Alternative Energy
General Outlook
The Midwest’s alternative energy sector has been growing in response to
American’s increasing environmental awareness, and the attractiveness of
homegrown energy solutions when compared against energy dependence on
countries often hostile to American interests. Biofuels, solar energy, wind energy
and biomass are all important aspects of the Midwestern alternative energy
industry.
Biofuels
Biofuels are fuels derived from recently dead carbon sources (as opposed to fossil
fuels which are derived from long dead carbon sources). Biofuels are particularly
attractive to the American market because they are locally produced, capitalize on
America’s extensive agricultural resources, and because they are renewable – corn
for biofuels can be regrown season after season.
The Midwest’s agricultural heartland has been greatly affected by the biofuel boom.
Ethanol, one of the most prevalent biofuels, is a major driver of the renewable
energy industry. Ethanol is most commonly mixed with gasoline, and different
types of gasoline, ethanol mixes are gaining widespread acceptance and use across
the U.S.
Ethanol is most often distilled from corn, so it makes sense that of all of the states,
Iowa (one of the top corn producers in the U.S.) leads the nation in ethanol
production. Currently, Iowa has more than 42 ethanol production facilities in
production, producing over 1.8 billion gallons, with the capacity to turn corn into an
additional 1.5 billion gallons under construction/expansion.
The demand for ethanol is driving additional industries in Iowa. Ethanol production
byproducts include carbon dioxide, which is sold to soft drink companies and dried
distiller’s grains, a nutritious livestock feed that is increasing the cattle industry in
Iowa.
Although Iowa is the U.S leader when it comes to ethanol production, the other
states of the Midwest are not far behind. Illinois, another top corn producing state,
is number two in overall ethanol production. Illinois has eleven ethanol producing
plants, and like Iowa, offers tax breaks and government incentives towards the use
of Ethanol/Gasoline blends.
In fact, the Midwest contains nine of the ten ethanol producing states in the U.S.
From Nebraska (the number 3 ethanol producer) to South Dakota (the number 4
ethanol producer), the Midwest is building ethanol factories and reaping economic
benefits from the added revenue, jobs created, and ethanol production byproducts.
Biomass
The Midwest is an absolute powerhouse, no pun intended, when it comes to biomass
production.
Biomass, a
growing trend in
the alternative
energy sector,
refers to the use
of a variety of
plant material to
make ethanol,
biodiesel,
plastics, or
widening variety
of traditionally
petro based
products.
Chart provided by iBIO
As the adjacent chart illustrates, all but one of the states with the greatest amount of
available biomass is in the Midwest.
Iowa leads the nation in production of raw biomass with over 2.75 billion bushels in
2004. Iowa currently has the ability to harvest 32.7 million dry tons of biomass a
year, of which 23.9 million dry tons are agricultural residue. Biomass is used for
both biofuels and electricity production. Acwill increase to 10 percent in 2020 and
20 percent in 2030.
Wind
Iowa is the second largest U.S. producer of wind energy. Iowa’s topography and
electric transmission lines combine for a wind energy friendly environment. Iowa
has the 10th highest wind potential but the second highest installed capacity at 3043
MW.
A May 2008 independent study projected the installation of 2,500 megawatts per
year of new wind generation across the Midwest through the year 2014 resulting in
$3.2 billion invested in turbine installations each year.
Iowa is uniquely positioned in the heart of the nation’s wind generation natural
resource and at the gateway to the demand of renewable energy. With major
international companies like Siemens Windpower A/S, Clipper Windpower, TPI
Composites, ACCIONA Energy and Hendricks Industries, establishing their
operations in Iowa, the state is positioned to remain at the top of the wind energy
generation industry.
A combination of progressive public policy, logistic and supply chain efficiencies,
competitive business climate and a heritage of manufacturing excellence give Iowa
unmatched strategic advantage to firms selecting a North American facility location.
Solar
The Midwest is a national powerhouse when it comes to solar energy. While not the
sunniest region of the U.S, the vast majority of the U.S’s solar manufacturing capacity
is in the Midwest. Large companies like First Solar and Energy Conversion Devices
all have their manufacturing plants in the Midwest. As the trend towards
deindustrialization in the Midwest continues, particularly in the sluggish automobile
industry, “green” manufacturing is turning the rustbelt of the 20th century into the
greenbelt of the 21st century. This trend is predicted to continue as state and federal
governments continue to encourage renewable energy development.
Fuel Cells
Due to a $103 million state led fuel cell initiative, Ohio has positioned itself as the
first in the nation in the fuel cell industry. Ohio is one of the few places in the world
where all phases of fuel cell development take place, from research and
development, to component supply, to final product manufacturing, leaving the state
poised to lead the nation's fuel cell industry as a top research and manufacturing
hub.
Water
Several of the largest water companies worldwide are based in the Midwest,
including Nalco and Veolia Water in Chicago and Badger Meter—which has worked
closely with Israeli company Miltel Communications in the development of
automatic meter readers—in Milwaukee.
In April, Milwaukee was the 13th city to be designated a Global Compact City by the
U.N. for its past and future projects involving water technology research and
development. Aside from motivating the city and the region to focus more directly
on water technology, the naming will distinguish Milwaukee as a hub of water
technology on a global scale. A distinct initiative taken by the state is the
development of a graduate-level School of Freshwater Sciences in the University of
Wisconsin in Milwaukee that will concentrate on research concerned with
conservation, algae as potential biofuel, aquaculture, innovative wastewater
treatment, and many other areas.
The Detroit Water & Sewage Department has partnered with Miya, the leading
company in urban water loss management, to improve treatment and
transportation infrastructure, and to help alleviate water losses due to pipe
leakages, which are estimated at 9% in the Detroit metropolitan area. Several
Detroit suburbs are testing Miya’s technology in hopes of its expansion to the entire
metropolitan area and beyond. Detroit is the first city in the United States to employ
this technology.
The Michigan initiative, Green Jobs for Blue Waters, proposes to re-train Michigan’s
large manufacturing base with a focus on water research and technology, seeking
thus to diversify its economy. Water technologies represent a $500 billion global
market, and that sum is projected to grow exponentially; and since Michigan
controls about 40% of the water in the Great Lakes, it is in excellent position to
advance and influence water technology across the Midwest as well as garner
sizeable profits.
For fiscal year 2009 nearly $58 million was allocated for water conservation and
water quality improvements through AWEP (Agricultural Water Enhancement
Program), funding projects in Nebraska, North Dakota, Illinois, and Indiana that are
concerned with improving efficiency in irrigation.
The Great Lakes Interagency Task Force, created in May 2004, focuses on restoring
the chemical, biological, and physical integrity of the Great Lakes. The 2010
proposed budget for this Great Lakes Restoration Initiative is $475 million, to be
allocated between varied projects to tackle long-term goals of clean fisheries and
beaches, as well as a healthy ecosystem for fish and other wildlife.
Additionally, at the 2009 Water Technologies, Renewable Energy, and
Environmental Control Exhibition (WATEC), we welcomed visiting delegations from
both the State governments of Wisconsin State and Michigan to Tel Aviv where two
important agreements were signed.
The Honorable Jim Doyle, Governor of Wisconsin, signed a Bilateral Cooperation in
Private Sector Industrial Research and Development, the objectives of which are to
promote the activities of their respective private sectors to intensify bilateral
industrial R&D cooperation; to facilitate the identification of specific projects,
partnerships or collaborations between Entities from the State of Wisconsin and
from the State of Israel that could lead to industrial R&D cooperation; to coordinate
and focus suitable government resources and programs to support industrial
cooperation and commercial exploitation of R&D projects results; and to give
expression to the initiative by establishing a framework for financial support under
which the Parties shall support jointly approved Industrial R&D cooperation
projects between Entities from the two countries leading to commercialization in
the global market.
Also, the Honorable Jennifer M. Granholm, Governor of Michigan, signed a Joint
Resolution with Israel to set up a task force dedicated to the following 2010 action
plan:
1. The Joint Task Force will continue to focus on pro-actively developing joint
economic development clean technologies projects with special emphasis on
water technologies, by matching challenges with innovative technologies;
and
2. With respect to the matching funds, the Joint Task Force shall establish as
soon as possible the respective implementing mechanisms for the
commitment and allocation of said funds to both existing 2009 joint-projects;
as well as to 2010 joint projects; and
3. The Joint Task Force shall explore establishing a matchmaking event
between water technology providers and end-users in Michigan in 2010.