Indiana Making Progress in "Clean Tech" Industry
While the nation focuses on all things "green" during Earth Day celebrations, the Indiana manufacturing industry is making clean tech projects an important business focus year-round. In the last year, the Hoosier state has achieved a long list of accomplishments in the emerging sector that not only benefits Mother Earth, but could also benefit manufacturers' portfolios.
State leaders say clean tech sub-sectors like wind and solar power, plug-in and hybrid electric vehicles and second generation biofuels are each projected to grow to more than $70 billion over the next ten years.The state's legacy in automobile manufacturing is now complemented by the vehicle electrification sector. Governor Mitch Daniels describes the Hoosier state as "the capital of the electric vehicle industry." State leaders believe continued investment from electric car manufacturers and suppliers add validity to his claim.
In late 2009, President Obama's administration announced advanced battery and electric drive projects across the country would receive $2.4 billion in federal funding. He visited northern Indiana to announce the state would receive the second largest slice of the pie with $416 million awarded to six Hoosier companies and a group of colleges and universities led by Purdue.
Indianapolis-based EnerDel received the largest dose of funding with $118.5 million. The company, which makes lithium-ion batteries for electric cars, recently announced it will expand U.S. production by building its third Indiana manufacturing facility. Located in Hancock County, the $237 million dollar project is expected to create 500 jobs, bringing EnerDel's total Indiana employment to 1,400. The Hancock County facility is expected to begin production as early as May.
"By the end of the 2010 calendar year, we'll be producing and shipping out of our Indiana facilities upwards of 900 EV battery packs per month," says EnerDel Chief Financial Officer and Controller Robert Kamischke. Listen
Scandinavian electric car maker THINK also announced plans to build its first North American production facility in Elkhart—a $43 million investment expected to create more than 400 jobs by 2013. Keith Takasawa, product development director for THINK North America, says the facility will manufacture the fully electric THINK City cars, the company's only current model. Listen
"We're not a start-up like many of the other electric car companies," says Takasawa. "We've got 1,500 cars on the road [in Europe] with over 30 million miles of real customer, real world experience. We bring a very mature design and a lot of real world experience behind that design."
Recent electrification efforts in the state go beyond small vehicles; in late 2009, the U.S. Department of Energy awarded Navistar International Corporation's Truck Development and Technology Center in Fort Wayne a $10 million grant to develop, test and deploy plug-in hybrid school buses.
In addition to vehicle electrification, Indiana is also making strides in the wind energy industry. In late 2009, Germany-based VAT-Getriebetechnik (VAT) revealed plans to locate its U.S. headquarters and first North American manufacturing facility in Delaware County.
VAT is the second international wind energy company to invest in east central Indiana. Brevini Wind is also building its U.S. headquarters and first U.S. manufacturing facility in Delaware County and expects to start production late this year.
"[Brevini and VAT] are big wins for the community," says Terry Murphy, vice president of economic development at the Muncie-Delaware County Economic Development Alliance. "We've been hit hard here too with the economy, so these are bright spots in a tough time."
To help Indiana manufacturers capitalize on the increasing demand of such "clean tech" products, the Central Indiana Corporate Partnership formed the Energy Systems Network (ESN) in 2009. ESN brings together private firms, research institutions and public agencies to leverage Indiana's rich manufacturing heritage with the need to bring new energy technologies to market.
ESN is progressing on its first two projects: the Hoosier Heavy Hybrid Partnership, an effort to bring more cost effective light, medium and heavy duty hybrid trucks to market, and Project Plug-IN, an initiative to build infrastructure that supports plug-in vehicles in metropolitan Indianapolis.
"The clean tech sector actually matches up very well with Indiana's manufacturing base," says ESN President and Chief Executive Officer Paul Mitchell. "Some of the companies that may be producing nuts, bolts and widgets for automobiles could produce those same products for the wind market going forward."
Indiana leaders believe the state's manufacturing heritage, companies' desire to innovate and skilled workforce will lead to a dynamic and prosperous clean tech sector—a proposition that will not only benefit Hoosiers, but also the environment.