GRANHOLM - Granholm Says Alternative Energy and Biotechnology Will Help Drive Michigan's Economy

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Granholm Says Alternative Energy and Biotechnology Will Help Drive Michigan's Economy

Contact: Heidi Watson 517-335-6397

September 20, 2006

LANSING – Governor Jennifer M. Granholm today said that economic development this century will be driven by sustainable resources that will bring new economic opportunity and markets for agricultural producers in Michigan. Granholm made the remarks at the Michigan Agri-Business Association Bio-Economy Summit in Lansing.

“From ethanol to biodiesel to biomass digesters, the technology to turn our plant and animal products into energy is driving a new wave of economic development in our state,” Granholm said. “That’s why I am working hard to make Michigan the alternative energy capital of the world.”

Granholm said her administration will continue to serve as a partner to help the alternative energy and biotechnology sectors flourish in Michigan.

Earlier this month, Granholm announced the first round of grants from the 21st Century Jobs Fund with nearly $9 million being awarded to alternative energy products expected to create more than 750 jobs in the state. The grants went to companies like Diversified Natural Products in Mason County, which is creating a natural alternative to help lower cholesterol, and KTM Industries in Eaton County to help them commercialize a bio-based foam material for protective packaging in the craft and toy market.

In the last nine months, nine ethanol and biodiesel plants have opened, broken ground, or been announced with assistance from Agricultural Renaissance Zones. When all nine plants are online, their operation will bring more than 200 jobs to Michigan and over $350 million in investments.

Other actions Granholm has taken to promote biofuels in Michigan include:

• reducing the tax on ethanol and biodiesel so people can get a break from high prices at the pump;

•signing legislation providing incentives to service stations that install ethanol and biodiesel pumps;

•setting an aggressive goal of having 1,000 biofuel pumps in Michigan by the end of 2007; and,

•partnering with General Motors, Meijer, and CleanFUEL USA to significantly increase the number of stations where ethanol is available for purchase

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