Laptop Battery Gov. John Engler of Michigan will introduce a plan on Thursday that seeks to position the state as a center of research into alternative energy sources.
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Thinkpad The initiative, which is called the NextEnergy Plan, is expected to cost $30 million to $50 million over three to five years. It will include the development of a research center on a 700-acre plot near Ann Arbor, tax exemptions for businesses that conduct research on alternative energy, a venture capital fund to promote research and tax breaks for Michigan residents who buy automobiles or power sources that use alternative energy.
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Microsoft Much of the idea, said Governor Engler, a Republican barred by term limits from seeking re-election, is to ensure that Michigan is not left behind if the auto industry exchanges the internal combustion engine for a new technology.
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Laptop Computer The focus of much of the auto industry's current research has been the fuel cell, a hydrogen-powered energy source that, in its ideal state, would allow automakers to produce cars that do not use gasoline. Every large automaker is working on fuel cell technology, though it is expected to be at least a decade before vehicles powered by such fuel cells appear in any significant number.
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Desktop Computer The Michigan initiative will focus on many alternative energy sources, said Doug Rothwell, president of the Michigan Economic Development Corporation, and not just on automobiles. "People fixate on fuel cells," he said, "but between here and there will be other alternatives, like hybrid vehicles, methanol- or ethanol-fueled vehicles."
Notebooks The project will also explore powering homes and setting up small power networks, called microgrids, that run on alternative energy sources, with the new research center itself a likely first experiment.
Lenovo Mr. Engler said the plan was "especially relevant" in light of the troubles in the Middle East and their effect on the oil market. The United States consumes nearly a quarter of the world's oil, much of it from the Mideast region.
Hard Drive The auto industry, along with Michigan politicians of the two major parties, has argued that research on future technologies should take precedence over near-term increases in fuel-economy standards.
Travelstar Environmental groups say that such research efforts, while intriguing, are often used as political cover to prevent cars' becoming more efficient.
Gateway For Michigan, the world's first area to mass-produce cars, the specter of a new automotive power system is worrisome. A recent state-sponsored study said 100,000 to 200,000 jobs could be lost if preparations were not made, and Mr. Engler said there was enough evidence to suggest that an evolutionary step was imminent.
Laptop Parts He hopes to make Michigan a research hub for the industry, national laboratories and universities, and set uniform standards for the new technologies. He will also press for federal research to be situated in the new center, which will be near the University of Michigan.
Software John Casesa, a Merrill Lynch auto analyst, said such an initiative was "critical for Michigan, because if some day fuel cells replace the internal combustion engine, it would be a disaster for the state if these new engines were made somewhere else."
Hard Drives "All the senior technical people in the industry around the world are serious about" fuel cell technology, he said, adding, "People who are qualified to make a judgment are serious about it, and they were dismissive of things like electric cars."
Electronics By Danny Hakim
New York Times - 4/18/2002
Topic: Energy
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