This week, the state of Michigan, through the Michigan Economic Development Corporation (MEDC), approved key incentives to help win Dow’s projects over competing national and global sites.
“We have worked hard to make Michigan the clean-energy capital of North America and focused our initiatives to grow these industries here,” Granholm said. “Dow’s decisions to locate these facilities here demonstrate that our investments in green, clean-energy manufacturing are creating jobs and helping Michigan transition to a new 21st century economy.”
“Dow is one of the leaders in energy innovation and appreciates being able to work with the state of Michigan to secure support for alternative-energy technology opportunities,” said Rich Wells, Dow vice president for government affairs and public policy. “The collaboration between business and government is allowing Dow to create affordable, renewable-energy solutions and sustainable jobs.”
On Wednesday, the Michigan Strategic Fund (MSF) board approved a Centers of Energy Excellence designation and $5 million grant for Dow to establish operations focused on cost-effective carbon-fiber materials for application in the wind-energy and transportation sectors. The Oak Ridge National Laboratory (ORNL), a global leader in the development of new materials and processes for the manufacture of carbon fibers, will collaborate with Dow. Through ORNL’s participation, the U.S. Department of Energy will provide a $5 million match, and Dow will contribute up to $10 million of in-kind resources.
On Thursday, the Michigan Economic Growth Authority (MEGA) board approved a new job-creation state tax credit valued at $61.3 million over 15 years for Dow projects, which includes the full-scale production facility in Midland for the company’s DOW™POWERHOUSE™ Solar Shingle, subject to finalizing local, state and federal funding. The solar project is expected to generate $249 million in private investment and create 6,100 new jobs in the value chain, including 1,275 direct Dow jobs. Additional projects over the life of the tax credit could create up to an additional 425 jobs and $351 million in additional investment.
In addition, the MEGA board approved an advanced-battery tax credit valued at $42 million to support Dow Kokam’s advanced-battery manufacturing operations. The advanced-battery credit will support phase II of the project involving the manufacture of lithium ion packs. The company is investing $342 million in this phase of the project, which is expected create 480 total jobs.
Phase I and Phase II of the Dow Kokam project is expected to generate $670 million in new private investment and 800 new jobs. To support the project, the MSF board approved on Wednesday a 15-year state Renaissance Zone for the 56.22-acre site.
The projects come on the heels of a report titled, “American Innovation: Manufacturing Low Carbon Technology in the Midwest,” released earlier this year, which used economic research from Deloitte to estimate that climate and energy policies could create up to 100,000 new jobs in the region and generate additional market revenues of up to $12 billion, boosting state and local tax revenues by over $800 million by 2015. In 2009 alone, the work of the MEDC and the MEGA board set the stage for more than 20,000 green jobs to be created or retained.
“Michigan overcame intense global competition to win these projects,” MEDC President and CEO Greg Main said. “Thanks to Governor Granholm’s leadership and economic development tools like first-in-the-nation advanced-battery credits and Centers of Energy Excellence provided through bipartisan cooperation in the Legislature, we are way ahead of every other state in growing clean-energy sectors.”
Dow Alternative Energy Projects Receive Michigan Tax Credits, Grant
The Dow Chemical Company (NYSE: DOW) received from the Michigan Economic Growth Authority (MEGA) a MEGA Job Creation Tax Credit, which includes incentives for the recently announced DOW™ POWERHOUSE™ Solar Shingle facility .
The MEGA Job Creation Tax Credit was awarded by MEGA and the Michigan Economic Development Corporation (MEDC) to Dow for future job creation in the state. The credits are only applied when new Dow jobs are created in Michigan.
Earlier this month, Dow Solar Solutions (DSS) announced that Midland, Michigan had been identified as the preferred site for the first full-scale production facility for its revolutionary DOW™ POWERHOUSE™ Solar Shingle, subject to finalizing local, state and federal funding.
"This incentive package will enable Dow Solar Solutions to accelerate production plans for the DOW™ POWERHOUSE™ Solar Shingles already being manufactured in limited quantities at our Michigan Operations market development plant," said Jane Palmieri, General Manager for Dow Solar Solutions. "The MEDC team has been great to work with and as a result of their support we can get our revolutionary shingles on more homes quicker."
Dow also received a $5 million grant February 24 from the Centers of Energy Excellence (COEE) program through the MEDC to help accelerate innovation efforts to manufacture a cost-effective carbon fiber for use in industrial market applications such as wind energy and transportation.
Utilizing its technology leadership in chemistry and material science, Dow will work to significantly reduce carbon fiber manufacturing costs through innovative polymer precursor development incorporating energy-efficient processing in collaboration with Oak Ridge National Laboratory, the U.S. Department of Energy’s largest science and energy laboratory and its lead in low-cost carbon fiber research and development.
Upon success, this project will assist in transforming and diversifying Michigan’s economy through alternative energy generation, as well as manufacturing associated with the wind energy and transportation industries.
Also today, Dow Kokam, a joint venture between Dow and TK Advanced Battery, LLC, announced that the Michigan Economic Growth Authority has approved Dow Kokam’s application for tax credits to produce lithium ion battery packs for hybrid and electric vehicles at its battery manufacturing facility in Midland, Michigan, signaling another important milestone in the advancement of Dow Kokam as the leading full-package battery system producer, and the growing importance of Midland and the state of Michigan to the advanced battery industry. The tax credits, equivalent to $42 million, enable Dow Kokam to incorporate battery pack assembly equipment and production capability into Phase II of its production plan which could be initiated as early as 2011.
Dow combines the power of science and technology with the “Human Element” to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world’s most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow’s diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2009, Dow had annual sales of $45 billion and employed approximately 52,000 people worldwide. The Company’s more than 5,000 products are manufactured at 214 sites in 37 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.
Dow Kokam was established in 2009 to develop and manufacture advanced energy storage technologies for the transportation and other industries. Dassault joined The Dow Chemical Company and TK Advanced Battery LLC as owners of the company when Dow Kokam acquired Société de Véhicles Electriques in January 2010.
Dow Kokam brings technologically advanced and economically viable battery solutions to the U.S. automotive industry. Dow Kokam represents the first battery manufacturer to combine the viable, scalable technology, market franchise, manufacturing expertise and market knowledge necessary to become the clear partner of choice for automakers and suppliers.
In 2007, Dow received $20 million in funding from the U.S. Department of Energy to develop “building integrated” solar arrays for the residential and commercial markets. Dow Solar Solutions (DSS), a business unit of The Dow Chemical Company is focused on developing the next generation of solar energy and expanding Dow’s commitment to use chemistry to solve the world’s energy challenges. DSS recently unveiled its POWERHOUSE™ Solar Shingle, revolutionary thin film CIGS photovoltaic solar shingles that can be integrated into rooftops with standard asphalt shingle materials.
The innovative CIGS solar cells and proprietary product design provides an unprecedented integrated aesthetic at lower installed cost because the conventional roofing shingles and the DOW™ POWERHOUSE™ Solar Shingles are installed simultaneously by roofing contractors. BIPV products from Dow Solar Solutions are evidence that Dow is accelerating the development of energy alternatives by investing in the development of materials, technologies and business strategies that enable new breakthrough solutions.