Business Facilities - November 2007 - (Page 53)

BUSINESS REPORT Michigan By Pearl Gabel Renewable Michigan The alternative fuel industry is propelling the center of the automotive nation. T he Michigan Renewable Fuels Commission was created in November 2006 through new legislation designed to spur growth of the state’s alternative fuel industry. It reduced the state gas tax by 36% on fuel that contains ethanol and by 20% on biodiesel blends; provided grants to service station owners who renovate or expand their existing stations to make E-85 and biodiesel available; and allowed for the creation of new Agriculture Renaissance Zones to help spur additional ethanol and biodiesel plants. The state has set a goal of making 1,000 biofuel pumps available by 2008. Effects of that legislation, along with other state efforts to promote the alternative energy industry (for example, the 21st Century Jobs Fund has made $50 million available for the research, development, and commercialization of alternative and renewable energy projects), are beginning to be felt. NextDiesel, Michigan’s largest biodiesel manufacturing plant, became the first alternative energy facility to be built in one of the state’s 10 new Renewable Energy Renaissance Zones when it opened in Adrian, MI in August of this year. (Alternative energy companies that locate in a Renewable Energy Renaissance Zones—a spin on the state’s existing Renaissance Zones program—will be eligible to operate virtually free of state taxes.) It is one of 20 biofuel plants either operating or in development throughout the state. Plans were also recently announced by Massachusetts-based Mascoma Corporation to build a cellulosic ethanol plant either on Michigan’s northern Lower Peninsula or on the Upper Peninsula as the company races to become the first in the nation to produce ethanol from wood on a commercial scale. The Michigan Economic Development Corporation and NextEnergy (not to be confused with NextDiesel), a nonprofit alternative energy accelerator located in Detroit, were pro-active in developing a strategy to promote production of cellulosic biofuel in Michigan. The two groups identified Mascoma as the leader in the sector and then pitched a Michigan location to the company. The strategy worked. Mascoma was persuaded in part by the state’s large amount of publicly owned forest land and the expertise found at Michigan State University and Michigan Technological University, both of which will partner with Mascoma to MICHIGAN FAST FACTS Population: (2006): 10,095,643 Largest Cities (2006): Detroit, 871,121; Grand Rapids, 193,083; Warren, 134,589; Sterling Heights, 127,991; Flint, 117,068 Targeted Industries: Life sciences, advanced automotive technologies, homeland security and defense, alternative energy and fuels, tourism Key Incentives: Industrial property tax abatements, Michigan Economic Growth Authority, Economic Development Job Training, tax-free Renaissance Zones, brownfield redevelopment AUTOMOTIVE R & D SPENDING (IN BILLIONS) Michigan California Ohio Illinois New York Pennsylvania Texas Washington Massachusetts New Jersey $10.7 Billion 0 2 4 6 8 10 12 SOURCE: NATIONAL SCIENCE FOUNDATION AND THE CENTER FOR AUTOMOTIVE RESEARCH, 2003 DATA BUSINESS FACILITIES 53

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Business Facilities - November 2007 Contents First Words Snapshots Metro Spotlight: Indianapolis Region, Indiana Georgia's Pursuit of Industry Extreme Technology Sites A Tennessee Trifecta A Watershed Moment for Philly Metro Spotlight: Mexico-Texas Border Region High Tech and Aerospace Heat up in Arizona Meeting the Information Technology Challenge IEDC Announces 2007 Winners Corporate Moves: Alabama Northeast Arkansas Scores Major Investments Corporate Moves: Virginia Metro Spotlight: Martinsville-Henry County, VA Renewable Michigan Advertiser Index Ask the Expert

Business Facilities - November 2007

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