by Bruce Goodman 

In recognition of Michigan’s 16 advanced battery companies and projects, the DOE, National Academy of Sciences and Michigan Economic Development Corporation recently held a two day “progress, challenges and opportunities” conference in Livonia. Governor Granholm called for comprehensive federal energy legislation that would include increased support for electric vehicle technologies, manufacturing, and consumer purchasing until the cost of manufacturing lithium-ion batteries (currently $16,000 per vehicle) is comparable to the costs for internal combustion engines. She cited Michigan’s encouragement of electric vehicles through its centers of energy excellence and advanced battery tax credits to accelerate research and development. With nearly 70 percent of the nation’s oil consumption used for transportation, she asserted the nation would be more secure if it reduced its dependence on foreign oil.

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by Bruce Goodman 

The Detroit Edison Company has filed for ex parte approval by the Michigan Public Service Commission (MPSC) of its 200 MW power purchase agreement (PPA) with Gratiot County Wind LLC.  The contract includes an option for Detroit Edison to purchase either a 59.2 MW or a 89.6 MW share of the project.  The twenty year PPA, with pricing of $94.43/MWh, is the result of the 2009 RFP process which had 35 initial proposals, later narrowed to seven potential suppliers.  (The MPSC has now approved recently submitted PPAs for a total of 20.2 MW with WM Renewable Energy and L’Anse Warden Renewable Energy.)  If the PPA is not approved by October 15 it may be terminated.  Detroit Edison’s option to purchase expires December 17, 2010.

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by Bruce Goodman 

What does it take for a state (that is not California) to have an energy policy?  The question is timely because elections are approaching and one would hope the candidates would address all the important issues.  But will anyone take a public stand on unresolved energy issues: increasing the renewable portfolio standard percentage; new coal-fired generation; feed-in tariffs; standby rates; recommendations of the Great Lakes Wind Council or the Climate Action Council?  I suspect not.  Thus come January we are likely to continue with state energy policy “on the fly”, with a dash of gridlock and pinch of skepticism.  Let the Feds make the hard decisions on GHG regulation and renewable energy standards.  Term limits have done their job—left Michigan with a legislature with little institutional memory and little legislative expertise to address complicated issues such as energy.  Hey, how about energy platforms and energy debates in all the state races so that we can get these issues on the table.  Watt would be wrong with that?

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by Bruce Goodman 

The Holland Board of Public Works has entered an option agreement for 3000 acres of land in five Allegan County townships that could generate up to 130 MW of wind energy. The installation of wind-measuring equipment has commenced, with construction possibly beginning as early as 2013 if the area has sufficient wind resources. The municipal utility already has three sources of renewable energy; a 1 MW share in a Grayling biomass plant and two 6 MW shares in landfill gas generation. Meanwhile, after waiting three and a half years for an air permit for its proposed new 70 MW circulating fluidized bed boiler coal-fired power plant, the BPW has voted to take legal action to compel a decision by the MDNRE.

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by Bruce Goodman 

One of three new federal bio-energy research hubs to work out the science of converting plant matter (other than corn) into fuel to replace gasoline is being funded through a five-year, $50 million federal grant.  Michigan State University and the University of Wisconsin will combine efforts to host the research center.  The other two bio-energy research hubs will be at national laboratories that are part of the DOE.  All the bioenergy centers will focus on turning common grasses, wood chips or other plant material into ethanol.

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by Bruce Goodman 

The prospective buyers of the former Ford Wixom plant are awaiting loan guarantees from the U.S. Department of Energy (DOE) in hopes of closing on the purchase of the site by the end of the year.  Meanwhile, a new law, PA 114 of 2010, provides tax credits for a single facility that will produce large scale batteries and manufacture integrated power management, smart control, and storage systems from 500 kW to 100 MW in size.  The credits would be equal to 25 percent of the capital investment for any tax year, but limited to $25 million per year, for up to four years.

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by Bruce Goodman

By 2015 Michigan will have up to 40 percent of the world’s capacity to produce lithium-ion batteries for automobiles. With President Obama in attendance, a new advanced battery plant funded in part by ARRA monies has broken ground in Holland to make electric car batteries for Chevy Volts and Ford Focus vehicles. The LG Chem-Compact Power plant was also recently approved for a 15-year Renewable Energy Renaissance Zone designation. In June, Vice President Biden attended a similar groundbreaking at Dow Kokam in Midland for a new battery factory. In all, $2.4 billion in federal grants has created a series of advanced battery manufacturing factories in Michigan where previously there were none.

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by Bruce Goodman

DTE Energy is seeking Michigan Public Service Commission (MPSC) approval of two 20-year power purchase agreements and the associated renewable energy credits.  The weighted average price for the 3.2 MW landfill gas project in Orion and the 17 MW biomass project in L’Anse is $98.94/MWh.  This price is below the level assumed in the DTE Renewable Resource Plan.

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 by Bruce Goodman

Verso Paper’s U.P. Quinnesec Mill in Breitung Township has been designated a Forest Products Processing Renaissance Zone by the state.  It is expected to double its capacity to turn wood products into electricity through a $43 million renewable energy project.  This will allow the mill to meet 95 percent of its energy needs using biomass.  The project will include a new Siemens turbine generator, and is expected to start up by December 2011.  As a Renaissance Zone, the company will operate free of virtually all state and local taxes for fifteen years.

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 by Bruce Goodman

 DTE Energy is seeking Michigan Public Service Commission (MPSC) approval of two 20-year power purchase agreements and the associated renewable energy credits.  The weighted average price for the 3.2 MW landfill gas project in Orion and the 17 MW biomass project in L’Anse is $98.94/MWh.  This price is below the level assumed in the DTE Renewable Resource Plan.

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