The report, “Winning the Race: How America Can Lead the Global Clean Energy Economy,” released by the Apollo Alliance and Good Jobs First, stressed that this strategy would avoid indirectly subsidizing the growth of clean energy activities in low-wage countries such as China that are emerging as key competitors in the race to lead the global clean energy economy.

“The United States is currently importing about 70 percent of its renewable energy systems and components,” said Phil Angelides, chairman of the Apollo Alliance. “If that trend continues, we stand to lose out on estimated 100,000 clean energy manufacturing jobs by 2015, and nearly 250,000 by 2030. This country needs a comprehensive clean-energy economic development strategy so we can ensure that jobs being created in the clean energy sector stay in America.”

The report illustrates this risk by analyzing the recipients of the Recovery Act’s Advanced Energy Manufacturing Tax Credit (also known as 48C credits), which President Obama recently proposed expanding funding for by $5 billion due to the program’s success. The report finds that, of the 90 companies that received 48C credits for wind and solar manufacturing projects in the United States, 23 also have been investing in similar production in countries such as China, India, Mexico and Malaysia. The 23 companies, which include both U.S.-based and foreign firms, received a total of $458 million in 48C credits for their U.S. projects.

“A portion of this offshore investment is meant to serve foreign markets,” said Good Jobs First Research Director Philip Mattera, who analyzed the 48C recipient list for the report. “But these examples demonstrate that the U.S. share of the global clean energy economy – particularly in manufacturing – is far from guaranteed. 48C projects have helped stimulate the clean energy manufacturing sector, but some recipients are putting their primary emphasis on low-wage production for the entire global market.”

To address this risk, the report recommends a comprehensive strategy to create jobs in the clean energy economy through the entire supply chain. The first step is to ensure an expanded and consistent market for clean energy by passing comprehensive clean energy and climate legislation, and then to expand domestic clean energy manufacturing by:

* Increasing the Advanced Manufacturing Tax Credit by $5 billion, as the president proposed in his FY2011 budget, but adding “clawback” provisions that would enable the federal government to recoup the tax credits if 48C jobs end up being sent offshore.
* Enacting the “Investments for Manufacturing Progress and Clean Technologies (IMPACT) Act,” which would support small and mid-sized manufacturers by providing capital for investments in energy efficiency and for retooling and expanding into the clean energy supply chain.
* Investing in the creation of a well-trained work force that meets the needs of U.S. clean energy manufacturers and would make onshore investment more attractive.

Caterpillar Inc. said March 11 it is considering the construction of a new hydraulic excavator plant in the United States that could result in the transfer of some production from Japan.

The new facility would manufacturer two excavator models currently being produced at a plant in Aurora, Ill., and several lines now produced in Japan and exported to the United States.

The new plant would have the potential to triple the current capacity of hydraulic excavators now produced by the company in the United States and add a significant number of U.S. jobs, the company said.

The plan would help the company’s Akashi, Japan, excavator facility add capacity to better serve customers in the expanding Asia-Pacific region. Long-term forecasts for the Asia-Pacific region indicate the company may need to increase capacity and employment at the Akashi facility to help meet demand. A final decision regarding this study will be made at a later date, the company said.

If approved, the new U.S.-based factory would be the primary North American source for excavators.

“The study is based on the current analysis of where the global excavator market is heading and how Caterpillar should position itself for continued leadership in the excavator industry,” said Gary Stampanato, Caterpillar vice president with responsibility for excavators.

The study is part of a long-term strategic initiative to develop the appropriate global footprint needed to competitively produce hydraulic excavators, the company said.

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U.S. to Inject $5 Billion into Green Jobs 30% tax credits to investors in factories working with targeted technologies. The government on Dec. 17 said it plans to pour five billion dollars into fostering jobs growth in green technologies and clean energy.

Vice President Joe Biden announced White House support for the program, which requires congressional approval and is part of the $787 billion economic recovery plan President Barack Obama launched in February.

The plans would offer 30% tax credits to investors in factories working with targeted technologies in the wind energy and solar energy sectors, as well as batteries, according to the White House.

“We have to jump-start growth in green manufacturing — and part of that is encouraging companies to build the components of green technology right here on American soil,” Biden said.

“By combining the most talented workforce, the most entrepreneurial businesses, the best universities in the world with seed capital from government investment, we can once again produce cutting-edge technology that creates 21st century jobs here in America,” the vice president added.

Michigan firms get stimulus grants for green manufacturing
Mark Hornbeck / Detroit News Lansing Bureau

Lansing — Five small manufacturing companies won $15.5 million in federal stimulus awards to help them move into making green energy systems and parts, Gov. Jennifer Granholm announced today.

The firms will diversify from making tanks, auto parts and boats to manufacturing solar shingles, wind turbines and windmills. The governor’s office reported the grants will create or retain 713 jobs.

“These are existing businesses moving into revolutionary new areas,” Granholm said, adding the state has invested $1 billion into the renewable and alternative energy sector.

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The companies that won the grants were among 80 that submitted applications, said Stanley “Skip” Pruss, director of the Department of Energy, Labor & Economic Growth.

“Clean tech is a space Michigan fits very well in,” Pruss said. “What you see here is the best in class.”

Firms awarded grants include:

• Astraeus Wind Energy Inc. of Eaton Rapids will get $7 million to make wind turbine blades and hubs.

• Energetx Companies LLC of Holland was awarded $3.5 million to manufacture large composite wind turbines.

• Loc Performance Products Inc. of Plymouth won $1.5 million to make gears and gearboxes for utility windmills.

• LUMA Resources LLC of Rochester Hills will get $500,000 to manufacture shingles for the residential solar market.

• Merrill Technologies Group of Saginaw will receive $3 million to make large-scale wind turbine blades and other components