Gov.: Ohio needs jolt of energy innovation
BYLINE: Dan Monk
It was the second executive order signed by Ohio Gov. Ted Strickland, coming just nine days after he took the oath of office. The Jan. 17 mandate established an Ohio "energy adviser" who would "coordinate the state's efforts to create jobs through becoming a leader in the production of next-generation energy."
On a recent visit to Cincinnati, Strickland talked with Business Courier Senior Reporter Dan Monk about his plans to use the energy industry as a fulcrum for turning around Ohio's economy.
During the interview, Strickland made it clear he isn't solely focused on energy. He expressed a willingness to discuss state funding for the Banks riverfront development project and Cincinnati's new streetcar initiative. He talked about his role in ending the AK Steel lockout in Middletown. And he revealed that he visited Detroit a few weeks ago to lobby for continued production at the Ford Batavia plant.
But Strickland made it clear that he sees energy innovation as a key cog in Ohio's economic recovery. Here are excerpts:
Q: People involved in economic development in this part of the state have complained about the pipeline of potential projects. They want to see more deal flow. What's happening in that area?
A: I think some very positive things are happening. The Amylin Pharmaceuticals company is almost certain to make a major, major investment in this region of the state. We have reason to believe that there are other development possibilities. I know of billions of dollars in investments that are under consideration right now in Ohio. Many of them have to do with energy issues, coal-to-liquid fuel production facilities. I met with a CEO in my office yesterday (April 12) who is contemplating over a $2 billion investment.
Q: Here in Cincinnati?
A: It'll be along the Ohio River. It'll be a piece from Cincinnati. But there are other possibilities for Cincinnati. The entire biodiesel part of our energy portfolio is important, and Cincinnati's a big player there. I believe Cincinnati has the largest biodiesel production facility perhaps that exists in America today. And we want to encourage that and more of it. So, there are efforts being made. It's like turning around a big ship. It's not easy to do, but if you stay at it, eventually, it gets turned around. We're trying to turn around Ohio. We think we're starting to make some progress.
Q: I assume you saw (Calif.) Gov. Schwarzenegger on the cover of Newsweek (an issue dealing with energy initiatives)?
A: Yes, yes.
Q: California is trying to reduce total greenhouse emissions by 25 percent by 2020. Are we going to see that kind of initiative here?
A: I've determined to set aside 30 percent of our federal bond cap - that equates to about $250 million a year - to encourage alternative energy production, research, innovation. I think Ohio can, and it is my intention to make it so that Ohio becomes a national leader in energy production.
I'm very interested in biodiesel and ethanol. I'm encouraged by what I'm hearing regarding the feasibility of wind power in certain parts of Ohio, near Lake Erie and in Northwest Ohio. I have talked with three companies that are talking about multibillion-dollar investments in technologies to turn coal into liquid diesel. So, all of these efforts are going to be pursued. I also see a place for nuclear power in our energy portfolio. Energy derived from nuclear power emits no greenhouse gases. Even many within the environmental community are starting to change their thinking about nuclear power.
Ohio can be at the center of that effort. As you know, Ohio is one of two states that in the past has produced fuel for nuclear power plants. In the Piketon, Ohio, area there are plans to build a new facility that could go a long way toward producing the energy for nuclear power plants. That could be a big impetus to our economy. So, I'm open to any effort to make Ohio more involved in energy research, innovation and production.
Q: Will you convert state cars to cleaner-burning fuel?
A: We are absolutely committed to doing that. I want to develop the infrastructure in Ohio so that motorists can choose E-85 fuel for their cars. This is fuel that is 85 percent renewable and can be made right here in Ohio out of Ohio corn.
You know, the potential is incredible. I think we've been somewhat slow in recognizing that potential. But I want to tell you, under the Strickland administration we are going to leave no stone unturned in our efforts to make Ohio a leader when it comes to various kinds of energy production.
Q: We heard that you were somehow involved in settling the lockout at AK Steel.
A: Tangentially I was, yeah.
Q: Is there likely to be more intervention in labor disputes in the Strickland administration?
A: Where it's appropriate. I'm not a governor who's looking to interject himself and take over responsibilities or engage in activities that may not be appropriate or could exacerbate the situation. But over time, during that lockout, I did communicate with both management and labor leaders. I don't assume any credit. I tried to be supportive. But I give credit for the end of the lockout to a good-faith effort on the part of both the management and the work force.
Q: Are you working at all on the Ford Batavia plant? Is there any effort to get Ford to sell or reuse that plant or somehow keep people working there?
A: My director of development, Lee Fisher, has been to Detroit - as have I. There have been discussions with Ford's top leadership about all of the Ford operations in Ohio, the Batavia facility being among those. It doesn't look particularly positive (for Batavia) right now, but we've still got a ways to go and we're going to continue the discussions. We're going to continue to do everything we can to try to make Ohio attractive to Ford and GM and all of the others. The automotive industry is so important to Ohio's overall economy. We're not just assuming that these jobs have to leave us. We're continuing to work to try to hold onto them.