta because it involves what would otherwise be a vacant space, according to Wood.

The latest funding is coming from Energy Technology Ventures, Northwater Capital through its Northwater Intellectual Property Fund, Aster Capital and Braemer Energy Ventures.

Energy Technology Ventures is a collaboration between General Electric, NRG Energy and ConocoPhillips.

The investments are in the form of shares in the privately held company, according to McGough.

In addition to the financial benefit of owning shares in a growing company, the investors and Ioxus will benefit through technology sharing.

"They can help us in ways that are not monetary in nature," McGough said. "We can help them improve the quality of their products."

Last spring, NYSERDA awarded $600,000 to Ioxus to fund projects designed to improve ultracapacitor performance.

The manufacturers announced plans earlier this year to move into the former hall. That expansion was expected to create about 30 jobs. Most of the jobs are science, engineering and technician positions.

"Ioxus is developing lighter, more compact and cost-efficient energy storage technologies that will be relied on to complement or replace rechargeable batteries in a wide variety of consumer and industrial products, such as handheld electronic devices, hybrid electric vehicles, wind turbines, aircraft and medical equipment," Kevin Skillern, venture capital leader at GE Energy Financial Services and Energy Technology Ventures, said in a media release. "These applications align well with Energy Technology Ventures' reach across the energy sector, and GE's additional breadth in health care, industrial and aviation, offering many opportunities for commercial and technical cooperation."

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