CLEVELAND, OH - August 5, 2010 -- Lake Erie Energy Development Corporation (LEEDCo), a private, nonprofit corporation leading the effort to build, install, and deploy a 20 megawatt (MW) offshore wind project in Lake Erie, today released the findings of an Economic Impact Study examining the emergence of an offshore wind energy industry on Lake Erie and its impact on Ohio's economy.

The Study investigates the economic effects of two scenarios depicting different deployment rates of wind turbines in Lake Erie. Both scenarios feature an initial offshore installation of 20 megawatt (MW) turbines by 2012 but differ thereafter, leading to 1500 MW or 5,000 MW of offshore wind energy in Lake Erie by 2030. Both scenarios are based on the estimated costs for installation, operations and maintenance of hypothetical 5.0 MW wind turbines, along with estimated costs of specialized vessels necessary to install offshore wind turbines.

Specifically, the Study found:

• The initial 20 MW project would create or sustain more than 600 jobs in Ohio.
  Expenditures through 2014 for deployment and operation of the 20 MW project, including the construction of the first installation vessel, would total $63.4 million. Sales for the 20 MW project are estimated at $81.6 million, with $34.2 million in wages and $47.7 million in public revenues. The wind turbine components for this project are assumed to be purchased initially from non-local vendors until the industry develops locally and area suppliers are sourced.

• The more megawatts that are installed, the greater the number of jobs created. Installing 5000 MW of offshore wind energy would generate 8,000 jobs in Ohio, $7.8 billion in wages and salaries, $22.6 billion in sales, and $586.5 million in public revenues by 2030. Deploying a lesser amount, 1500 MW of wind energy would create or maintain nearly 3,000 jobs in Ohio, generating $2.2 billion in wages, $6.5 billion in sales, and $171.5 million in public revenue (state and local) by 2030.

• Sourcing all associated economic activity in Ohio almost doubles the jobs created. By deploying 5000 MW of wind energy in Lake Erie with all economic activity sourced in Ohio, over 15,000 jobs would be created or maintained in the state. Under this maximum potential scenario, wages increase by $15.8 billion, sales by $50 billion, and public revenues by $1.1 billion. These figures demonstrate the potential for job growth in Ohio with aggressive offshore wind cluster-building efforts such as those being undertaken by LEEDCo.

• Under all scenarios, key industries inherent to Ohio's industrial strengths are expected to enjoy the most growth. Industries expected to grow are construction, machinery manufacturing, fabricated metal manufacturing, water transportation, professional and technical services, electrical equipment manufacturing, plastics products manufacturing and primary metals manufacturing.

The Study was commissioned by NorTech, a regional nonprofit technology-based economic development organization that launched LEEDCo in partnership with the Great Lakes Energy Task Force and the Cleveland Foundation in late 2009. The research for the Study was conducted by Kleinhenz & Associates, a Cleveland-area economic and business research and analysis firm, which worked jointly with the research department of Team NEO.

"The Study confirms that the offshore wind industry has the potential to deliver significant economic impact to the region and the entire state," said David P. Karpinski, vice president of NorTech. He continued, "Given Ohio's substantial manufacturing capacity, the state could easily supply a large portion of the equipment associated with offshore wind deployment. Ohio has the workforce, the scientific and technical expertise, and the supplier base to become a dominant player in the offshore wind industry in North America."

LEEDCo President Dr. Lorry Wagner concurs. "Now is the time for the public and private sectors to do all that they can to grow an industry that will mean critical, added employment, sales, wages and revenue for Ohio in both the short and long term," he said. "Many Ohio firms already supply the wind power industry both domestically and internationally, although primarily for onshore application. For example, Molded FiberGlass of Ashtabula is a primary supplier of blades, nacelle housings and rotor hubs to the leading turbine OEMs; Timken of Canton is one of the largest manufacturers of major bearings found in wind turbine nacelles; and Parker Hannifin of Cleveland is a world-leading manufacturer of hydraulic systems and power cables for the wind industry. With companies like these – and others supported and encouraged by our efforts at LEEDCo – Ohio has the advanced manufacturing and technologies needed to grow the offshore wind turbine industry," he added.

A growing industry signals opportunity for indigenous firms, startups and firm relocation. But it doesn't happen overnight according to Jack Kleinhenz, Ph.D., and president of research firm Kleinhenz & Associates. "Growing an industry is a dynamic process. Research and case studies indicate that it takes at least a

decade to develop both the depth and breadth of a competitive industry," commented Kleinhenz. He continued, "Though it is an emerging industry, new opportunities such as wind turbine production and installation are often at the intersection of existing industry clusters where current skills and ideas merge into new businesses."

"LEEDCo's study confirms what many of us have been saying for years: that offshore wind energy in Lake Erie has the power to revitalize our state's manufacturing base, create thousands of new clean energy jobs, and supply Ohio homes with clean, renewable energy," said Senator Sherrod Brown. "The development of offshore wind power in Lake Erie marks a significant step forward, and I will continue to work to bring clean energy projects and their economic benefits to our state."

Cuyahoga County Prosecutor Bill Mason and Chair of the Great Lakes Energy Development Task Force said, "I always envisioned this industry as the next generation of jobs for our children. Ohio can capture these thousands of jobs if we act boldly in leveraging our resources and leadership. By being first in fresh water, this pilot project will blaze a trail of developing Ohio as the hub for the emerging billion dollar off-shore wind industry."

To download a copy of the full report click here.

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