SUSTAINABLE ENERGY CENTER of EXCELLENCE

Posted: Wednesday, 24 September 2008 3:56PM

State Hands Out $27 Million For Major Energy Plants

The Michigan Strategic Fund has approved alternative energy partnerships in Ann Arbor, Flint and the Upper Peninsula's Kinross as the state’s first Centers of Energy Excellence.

The program, proposed by the Gov. Jennifer M. Granholm in her State of the State address in January and signed into law this summer, is designed to bring companies, academic institutions and the state together to support cutting-edge research and development and pioneer new alternative-energy technology.

The Centers of Energy Excellence announced today are:

• Sakti3 -- This Ann Arbor-based company will receive $3 million from the COEE program to establish a center focused on next-generation lithium battery technologies and processes. The proprietary technologies enable the manufacture of battery cells in Michigan instead of overseas. The University of Michigan will contribute research on battery lifecycles.

• Swedish Biogas International -- Swedish Biogas International will use $4 million from the COEE program to launch a waste-to-energy biomethane center at the city of Flint’s waste water treatment facility. The project will draw upon 15 years of experience that Swedish Biogas has in operating three waste-to-energy plants in Sweden. Kettering University’s incubator will also serve as the initial headquarters for the company’s North American subsidiary. The C.S. Mott Foundation and Swedish agencies are also partnering on the project.

• Mascoma Corp. -- The Cambridge, Mass.-based company will use $20 million from the COEE program to establish a cellulosic ethanol center in Kinross in the Eastern U.P. The center will use the abundant timber resources in the area, producing fuel from nonfood, cellulosic sources. Michigan State University and Michigan Technological University will focus on improving the supply chain for woody biomass feedstock.

In July, legislation was enacted with overwhelming bipartisan support, authorizing the MSF to allocate up to $45 million to establish and administer the COEE program, which will support the development, growth and sustainability of alternative energy clusters by indentifying and/or locating a base company with the necessary business and supply-chain infrastructure. The COEE program will match the base companies with universities, national labs, and training centers to accelerate next-generation research, workforce development, and commercialization.

“Centers of Energy Excellence will enable innovative companies doing cutting-edge work in advanced and alternative energy to partner with our world-class research facilities and universities to help make Michigan the North American epicenter of the alternative energy industry,” Granholm said. “This new program is part of our aggressive strategy to diversify our economy, create new jobs, and be the state that helps end our nation’s dependence on foreign oil.”

The COEE designees announced today went through a formal review process that included an initial technical oral interview followed by a written review of their application.

To be considered for COEE program funding, candidates must provide a cover letter detailing the project and amount of funding requested, a business plan or proposal, and a letter of support from the university involved with the project.

For complete details on the application process, visit www.michiganadvantage.org/21CJF.

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