Green Energy Incentives In Ohio
State Hopes to Offset Job Loss by Investing in Alternative Energy
Apr 6, 2009
The state's Third Frontier Project was founded in 2002 and is the largest commitment ever in Ohio to expand research, development and implementation of high-tech manufacturing technology, including alternative energy in Ohio. The $1.6 billion initiative is aimed at helping new businesses while bolstering existing ones over the next 10 years.
Third Frontier and Job Stimulus Plan
The state recently award $9 million in grants under Third Frontier to wind and solar companies, including solar start-up Xunlight, in Toledo, and solar component makers Tremco, Inc., of Beachwood, and SCI Engineered Materials, Inc., of Columbus. Wind turbine component makers WebCore Technologies, Inc., of Miamisburg, and Parker Hannifin Corp., in Cleveland, were also named as grant recipients. Similar grants have gone to Ohio companies involved in fuel cell research and development with more than $4 million awarded in recent months.
In 2008 the state legislature adopted the Ohio Job Stimulus Program, a three year program which includes $150 million for grants and low interest loans aimed at energy development, including $66 million for so-called clean coal technology and $84 million for non-coal energy development including wind and solar. Grants for non-coal green energy companies range from $50,000 to $250,000, while low interest state loans range from $1 million to $2 million.
Hundreds of Companies in Green Tech
According to Environment Ohio, a citizen-based environmental advocacy organization, a new report entitled "Growing Ohio's Green Energy Economy" shows that more than 440 businesses and research institutions in the Buckeye State are involved in high-tech, alternative energy development in the solar, wind, biomass, geothermal and fuel cell industries.
Ohio Gov. Ted Strickland's office has publicly stated the state's renewable green energy industry supported over 6,000 jobs and generated approximately $800 million in revenues in 2006 alone. Industries in Ohio involved in increasing energy efficiency employed around 500,000 Ohioians and generated over $50 billion in revenue.
State and local leaders hope these numbers only increase as incentive programs spur new development and also expansion at existing companies. Strickland during a March 25 visit to a new solar plant near the city of Toledo noted that Ohio has the fourth strongest renewable energy standard in the nation. Under Ohio's new standard, by the year 2025 a total of 25-percent of electricity sold in Ohio must come from renewable energy sources. Ohio green energy companies in the coming years could find their best customers are their own communities.
A Need for New Manufacturing
Ohio in recent years has been especially hard hit by job cuts and plant closures relating to the American automotive industry's troubles, not to mention other economic problems relating to the struggling credit and mortgage industries nationwide. Unemployment state-wide rose to 9.4 percent in February, the highest rate in Ohio since 1984. Currently there are approximately 566,000 Ohioians out of work, according to the state's Department of Job and Family Services.
With so many Ohioans jobless, and with new national emphasis being placed on alternative energy both for national security and also environmental reasons, the time appears right for the Buckeye State to cultivate green industry for future job growth and economic security.
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