Communities in Kentucky have long supplied a significant portion of the natural resources that powered the U.S. economy, namely coal. Since 1790, Kentucky has supplied more than 11 percent of all coal produced in the United States. As global markets shift toward lower-carbon products, communities throughout Kentucky have the opportunity to turn their skills and competencies toward the advanced energy economy. Following a wave of recent investments, Kentucky is now a national leader in economic development, and additional state and federal support can help accelerate this momentum while strengthening the local infrastructure and workforce necessary to sustain it. This brief provides insights from a roundtable hosted in Lexington, Kentucky, in November 2024 that explored the Kentucky-specific market, infrastructure, and workforce considerations that can enable communities in the state to seize the opportunity of an advanced energy manufacturing industry. These insights are reflected in the included policy recommendations developed by participants directly during the event.

Policy Recommendations from the Discussion

Accelerate the development of the nuclear energy supply chain in Kentucky

To demonstrate the opportunity for Kentucky to manufacture parts for the existing U.S. nuclear fleet, the Kentucky General Assembly should fund a study to identify what certifications (if any) are required for workers, which parts could be manufactured, and the standards that must be put in place to produce nuclear power plant equipment in Kentucky. Moreover, this would include determining if a new manufacturing line within an existing facility is required (or if they can be produced on existing production lines or if an entirely new facility would be required) to fabricate the equipment.

Promote the global competitiveness of Kentucky-made products

To support Kentucky’s global competitiveness in sustainable product/material manufacturing, the Kentucky General Assembly should dedicate resources to establish an interstate regional coalition across the southeast Ohio River Valley and Appalachia focused on transportation, manufacturing, and energy supply.

Build, expand, and retool infrastructure to support access to the new energy economy

To address the need for greater coordination between state, local, and federal government entities on energy infrastructure buildout, Congress should pass legislation to direct the U.S. Economic Development Administration (EDA) to establish a federal Office of Community Prosperity for Underserved Communities, with coordinating offices in all 50 states, as conduits for state, local, federal, and industry to access federal funds.

The Kentucky General Assembly should pass enabling legislation to support the development of a corresponding office at the state level.

Promote workforce development for advanced energy manufacturing in Kentucky

To increase access to and utilization of workforce development opportunities, the Kentucky General Assembly should fund the creation of a comprehensive online database of workforce development resources and opportunities for area development districts, local governments, and local communities across the state.

Develop the innovation ecosystem for advanced energy in Kentucky

To equitably and transparently strengthen the innovation ecosystem in Kentucky, and across the country, Congress should establish a public/private partnership supporting a national Innovation & Entrepreneurship program that drives a graduated K-12 experiential learning program.

Conclusion

As recent momentum has demonstrated significant opportunities for Kentucky to leverage its infrastructure and human capital in the emerging advanced energy economy, further state and federal investment is necessary to continue to attract investment and preserve or even expand the global competitiveness of Kentucky-made products. Roundtable participants were optimistic about the opportunity for the state, but noted that significant investment in workforce and community development are necessary to ensure communities are able to support these emerging industries and enjoy the benefits they bring to the Commonwealth.