Dow Alternative Energy Projects Receive Michigan Tax Credits, Grant

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.

Dow Kokam, a joint venture between Dow and TK Advanced Battery, LLC, also 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 for electric cars.

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.