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LED lightmaker Relume Technologies receives seven-figure VC investment

Jeff Bocan sees a storm a brewin'. It's why his company, Beringea, decided to make a seven-figure investment in Oxford-based Relume Technologies, a maker of LED lights. That storm is a combination of LEDs, maturing technology, and federal money.

"A perfect storm has come onto the horizon, and it's about to hit," says Bocan, managing director of Beringea.

The Oxford-based firm makes LED lights for street lampposts and parking garages. LED lights are expected to be the future of lighting, using as little as 10 percent of the electricity used by incandescent bulbs. Think CFL bulbs on steroids when it comes to energy efficiency and durability.

Bocan says LED light technology is becoming affordable to the general public and local governments. That paired with large amounts of federal stimulus cash geared toward creating energy efficiency means the potential for big profit margins.

"It's a very visible pro-green thing that a politician or a municipality can take on," Bocan says.

Relume has also developed a smart-grid technology that can allow users to dim street lights or cause others along a certain road to flash to highlight an exit route in an emergency. It can also tell its users when a light is malfunctioning.

Beringea is a venture capital firm based out of Farmington Hills.

Source: Jeff Bocan, managing director of Beringea
Writer: Jon Zemke

New jobs, investments announced at Detroit Auto Show

Last year the North American International Auto Show was all about whether Metro Detroit will be able to keep its automotive jobs. This year, it's about creating a lot of automotive jobs.

A number of investments in the metro area have either been announced or come to fruition in the recent weeks leading up to and during the show. And these aren't the normal metal-bending jobs pumping out the gas guzzlers of yore. These are the "wave-of-the-future" jobs that specialize in developing new energy efficient technology for the automotive industry.

Here is a little taste of what has been announced:

  • The first advanced lithium-ion battery for the Chevrolet Volt was produced at GM's Brownstown Battery Pack Assembly Plant. GM invested $43 million to turn the 160,000-square-foot building into a landfill-free facility for production of lithium-ion battery packs for the Volt and other electric vehicles with extended-range capabilities.
  • Ford plans to retool its Wayne Assembly Plant (a $550 million investment) to make the compact Ford Focus and its electronic version. That impacts about 3,200 jobs directly.
  • Ford also plans to invest another $450 million in its electric vehicle program. The investment is expected to create about 1,000 jobs in Michigan, creating Ford's next generation of hybrid and hybrid electric vehicles.
  • A dozen Michigan businesses won $248 million in federal tax credits that will create an expected 17,000 green jobs. Among the lucky winners are Livonia-based Stirling Energy Systems (solar power), Troy-based Ilumisys (LED lights) and Monroe-based Ventower Industries (wind turbines).
  • Progressive Insurance Automotive X PRIZE chose Michigan to host a competition that aims to pit some of the world's most fuel efficient vehicles against one another in a quest to win a share of a $10 million prize.
Source: Ford, General Motors, Progressive Insurance Automotive
Writer: Jon Zemke

MEDC approves brownfield projects, expected to create 1,500 jobs

The Michigan Economic Development Corporation approved 10 brownfield projects that are expected to create 1,500 jobs and help seven companies invest $254 million.

The projects include the normal automotive-centric projects and an IT center development in Detroit. The idea behind the tax credits is to turn some of the state's brown fields into viable commercial spaces available for investment and job creation. Michigan's definition of brown fields ranges from polluted land to obsolete buildings.

The Metro Detroit projects include:

  • Ohio Module Manufacturing Co. taking over ArvinMeritor's Southwest Detroit plant, saving 200 jobs that manufacture complete chassis modules for the Jeep Wrangler. The Toledo-based company plans to invest $21.4 million into the facility.
  • Detroit-based Strategic Staffing Solutions plans to spend $7.3 million to open a new IT center in the Motor City. That deal is expected to create 437 jobs.  
  • Williams International expects to invest $12 million to update its Commerce Township facility so it can build small gas turbine engines for military, industrial, and commercial aircraft applications
  • The transformation of the old Ford Wixom plant received a big boost with $137 million in tax credits over 20 years. Clairvoyant Energy Solar Panel Manufacturing and Xtreme Power plan to turn the facility into an alternative energy manufacturing base that will create 3,250 jobs as part of an $856 million project.

Source: Michigan Economic Development Corp
Writer: Jon Zemke

Ford Wixom plants to become $725M alt energy park

What was once a sign of the current contraction of the U.S. auto industry is about to become a symbol of Michigan's new economy.

Ford is selling its closed factory in Wixom (the big one that looms over I-96) to Xtreme Power and Clairvoyant Energy. The Texas and California-based firms plan to redevelop the massive complex into one of the nation's largest renewable energy manufacturing parks. That equals $725 million in investment and 4,000 new jobs.

"This is a giant step forward for Oakland County and the state as we become a global leader in renewable energy," Oakland County Executive L. Brooks Patterson said in a statement.

The 52-year-old facility will manufacture energy storage systems and high-efficiency solar panels at the site. That could mean a lot of alternative energy assembly because the 320-acre site has 4.7 million square feet of space.

The three companies have been working with local and state officials to come up with a redevelopment plan to make the deal a reality. These details are still being worked out.

Source: Ford and Oakland County
Writer: Jon Zemke

GREEN SPACE: Greenovation goes national with NPR spot

A Metromode favorite, Greenovation.TV, has hit the big time, with a slot on The Environment Report, a nationally-syndicated show with a home studio at Ann Arbor's Michigan Radio.

Twice a month, there will be a Greenovation segment that will focus on the how-to of greening a home. Greenovation.TV's Matt Grocoff says topics will cover the gamut, from "green bling" to "low-hanging fruit." What he means is that things like geothermal, solar panels, and wind turbines are all fair game -- although they might be currently out of reach for most people -- as are more-affordable choices such as limited-shower heads and dual flush toilets. "There are really practical things people can do in their homes now to make them more sustainable," he says. "If zero-energy, zero-waste homes are the ultimate goal, just because you can't start at zero doesn't mean you shouldn't start at all."

Grocoff knows from Adam. He and his wife Kelly base Greenovation.TV on their own experiences greening their home. "Our entire energy bill last month -- hot water, central air, water, and all gas -- was $58 to run the whole house," he says. "Our neighbors, who don't have central air, spent almost double that that, so the whole idea [that energy efficiency] means less comfort and more expense [is no longer tenable.]"

Greenovation's first Energy Report segment was on the whole house fan, an energy-efficient alternative to air conditioning. Listen to it here.

Source: Matt Grocoff, Greenovation.TV
Writer: Kelli B. Kavanaugh


Michigan grows green jobs sector, according to state report

Jobs tied to sustainability are often seen as replacements for fast evaporating automotive employment in Michigan, or so the conventional wisdom goes. There might just be some truth to that in the latest Michigan Green Jobs report.

The report notes that Michigan has 109,000 jobs in the private sector that would qualify as green, with about 97,000 of those workers serving in direct roles and the rest as indirect support. That equates to about three percent of private sector employment, leaving a big upside for Michigan.

"There is huge room for growth," says Andy Levin, deputy director of the state Dept. of Energy, Labor and Economic Growth. "This is happening before any of the public policy measures have had a chance to take effect."

Those policy measures include Michigan's new Renewable Energy Portfolio Standard, which calls for 10 percent of the state's energy to come from renewable sources by 2015. Several other states and countries have implemented such standards and reaped big job gains.

Germany has pushed aggressively for solar energy. It now has more solar panels on barn roofs than there are solar panels in California, Levin says. That has helped make sustainability one of the fastest growing sectors in the German economy, where green sector employment is expected to pass that of the automotive sector.

Levin also points out that the growth in green industries like alternative energy and energy efficiency has also helped spur more entrepreneurism in Michigan.

"This is a big area for small businesses and start-ups," Levin says. "That's a very encouraging thing."

Source: Andy Levin, deputy director of the Michigan Dept. of Energy, Labor and Economic Growth
Writer: Jon Zemke

Great Lakes Towers gets ready to build wind turbines

It looks like the fabled farms of wind turbines and the factories that make them are starting to come to Michigan.

Brownstown-based Great Lakes Towers is the first to sign up for duty. The alternative-energy start-up is in the process of securing financing to build wind turbines and develop the wind farms that will house them on the eastern half of the continental U.S.

It plans to choose the location of its new factory soon. It's a move that is expected to create 50-60 jobs when it's up and running next year and up to 150 by 2011. Most of these jobs will be in engineering and skilled trades.

The company also chose Michigan for a couple of key reasons. First off the state's windy climate makes it a prime location to build wind farms. Second, its central location in the Great Lakes will make it easier to ship the turbines.

"Having direct access to the Great Lakes is very important for us," says Ian D. Charles, Chief Financial Officer of Great Lakes Towers.

Making this possible now is a $5 million loan from the Michigan Economic Development Authority, along with a $2 million forgivable loan.

Source: Ian D. Charles, Chief Financial Officer of Great Lakes Towers
Writer: Jon Zemke

Ann Arbor's WindSight wins ACE competition, plans to add up to 60 people

WindSight has its sights set on job creation in Ann Arbor, after taking home top prize at ACE's elevator pitch contest

Excerpt:

Ann Arbor's WindSight is on a hot streak and expects that to translate into upwards of 60 jobs within the next five years.

But the alternative-energy firm still has a long way to go to reach its goal. Right now it has two employees but expects that number to reach 10-20 by the end of next year.

"We're looking to ramp up hiring this year and next," Williams says.

Read the rest of the story here.

Ann Arbor's Shepherd Advisors helps create more green jobs in Michigan

Shepherd Advisors is helping bridge the gap between Michigan's clean-tech potential and reality.

Excerpt:

In 2000 Loch McCabe saw a need and started to fill it. Given the recent focus on sustainable industries, he was a bit ahead of the curve. McCabe's Ann Arbor-based Shepherd Advisors helps businesses and institutions either break into the clean-technology sector or helps them become greener.

"There was a huge gap between the potential for clean technology companies in Michigan and what was actually happening," McCabe says. "I started Shepherd Advisors to help the progress of clean technology companies in Michigan."

Read the rest of the story here.

GREEN SPACE: National consultants converge to design a 'leaner, greener' Detroit

Over the Halloween weekend, sustainability experts from around the country joined with local architects, planners and other interested parties in Midtown Detroit for an SDAT, or Sustainable Design Assessment Team, charette.

A sobering aspect of each and every discussion was the understanding that Detroit will continue to shrink -- down to about 500,000 or 600,000 residents by 2025. So what to do with an extra 88 square miles of land?

First, let's look at the core 50 square miles of livable space. It would be developed as a series of densely populated urban villages, each with housing, recreation, entertainment and work opportunities, each linked to each other and the downtown, or urban core.

From this base, SDAT worked at making policy and design recommendations in five areas, all of which fed into one another as well as the urban villages concept: community development, transportation and transit, open space, economic development and local food systems and community gardens.

Some points of note: many ideas centered on one of the city's greatest assets, the Detroit River -- for example, "blueways" were discussed as a mode of transportation; the importance of incorporating wind turbines into Detroit's energy system was stressed; Eastern Market was lauded as "the best farmers market in the country" by Edwin Marty, the executive director of Jones Valley Urban Farm in Alabama; reduction of energy costs for individuals was stressed as a method of creating wealth; and local food production within each urban village node was recommended.

A serious lack of jobs was examined -- and a strategy was developed for the creation of 75,000 over 10 years by leveraging new green industries as well as existing employment leaders like health care.

Next step: implementation. Local SDAT leaders will begin working with organizations and institutions to move its strategies forward. Funding from Kresge Foundation has been secured to undergo this process.

A tall task with a promising start.

For more info about SDAT, check out Zachary and Associate's website or contact Zachary at 313-831-6100 or WARM Training Center at 313-894-1030.

Source: Diane VanBuren Jones, WARM
Writer: Kelli B. Kavanaugh

GREEN SPACE: NextEnergy names new president, launches new website

Sometimes the universe means for things to happen. The day before your intrepid Green Spacer was schedule to meet with NextEnergy's Mark Beyer for a catch-up session, she received in her in box a press release announcing the organization's new president.

Guess what my first question was about?

NextEnergy's new president and chief operating officer, Keith Cooley, has a name probably familiar to Metromode readers: he's most recently been director of the state's Department of Labor and Economic Growth. One of the first things he brings to the table is an executive order signed by Governor Granholm adding an energy department to DELEG, which fits in perfectly with the finally-established Renewable Portfolio Standard that calls for 10% of the state's energy production be from renewable sources by 2015.

It is this documentable shift in political winds that poises NextEnergy to become an even bigger player in Michigan's attempt to diversify its economy.

And they've already done a bunch.

A third of their efforts are spent on attracting federal dollars to Michigan alternative energy projects -- so far, they've netted $28 million of which more than $26 million has stayed in Michigan. Much of this is in the homeland security sector, where efficiencies mean more than just sustainability. It means security too.

The next third of the NextEnergy pie is devoted to industry services. Here's where they work on establishing a wind energy manufacturing work group to prepare companies and draw attention from out-of-state and overseas companies. It's also where small businesses are nurtured and bigger ones are helped to evolve with the times.

Finally, the organization works with foundations to write white papers on subjects like Renewable Portfolio Standards and build a flexible testing platform.

The website they launched late this summer describes all this in clear terms, but what you can't yet see is one of the most important parts of the site: a database of all state university research projects in the alternative energy sector, which sounds like a no-brainer but is found no where else in the U.S.

Looks like Keith Cooley has arrived to take the helm of an organization that is full steam ahead.

Source: Mark Beyer, NextEnergy
Writer: Kelli B. Kavanaugh




GREEN SPACE: Local universities, sustainability experts convene to improve the D's green cred

In a city where many see lemons, people involved with Detroit's Sustainable Design Assessment Team (SDAT) program see lemonade.

See, Detroit was selected as one of nine cities to participate in the program by the American Institute of Architects, and it is an opportunity being seized with relish by those involved. "We have a chance to make Detroit into a model for sustainability," says Eleanore Eveleth, who is working to coordinate the SDAT process.

The SDAT program will look at four realms of sustainability: transportation, energy, land use and the new economy. Local experts in each area will get teamed with national ones in a three-day charette from October 30 to November 1 -- but first, the locals are gathering on October 6 to make sure the big event is as efficient as possible.

"We want to have a more productive meeting on the 30th," says Eveleth. "We will give an overview of the SDAT process, which is what the folks from out of town are coming to do."

Evelath expects community organizations, residents, people that live in the area and  those already working on green products and issues to participate. "There are a lot of people already working on small bits and pieces of this," she says. "This is a way to bring all these people together and learn from folks that have done this in other cities."

SDAT has made a survey available on-line to help frame the process' roadmap. Click here to get started.

The SDAT kick-off is on October 6 from 6:30 to 8:30 p.m. and will be held at the Ecumenical Theological Seminary, located at 2930 Woodward in Detroit. The three-day charette will be held at the University of Michigan Community Design Center, also in Midtown. For more information, call Zachary & Associates at 313-831-6100.

Source: Eleanore Evelath, SDAT
Writer: Kelli B. Kavanaugh

GREEN SPACE: The politics of green

Now that the state primary is behind us, it's time to look straight ahead at the national election. The major parties have decided that Michigan is actually important to them, so we have Senators McCain and Obama coming here and talking about issues that do matter to this state. (Like, um, jobs.)

But it is less than inspiring that environmentally, they tend to limit the conversation to fuel efficiency (Obama) and nuclear energy (McCain). Where is the talk about the value of the Great Lakes to this entire continent? How about curbing sprawl and the importance of strong urban centers to healthy agricultural areas? Transit? Amtrak?

Forgive me my cynicism, but increased fuel efficiency and the construction of nuclear plants are just not enough. And it says a lot about our candidates that they've decided to keep strong environmental rhetoric out of their stump speeches for fear of alienating potential voters.

It also says a lot that they are probably right. Over the years, the American concept of "freedom" has become confused with the concept of "get whatever I want whenever I want no matter the consequences." Most people don't want to be told by their next president to live closer to work or to cut the A/C or to ride their bike to the grocery store. (Remember Carter's cardigan?)

Sigh.

Onto state politics, which are no less disappointing. Metromode has talked RPS, or renewable portfolio standards, before. A coalition of alternative energy companies, advocates and environmental groups have been calling for at least 20% of the state's energy be produced by renewable sources by 2020. The state Senate recently gutted the House's modest reach towards that goal, leaving Michigan in a really non-progressive place nationally when it comes to renewable mandates.

This matters because companies want to see that a state is supporting renewable energy before investing in it.

Glenn Puit wrote a comprehensive analysis of the battle for RPS for the Michigan Land Use Institute. Read it here.

This is a serious issue that Michigan needs to address sooner rather than later.

Writer: Kelli B. Kavanaugh

GREEN SPACE: The time has come for LED

Metromode has talked about compact fluorescent bulbs (CFLs) before, and we will continue to talk of them as an improvement over traditional light bulbs. But some pioneers are going even further, buying LED (light-emitting diode) light bulbs that cost waaay more than CFLs but use a fraction of the electricity.

Given how energy costs are climbing, that initial investment will pay off sooner rather than later. The Park Bar in Detroit is lit with all LEDs and uses just 130 kW of electricity, which is the equivalent of two standard light bulbs. Owner Jerry Belanger estimates that he made back the higher purchase cost of the LED bulbs with his energy savings in just four months.

Other local examples include the exterior lights at Motor City Casino, Ann Arbor's streetlights and the majority of newer stoplights at intersections.

It looks like residential use is still far away for the vast majority of us, though. As a recent New York Times article put it:

The problem, though, is the price. A standard 60-watt incandescent usually costs less than $1. An equivalent compact fluorescent is about $2. But in Europe this September, Philips, the Dutch company dealing in consumer electronics, health care machines and lighting, is to introduce the Ledino, its first L.E.D. replacement for a standard incandescent. Priced at $107 a bulb, it is unlikely to have more than a few takers.

But as bulb manufacturers and the government continue to take baby steps towards complete embrace of the technology, local companies like Relume are jumping on the horse before it becomes a bandwagon.

Take note, would-be entrepreneurs.

Writer: Kelli B. Kavanaugh





EnerWatch expects to double staff by end of year

Dominic R. Pizzo never liked how much humidity messed with his handiwork. The former carpenter couldn’t get over how much moisture changed the appearance of his woodworking. Thsi pride in craft led to the creation of EnerWatch Systems.

The Shelby Township-based start-up helps developers control energy costs while also keeping tabs on humidity inside of a home. The end result is a buttoned-up structure with little chance of run-away energy bills or humidity-inspired mold creeping in.

"Even though construction is down there are a lot of empty units sitting there," Pizzo says.

He’s talking about foreclosed homes sitting empty, waiting for their next inhabitant. EnerWatch and its 10 employees in Michigan and Florida make sure those units are sealed so expensive furnace air doesn’t leak out or humid outside air sneak in.

It’s proving to be a booming business for Pizzo. His company, which started in December, has signed three big contracts and is talking to the likes of Wells Fargo and Countrywide to take care of their foreclosures. It’s enough potential business that Pizzo expects to double his number of employees by the end of the year.

Source: Dominic R. Pizzo, president of EnerWatch Systems
Writer: Jon Zemke
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