Dow Chemical Company (NYSE: DOW) plans to expand its Michigan-based clean energy operations in wind, solar and advanced-battery manufacturing at a cost of more than $1 billion, according to Governor Jennifer M. Granholm.
The expansions are expected to create more than 6,900 new renewable energy jobs.
The company plans to invest $952 million in future projects and has leveraged an additional $161 million from the federal energy department.
The Michigan Economic Development Corporation (MEDC), approved key incentives to help win Dow’s projects over competing national and global sites.
The Michigan Strategic Fund (MSF) board approved a Centers of Energy Excellence designation and $5 million grant for Dow to establish operations focused on cost-effective carbon-fiber materials for application in the wind-energy and transportation sectors. The Oak Ridge National Laboratory (ORNL) will collaborate with Dow. Through ORNL’s participation, the U.S. Department of Energy will provide a $5 million match, and Dow will contribute up to $10 million of in-kind resources.
On Thursday, the Michigan Economic Growth Authority (MEGA) board approved a new job-creation state tax credit valued at $61.3 million over 15 years for Dow projects, which includes the full-scale production facility in Midland for the company’s DOW™POWERHOUSE™ Solar Shingle.
The solar project is expected to generate $249 million in private investment and create 6,100 new jobs in the value chain, including 1,275 direct Dow jobs. Additional projects over the life of the tax credit could create up to an additional 425 jobs and $351 million in additional investment.
In addition, the MEGA board approved an advanced-battery tax credit valued at $42 million to support Dow Kokam’s advanced-battery manufacturing operations. The advanced-battery credit will support phase II of the project involving the manufacture of lithium ion packs. The company is investing $342 million in this phase of the project, which is expected create 480 total jobs.
Phase I and Phase II of the Dow Kokam project is expected to generate $670 million in new private investment and 800 new jobs. To support the project, the MSF board approved on Wednesday a 15-year state Renaissance Zone for the 56.22-acre site.
The projects come on the heels of a report titled, “American Innovation: Manufacturing Low Carbon Technology in the Midwest,” released earlier this year, which used economic research from Deloitte to estimate that climate and energy policies could create up to 100,000 new jobs in the region and generate additional market revenues of up to $12 billion, boosting state and local tax revenues by over $800 million by 2015.
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