Jan 11 - McClatchy-Tribune Regional News - Bob Downing The Akron Beacon Journal, Ohio


Ohio is chasing the wind -- and the dollars it can produce.

Around the world, wind is a booming, $40 billion-a-year industry that is growing at 30 percent a year, energy expert Richard Stuebi of the Cleveland Foundation said.

"It's the biggest, fastest-growing industry on the planet . . . and everyone wants to be part of it," he said.

Ohio, however, is far behind other states in developing wind. Six wind farms are pending before the Ohio Power Siting Board, and others are looking at developing the United States' first offshore wind farm using Lake Erie.

 If wind really takes off, the state is poised to enjoy a big economic impact through its wind-power suppliers.

Ohio trails only California in potential for developing wind turbines and components, according to the Renewable Energy Policy Project in a 2004 report for the U.S. Department of Energy.

That report said wind could create 11,688 jobs and add $3.9 billion in capital investments to Ohio's economy.

Ohio might have surpassed California since then, as wind development has moved into the Midwest and away from California, said Ed Weston, director of WIRE-Net/the Great Lakes Wind Network, a Cleveland-based group of wind-power suppliers.

Ohio actively is organizing and promoting its wind-power supply chain, which includes 170 companies that make bearings, fasteners, control systems, composites, gear boxes, brakes, generators, metal coatings, gears, hydraulics, sensors and electronics needed to manufacture the 8,000 components found in a typical utility-size wind turbine.

When assembled, turbines cost about $2 million each.

Ohio suppliers range from alloy steel and bearing maker Timken Co. in Canton to ring-bearing maker Rotek Inc. in Aurora and Cardinal Fasteners in Cleveland.

An additional 500 Ohio companies are retooling to get into wind power, Weston said.

The Ohio Energy Office has sponsored a collaborative project led by the Great Lakes Wind Network and with the help of Ohio's Edison Centers to continue identifying companies that can retool, retrofit and replace facilities and business strategies to serve the growing demand for wind-power components.

Ohio heavy industry, foundry, fabricating, heavy machine, coating, galvanizing and tooling industries are all in position to tap into the wind market, Weston said.

"There is a big competitive advantage to those who can penetrate wind," he said.

"Ohio has been below the radar. You may not see wind turbines across Ohio, but don't be fooled. . . . Ohio is very, very involved in wind, and our wind-power supply chain is huge."

An Iowa turbine manufacturer reported that roughly half of the turbine components came from Ohio suppliers. That is evidence that Ohio is well-positioned on wind power, Weston and Stuebi said.

A large wind-turbine manufacturer is based in Colorado, but its purchasing office is in Chicago to be closer to suppliers, Weston said.

Important for economy

Ohio's wind-power supply chain "may not be as glamorous as erecting wind turbines, but it's very important for Ohio's economic well-being," said Kemp Jaycox, a wind advocate with Green Energy Ohio, a grass-roots group based in Columbus.

Ohio is facing "a big opportunity on the manufacturing side, and supplying the wind industry can help Ohio companies transition from the auto industry to something new," Gov. Ted Strickland said.

Ohio's wind-power potential is "very good for our state and very good for our economy," he said.

Companies also could benefit from developing offshore wind turbines on Lake Erie and other Great Lakes in the future, said Lisa Patt-McDaniel, director of the Ohio Department of Development.

Despite its industrial base, Ohio is not a leader in turbine manufacturing and faces stiff competition from other states, like Iowa and Colorado, that were aggressive early on.

Michigan, another hard-hit auto state, also is positioning itself to become a big wind-power equipment provider.

It's important to remember that wind is largely a local game, and most developers want to be close to suppliers, said Stuebi of the Cleveland Foundation.

That's because shipping a single turbine blade from Europe to the United States can cost $15 per mile -- a very expensive proposition, he said.

Ohio's big three for wind power are the Timken Co., hydraulics manufacturer Parker Hannifin in Cleveland and composite manufacturer Owens Corning in Toledo, Weston said.

Wind-based products are "the fastest-growing market for us," Timken spokeswoman Lorrie P. Crum said.

Canton production

Timken is a big player with its production of special-alloy steel that is engineered and produced in Canton, along with bearing systems and components for power transmission. The product list includes seals, lubricants and monitors.

Demand for the company's specialized and proprietary steel is high and "absolutely solid," she said.

In addition, Timken recently signed an agreement that will allow Timken to make its steel in Daido Steel mills in Japan to better serve Asian markets, she said.

Wind products are a small percentage of the company's overall revenue, but wind energy has been identified as "the company's most promising market," she said.

For that reason, the company has invested more than $200 million in the past three to five years to expand in this market. It was the one sector in which Timken continued to invest through the recession, she said.

Investments have included plant expansions in South Carolina, China and Romania, and new facilities in India and China.

Timken's wind business has grown as turbines have grown in size, especially the offshore turbines, and the reliability problems increased with that additional size, Crum said. "That has hit Timken's sweet spot," she said. "We're becoming a major player now with the trend to bigger turbines."

She cited offshore turbines in Scotland's Orkney Islands that feature harsh surroundings. "It was an extreme environment that required extreme engineering," she said.

Turbine design has changed greatly in recent years -- with turbines getting bigger and more efficient, said Tom Maves of the Ohio Wind Working Group, a state entity formed by the Ohio Department of Development.

A great position

Those bigger turbines with bigger components boost Ohio's position as king of the wind-power supply chain, he said. That's because of increased shipping costs for bigger parts.

"Ohio's in a great position in the middle of the country, and that's creating a good opportunity," he said.

Weston said a goal of his group is to increase the American-made content of wind turbines being sold and installed in the United States.

There are seven turbine manufacturers in the United States and Canada now, and about half of today's wind components are made in the United States, he said.

Bob Downing can be reached at 330-996-3745 or bdowning@thebeaconjournal.com.

(c) 2009, McClatchy-Tribune Information Services