Alternative energy’s future looks bright By JOHN SKIPPER Courier Lee News Service Renewable energy and alternative fuels are creating “a new economy” for Iowa, according to the state’s top economic development official. Bret Mills, director of the Iowa Department of Economic Development, said, “We have recognized the importance of focusing on valueadded agriculture and also the value of wind. “These things are leading us out of the recession.” Iowa ranks first in the nation in ethanol production and second in biodiesel production. There are 31 ethanol plants in operation, producing about 3.3 billion gallons a year, according to IDED. Ten new plants are under construction. Iowa alone acounts for more than 26 percent of the entire U.S. ethanol production and the state’s biofu-
els industries have added $8 billion to the state’s economy, according to IDED estimates. Iowa leads the nation in wind generation as a percentage of total power output (15 percent) and ranks second nationally in current wind generation output. Mills said an example of an economic boon is the TPI Composites plant in Newton. TPI, headquartered in Scottsdale, Ariz., makes wind blades for turbine manufacturers and opened its Newton plant in 2008 with 170 employees. Today, it has 500 employees and expects to keep growing. Steve Lockard, chief executive officer of TPI in Scottsdale, had no trouble explaining why his company chose Iowa for its expansion. “Wind energy has been embraced in Iowa and we are proud to be at the forefront of this movement,” he said at the grand opening.
The selection of Newton for the TPI plant was especially good news for the community of 15,000 which had been hit hard by the closing of its Maytag plant in October of 2007, idling more than 1,000 workers. Many who work at TPI are former Maytag employees. Wind energy and a host of cottage industries are becoming big business in the state. Mid-America Energy Co. of Des Moines is first in the nation among rate-regulated utilities in ownership of wind energy farms with 536 turbines and 1,940 megawatts in production. Iowa and Texas are the only two states in the nation to manufacture all of the main components of a wind turbine -turbines, blades and towers. In Manly, a Worth County community not far from the Minnesota border, the Manly Terminal has developed two industries related to al-
ternative energy and fuels. Begun in 2007 as an ethanol warehousing operation, the company expanded two years later with the opening of Manly Logistics Park, a “hub” for vendors who need space to hold wind turbine components until the projects for which they were purchased get under way. Mills said, “The things we have done in alternative energy and renewable fuels have been accomplished through partnerships with universities and community colleges, the private sector and government. “We have created a very powerful tool when we’re talking to companies looking to relocate in Iowa. “We are at the crossroads of the country. We have the location, we have the space, we have the geography, we have the partnerships and we have one of the best workforces in the nation if not the world. “We are well positioned to lead the way.” u
Ethanol business keeps trains hopping By MARK RIDOLFI Courier Lee News Service Ethanol helps keep Dakota, Minnesota & Eastern rail cars loaded with grain heading westward to ethanol markets, strengthening grain prices. DM&E chief executive Vern Graham hopes that doesn’t change. “We’ve had lots of focus on Mason City with the new ethanol business,” said Graham, vice president of U.S. operations for DM&E parent Canadian Pacific. CP assumed DM&E in 2008 and Graham reports employment remained stable through the recession and even grew in Mason City, thanks to ethanol. The company added five planners in Mason City to handle logistics, mostly for ethanol shipment and new markets for ethanol waste. The leftover mash, called distillers dry grain, can be shipped westward as a livestock feed additive, a new product for the rail line. Mason City area plants are drawing “an 85-car train every six days,” Graham said. “You used to see all the grain heading east. Now you see hopper cars going in the opposite direction to these ethanol plants.” Since acquiring DM&E, Graham said his firm is
34 •
“The Path of Progress”
committed to $80 million a year in infrastructure improvement, across the network. In Iowa, that means new ties and ballast to shore up rail beds. “Ties and ballast are the foundation of the railroad. We have a bit of work on the ballast. It’s not perfect, but it’s OK.” “We’ve started increasing our workforce across this region. Two reasons: Business is starting to come back and there will be some attrition in this industry.” u
2010 PROGRESS EDITION