PENNSYLVANIA INTRODUCES NEW WIND ENERGY INITIATIVE

publication date: Sep 8, 2008

HARRISBURG, Pa., Sept. 8 /PRNewswire-USNewswire/ -- A new wind energy initiative, jump-started by the Energy Independence Strategy that Governor Edward G. Rendell signed in July, will better connect wind energy companies and their suppliers and boost the growth of Pennsylvania's alternative energy industry, the commonwealth's top economic development official said today.

The Wind Energy Supply Chain Initiative, or WESCI, will create jobs, grow Pennsylvania's manufacturing base and produce environmentally friendly, home-grown energy, said Department of Community and Economic Development Secretary Dennis Yablonsky.

"We're confident that the WESCI initiative will prove to be an economic development catalyst for wind and other renewable energy businesses," he said. "With our large and diverse manufacturing base, Pennsylvania is well-positioned to be a world leader in making components for wind and other alternative energy product sectors."

"Pennsylvania has a growing base of wind energy providers already here," Yablonsky said. "Companies like Gamesa in Cambria and Bucks counties; GE Wind in Erie; and Iberdrola, with operations in Somerset, Schuylkill and Luzerne counties, already have a significant presence in Pennsylvania -- and they need hundreds of manufactured components to build, maintain and expand their operations. Wind and alternative energy providers need suppliers and this initiative will help providers and suppliers find and connect with each other. WESCI will help attract wind energy providers and help more Pennsylvania manufacturers to transition and enter the growing alternative energy market."

As examples of wind industry supply needs, Yablonsky cited electrical equipment, power transmission devices, turbine generators, fabricated parts gearboxes and bearings.

Initial goals of the WESCI initiative include:

• Identifying "gaps" in the existing supply chain;
• Identifying Pennsylvania companies with the capacity to meet production demands of the industry; and
• Working with manufacturers in the alternative energy sector to identify suppliers willing to relocate to Pennsylvania and to make capital investments in the commonwealth.

If alternative energy companies are based in Pennsylvania, it means a diverse and secure supply chain, reduced lead times, improved on-time delivery of components and reduced procurement costs, Yablonsky said. Through the WESCI initiative and the commonwealth's $650 million Energy Independence Strategy, the commonwealth and its regional economic
development partners are in a great position to capture market share, create jobs and ensure our place as a world-class leader in the field, Yablonsky said.

Energy Independence Strategy components include:

• $165 million for clean and alternative energy projects;
• $80 million for solar-related alternative energy production projects;
• $40 million to support early-stage business development activities through Ben Franklin Technology Partners to companies developing and implementing alternative energy and energy efficiency technologies;
• $25 million for geothermal or wind energy projects, including manufacturing facilities for wind energy; and
• $50 million in Alternative Energy Production tax credits equal to help with development, construction and equipment costs for alternative energy production projects.

Key to the WESCI initiative will be the commonwealth's industrial resource center network -- seven regional centers that provide comprehensive process improvement and strategic consulting services to Pennsylvania's small- and medium-sized manufacturers. Under the WESCI initiative, the centers will help identify supply-chain gaps, gather provider requirements and find qualified suppliers.

WESCI is being introduced at the WindEnergy 2008 conference in Husum, Germany, Sept. 9-13, where commonwealth representatives will begin to connect with European energy companies, suppliers and investors, and develop opportunities to do business here.

It was at the 2006 WindEnergy conference that Pennsylvania started its relationship with Germany-based Conergy, one of the world's leading developers of renewable energy systems. Company officials later visited Pennsylvania to meet with Governor Rendell, who provided a showcase of Pennsylvania's clean energy initiatives and introduced them to companies working on advanced technologies in the solar, wind and biofuel sectors. The company cited the growth potential of these sources in Pennsylvania as its reasons for selecting the commonwealth as a base.

Under Governor Rendell's World Trade PA initiative, the commonwealth has stepped up efforts to expand and accelerate foreign direct investment, with an emphasis on developing the clean and renewable energy sector. "We know this economic development investment strategy works because we've seen it work before," Yablonsky said.