Wind Energy in Michigan 'On the Edge of a Cliff'

Story first reported from freep.com


With the auto industry on the verge of collapse in 2008, former Michigan Gov. Jennifer Granholm and other state officials were eager to diversify the economy and create thousands of jobs by making a big push into alternative energy.

To capitalize on the state's strengths, they focused in particular on the manufacturing of parts for wind turbines.

But four years later, the drive to grow a new sector built on clean energy has lost momentum with little to show, the victim of turbulent industry conditions, Washington politics and what some critics would call misguided government policies.

Several high-profile projects have encountered significant delays and have yet to launch full-scale production. They include a manufacturing plant for large wind turbines in Saginaw, a new foundry in Eaton Rapids to make iron parts for wind turbines and an innovative ethanol plant in the Upper Peninsula.

In late June, one of the state's major solar industry players, United Solar Ovonic, was liquidated.

Even some of the wind turbine parts suppliers that have successfully launched production have seen a sharp drop in orders because of uncertainty over whether a production tax credit that expires at the end of December will be renewed. Ventower Industries in Monroe started building giant wind turbine towers late last year in a new factory, but its business would be three times larger if the tax-credit situation was resolved, said Scott Viciana, the company's vice president.

"The wind industry is on the edge of a cliff," said Matt Kaplan, associate director of IHS Emerging Energy Research, a consulting firm in Cambridge, Mass. Although, wind turbine repair companies are doing well compared to manufacturing companies, because repair is less costly than replacement.

He and other experts predict that 2012 will be a record year for the installation of wind turbines as companies rush to take advantage of the tax credit before it ends. On the flip side, however, the number of installations could plummet to record lows next year, Kaplan said.

The tax credit isn't the only headwind facing wind turbine parts manufacturers. Just like in the solar industry, the wind industry has too much production capacity, which is driving turbine prices lower. That's good for the growth of wind energy but puts pricing pressure on turbine parts suppliers. Kaplan forecasts that the industry is on the verge of consolidation.

In Michigan, the alternative energy industry lost a key proponent when Granholm left office at the end of 2010. She tried to transform the state into a manufacturing hub for wind and other renewable-energy industries, providing millions in grants, tax credits and other incentives to entice companies to the state. A team of economic development officials worked to grow green jobs.

Today, Michigan has 35 wind-related manufacturing plants, according to the American Wind Energy Association. In 2010, the state had nearly 80,000 green jobs, which accounted for 2.1% of its total employment, a U.S. Bureau of Labor Statistics study found.

The growth of the alternative energy industry has always been dependent on government subsidies. Critics, such as the Mackinac Center in Midland, have long opposed this assistance, arguing that these business ventures should be based on market forces.

Under Gov. Rick Snyder, programs specifically designed to spur the growth of the alternative energy industry no longer exist. The state revamped its economic development strategy with the goal of treating all industries equally.

"We're doing what we can to help all industries in Michigan be competitive," said Steve Bakkal, director of the state's Energy Office. He contends that successful companies will be those that are supplying products for multiple industries, not just wind or solar.

But at the moment, several projects that are trying to break new ground in the alternative energy field have run into difficulties.

Two years ago, Northern Power Systems announced plans to manufacture large wind turbines, something that had never been done in the state. So far, the Vermont-based company has made and sold only two prototypes of its next-generation turbines to a wind farm in the Upper Peninsula.

The uncertainty over the future of the production tax credit has caused customers to delay placing new orders, said Douglas Prince, Northern Power's chief financial officer.

The company's leased facility in Saginaw is "kind of in standby mode right now," Prince said. "We're hopeful the market will recover."

In central Michigan, a plan to make iron parts, which are called castings, for wind turbines at a new foundry in Eaton Rapids has also been delayed. The foundry was supposed to open at the end of 2011, promising lower-cost and higher-quality castings. But it ran into management, financing and other problems.

Eaton Rapids Castings hopes to start production this fall but still needs to find additional investors, said Lennart Johansson, the company's CEO and one of its owners.

To offset the uncertainty in the wind business, the foundry plans to make castings for other industries. It has scaled back its initial production volumes.

To be sure, the outlook isn't completely bleak. A few ventures are making progress, most notably Energetx Composites in Holland. The company, which has nearly 80 employees, won an order to build more than 200 large wind turbine blades for a customer it cannot name, said David Slikkers, Energetx's chairman.

He and other family members saw blade manufacturing as a natural fit because they have been building boats for decades as the owners of S2 Yachts. "We have been composite fabricators for 50 years," Slikkers said.

And near the Port of Monroe, Ventower expects to have built 15 towers for large wind turbines by this fall. It occupies a new factory on a former industrial landfill and has hired 53 employees. But the industry slowdown caused by the tax credit situation is holding back its growth.

"I would have orders booked through the bulk of next year if the tax credit was not an issue," Viciana said.

More Details: Hitting a Green Wall

Here are some of the high-profile alternative-energy business ventures in the state that have shut down or run into significant delays:

* Northern Power Systems' large wind turbine plant: The Saginaw plant has yet to launch production and is operating with a skeleton crew.

* Eaton Rapids Castings: Foundry to make iron parts for large wind turbines in Eaton Rapids has been delayed. It is still trying to get financing.

* United Solar Ovonic: The maker of solar roofing materials filed for bankruptcy in February and sold its assets at the end of June.

* Mascoma's cellulosic ethanol plant near Kinross in the Upper Peninsula: Groundbreaking was supposed to occur this summer. The company says construction will start at year's end after engineering design work is completed, contracts are awarded and financing is finalized.

* Astraeus Wind Energy: In 2010, company announced plans to make spar caps for wind turbine blades in Port Huron. It is still in the testing phase.

* Danotek Motion Technologies: Was supposed to start making generators for large wind turbines last year. The company says production will begin this fall in Canton. It has 28 employees, down from 45 at the end of 2010.

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Windpower Project Cancelled

First appeared at Up North Live

Duke Energy pulls plans to build 112 turbines in Northern Michigan

After months of debate, Duke Energy has decided it will no longer move forward with it's wind project plans in Benzie and Manistee Counties.

The company spent more than a year signing contracts with dozens of landowners, setting up job fairs, and hosting public input meetings.

Community members were divided over the Gail Windpower Project that would have created 112 turbines in their backyards. The issue even led to the recall of three Joyfield Township board members in 2011.

Duke Energy says the decision was made because they couldn't secure a long term agreement with a power purchaser.

The company notified landowners earlier this week about their decision.

Exelon Plans Debt Sale to Buy Deere Wind-Power Unit

Bloomberg

Three wind projects set to begin in Michigan

Exelon Corp., the largest U.S. producer of nuclear power, plans to sell $900 million of 10- and 31-year debt to fund its purchase of a Deere & Co. wind-power unit.

The bonds may be issued as soon as today through Exelon Generation Co. according to a person familiar with the transaction. John Deere Renewables LLC will cost $860 million with an additional $40 million if Deere starts constructing three projects in Michigan, Exelon said today in a regulatory filing that didn’t specify the debt offering’s size or timing.

Exelon’s acquisition marks the Chicago-based company’s first foray into owning and operating wind projects, it said in an Aug. 31 statement. The 735 megawatts of wind capacity, enough to power as many as 220,000 homes in eight U.S. states, will add to 2012 profit and advances Exelon’s 2008 promise to reduce carbon-dioxide emissions, according to the statement.

“We took this deal to the rating agencies well in advance of doing it,” Bill Von Hoene, Exelon’s executive vice president for finance and legal, said at a conference on Sept. 15. “They concluded, as did we, that it was credit neutral.”

The notes may be rated A3 by Moody’s Investors Service and BBB by Standard & Poor’s, said the person, who declined to be identified because terms aren’t set.

The acquisition will make Exelon the 13th-biggest wind generator in the U.S., Von Hoene said in the call.

3 Wind Farms to Open in State

The Detroit Free Press

 

John Deere Wind Energy said Friday that it plans to open three new wind farms, two of which will be the largest in the state. The announcement is a major boost for the future of wind energy in Michigan.
The new projects -- in Lenawee County and Michigan's Thumb -- are expected to increase the state's wind power capacity by 61% to 374 megawatts. That would generate electricity for more than 84,000 households.

Michigan has lagged other states in developing wind power even though it has several areas ideally suited for it.

The three wind farms are to provide power to Consumers Energy beginning in 2012. They are:

• Michigan Wind 2 in Sanilac County (90 megawatts);

• Blissfield Wind Energy in Lenawee County (81 megawatts);

• Harvest II in Huron County (59.4 megawatts).

John Deere Wind Energy, based in Johnston, Iowa, already also owns the state's two existing large wind farms.

"We intend to lead the nation in making our nation energy independent," said Gov. Jennifer Granholm, who lauded the projects in a speech at the Michigan Energy Fair, which began Friday at the Rock Financial Showplace in Novi.

The wind farms and a new landfill gas-electric generation facility in Lenox Township that is to be developed by Waste Management Renewable Energy will enable Consumers Energy to obtain 6.2% of its power from renewable-energy sources by 2012, up from the current 4%. Under Michigan law, it must reach 10% by 2015.

Granholm also announced that nine Michigan companies will get $20 million in clean-energy manufacturing grants -- money that comes from the federal stimulus program.

The companies are: Amptech in Manistee ($573,000), Great Lakes Industry in Jackson ($2.5 million), Grid Logic in Metamora ($5 million), Heat Transfer International in Kentwood ($2.8 million), Innotec in Zeeland ($1.2 million), KC Jones Plating in Warren ($300,000), Polar Seal Window in Grand Rapids ($200,000), URV USA in Rochester ($4 million) and Ventower Industries in Monroe ($3.5 million).

Granholm and U.S. Sen. Debbie Stabenow, D-Mich., who also attended the event, stressed the importance of making sure that new clean-energy products and technologies are made in the U.S., particularly in Michigan.

"We have to incentivize manufacturing it here," Stabenow said.

Of the 8,000 parts in a wind turbine, "we can make every one in Michigan," Stabenow said. "For me, the magic word is manufacturing."

Michigan, U.S. Offer Grants to Turbine Company

The Detroit Free Press

The state and federal governments are providing $7 million to help a western Michigan company develop wind-energy products.

Energetx Composites of Holland makes turbines. The Michigan Economic Development Corp. this week said it's giving $3.5 million and the U.S. Energy Department will match it.

Energetx says it's working with Midland-based Dow Chemical Co. and Oak Ridge National Laboratory in Tennessee. The company hopes to bring 1,000 new jobs to Holland by 2016.

Energetx is related to a boat company called S2 Yachts and was formed to use some of the same manufacturing capabilities.

A Clean Energy Triple Play

Governor Granholm Posts to Huffington that Michigan Will Lead the Green Economy in America

"Just Try to Keep Up" she Warns!

Huffington Post

Last May, I first posted here about how Michigan would lead the green industrial revolution. Some folks scoffed at that idea. They said I was too optimistic. They said Michigan would never lead in a green economy.

We're working to prove them wrong.

Today, I was in Midland, Michigan, as the Dow Chemical Company announced over $1 billion in clean-energy expansions - which, combined with nine other projects announced today, will create over 17,000 new jobs. In three separate ventures, Dow will help create the future of wind, solar, and advanced-battery technology in Michigan's Great Lakes Bay Region - a triple play for our nation's clean-energy future.



First, Dow announced it is moving forward on a truly game-changing product: It will build a $600 million full-scale production facility for its DOW™ POWERHOUSE™ Solar Shingle in Midland. These shingles have the potential to transform the way consumers get power by turning a typical home roof into a true powerhouse in every sense of the word. What makes the product revolutionary is its easy installation - no different from an ordinary shingle. That's why it was one of TIME magazine's "50 Best Inventions of 2009". It's a win for Michigan, for consumers, and ultimately, for our planet.

Dow is also a key player in Michigan's bid to be the advanced-battery capital of the world. Its Dow Kokam joint venture is investing $342 million to build a large-scale manufacturing site to help power the hybrid and electric vehicles of the future. Since we passed the first-in-the-nation advanced-battery credits, Michigan has seen more advanced-battery activity than any other state, meaning up to 40,000 great new jobs by 2020.

Last, but certainly not least, Dow has been designated a Center of Energy Excellence, a program we instituted in 2008 to help make Michigan the North American center of the clean energy industry. As Michigan's seventh Center of Energy Excellence, Dow will partner with the Oak Ridge National Laboratory to help tackle a major challenge for the wind-energy sector: making strong, light carbon fiber materials available for applications like wind turbine blades. This is a great opportunity for Dow to find a solution that can be used throughout the wind-energy industry.

The DOW™ POWERHOUSE™ announcement is the latest in a series of solar wins for Michigan. Hemlock Semiconductor, the world's leading producer of polycrystalline silicon (the critical component of solar panels), has invested $2.5 billion in the Great Lakes Bay Region over the years, spurring other development. Also headquartered in Midland is the world's leader in silicon product research, Dow Corning, where crucial research into the solar products of the future is conducted.

In three separate ventures, Dow will help create the future of wind, solar, and advanced-battery technology in Michigan's Great Lakes Bay Region - a triple play for our nation's clean-energy future.

Other companies are following Dow Corning and Hemlock Semiconductor's lead. In Midland, Evergreen Solar opened a new solar plant last year, and is ramping up production of its new "string ribbon solar wafer" technology. Last October, Suniva announced it would invest $250 million in a new solar manufacturing facility in Saginaw County. And just in December, GlobalWatt decided to locate its newest solar plant in Saginaw -- choosing Michigan over a competing site in Texas, largely because so many solar businesses are already in the area.

But, that's not all. Since targeting clean energy as a major sector to help diversify and grow Michigan's economy in 2006, we've made great strides. In fact, just since I posted here last May, we've made progress toward turning the green industrial revolution into a reality in Michigan:

• In June, General Electric announced its new advanced technology and training center outside Detroit, where new renewable-energy products will be researched and developed... meaning thousands of great, green jobs for Michigan.

• In July, I issued an executive directive to reduce Michigan's greenhouse gas emissions by 20 percent by 2020 and 80 percent by 2050, because going green isn't just good for the environment - it's good business.

• In August, Vice President Biden announced over $1.35 billion in Department of Energy grants funded by the Recovery Act for Michigan advanced-battery manufacturers - the largest share of any state in the nation.

• In September, I traveled to Japan and met with key executives considering clean-energy projects in Michigan. My previous investment missions to Austria, Belgium, Germany, Israel, Japan, Jordan and Sweden have resulted in more than 10,800 jobs created and retained.

• In October, Michigan State University restructured its MSU Extension, maintaining its traditional focus on agriculture while expanding its role in renewable-energy projects. After all, now is the time to "Go Green!"

• In November, Michigan was proud to host the American Wind Energy Association's Small and Community Wind Conference and Exhibition in Detroit, with over 112 exhibitors from around the world.



• In December, General Motors announced it would invest $336 million in its Detroit Hamtramck Assembly plant to begin building the Chevy Volt later this year. GM has invested $700 million in the eight facilities across the state involved in Volt production.

• Last month, as the world's gaze shifted to the future of the American auto industry at the North American International Auto Show in Detroit, Ford announced an investment of $450 million in expanding electric vehicle initiatives in Michigan... including moving battery assembly work from Mexico to Michigan.

We're becoming the hub for advanced-battery technology. Our solar-energy industry is rapidly progressing. This year, we will aggressively pursue companies in the wind-energy sector to give Michigan the competitive advantage that is so successful for our battery and solar sectors. We will continue to focus on leading the way to a clean-energy future here in Michigan. We are building the new Michigan economy, piece-by-piece, town-by-town, in communities across the state. Just click here to see some more examples.

And so, as I wrote last May: "Watch - Michigan will lead a green industrial revolution. I invite you to watch us, encourage us, and join us.

And the doubters?

I encourage them to just try and keep up."

Jennifer M. Granholm was elected governor in 2002 and re-elected in 2006. She began her career in public service as a judicial clerk for Michigan's 6th Circuit Court of Appeals. She became a federal prosecutor in Detroit in 1990, and in 1994, she was appointed Wayne County Corporation Counsel. Granholm was elected Michigan's first female attorney general in 1998.

Since becoming governor, she has worked to grow and diversify Michigan's economy, create jobs, ensure world-class educational opportunities for every Michigan student, create universal access to affordable health care, and stand up for Michigan workers and families during tough economic times. While aggressively pursuing her top priority of putting Michigan families first, she has also worked to ensure that state government spends every penny efficiently and has successfully resolved more than $6 billion in budget deficits.

Michigan Wind Energy Conference Planned for April in Cobo Hall

mLive

Saginaw Bay area wind boosters take note: The 2010 Michigan Wind Energy Conference is blowing into Cobo Center in Detroit on April 20-21.

There will be breakout sessions and displays from small and large wind manufacturers. Attendees also will be able to hobnob with installers, consultants and other industry pros.

Organizers are still signing up exhibitors. Maybe a couple companies from our region will be there? Hello Affordable Green Energy and Accent Building.

Last year's conference drew more than 1,500 people from throughout the state and region and more than 25 exhibitors.

Wind-Energy Industry Lost Factory Jobs Despite Stimulus

USA Today

Federal stimulus funds rescued the U.S. wind-power industry from what could have been a disastrous 2009, but it still lost highly sought-after manufacturing jobs, according to a trade association report out Tuesday.

Nationwide, the wind-power industry employs about 85,000 people — the same number as a year ago after it gained 13,000 manufacturing jobs in 2008, says Denise Bode, CEO of the American Wind Energy Association.

Early last year, the association had expected wind-power development to drop 50% in year-end levels compared with 2008, given the dearth of financing for wind-farm projects.

But 2009 federal stimulus dollars, reaching $2.25 billion for dozens of wind projects and wind turbine-component manufacturers, buffeted the recession's impact, Bode says.

"The stimulus was a real spur to development," she says. "We saved half an industry."

Nationwide, the wind industry last year added a record 9,900 megawatts of new generation capacity, enough to power the equivalent of 2.4 million homes, the association says.

Only 38 wind turbine-component manufacturing plants were built or expanded last year, down from 55 in 2008. In addition, several wind-turbine companies announced layoffs last year, including at plants in Minnesota, Pennsylvania and Nebraska.

Bode estimates that the wind industry lost between 1,500 and 2,000 manufacturing jobs last year but gained an equal number in wind-farm construction and maintenance.

Without the stimulus funds, "things would've ground to a halt," says Gary Hardke, president of the San Diego-based Cannon Power Group. It has installed 400 megawatts of wind power in Washington state in the past 18 months and secured $19 million in stimulus funds. Without the funds, the project "would've stalled out," Hardke says.

Manufacturers also suffered because they had big inventory levels last year, Bode says. Over the longer term, wind-turbine makers have expressed reluctance to build plants in the USA because it lacks a national standard to increase the use of renewable energy sources, Bode says. Legislation in Congress has proposed the United States get 15% to 20% of its energy from renewable sources by 2020, along with increased efficiencies. On the local level, 29 states have their own requirements to get more of their energy from renewable sources, and six states have set goals.

The nation's wind industry provides about 2% of the USA's electricity. That could rise to 20% in the eastern USA by 2024 if enough money is invested in transmission lines and the power grid, said a study recently released by the Department of Energy.

Money Being Put Together For Zug Island Wind Turbine

Crain's Detroit Business

Keith Cooley, the CEO of NextEnergy, has put together a consortium of industry heavyweights and lined up about $56 million in matching-fund commitments as it awaits word on a $45 million U.S. Department of Energy grant to build an engineering facility on Zug Island that would develop and test drivetrains for what could easily be the world's largest wind turbine.

The facility would be called NextWind and test powertrains that can generate 15-20 megawatts of energy. The world's current most powerful wind turbine, which is in Germany, generates seven megawatts, enough to power about 1,800 U.S. households for a year. The diameter of its rotors is 413 feet. Most commercial wind turbines generate one to 2.5 megawatts.

“Clearly, we'll have a chance to share knowledge, share information, share expertise and share history,” said Cooley of the consortium partners.

Cooley said industry partners already on board with $35 million in commitments include such major turbine manufacturers as Atlanta-based GE Energy, Clipper Windpower Inc. of California, and Belgium-based Hansen Transmissions International NL and such engineering, testing and supplier firms as Ricardo Inc. of Van Buren Township; AVL North America Inc. of Plymouth; LMS of Troy, a business unit of Belgium-based LMS International NV; Munro & Associates Inc. of Troy; and Burke E. Porter Machinery Co. of Grand Rapids.

State of Michigan commitments total $19.2 million, including brownfield remediation help from the Detroit Economic Growth Corp., the Michigan Department of Environmental Quality and Wayne County; infrastructure improvements by the Michigan Department of Transportation; access to bonding from the Michigan Department of Energy, Labor and Economic Growth; and funding from the Michigan Economic Development Corp.

Commitments from the University of Michigan, Michigan State University, Western Michigan University and NextEnergy total about $2 million. Also on board are Sandia National Laboratories in Albuquerque, N.M., the National Renewable Energy Laboratory in Golden, Colo.; and the National Renewable Energy Center in Spain.

Cooley told Crain's he hopes to learn in mid-November if NextEnergy wins the grant against competing bids from organizations in at least six other states.

“While we think we have the best chance, in terms of having sent in the best proposal, you just never know,” he said. He said Michigan's 110-year history of drivetrain testing and development, its roster of partners and matching funds that far exceeded the bid's requirement of $29 million should help.

Cooley is ready to hit the ground running. He said funds should start flowing in January or February, and the project could be up and running in 12-18 months.

He said worldwide demand for 20 megawatt turbines could be in the tens of thousands over the coming decades: “That's enough to keep this area busy for decades.” The DOE grant is for five years.

Cooley said he hopes the testing facility would spark development of an industrial park on the island. He said it would make sense for wind-turbine suppliers to manufacture prototypes in adjacent buildings.

“We hope to attract suppliers and an OEM or two,” he said. “That's an area that's certainly in need of redevelopment.”

Such a move — R&D attracting an OEM — is what's needed to foster a broader impact through creation of a supply chain, said Greg Main, the MEDC's CEO.

“If we bring in a turbine manufacturer, which we don't have right now ... that sets up the opportunity for Michigan suppliers to diversify into those sectors.”

NextEnergy, the Detroit-based nonprofit that aims to accelerate the state's role in clean and alternate energies, hired Albert Kahn Associates Inc., Detroit, to draw up plans for a 50,000-square-foot testing facility, which would house two dynamometers, each capable of generating 10 megawatts of power.

In theory, Cooley said, they could be coupled to test wind-turbine drivetrains capable of producing 20 megawatts of power, though 15 megawatts may be a more realistic target.

“China is working on a 10 megawatt turbine. No one else is doing anything approaching 20 megawatts,” he said.

“The key to wind-turbine scale-up is drivetrain reliability. It needs to last as long as you say it will,” he said. “If you've never seen a wind turbine tear itself apart, it can be spectacular. It just flies apart. No wonder people say, "Not in my backyard.' Manufacturers claim they have 20-year life spans, and they break up in 18 months, so you've got to be able to prove drivetrain reliability.”

In automotive testing facilities, engines or powertrains are connected to dynamometers to test the energy or power created, typically 100-400 horsepower. NextWind's would be dynamometers on steroids.

The goal is for the facility to be used by manufacturers around the U.S. and the world to test drivetrain components, such as gearboxes, hubs, generators and controls.

The NextWind project dovetails with one of NextEnergy's big thrusts. Cooley said that over the past two years, NextEnergy officials have talked with more than 1,000 auto suppliers in Michigan about getting into wind energy.

T. Boone Pickens Encourages Alternative Energy In Michigan

Story from the Chicago Tribune

MACKINAC ISLAND, Mich. - Energy baron T. Boone Pickens said Thursday the Great Lakes region has great potential for generating wind power, although he has no immediate plans to back up the assessment with his own money.

Pickens, who made his fortune as a Texas oil producer, preached his newly minted gospel of alternative energy during the Detroit Regional Chamber's annual policy conference. The billionaire shared the stage with Gov. Jennifer Granholm, who has made renewable energy the centerpiece of her push to diversify Michigan's economy.

Both said Michigan can play a key role in weaning the U.S. off foreign oil -- an essential goal for protecting the nation's security and economy. Without a national energy plan focused on alternatives, Americans will be importing three-fourths of their oil at a staggering cost of $300 a barrel within a decade, Pickens said.

Despite promises from presidents going back to Richard Nixon, the nation has yet to confront its oil addiction, Pickens said. Soaring fuel costs last year were one consequence of inaction, he said.

"Cheap oil continued to be a bailout to us over those years," he said. "Consequently, America was never asked to look at what would happen" if supplies tightened and prices soared. "For 40 years, I have watched us having no energy plan and wondered when we were going to hit the wall."

He is funding a $60 million campaign to boost wind power and natural gas, and is trying to develop a gigantic wind farm in western Texas. Pickens said he isn't looking for investments in Michigan projects because he is focusing on his home state, but would encourage others to do so.

"Michigan is a big state and you have a lot of resources here," he said. "I would think people would see it as an opportunity."

Winning energy independence, he said, will require cultivating a wide variety of sources -- including manufacturing cars powered by batteries, natural gas and other unconventional fuels.

"I'm for anything, just so it's American," he said in an interview. "I want off foreign oil. I don't want the oil from Venezuela or the Mideast or Africa."

He also endorsed an energy tax to reduce demand for oil and generate revenue for renewable energy development but said he wouldn't make it a priority. "I don't stump for taxing anybody," he said, adding that the politicians he'd spoken with "get a tight collar" when he raised the issue.

Granholm agreed: "It's hard. Citizens are hurting."

Wind, solar and battery technology hold the best promise for Michigan, although the state is promoting other forms of alternative energy such as biomass, Granholm said. Legislation enacted last year requires that 10 percent of the state's energy come from renewable sources by 2015.

"In the next few years, we are going to create an entire new industry in designing and manufacturing advanced batteries for green vehicles," the Democratic governor said.

The state is offering $700 million in tax credits to encourage development of battery technology and hopes for a share of federal economic stimulus money earmarked for the purpose.

Many of Michigan's auto suppliers are well positioned to manufacture components for wind turbines, such as gear boxes, drive trains and carbon fiber moldings, Granholm said.

"It's far less expensive to ship a wind turbine blade or tower to Duluth from Bay City or Port Huron or Muskegon than from Denmark," she said. "We have the deep water ports and the manufacturing supply chain, and we're putting on a full-court press to attract more wind turbine manufacturers to Michigan."

Another state tax credit aims to lure solar producers to join Hemlock Semiconductor and United Solar Ovonic, two Michigan companies already in the business.