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Cirba Solutions Gains Governmental Green Light

Posted on November 29, 2022November 29, 2022 by Joe Ball

In October, the U.S. Department of Energy announced a $2.8 billion grant to supercharge U.S. battery manufacturing for electric vehicles and the electrical grid. Cirba Solutions, a Heritage family company focused on battery recycling, was one of the 21 companies awarded a portion of that grant. Here, in an interview with The Heritage Group, Shane Thompson, Strategy and Business Development for Cirba Solutions, discusses what a $75,000,000 grant from the U.S. Department of Energy means for the company and its future.

Tell us more about the grant.
It funds the first set of projects for President Biden’s Bipartisan Infrastructure Law. The U.S. government is trying to set up a domestic supply chain for critical materials so the country can expand manufacturing of batteries for electric vehicles and the grid.

What does the grant mean for Cirba Solutions?
It allows us to put more dollars into our new facility in Lancaster, Ohio, which was already in the works when we won the grant. We’re planning to expand the number of minerals we recycle and enhance our ability to upgrade materials before they re-enter the battery supply chain.

How will the grant impact the future?
The fact that our new facility is being built with the full confidence of the Department of Energy will help us introduce our product in the marketplace. In addition to funding, the validation adds visibility and credibility that will make us more attractive to customers, employees and investors.

How did you win the grant?
We responded to the Department of Energy’s request for funding, which included a rigorous application process. Our strategy was to apply for half of the available funding in the battery recycling category. We built on the fact that Cirba Solutions is unique, and we have experience to back up what we do. Laura Evans, our director of environmental, social and governance (ESG), led the application process, which included a robust environmental justice questionnaire and requirements. We welcomed that. We prioritize sustainability and ESG at Cirba Solutions, and the grant was a great opportunity to highlight some of those practices.

Why is the grant important for the country?
We’re creating a circular economy and reducing our reliance on fossil fuels and minerals mined in other parts of the world. Producing batteries and components in the U.S. will help advance our country’s goal to build a robust lithium-ion supply chain and meet the demand for electric vehicles.

What capabilities will you add?
Typically, in the process of collecting, disassembling, shredding and upgrading critical materials from lithium-ion batteries, we focus on nickel and cobalt. Our expansion in Ohio will allow us to add lithium and other materials to that list.

Now, when we chop up batteries and separate out materials, some parts of the battery — including lithium, carbon, manganese and aluminum — are sent to a third party for processing. In the future, we’ll run those materials, known in the industry as “black mass,” through a hydrometallurgical process at our plant. We’ll be able to keep the recycling process going and create more materials that can go back into the battery supply chain.

How does this impact The Heritage Group?
Winning the grant is something Cirba Solutions and Heritage employees should share in and feel good about. It shows that a company that got its start with The Heritage Group is betting on the right things, receiving validation at the highest level and growing, which is good for us all.

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Heritage Group Finds Success With Venture Fund

Posted on November 22, 2022September 7, 2023 by Joe Ball

When Indianapolis-based The Heritage Group launched its New Ventures Group in 2018, it did so in the belief that it could leverage its expertise in materials science to boost entrepreneurship, generating benefits both inside and outside the company.

The strategy seems to be working even better than expected for the privately held, family-owned company that has an ownership stake in more than 30 operating companies, including Calumet Specialty Products Partners LP, Heritage Environmental Services, Monument Chemical and others.

To date, the company’s venture arm, HG Ventures, has invested nearly $200 million in a total of 30 companies, eight of which had been participants in The Heritage Group Accelerator.

And in 2021, HG Ventures became the first non-Europe-based investor chosen to partner with Innovate UK, a research and innovation funding initiative associated with the government of the United Kingdom.

“I would say the thing that surprised me the most was how strong the market for materials science venture investing turned out to be, and how well-positioned we have been to establish a brand in that area,” said HG Ventures Managing Director Kip Frey. The Heritage Group recruited Frey from North Carolina to launch HG Ventures four years ago.

The venture group has a threefold strategy:

Invest in U.S. and international companies that focus on materials science (studying the substances things are made of and designing more advanced substances/materials).
Launch an annual startup accelerator.
Incubate employee ideas that show commercial promise.

The venture group’s investments focus on areas such as energy, sustainable materials, water, infrastructure and the circular economy—the concept of reusing and recycling materials rather than disposing of them.

HG Ventures’ investment portfolio includes companies like Zionsville-based 120Water, which offers water-sampling kits, software and services for water system management and compliance. It also includes Israel-based Valerann, which offers a traffic-management platform for road operators and traffic authorities.

The accelerator, whose fourth cohort of startups wrapped up last week, has brought a total of 37 startups to Indianapolis since 2018 for a 13-week, in-person accelerator at The Heritage Group’s headquarters just east of Eagle Creek Park. The startups come from around the world; to date, five have chosen to move their headquarters here.

The Heritage Group also decided this year to run its accelerator on its own, after a three-year contract with accelerator operator Techstars came to an end.

The third part of The Heritage Group’s strategy, its in-house incubation process, has already resulted in one new company. That startup, Avenew Inc., is a road-management company that launched in February and is now part of The Heritage Group’s portfolio.

‘Amazing resources’

For The Heritage Group, part of its secret sauce is the expertise and resources it can offer the companies it invests in.

HG Ventures and The Heritage Group Accelerator both operate out of The Center, a 113,000-square-foot building that also serves as The Heritage Group’s corporate headquarters. The facility, in InTech Park, also is home to The Heritage Group’s in-house research and development laboratory, which helps its operating companies develop and test their products.

And The Heritage Group’s 6,000-person workforce includes chemists, engineers, scientists and others with specialized industry knowledge.

“We have 6,000 people. We’ve got amazing resources that we can bring to bear for entrepreneurs that show that it’s not lip service, adding value. It’s truly tangible value that we can bring to these companies,” said Ginger Rothrock, senior director of HG Ventures.

These types of resources can help HG Ventures in multiple ways, said fellow venture investor David Kerr, managing director of Indianapolis-based Allos Ventures.

Allos and HG Ventures are co-investors in 120Water Inc., which is also a graduate of The Heritage Group Accelerator.

A venture firm that invests in the realm of materials science, clean technologies or hard tech—technology that includes both hardware and software—needs the know-how to find and evaluate potential investments.

One way to find this know-how is to work with consultants, universities or industry partners, Kerr said—but The Heritage Group has this expertise in-house. “That’s where I do think it really does give Heritage Group an advantage, having ready access to those types of people.”

‘A complete mind shift’

These are the types of resources that caught the eye of suburban Seattle-based entrepreneur Jason Puracal, co-founder and CEO of ZILA Works. The company was one of seven startups from the United States and Canada who came to Indianapolis for this year’s accelerator.

ZILA, which launched in 2014, has developed a process for using industrial hemp to create bio-epoxy resin for use in products from sporting equipment to floor sealants. The company hasn’t yet started generating revenue but has secured its first paid pilot test, which will take place this winter with Vermont-based Burton Snowboards, Puracal said.

He’d been through three previous accelerators in the U.S. and Canada before coming to Indianapolis for The Heritage Group Accelerator, he said, and this one is different.

“This is the first accelerator program that has had specific expertise that is relevant to our industry,” he said. “It’s been great to have the resources and the muscle of Heritage at our disposal.”

Most of ZILA’s partners before had been universities, Puracal said, so working with an industry-based accelerator has given him a whole new perspective.

“Academia runs at a certain pace, and Heritage has helped us shift our mental framework about, ‘Oh, really we can go much faster in this other setting,’” he said. “It’s been a complete mind shift for us, and we’re trying to scale up as quick as possible now.”

One area ZILA had struggled with, Puracal said, was finding a manufacturer willing to make the company’s product. He said his company had reached out to 40 companies, all of whom said ZILA was too small for them to do business with. But through the accelerator, Puracal is now in conversation with The Heritage Group’s Monument Chemical as a potential manufacturer. “Monument has a different approach because of the accelerator program.”

During their 13 weeks in Indianapolis, Puracal said, he and his fellow founders were also introduced to representatives from Purdue University, the Indiana Economic Development Corp. and other startup accelerators, as well as Indiana-based venture investors. The accelerator participants also traveled to events in Pittsburgh; Columbus, Ohio; and Louisville.

Being in person for the 13-week program has also allowed Puracal to meet other founders who have become both friends and sources of professional support.

Becoming known

The Heritage Group “seriously considered” 75 applicants for this year’s accelerator cohort, Frey said. Many more companies submitted applications, but the 75 represented the strongest.

New Ventures Group is also gaining traction on its venture investment side.

The Heritage Group’s CEO, Amy Schumacher, said HG Ventures has seen an increase in both volume and quality of investment opportunities that cross its threshold over the group’s four years in existence.

Schumacher is a great-granddaughter of John E. Fehsenfeld, who launched the company in 1930 under the name Crystal Flash. She, along with board Chair Fred Fehsenfeld Jr., had the vision for what became New Ventures Group.

“What has surprised me is how quickly HG Ventures has established themselves as a leader in this space,” Schumacher said.

Some of the investment opportunities are pitched by entrepreneurs, she said. Others come from fellow venture firms looking for co-investors for particular deals.

“They see the value we can bring to an opportunity,” Schumacher said.

The third part of New Venture Group’s strategy is to incubate business ideas that come from within.

As part of this effort, Schumacher said, The Heritage Group launched a year-long Concept to Commerce course, which focuses on how to commercialize an idea. Employees must be nominated to participate, and a second cohort is set to begin early next year.

“It was an overwhelming success,” Schumacher said.

New Ventures Group has already successfully taken one idea from concept to commercialization with Avenew, which quietly launched in February.

The company, which helps local governments manage their road and bridge infrastructure, was born out of an idea from Heritage Group employee Micah Vincent. Vincent, who was director of Indiana’s Office of Management and Budget before joining The Heritage Group, now serves as Avenew’s chief operating officer.

The startup’s CEO is Joe McGuinness, who formerly served as commissioner of the Indiana Department of Transportation. Before that role, McGuinness served as mayor of Franklin.

McGuinness said leading a startup is altogether different from being a government executive. The Heritage Group has helped him with tasks as big as business strategy and as small as creating and ordering business cards.

“They have provided a lot of support,” he said. “They allow you to sleep at night and not be looking around every corner.”

It took about 18 months to develop Avenew’s initial concept into a business, Rothrock said. Other ideas are now making their way through the incubation process, with anticipated business launches in one to three years, though Rothrock declined to reveal details.

This article was first published in the Indianapolis Business Journal.

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Sara Morris Discusses Family’s Commitment To Service

Posted on November 8, 2022 by Joe Ball

Since 2014, Fehsenfeld family retreats have hosted a United for Service event that addressed strategic and specific needs in various areas of the country. This year, with the inaugural United for Service event extended to all employees of The Heritage Group family, Sara Morris, Director of Strategic Experiences, discusses her family’s history of service and the goals of this year’s campaign to address food insecurities in the communities in which we live and work.

Talk about the history of United for Service and to a larger extent, the Fehsenfeld Family’s involvement in service and giving back to communities.

In 2014, the Fehsenfeld Family Council decided it was time to refocus our family retreats. Several fourth-generation family members were wanting to become more involved in activities surrounding our gatherings, wanting to find different avenues for people to connect and give back to the community. The family spent a lot of time determining what was most important to us, and together we decided it was learning & giving back together. We established two models for our family retreats: United for Learning, where we gather to learn about something new, often centered around THG and United for Service, where we collectively take on a community service project. It was always important that all ages could participate, so that even the youngest could create and be part of what the rest of the family was doing. There is something special about grandparents working alongside grandchildren, all coming together to help others.

When that idea was generated, was everyone immediately on board?

It added a new energy to the family and certainly made people feel connected. This initiative gave everyone a new way of viewing how we as a family and now as a company can help others. We have a lot of people who are passionate about conducting service projects in their own communities. In some instances, we’ve been able to listen and learn what others’ passions are and to find venues to share those passions through service. In 2017, we held our retreat in Utah where we worked on my cousin’s urban farm, The Green Urban Lunchbox. Together we built a green house, repaired fences, prepped planting sites, and collected food to be delivered to the local community. It was great being able to learn about a family member’s passion, and to experience it firsthand.

What are the family’s expectations for this year’s United for Service efforts now that it has been extended to include the Heritage Family of employees?

When Amy and I took this idea to the family council to let them know we were expanding our efforts, everyone was overwhelmed with excitement and support. I could see us [the Fehsenfeld Family] doing this again and working alongside Heritage employees. There are great opportunities in the future.

What do you hope employees get out of this initiative?

I would love for people to make new connections or deepen relationships with employees and colleagues. I would love for people to better understand the importance of this kind of work, because as a family, it is deeply important for us. My hope is that it instills in employees a sense of pride for the organizations they work for and that they’re enthusiastic about addressing food insecurities across the country. Partnering with the United way is an exciting opportunity and I hope we can make an impact in our communities.

What specifically about food insecurity and our united mission to address hunger relief speaks to you?

I have spent the last several years learning from our employees what’s most important to them and their families to help inform our Heritage Group giving pillars. Food insecurity wasn’t initially one topic we addressed, but it became clear with the onset of the pandemic in early 2020 that we cannot support the mission and goals of our pillars if people cannot eat. Food scarcity during that time became a very eye-opening, important experience. If, during the pandemic kids were not attending school, those kids still needed to find their next meal. Born out of that was our ongoing partnership with Gleaners, which is the largest food pantry here in Indiana. I imagine a lot of folks in Indianapolis are familiar with them, but much like our industries are spread across the state, so too is their presence as they distribute food throughout Indiana.

After the impact is measured and we’ve wrapped the inaugural United for Service campaign, what does success look like and how will we know if we have achieved our goal?

This is the first time we’re doing United for Service with members of the company, and I think it’s always hard to predict the outcomes the first time you do something. I hope we can listen to feedback and learn how we can better position ourselves for a greater impact next year, because this is going to be an annual event for The Heritage Group and our operating companies. Success for me is creating an experience that sheds more light on what the culture of Heritage is to a larger audience while proving to communities and our employees that this is who we are as a company. If we can empower our employees to connect with service initiatives in their communities, then we instill within them a source of pride for the work they do every day.

Of course, we are still planning for the first company-wide campaign, but if you were to name hopes for the future of United for Service, what do you want its legacy to be?

There is something about having this event in November, when our construction materials teams have quieted down a bit and we are entering a season of reflection and celebration with not only the date the company was founded, but Thanksgiving occurring the week after, that it all just feels special. I love the energy surrounding this drive and I love the idea of supporting causes that provide people with food access. I want it to be an event that grows each year. I am hopeful that our employees, regardless of location, can take part in some way.