State helps create wind energy project with Wolverine Power, John Deere
LANSING - Governor Jennifer M. Granholm today said a joint project between John Deere Wind Energy, Wolverine Power, and the Harvest Wind Farm is demonstrating the kind of positive economic impact that renewable energy projects can and will have on the economy and job creation in Michigan.
"Projects like the Harvest Wind Farm, the first of its kind in Michigan, and investments in the alternative energy industry are key to our economic future," Granholm said. "They create jobs and help diversify our economy - two top priorities for Michigan."
Granholm said she has set in motion a comprehensive economic plan to diversify the state's economy with a focus on alternative energy. She noted that companies like Hemlock Semiconductor and United Solar Ovonic are investing in Michigan and creating jobs and making Michigan a leader in solar panels. The state also has opportunities in ethanol and biodiesel, with 11 biofuel plants proposed or coming on line. Finally, Granholm noted that NEXTEnergy and others are funding, incubating, and attracting cutting-edge research and development in the alternative energy sector.
Granholm noted that at the same time her administration is examining where Michigan's power needs are and at her request, the Michigan Public Service Commission has completed work on a 21st Century Energy Plan. The plan calls for new generation sources so that electricity supply in Michigan can keep up with demand. It also calls for the state to increase efficiency and promote renewable energy sources - like wind - that will keep electricity costs down for consumers as fossil fuels become more expensive.
The $90 million investment in the Harvest Wind Farm in Huron County is expected to create up to 70 jobs, and Wolverine predicts it will produce enough electricity to power more than 15,000 homes. It is expected those steps will save Michigan citizens $4 billion on power generation over the next 20 years and set the state on the right course for sustainability and energy independence.
The Harvest Wind Farm project was supported with a state tax incentive package worth $6.5 million over 12 years. In addition, Harvest Wind Farm will receive approximately $5 million in sales tax exemptions through Michigan's manufacturing/industrial processing exemption.
"We are thrilled to be involved with John Deere Wind Energy and the Harvest Wind Farm project," said Eric D. Baker, president and CEO of Wolverine. "Wolverine strongly supports the development of clean, renewable energy in Michigan and thus has chosen to make a long-term financial commitment to this project."
"John Deere is pleased to proceed with the Harvest Wind Farm, which has been under development for three years," said Dave Drescher, vice president of John Deere Wind Energy. "Without the participation and strong support of Wolverine Power Cooperative, the project would not have been possible."
Granholm said Michigan is at an important juncture when it comes to energy consumption.
"Our infrastructure has aged and our ability to produce energy will not be able to keep pace with demand, which is a formula for rising costs," Granholm said. "At the same time, we have enormous opportunities that we can take advantage of given that Michigan has the wind potential Finally, Granholm noted that NEXTEnergy and others are funding, incubating, and attracting cutting-edge research and development in the alternative energy sector.
Granholm said as we continue to reform our state's energy policy, the focus will be on:
- reliability to meet our growth (allowing for the development of new generation sources);
- reasonable costs for a manufacturing base (low-cost rate);
- renewable portfolio standard (to help drive the next round of growth in our manufacturing base).
In addition to working with lawmakers to develop our renewable portfolio standard and expand our alternative energy renaissance zones to include wind and solar developers, Granholm has proposed investing over $100 million over the next three years to grow this specific sector of Michigan's economy.
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