Sector Spotlight: Wind Energy

Transcription

1 Sector Spotlight: Wind Energy

2 ind EnE Manufacturing Michigan: Favored by geography with abundant wind supply and primed for wind energy growth as one of only four states rated with sufficient industrial capacity to manufacture, innovate and deploy wind turbine technology. Already in place: A world-class industrial apparatus featuring high quality and costcompetitive manufacturing practices, integrated supply chains focused on innovation, and a talent pool numbering in the thousands of designers, engineers and technicians. Manufacturing and process engineering are core competencies of MichiganÕ s highly skilled workforce Existing Supply Chain: MichiganÕ s manufacturers are primed for wind growth with more than 900 suppliers in applicable NAICS categories and the industrial base to support as many as 24,000 wind energy jobs. Drawing from a collective legacy of automobile manufacturing and innovation, they leverage core strengths in automation, design for manufacturability, cost reduction and quality. Nearly 40 currently supply the worldõ s wind OEMs. Built-in talent pool and infrastructure offer a storehouse of expertise in tooling, machining, fabrication, castings, gears, forgings, gearbox, drivetrain, generator, fiberglass and carbon fiber, structural steel and automation systems. Supplier Opportunity: A utility-scale wind turbine comprises more than 8,000 parts. Despite a supply-chain infrastructure already in place, plenty of supplier opportunities exist in large castings, large-part machining, gearbox manufacture and design, tower construction (rolled steel for monopole design or lattice design), fiberglass or carbon fiber blades. NextEnergy: MichiganÕ s alternative energy think tank is a unique resource available to the company locating or expanding in Michigan. It will custom develop a supply chain, providing a service that can cut up to 18 months out of the sourcing schedule, or initiate one-on-one supplier matchmaking events. NextEnergy developed the first wind energy supply chain in the United States, now being used as a model by the American Wind Energy Association. Prime location: Situated at the heart of the worldõ s largest manufacturing complex, Michigan is the gateway to CanadaÕ s industrial powerhouse in Ontario with its strong manufacturing base and extensive wind power development. Way to Go: World-class air, rail, water and highway infrastructure is supplemented by excellent multimodal facilities and services connecting Michigan companies to world markets. EverybodyÕ s on Board State government is targeting renewable energy as a critical economic driver and aligning government departments to optimize and support this growing sector. A governor-mandated roundtable team is focusing on development of all opportunities surrounding the wind energy industry. MichiganÕ s federa delegation is committed to renewable energy in Michigan.

3 rgy Wind Wind Resource Michigan: An inexhaustible supply of the essential raw material, thanks to the Great Lakes. Ranked No. 14 among the states in onshore wind generation potential, the power generation of offshore and near-shore wind turbines could be up to 20 times greater. No supply problems here. Current Power: Michigan uses about 29,000 megawatts (MW) of electricity in a year. It currently generates 129 MW of power from wind, most of which comes from John Deere Renewable EnergyÕ s Michigan Wind Park 1, a 46-turbine farm near Ubly (Southeast Michigan). Power Potential: Research by MichiganÕ s Department of Energy, Labor and Economic Growth indicates the state could potentially generate 16,564 MW of power on land, and an additional 448,756 MW offshore. In addition, the National Renewable Energy Laboratory (NREL) estimates Michigan has more than 44,000 MW of Ò doableó offshore capacity. Many of the challenges of traditional offshore, such as tides, strong currents and saltwater, do not exist in the Great Lakes. Ò The demand for alternative energy sources like wind power is about to explode, and Michigan is acting boldly and decisively to be the state that develops the technologies, manufactures the products and creates the new green jobs that will help end our nationõ s dependence on foreign oil.ó - Governor Jennifer M. Granholm Driving Demand: A Renewable Portfolio Standard (RPS) requiring that 10 percent of the stateõ s energy needs be generated from renewable sources by 2015 is driving demand and investment. Upwards of 1,100 new wind turbines will be required to meet that mandate. Michigan system content will be awarded extra Renewable Energy Credits. Supplier Opportunity: Michigan is ranked as one of three states that will contribute more than 20 gigawatts (GW) to a national energy portfolio of 20 percent wind energy by This represents an enormous development and manufacturing opportunity for Michigan businesses able to meet the demand. Green Power Companies: ITC Holdings Corp. (NYSE: ITC) rebates to the developer the full cost of system upgrades required to meet alternative energy standards. The Novi-based transmission company announced plans for a $10 billion to $12 billion transmission project across the upper Midwest designed to move wind-generated power from North and South Dakota, Minnesota and Iowa to states in the Midwest with a 2020 target date for completion. Future Power: DTE and Consumers Energy have secured leases on more than 70,000 acres for potential new wind farm construction to meet the RPS requirements.

4 EnErgy Research, Training and Collaborations Technical Talent: The most important legacy of 100 years of manufacturing innovation is MichiganÕ s continuing ability to grow and attract the worldõ s best engineering, design and technical talent. Deep Pool of Talent: Wide-ranging partnership and talent opportunities are available with Michigan ranking second in overall industrial R&D spending and industrial R&D intensity (ratio of industrial R&D spending to Gross State Product). First in Auto-Related R&D: Michigan accounts for more than $12 billion spent on automotive R&D, 72 percent of the U.S. total (National Science Foundation 2006). This is the engineering and design center of the worldõ s auto industry, with more than 330 automotive R&D and tech centers employing more than 65,000 engineers, technicians and scientists. New Schools of Thought: The Consortium for Advanced Manufacturing of Alternative and Renewable Energy Technologies (CAMARET) is a five-university group formed to centralize manufacturing research expertise and resources necessary in the wind turbine industry including: n n n Understanding wind product design and materials. Improving wind manufacturing processes, systems and facilities. Business and supply chain support. Crossover Opportunities: Collaboration options exist in working with MichiganÕ s automotive technology and manufacturing industry, which has significant crossover opportunities into the wind energy industry. Engineers in the Pipeline: Michigan ranks 4th in the nation for engineering graduates in 2008 with 7,723. Strong Technical Training: Universities in the Great Lakes states (Michigan, Indiana, Illinois, Ohio, Wisconsin) awarded more than 24,000 engineering degrees in 2006, with another 4,500 in Ontario, Canada. The region is particularly strong in mechanical and electrical engineering. Engineers at Work: More than 256,000 engineers work in the five-state region, accounting for 17 percent of the U.S. total. There are another 70,000 in Ontario. Michigan alone (with three percent of U.S. population) accounts for nearly seven percent of the U.S. total. Practical Smarts: The Great Lakes regionõ s dominance in U.S. engineering employment is in mechanical, industrial and materials engineering. The region accounts for 26 percent of U.S. mechanical and industrial engineers and 19 percent of U.S. materials engineers. Wind Professional Training: Programs for wind professionals are being developed by state universities or community colleges, including: n Western Michigan University and Kalamazoo Valley Community College have established a Wind Energy Center. n Lansing Community College, first in the nation to incorporate alternative energy into its curricula, offers an AssociateÕ s Degree in Alternative Energy Technology. n The Michigan Institute of Aviation and Technology has undertaken a major expansion of its power training program for wind. n The Green Jobs Initiative in the Michigan Department of Energy, Labor & Economic Growth funds training for displaced and career-change workers in renewable energy fields.

5 Growing numbers of major wind turbine manufacturers and Tier 1 suppliers have operations here, including Danotek Motion Technologies (Ann Arbor), Carlton Creek Ironworks (Oceana County), Global Wind Systems (Novi), Great Lakes Towers in Brownstown near the Ohio border and Three M Tool & Machine (Commerce Township). K & M Machine-Fabricating (Cassopolis) was featured in a PBS documentary called Michigan s Green Energy Economy. Mariah Power (Nevada) and Mas Tech (Michigan) are jointly producing affordable wind-power systems in Manistee County for residential and business use, while Cascade Engineering in Grand Rapids and Renewable Devices of Edinburgh, Scotland are partnering to produce rooftop turbines. Major automotive suppliers are beginning to diversify into wind energy supply including Ricardo Engineering in Van Buren Township and Dowding Machining, Eaton Rapids. Photo by: Brian Walters

6 To learn more about the Michigan Economic Development Corporation and how its aggressive incentives for businesses can give you the Upper Hand, please visit MichiganAdvantage.org or call (877) % Cert no. SCS-COC