how missouri is approaching wind industry supply chain development - may 2010
DESCRIPTION
An overview of how Missouri is promoting the expansion of the state\'s wind energy industry - As presented at the American Wind Energy Association\'s 2010 WINDPOWER Conference and ExpoTRANSCRIPT
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