News Sustainable Biz Port of import: Muskegon seen as key link in wind energy development
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By Kevin Soubly | MiBiz
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MUSKEGON — West Michigan faces a huge opportunity in establishing itself as a manufacturing, transportation and service base for the wind energy industry.
That’s thanks to the region’s history of industrial and manufacturing innovation, which provides a platform for development, as well as the local and extensive maritime access through deepwater ports along Lake Michigan, key to enabling low-cost transportation of materials and finished components. Still needed, however, is additional infrastructure and policies to encourage investment.
At stake are jobs and an opportunity for economic growth, said Arn Boezaart, director of the Grand Valley State University (GVSU) Michigan Alternative and Renewable Energy Center (MAREC) in Muskegon.
“It’s important to keep in mind that we’re talking as much about economic development and job development here as we’re talking about alternative energy opportunities,” Boezaart said. “Not only is commercial wind development a renewable energy generating opportunity, but it really represents a chance for West Michigan to grab on to a piece of a new generation of manufacturing. This is a multimillion or even multibillion dollar business opportunity in terms of sales, manufacturing value and economic development for the area.”
According to a February 2011 publication by the U.S. Department of Energy that outlined the massive potential for wind energy production in the Great Lakes, Michigan has the capacity to produce 16,000 megawatts of onshore wind energy and an additional 40,000 megawatts of offshore wind energy by 2030. With each 100-megawatt wind turbine costing millions of dollars, the economic benefit to the region that develops the industry’s production, maintenance and transportation base will be substantial.
The Port of Muskegon, run by the West Michigan Port Operators group, is particularly well suited to meet industry needs and become a significant component to a regionwide wind energy industrial center, creating jobs and driving economic investment, said Boezaart.
“What sets Muskegon apart is that the area has a strong commercial and manufacturing history, and we have naturally deepwater port facilities. We know how to build things here, and you can bring in a thousand-foot freighter tomorrow,” he said.
Wind energy industry leaders agree.
“We have identified Muskegon for its deepwater ports,” said Bruce Thompson, a partner at Rockford Bergé, an international joint venture between Grand Rapids’ Rockford Construction Company Inc. and Spain’s Bergé Logística Energética, a company specializing in wind energy logistics. “It’s a strategic long-term location. The West Michigan Port Operators have successfully put together a partnership between experienced key players in the area. They bring good capability, good experience, and a good local reputation.”
“Muskegon is a strategic location for us to ship product,” said Kelly Slikkers, VP of business development and co-founder of Energetx Composites, a Holland-based wind turbine component manufacturing firm and spinoff of Tiara Yachts. “A lot of that has to do with the deepwater access in Muskegon and the easy access to road and rail,” he said, but he noted that another key aspect of the port is its proximity to offshore wind farm development in Lake Michigan.
Muskegon’s proximity to industry know-how and regional wind farms both on land and offshore augments its usefulness.
“It’s going to be a key asset to the industry,” said Thompson, noting several area major wind energy projects in development.
One of the challenges for the growing wind energy industry is the difficulty surrounding the sheer size of wind turbine components. Deepwater ports with significant infrastructure to load, unload and move large-scale products are essential to cost-effective transportation. Ports like the one in Muskegon built to serve heavy industrial purposes work best.
“As wind turbine units continue to get bigger and bigger, the logistics of transporting components from the point of manufacture to the point of deployment becomes increasingly difficult,” said Boezaart.
Rail transportation has limited access and truck shipments involve extensive permitting and fuel cost difficulties, added Thompson. “Any time you can move things by water in the wind industry you can save on transportation costs,” he said.
But with so much at stake economically, competition for wind energy industry sourcing is growing, and Michigan is not the only state with something to offer. “Are there other ports? Absolutely,” said Slikkers. “It will take the work of local and state governments to bring that value into Michigan.” Wisconsin, Canada, Ohio and even New York all have Great Lakes coasts, deepwater ports and each offers its own capabilities.
“Potential wind manufacturers want to know the status of our port facilities and their integration on a multimodal basis with other forms of transportation,” said Rick Chapla, VP of business development at The Right Place Inc., a regional nonprofit economic development organization. Muskegon has its competitive advantages, he said, but he urged “both public and private investment“ in port facilities and connecting transportation infrastructure.
Boezaart admits that work needs to be done in order for the state and West Michigan in particular to compete. “We know full well that (Muskegon is) competing with other locations, and we need to build up infrastructure that can better accommodate this new industry,” he said.
“The important thing is that Michigan has a start and already has benefitted a lot of manufacturers,” said Slikkers. But despite West Michigan’s strong manufacturing base, opportune port access and other innovative industries in the region that hold partnership possibilities, “Michigan is behind the curve,” he said.
Statewide policies are in place that encourage alternative energy development, like the 2008 Renewable Portfolio Standards (RPS) passed by the Michigan Legislature mandating that 10 percent of the state’s energy come from renewable sources by 2015. However, “moving forward, the goal has to be to grow that and be as competitive as possible,” Slikkers said. “We need investor confidence in Michigan. We need a strong forward drive that says renewables are going to play a role in the state.”
“Those of us close to the economic development side of things understand that energy going forward is going to change. The status quo is not an option. The way we have done energy for the past 100 years will not work for next 100 years,” Boezaart said. “Wind energy offers a tremendous opportunity for this region and we have to make sure not to let this slip through our fingers,” he said.
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