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 

In May the Michigan Department of Natural Resources and Environment (MDNRE) denied the air permit application for a 600 MW coal-fired power plant proposed by Wolverine Power Supply Cooperative for Rogers City. Now that decision has been appealed by Wolverine to the Missaukee County Circuit Court. The Petition and Complaint allege: improper imposition of a carbon dioxide emission standard; discriminatory and selective approval of coal-fired projects; and a predetermined plan to favor one coal-fired project over another.

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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

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

The MPSC staff has made a determination that the 70 MW (net) coal-fired electric generating plant being proposed by the Holland Board of Public Works is not needed. The report found that the municipal utility has not explored sufficient alternatives to show that a new coal plant was the best way to meet its current and future load. It also found that the demand growth projections were overly optimistic. The report suggested that Holland consider making purchased power a larger portion of its supply portfolio. Now the Michigan Department of Natural Resources and Environment will weigh the report in deciding whether to grant an air permit to the project.

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by Bruce Goodman

The State of Michigan has formed a partnership with the government of Navarra, Spain to work collaboratively on renewable energy projects.  The MOU signed in May provides for joint activities, including policy sharing, technology transfer, value-chain mapping, and trade missions.  It targets wind technology, biomass, solar energy, smart-grid technology, and bio-climactic research sectors. Navarra currently produces approximately 65 percent of its electricity from renewable energy sources.  The Renewable Energy National Centre of Spain (CENER), which over the past eight years has become a leader in renewable-energy technology, is located in Navarra and is expected to work with Michigan companies in development efforts, such as testing Energetx Composite wind turbine blades in its laboratory.

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by Bruce Goodman

Michigan’s best wind resources are in the Great Lakes; a natural resource that can be “used” but not depleted.  Wind is a fuel that cannot be spilled, does not create waste, and has no emissions. Offshore wind provides an opportunity for Michigan to establish a new manufacturing, technical, and industrial support system for which it is well suited and well prepared.  However, this manufacturing opportunity requires that Michigan be both “first-in-the-lake” and offer strong economic incentives for offshore OEMs to locate in the Great Lakes State.  Michigan has a history of being able to leverage its natural resources to stimulate manufacturing.  Now is the time to do it again.  But it must be done quickly, fairly, and unequivocally.  It needs to be easy, not hard, to develop our lake wind resources.  The ripples from rapid lake development could become a manufacturing tsunami.  We should be so lucky.

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