Helping Build the Wind Industry p g yin Missouri

A Supply Chain Development Case Study

Christopher ChungPresident & CEO

The Missouri PartnershipThe Missouri PartnershipMay 26, 2010

Topics of Discussion

• Challenges in Missouri to building awareness i iamong the industry and potential supply

chain participants

• Action steps taken to-date by Missouri to build up the potential supply chainp p pp y

• What Missouri must still do to preserve momentum in this area

Challenges in Missouri

Perception-Based• Have not historically been viewed as a “wind

state”Despite adding significant generation capacity in Despite adding significant generation capacity in 2009 (300+ MW of announced new capacity)

• Had not adopted a renewable-portfolio standard until recently

RPS adopted through statewide ballot initiative in ‘08

• Historically low marketing profile overseas• Historically low marketing profile overseasPublic-private investment promotion group set up in ‘08 to market Missouri internationally for new investmentinvestment

Challenges in Missouri

Reality-Basedj ( i• Have not landed a major OEM (domestic or

international)Could not disclose ongoing conversations between g gthe state and prospective OEM investors

• Healthy manufacturing activity in automotive and other sectors (up until 2008)( p )

Would have been difficult for certain potential suppliers to justify entering the wind industry

• Traditional make-up of energy generationTraditional make up of energy generation• Lack of targeted industry incentives

Scarcity of financial assistance for companies willing to transition into the wind industryto transition into the wind industry

Actions Taken in Missouri

Product Development• Wind industry supply chain workshops

Three workshops in 2009Targeted at areas of highest industrial concentration Targeted at areas of highest industrial concentration, including bi-state regions of Kansas City and St. LouisGoal of introducing existing industry to supply chain opportunities in the wind industryopportunities in the wind industry

• Continued efforts to lure OEM investment• Structuring the RPS to maximize wind energy S uc u g e S o a e d e e gy

demand in Missouri

Actions Taken in Missouri

Wind Industry Supply Chain Workshops• Open to existing manufacturers of all sizes• Introduction to the industry (e.g. growth trends)• Overview of supply chain needs for typical

utility-scale turbine (i.e. “large wind”)• Case study interviews with current suppliers• Case study interviews with current suppliers• Review of federal and state incentives• Partnership with Great Lakes Wind NetworkPartnership with Great Lakes Wind Network• Excellent buy-in from community colleges,

utility companies, railroads, and wind farm developers (e.g. Wind Capital Group)

Actions Taken in Missouri

Product Awareness• More aggressive promotion of Missouri’s

natural advantages for wind energy generationgeneration

Extensive transmission infrastructure and high demandHigh-quality wind regime in Northwest MissouriNew renewable portfolio standard of 15% by 2021

• Increased efforts in marketing Missouri to the wind industrywind industry

Outreach efforts at AWEA and EWEAEarned media effort through industry trade

bli tipublications

The Road Ahead for Missouri

• Continued marketing push in the industryi• Need “Phase 2” supply chain development

initiatives (e.g. capability assessments)• Need targeted incentives to spur demand for Need targeted incentives to spur demand for

wind energy generationProduction incentivesInstallation incentivesInstallation incentives

• Need targeted incentives to spur supply chain development, esp. manufacturing

f i i iManufacturing incentivesCreative use of energy stimulus fundingSpecial permitting for component transportation

Questions?

Contact Information

Christopher ChungPresident and CEOThe Missouri Partnershipp+314.725.0949Chris@MissouriPartnership.compwww.MissouriPartnership.com