Renewable Energy and Natural Resources in Kansas

Page 1

Department of Commerce

POWERED FROM THE

Renewable Energy and Natural Resources in Kansas


There are some assets money can never buy – and Kansas, my friend, is a state blessed with a tremendous array of natural resources. These benefits position Kansas as a forerunner in renewable energy production, ranking us No. 2 among all states for energy produced by harnessing the power of wind at 41%. But don’t blow us off quite yet, because Kansas also is a Top 10 state for sunny days, meaning we have the same solar potential as Florida. All of this makes Kansas an ideal location for renewable energy generation, equipment manufacturing and distribution, and bioenergy operations.

And for those companies asking, “How can we meet our corporate sustainability goals?” Kansas ranks 3rd in corporate wind purchases, but don’t take our word for it. Google, Amazon, T-Mobile, Target, Kohler, Textron Aviation, Spirit AeroSystems and many others use Kansas wind energy to meet their sustainability goals. As legendary singer/songwriter Bob Dylan once crooned, “The answer, my friend, in blowin’ in the wind,” and that wind is powering the future of Kansas and the nation, making Kansas … the natural choice.

ACCORDING TO AWEA, IN 2019 KANSAS WAS RANKED NO. 2 WITH WIND ENERGY BEING

41.4%

OF POWER PRODUCED AS A PERCENT OF TOTAL STATE POWER GENERATION

2 � Kansas Department of Labor 2020, � Labor Market Information Services, � Kansas Wage Survey 2019, � US Census Bureau 2019, � Kansas Department of Agriculture


ICM Inc. - Colwich, KS

Cromwell Solar - Lawrence, KS

Siemens Gamesa Renewable Energy - Hutchinson, KS

KANSAS HAS 4 EDUCATIONAL INSTITUTIONS THAT ARE EXPECTED TO BE

100%

WIND-POWERED BY THE YEAR 2021

KANSAS IS RANKED

3rd

IN CORPORATE WIND PURCHASES - 1,303 MW

3


Distance to Market from Kansas

Kansas is served by a comprehensive rail network comprised of 4,257 miles (6,851 km) of total track, which is the sixth largest network in the nation.6

Whether by highway, rail or air, Kansas offers excellent transportation and marketing advantages for your business. Centrally located and focused on building and maintaining an outstanding multimodal infrastructure, it is easier and less expensive to ship to and from Kansas.

Kansas’ central location and extensive network provides Kansas-based companies a safe and reliable route to major interstate highways that can connect them to 85 percent of the nation’s population in less than a two-day drive.

2

AVERAGE TIME FOR A GROUND PACKAGE TO REACH DESTINATION

KM I | 80 5

500 M

| 1,2 07

KM

7 5 0 MI

1,200 MI | 1,931 KM

K A N S A S

OVER THE ROAD

LOGISTICS / SHIPPING

RAIL TRANSPORT

AIR TRANSPORT

4 Association of American Railroads

6


WIND RESOURCES AND CURRENT WIND FARMS/PROJECTS IN KANSAS

A broad range of companies have renewable energy activities in Kansas. From wind farm construction to ethanol production, component manufacturing to engineering services, companies can leverage the many benefits of access to natural resources, a skilled workforce and our outstanding transportation infrastructure. Kansas is proud to be the home to a multitude of brands like:

5


Renewable Energy Related Operations in Kansas Company

Location

Description

Alltite*

Wichita

Tools/bolts for wind farm construction

Array Technologies

Coffeyville

Solar equipment distributor

Black & Veatch*

Overland Park

Engineering services

BNSF Logistics

Kiowa / Emporia / Wellington

Wind component distribution services – laydown yard

Cargill

Wichita

Biodiesel producer

Conestoga Energy*

Garden City / Liberal

Ethanol producer

Cromwell Solar*

Lawrence

Solar Installation

EDP Renewables

Overland Park (office) / Allen / Coffey / Cloud counties

Renewable energy developer/owner/operator

Enel Green Power North America

Marion / Dickinson / Finney / Grant / Haskell / Elk / Clark Lincoln / Ellsworth counties

Renewable energy developer/owner/operator

ENGIE

Thomas County

Renewable energy developer/owner/operator

Fuchs Lubritech

Kansas City, KS

Lubricants for wind turbine manufacturers

Good Energy Solutions*

Lawrence

Solar installation

ICM Inc.*

Colwich

Biofuel production design

JR Custom Metal Fabrication*

Wichita

Components for wind turbine manufacturers

Kansas Ethanol*

Lyons

Ethanol producer

Kiewit

Lenexa

Engineering services

King Solar*

Hutchinson

Solar installation

KK Wind Solutions US

Lenexa

Control systems for wind turbines

NextEra Energy

Pratt / Kingman / Ness / Trego / Gray counties

Renewable energy developer/owner/operator

Siemens Gamesa Renewable Energy

Hutchinson

Wind turbine nacelle and hub manufacturer

Terracon Consultants*

Olathe

Environmental services

Tradewind Energy*

Lenexa

Renewable energy developer

Transportation Partners & Logistics

Garden City / Parsons

Wind component distributor services – laydown yard

WATCO Supply Chain

Pawnee Rock

Wind component distributor services – laydown yard

*Indicates headquarters or regional headquarters presence in Kansas. Source: Kansas Department of Commerce, Kansas Department of Labor, Kansas Manufacturing Solutions

6


Educational Assets & Talent Resources Support for the renewable energy industry can be seen in our educational institutions. Kansas' primary and secondary school participation in programs such as Wind for Schools, KidWind and Collegiate Wind Competition has helped create a pipeline of graduates with renewable energy interests. The state’s strong workforce and customized training programs offer further advantages to renewable energy equipment manufacturers and suppliers, as well as wind and solar power operators. CLOUD COUNTY COMMUNITY COLLEGE started its wind energy technician program in 2004, and was one of just a handful of programs nationally. This leading program has now been expanded, offering a two-year Associate of Applied Science degree in Renewable Energy Technology that provides both wind- and solar-energy training opportunities. > Wind – Most students attending the Wind Energy program earn a two-year Associate of Applied Science degree. However, CCCC also offers a oneyearWind Energy Technician Certificate for studentswho have already attained a two- or four-year degree in another discipline. The degree or certificate coupled with an optional internship at one of the Kansas wind farms has resulted in a high success rate of hire within the industry for CCCC students. > Solar – CCCC also offers solar energy technology training under its Renewable Energy field of study. The program is intended to train students to become solar project designers, installers and operation technicians. The program includes training on the college’s new energy-generating Sun Power Solar Farm, which was designed and built by college Solar Energy students, providing them a unique, hands-on learning opportunity with the operational solar farm.

Kansas offers a variety of specialized training programs for the renewable energy workforce.

> Regional Rural Technology Center – CCCC has also established a wind and solar satellite training program at the Allen County Rural Regional Technology Center, located near LaHarpe in southeast Kansas. COLBY COMMUNITY COLLEGE offers certificate programs in Solar Photovoltaic (PV) and Wind Technology. HUTCHINSON COMMUNITY COLLEGE offers a Renewable Energy Technology certificate option through its Manufacturing Engineering Technician program. This training provides technicians who through their maintenance skills optimize manufacturing facility and equipment operations, particularly those related to renewable energy sources. JOHNSON COUNTY COMMUNITY COLLEGE offers an Electrical Technology certificate program and an Associate of Applied Science degree that includes training for solar photovoltaic installers. WICHITA STATE UNIVERSITY College of Engineering offers an undergraduate certificate in Sustainable Energy Technology to engineering majors seeking successful careers in the fast-growing field of clean energy. Courses include: > Environmental Engineering Technology > Energy Management and Sustainability > Solar and Wind Engineering > Renewable Energy Engineering

7


KANSAS IS AMONG THE 10 SUNNIEST STATES IN THE COUNTRY, WITH ABOUT THE SAME SOLAR POWER POTENTIAL AS FLORIDA.

KK Wind Solutions- Lenexa, KS

En

Industry Resources Renewable energy workforce programs and resources offered by the state to help companies:

Kansas State University (K-State) The Electrical and Computer Engineering (ECE) department at K-State is conducting research initiatives in power electronics and energy research, as well as power systems and smart grids applicable to renewable energy. Resources include:

University of Kansas (KU) KU’s Experimental Program to Stimulate Competitive Research (EPSCoR) hosts natural scientists, social scientists and engineers of various disciplines from KU, KState, WSU and Haskell Indian Nations University. NSF-funded research includes:

•Power Electronics and Autonomous Systems (PEAS) Research Group •Smart Grid Lab

• Climate Change and Energy (biofuels and solar) • Catalysis for Renewables (conversion of carbohydrates in plant-based biomass to ethanol) • Next Generation Energy Storage Technologies manufacturing process to production.

Wichita State University (WSU) – The National Institute for Aviation Research (NIAR) at WSU conducts mechanical, full-scale structural and environmental research on wind turbines. Field testing is simulated at the Walter H. Beech Wind Tunnel. Other research resources include: •Center for Energy Studies •Sustainable Energy Science and Engineering Lab

8

KU’s Center for Environmentally Beneficial Catalysis (CEBC)is helping the State of Kansas chart a course toward a thriving renewable chemicals industry. CEBC is developing novel technologies to convert grasses, crops and after-harvest leftovers into various chemical building blocks.


Terracon Consultants Inc. - Manhattan, KS

Kansas produces enough wind energy to power nearly 2 million homes annually.

In 2019, wind energy surpassed coal for the first time as the largest energy source for generating electricity in Kansas.

gie - Kansas

TP&L Management Solutions - Parsons, KS

BNSF Logistics Solutions - Near Dodge City, KS

LocationOne is a searchable database of available sites and buildings. Real estate can be found by searching square footage, acreage, geographic location and other important variables. Its integrated GIS component uses customizable layers with market information, demographics, workforce, infrastructure, housing, business and industry to help locate relevant real estate for projects. Heroes MAKE America connects the military community with career opportunities in the renewable energy industry. Heroes MAKE America provides an integrated training, certification and career readiness program in partnership with local community colleges to prepare transitioning service members, veterans, National Guard, reservists and military spouses for rewarding careers in renewable energy.

Green Energy Resources

Our vast wind and solar resources can generate clean power for everything from green hydrogen production to electric vehicle charging infrastructure. In addition, Kansas has an abundant supply of feedstock for biogas production from our agricultural commodities, as well as our growing dairy sector. Kansas always has, and continues to be a resource for companies looking to expand their green energy businesses.

The Siemens Gamesa facility, located in Hutchinson, Kansas, was set up in 2010 to assemble nacelles and hubs. Since opening, the facility has completed nearly 5,000 nacelles, shipping to 16 U.S. states, as well as Canada, Chile and Peru.

As new technology continues to develop, Kansas offers an ideal location for future green energy production opportunities. 9


0.13%

Electric Grid Mix in Kansas

7.01%

17.83% With an ever-increasing percentage of the state’s energy coming from renewable sources, Kansas offers an immediate advantage to companies committed to meeting corporate sustainability goals.

41.45%

33.38%

Wind: 41.45%

Natural Gas: 7.01%

Coal: 33.38%

Oil: 0.13%

Nuclear: 17.83%

Solar and Hydro: 0.08%

Wind Energy Kansas is among the top four states for operating wind farms, with over 6,000 MW of wind farms currently in operation representing capital investment of $11.4 billion through 2019. Kansas wind is very cost effective due to high capacity factors and has therefore been attractive to out-of-state off-takers purchasing a significant percentage of the wind energy produced in Kansas. Kansas is ideal for wind-turbine component manufacturing, as well as service operations for maintenance of the thousands of wind turbines in and around the state. Our central location and outstanding transportation infrastructure provide convenient and economical access to the regions with the greatest wind energy activity.

10

0.08%

Siemens Gamesa Renewable Energy chose Kansas for its North American wind turbine nacelle production facility, citing transportation advantages, pro-business climate and state and local support. A Kansas location offers companies in the wind supply chain ideal access to the Siemens Gamesa nacelle plant and other manufacturers in the region.

Transmission Transmission is critical to the continued expansion of wind energy in Kansas and the rest of the wind corridor. The Grain Belt Express transmission line is an approximately 800-mile high voltage direct current (HVDC) transmission line being developed by Invenergy Transmission. This HVDC line will deliver up to 4,000 megawatts (MW) of low-cost, homegrown clean energy from western Kansas to millions of Americans in the Midwest and other regions.


U.S. WIND MAP

Located in the heart of the nation's Wind Corridor and ranked second in the nation for wind energy potential, Kansas wind generation has been skyrocketing. Kansas is committed to the growth of this industry through the development of additional wind farms and a strong supply chain.

Corporate Sustainability Goals Companies with corporate sustainability goals have several options to reach those targets. Various purchase arrangements may be offered by developers with renewable energy projects in Kansas, and a number of utilities across the state have wind and solar energy as part of their electricity portfolio. Energy-efficiency incentives may be offered by some service providers, and there is also a “green tariff” type of option available in some locations that allows commercial and industrial customers to offset a percentage of their energy usage through a renewable resource.

For example, depending on the service territory, an Evergy customer can sign up for Wind Subscription giving customers the opportunity to support wind growth throughout the community in an affordable, simple way. Customers can choose a renewable energy purchase for up to 100% of their power for an additional cost per kWh. In addition, throughout the entire service territory, Evergy may enter into a wholesale contract with customers. Evergy purchases Renewable Energy Credits (RECs) from the wholesale market to match 100% of the customer’s load, and Evergy will sell the RECs to them at a fixed and agreed upon dollar per REC on an annual 7 basis


DODGE CITY, KANSAS, IS THE WINDIEST CITY IN THE UNITED STATES BASED ON AVERAGE ANNUAL WIND SPEED.

Studio 804’s Platinum LEED Sustainable Prototype- Greensburg, KS-

Renewable Fuels and BioEnergy Kansas is among the Top 10 states in the production of biofuels, with multiple ethanol plants across the state.

Kansas has strong potential for biogas, biodiesel and related operations. Companies benefit from economical access to feedstock for bio-based fuels, as well as proximity to feedlots that serve as a market for the animal feed resulting from biofuel byproducts. With 3 million head of cattle on feed in southwest Kansas, biofuel plants can enjoy the cost savings of sending out wet distillers’ grains to nearby feedlots. Kansas has 12 operating biofuel facilities with a combined permitted capacity exceeding 619 million gallons per year. Additional biofuel facilities are being developed, as well as other biomass-to-energy operations. Kansas is home to industry leader ICM, which has designed and built many of the nation’s ethanol plants and was selected by the U.S. Department of Energy as one of four small-scale biorefinery companies to lead biomass-to-ethanol research efforts using innovative conversion technologies. 12

2020 Ethanol and


Siemens Gamesa Renewable Energy - Hutchinson, KS

TARGET BUYS ENOUGH KANSAS WIND ENERGY TO POWER 150 OF ITS STORES. Enel Green Power, Diamond Vista - Marion County, KS

Biodiesel Facilities

Solar Energy Kansas has a great solar rating and is seeing growth in this sector in residential/small commercial, as well as community solar and potential utility-scale projects. The state’s strong workforce and customized training programs offer further advantages to solar equipment manufacturers and suppliers. Various educational institutions have created specialized solar programs and are also conducting research in this sector. With the growth in solar energy throughout the region, Kansas offers an ideal location for solar equipment production and distribution.

IKEA is one of the first major corporations to go solar in Kansas with its 730 kW rooftop installation in Merriam, Kansas.

13


Available Incentives As a leader in renewable energy, Kansas offers an immediate advantage to companies committed to meeting corporate sustainability goals from renewable sources. Kansas is committed to the growth of this industry by developing additional wind farms and a strong supply chain. In addition, the state has an excellent solar rating, supporting growth in residential and commercial solar energy use. Kansas has several incentive programs to lower the cost of the development of renewable energy projects in the state.

•Property Tax Exemption for Renewable Energy Generation

• Sales Tax Exemption for Construction, Build Out, Remodel, Furnish and Equip Worksite

• Biomass-to-Energy Plant Tax Exemption and Deduction

• Sales Tax Exemption on Utilities Consumed in Production

• Waste Heat Utilization System Tax Exemption and Deduction

• Sales Tax Exemption on Ingredient or Component Part

• Alternative-Fuel Fueling Station Tax Credit

• Sales Tax Exemption on Items Consumed in Production

• Carbon Dioxide Capture/Sequestration Tax Exemption and Deduction

• Sales Tax Exemption on Production Machinery and Equipment • No Inventory Tax

• Withholding Tax Incentives

• No State or Local Earnings Tax

• Training and Retraining Assistance

• Funding Dedicated to Transportation Improvements

• Corporate Income Tax Credits

• Utility Incentives to Offset Rate Costs

• Property Tax Exemption on Machinery and Equipment by State Statute

14

• 77 Designated Opportunity Zones

The population of Kansas is more than 2.9 million.

Median Age 37.1 21% Generation Z and 20% are Millennials.

91% of Kansas adults have a high school diploma.

Kansas’ median housing cost of $145,400.

Top States for Business

Kansas Achieves High Rankings

2020 AreaDevelopment

Kansas Ranks 6th

Kansas recognized as the most improved state in the country.

U.S. News & World Report Best States 2019

Kansas recognized as the most improved state in the country.

2019 Reason Foundation’s Annual Highway Report


« Kansans, on average, experience a 19-minute commute... the sixth quickest commute in the country. « The most common non-English languages spoken in Kansas are Spanish, Vietnamese, German and Chinese.2 « Ranking No. 10 in the nation for affordable healthcare costs and No. 15 for overall healthcare system, Kansas offers quality healthcare at an affordable price.6

1

Council for Community and Economic Research 2020, 2 US Census Bureau 2019, 3 Big 7 Travel 2019, 4 NOAA Climate Comparison 2019, 5 Kansas Wildlife, Park and Tourism, 6 Wallethub 2020 K-State Polytechnic Campus - Salina, KS

3%

HIGHER

66% OF KANSANS ARE IN THE LABOR FORCE, WHICH IS

Current Kansas

production

creates a market for about 183 million bushels of sorghum and corn.

THAN THE REST OF THE UNITED STATES.

Tuttle Creek Lake - Manhattan, KS

KANSAS RANKS NATIONALLY IN THE

Top 5 FOR COST OF LIVING AT 12.1% BELOW THE U.S. AVERAGE

Fresh Farmers’ Market - Lawrence, KS


Department of Commerce

1000 SW Jackson St., Suite 100 Topeka, Kansas 66612-1354 785-296-5298 | kansascommerce.gov

rev. 3.21.2021


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.