Economic Development Initiatives in two counties in Michigan s Upper Peninsula

Transcription

1 Economic Development Initiatives in two counties in Michigan s Upper Peninsula BIOCLUS, May 2011 Kevin Manninen Regional Economic Coordinator Western U.P. Planning and Development region kmanninen@wuppdr.org Mobile

2 Western U.P. Planning and Development Region Since 1968 the staff of the Western Upper Peninsula Planning & Development Region office (WUPPDR) has been providing general planning support to the western six counties of Michigan s Upper Peninsula through its many programs, projects and services. Our mission: to foster stable and diversified economies in the western Upper Peninsula. WUPPDR also serves as the regional clearinghouse for federal and state funded programs

3 The Challenge Major Job losses to two primarily rural counties Ontonagon: Closing of Smurfit-Stone paper mill in December 2009 results in loss of 150+ jobs Baraga: Terex, a major forest and construction equipment manufacturer closes in late Result was one of the highest unemployment rates in the nation

4 Our response Utilize the regions available natural resources in a new way Form a network of existing small manufacturers and fabrication shops in Baraga County The Superior Suppliers Network Work Smarter Internet business workshops and coaching U.P. Link: a system for providing high quality, low cost video conferencing for businesses in the U.P.

5 The Superior Suppliers Network An experienced group of 10 fabricators, machinists, and engineers from Baraga County who provide complete project solutions, from design and fabrication to machining and finishing The network is represented by a Business Development Manager

6 Community Adjustment and Investment Program Grant Two part project: 1. Pellet manufacturing plant feedstock and market analysis with the goal of attracting a pellet mill to the region 2. Biofuel crop analysis for idle and underused farmlands in Ontonagon and Gogebic Counties Gogebic County

7 Three critical issues in establishing a wood pellet mill in Ontonagon County: 1. Availability of Feedstock Supply 2. Facility related issues: Financing, Management, Production 3. End user market Several million dollar investment = outside investor needed Our focus: analyzing the availability of feedstock and the end-user market for the Western Upper Peninsula

8 Atikokan Pellet Mill, Atikokan, Ont. 150,000t/year Protocon Biomass Marathon, Ont. 100,000t/year Regional pellet producers Yearly estimated production is given if known Elkhorn Industries Superior, WI 36,000t/year Great Lakes Renewables Hayward, WI 80,000t/year Indeck Ladysmith LLC Ladysmith, WI 60,000t/year Marth Wood (1) Marathon/Peshtigo; 100,000t/year American Wood Fibers Schofield, production unknown Fiber Recovery Inc. Ringle, WI; production unknown Kickapoo Biofuels Viola, WI: production unknown Agrecol, Evansville 15,000t/year Dejno s Inc. Antigo/Kenosha 20,000t/year RenewaFuels Gwinn, MI Gitchie Gumee WP: Kinross Vulcan Wood products Norway, MI Wood Fiber, Inc. (Gunville) Niagara, WI Bay Lakes Companies Oconto Falls; 20,000 t/year Performance Wood Seymour; 5,000t/year Pellet America Corp. Appleton Earth Sense Energy Systems Dale: (repackager) Badger Pellets, Sheboygan No longer producing Source: Wisconsin Biofuel Atlas 2011

9 The advantages of locating a pellet mill in Ontonagon County Available local supply of feedstock A growing regional market for wood pellets No pellet mills within 100 miles Great Lakes deep water port facility may be very important for joining a Great Lakes export supply chain Ontonagon county is part of a larger region with strengths in R&D, education and innovative entrepreneurship. Available industrial facilities and commercial properties A strong local and regional business support network

10 Atikokan Pellet Mill Atikokan, Ontario 140,000 tons/year Developing supply chain for up to up to 450,000 t/year Future potential for shipping pellets to Europe? Protocon Biomass Marathon, Ontario Pellet Mill Project 100,000 tons/year Possibility to ramp up to 500,000 t/year

11 The next steps 1. Contact existing national pellet manufacturers and sell them on Ontonagon County and the western Upper Peninsula. Provide them with market information and potential local feedstock suppliers Develop promotional material to educate the public on the benefits of wood pellets as a fuel source 2. Identify complementary products (i.e. stoves and boilers) that could be manufactured in the region

12 Biofuel Crop Analysis Project Goals 1. identify the energy crop production land base currently in retired or lowintensity agriculture 2. develop a model of potential biomass energy crop yields, production and delivered cost 3. identify the optimum energy crop for retired agriculture lands 4. contribute information and materials for extension, outreach and business planning for a value-added biomass facility in Ontonagon County

13 Retired Agriculture Lands are old fields LaHaie Property Robbins Property

14 There is a substantial retired land base

15 Potential energy crops 1. Shrub Willow High-density plantations using clonal cuttings on cultivated lands Harvested every 3 years for 7-8 cycles 2. Hybrid Poplar Low-density plantations using clonal cuttings; cultivation optional Harvested on a 10-year rotation Commercial experience elsewhere 3. Switchgrass Native warm-season grass Annual harvest after fall frost Reaches full yield in 2-4 years

16 We will model potential yields spatially There are limited data from existing plantation trials in Michigan, for any energy crop The alternative is to extrapolate potential yields using a geospatial model We can use existing agriculture crops as proxies and scale these to expected yield from high-productivity energy plantations

17 Potential cost model Hybrid Poplar using a 10% discount rate

18 Crop cost comparison The optimal crop selection will depend on 1. Expected yield given soil properties and yield modelling 2. Landowner preferences 3. Mill specifications

19 WUPPDR will then take the results and communicate this opportunity to landowners and biocrop users through a media and PR campaign Workshops Website News items Social Media Advertisements

20 Thank You