Mid-Michigan looks to renewable energy to power out of economic slump

by Theresa Roach, Vision Mid Michigan

Mid-Michigan has the potential to become a world leader in producing renewable energy sources, according to a recent report. And local leaders in business, government and education are already latching onto that potential as a way to right the economy.

Research conducted by Western Carolina University’s Institute for the Economy and the Future found that mid-Michigan is the center of a solar energy cluster anchored by Hemlock Semiconductor, a business collaboration of Dow Corning Corporation and Japan-based Shin-Esu Handotai and Mitsubishi Materials Corporation.

The WCU research, sponsored by the U.S. Economic Development Administration, asserts that mid-Michigan business leaders and organizations encouraged corporations to collaborate with those that already had the technology available to create renewable energy technologies. Industry experts predict that the solar industry is expected to expand 10 to 20 percent annually over the next two decades.

Experts say the state’s tough economic realities spurred a push toward green energy innovation.

“I think it took political will, entrepreneurs, and people losing their jobs in various industrial industries to come together to try to look at new ways to develop economically,” said Thaddeus Huff, a former Michigan resident who worked on the WCU study. “I think corporations will go green as long as it is profitable. Given the current economy, I think some big businesses liker the semi-conductor plant in my brief are willing to take chances more than before.”

Organizations like Michigan Solar Advantage are even starting to promote the area as a prime location to start a solar energy technologies company, listing notable companies in the area such as Dow Corning Corporation, Caltech Industries, Merrill Fabricators and Evergreen Solar.

The emerging renewable energy industry is mostly thanks to the economic crisis in the U.S. that shook up the job market rather than environmental conscience, said Harry Leaver, executive director of the Center for Business and Economic Development at Saginaw Valley State University. Companies are learning that in order to survive, they need to diversify their investments and products. Meanwhile, high gas prices over the last several years had consumers and political leaders alike saying America needed energy independence, he said.

Leaver believes it was only a matter of time before corporations saw a business opportunity among the economic struggles of the country.

“What we’ve got is a pretty significant groundswell with folks recognizing that they have to diversify. At the same time, the diversification is occurring with businesses. So they are recognizing it as an opportunity for them to step into it,” said Leaver. “The reason isn’t because it’s green, it’s because it’s a sound business opportunity and they are doing something that potentially benefits the environment. When you’re paying $4 for your gas, all of a sudden you have people saying, ”˜We need to get past this, we need to be energy independent.’ That’s not something you can outsource, so it represents an opportunity for us to work with key companies that are already here.”

Chris Schilling, professor and chairman of the engineering department at SVSU, attended the grand opening of Heat Transfer International’s Sietsema Farms in Howard City, which specializes in distributed renewable energy power using a gasification system that converts biowaste to energy. He believes mid-Michigan has the potential and the resources for similar innovation and that the emerging green industry will rejuvenate mid-Michigan’s job industry and economy.

“Anything we can do to make clean electricity is going to be something that will lead to jobs and economic stability,” said Schilling.

The amount of worker migration from the suffering automotive industry to the “green” industry has been tremendous, said Leaver, but education on the emerging technologies is important and will create even more opportunity.

Schilling, Huff and Leaver all said governmental incentives such as the solar photovoltaic Michigan Business Tax credit will be essential in creating new jobs. The credit is valued at $15 million over five years and provides a refundable tax credit for the construction and operation of a facility that develops and manufactures solar technology, systems or energy.

“This is a green state,” said Schilling. “Europeans are doing this like gangbusters, but the problem is the right government incentives. That’s all still up in the air. It’s not Democratic or Republican – it’s a Michigan jobs issue.”