Indiana Positioned Well for Wind Power Investment, Job Creation

By Louisa Murzyn Times Correspondent | Posted: Sunday, July 18, 2010 12:00 am

While the wind industry is hiring technicians to keep the nation's 30,000 turbines spinning, there is opportunity for manufacturers to catch some air as well.

"It's the economic development side we feel passionate about, not only supporting career paths," said Cindy Buckley, executive director at Kalamazoo Valley Community College, which has just graduated 16 students from its Wind Turbine Technician Academy, including Crown Point's Rob Hefner.

Buckley believes the industry will generate more jobs, not just in the technical field, but in the supply chain that goes along with it.

"There are over 8,000 parts in a wind turbine and they have to be manufactured somewhere, and it might as well be here in the U.S. and Midwest," Buckley said. "It's a national industry, and there's a lot to be gained by it."
European turbine makers are seeking suppliers in North America to meet the demands here. There currently is a shortage in national capability to produce turbines. Since 2002, the country's base installations have jumped almost sevenfold.

To make a wind turbine, the industry needs businesses such as iron foundries, metal fabricators, ball bearing makers, industrial fan producers, turbine manufacturers, electrical circuit board companies and control device makers.

The Renewable Energy Policy Project completed an analysis of the job-creating potential of renewable energy technologies. The results were encouraging for Indiana.

In Indiana, potential component manufacturers could create 25,180 new jobs out of the total $62.2 billion in investment. The analysis also showed 398,000 jobs would be created from the 185,000 megawatts of wind generation that should be installed in upcoming years.

The group reports that Indiana is among the top 10 states for investment and job-creation potential. It also reports the 20 states benefiting most from investment are almost identical to the 20 states that have lost the most manufacturing jobs.

Indiana ranks sixth in the number of employees – 53,064 of them – working at firms that have the technical potential to become active manufacturers of wind turbine components.

Local currents

LaPorte County is listed among the top 20 counties in Indiana supplying component parts. ATI Casting Services in LaPorte has been supplying hubs, gear boxes and bases for 15 years, according to the Indiana Economic Development Corp., the state's commerce agency.

One overall opportunity for wind is in the supply of large components that are costly to transport over long distances, such as tower sections, rotor blades, assemblies and covers, castings and forgings, and many other subcomponents.

Today, about half the components used in wind farms are made in the U.S., compared with 25 percent in 2004, according to the American Wind Energy Association. Another opportunity comes from the need for engineering, construction, logistics, craning, geotechnical, and site-preparation services at wind farm sites.

A growing industry

Bob Paden, of The Fuzion Group, at the Purdue Technology Center in Indianapolis, provides supply chain advisory services. He admits opportunities exist but cautions the industry is in its infancy.

"Wind energy is a challenging market for someone to start dipping their toes into," he said. "It's a very emerging market and manufacturing standards across the industry are in the development stage unlike automotive or aerospace, for example."

The reliability of turbines is proving to be much lower than expected, so currently there is a new aftermarket supply chain, Paden said.

That means, for now, owners must go back to original turbine makers because other suppliers don't exist. Still, Buckley said for every wind farm built here, it will lead to more parts being manufactured here.

Statewide development

In Indiana, tractors on Hoosier farms are getting competition from powerful turbines. Research by the National Renewable Energy Laboratory showed wind resources across the northern half of the state make Indiana an ideal location for wind farms.

Indiana has five privately developed wind farms and a sixth is under construction. Brandon Seitz, director of the state Office of Energy Development, said 11 Hoosier companies currently manufacture components and employ about 1,000 people.

Meadow Lake Wind Farm, owned by Horizon Wind Energy, is in White and Benton counties. It began operating commercially in 2009 and consists of 121 turbines.

Fowler Ridge Wind Farm, also in Benton County, is owned by BP Wind Energy and Dominion Resources Inc. When it is complete, it will be one of the largest wind farms in the world. There are 222 turbines from the first phase, and the second phase, west of the farm, which became operational in December, uses 133.

"There are components such as gearboxes and bearings that need to be retooled. Those are things we know how to do here. To grow the industry means we'll be creating ground level jobs."

Article Written by: Louisa Murzyn Times Correspondent  Source: NWI Times