SC technology hub gets $45 million in federal money for energy projects

Jessica Holdman
·3 min read

The home of an electric grid simulator operated by Clemson University, located at the former U.S. Naval Base in North Charleston. Federal funding announced Tuesday, July 2, 2024 will allow for upgrades to the system. (Provided by Clemson University)

COLUMBIA — A conglomerate of South Carolina colleges, a federal nuclear research laboratory and the state’s economic development agency won a $45 million federal grant to establish a technology hub focused on developing new energy technologies.

The hub, known as SC Nexus, was one of just a dozen federally recognized tech hubs awarded federal funding Tuesday after more than a year-long application process with the U.S. Department of Commerce’s Economic Development Administration.

The U.S. Commerce Department designated a total of 31 hubs across the country with the aim of creating more high-paying technology jobs and making the nation more competitive in high-tech industries. But only 12 of those hubs went on to receive federal financial backing.

“We’re incredibly excited. Today really is a transformational day for South Carolina and for Nexus,” said Ashely Teasdel, deputy secretary with the S.C. Department of Commerce. “This effort is really about strengthening the state and America’s economic competitiveness and national security.”

The effort has been a priority for Gov. Henry McMaster and members of the state Legislature, with $15 million set aside as a one-time expenditure in the proposed budget, and $5 million in recurring support.

SC Nexus will spend its federal funding on four projects:

  • Building a simulator for testing the nation’s ability to protect its electric grid from hackers and cyber attacks. The simulator will cost $10 million and be operated by the Savannah River National Laboratory near Aiken.

  • $12.5 million worth of upgrades to an electric grid simulator operated by Clemson University. The simulator, located at the former U.S. Naval Base in North Charleston, can mimic the electric grid of any country in the world and is paired with testing equipment for wind-turbines. The effort will help improve renewable energy generation, such as wind and solar.

  • Building a pilot manufacturing line for batteries to be operated by the University of South Carolina. The $10.2 million manufacturing line will help researchers develop and produce longer-lasting, faster-charging batteries essential to the state’s growing electric vehicle industry. Better batteries are also needed to improve storage of power produced by solar panels and wind turbines for use when the sun isn’t shining or the wind isn’t blowing.

  • $12.6 million for the SC Technical College System to encourage more people to work in energy-focused industries and develop coursework for training more workers in these fields. Teasdel said these will include mobile labs that can be brought to Allendale, Bamberg, Barnwell, Orangeburg and Union counties, five economically challenged counties that the Nexus program is particularly focusing on.

The Department of Commerce will be setting up a division to oversee the Nexus projects, and will continue to seek additional funding. Two of the initially planned six projects did not receive federal grants, and those projects are being reviewed. At least one will not move forward as initially planned.

“This is just the beginning for us, and we’re excited about the growth potential, the economic competitiveness that we’re going to have and then have a really, really big hand in national security too,” Teasdel said.

The Department of Commerce did not have a total cost estimate for all six of the projects readily available on Tuesday.

“Out of hundreds of applications, our state was chosen as one of twelve tech hubs to receive funding to focus on the increasing energy demands and needs of our nation,” said Sen. Lindsey Graham in a statement Tuesday afternoon. “Hats off to the South Carolina Department of Commerce and all those involved in putting this application together.”

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