< PreviousGreat Lakes State’s green initiatives tick key boxes for site selectors. As Climate Risks Rise, Businesses Look to Michigan for Stability C L I M A T E C H A N G E P RE P A RE D NE S S 58 M I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DEhe growing impact of climate change is driving businesses to reconsider where they are located, as extreme weather events and rising risks threaten operations and bottom lines. A recent national survey conducted by MIT Technology Review Insights in conjunction with the Michigan Economic Development Corporation (MEDC) found that out of the 300 U.S. executives that participated, 75% said their organizations have considered relocation due to climate risks, with 61% reporting disruptions to their operations and 55% experiencing damage to physical infrastructure. As businesses face rising operational costs and increasing insurance premiums, many are now prioritizing climate resilience when selecting new sites, recognizing that their ability to withstand climate-related challenges is crucial for long-term success. In light of these shifting priorities, many companies are looking to the Midwest for stability. Nearly half of the survey’s respondents cited the region as the least exposed to climate risks, making it an increasingly attractive destination for businesses seeking to safeguard their future. Michigan, in particular, is attracting much attention for its strategic location and the bold steps state leaders have taken to prepare and protect its environment. In 2022, Gov. Gretchen Whitmer launched the MI Healthy Climate Plan, charting a comprehensive path to help the state achieve 100% carbon neutrality by 2050; clean energy legislation signed by the governor in 2023 moved the state’s clean energy standard goals up to 2040. To achieve this, the main goals of the initiative center on expanding clean energy production and usage, reducing greenhouse gas emissions, and building sustainable infrastructure and practices. “Climate change is causing more extreme weather events and raising risks for business right now,” said Kara Cook, the State of Michigan’s former chief climate and energy M I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE 59 by LIN DSAY LOPP T Solar panels in Delta Township are doing their part to combat climate change in the Upper Midwest Photo courtesy of MEDC Photo: Getty Images60 M I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE strategist, in September 2024. “Here in Michigan, we’re facing climate change head- on with investments to build up our water infrastructure, produce more clean, reliable energy, enhance our grid resilience, and more. As national leaders in climate action, we are continually finding new ways to make our businesses and communities more prepared for climate events while growing our clean energy economy.” INCENTIVES THAT EXCITE Michigan’s proactive approach to combating climate change makes it an increasingly attractive destination for expanding companies. As 71% of survey participants consider the availability of climate-planning resources to be one of their top criteria when evaluating potential new business locations, Michigan’s various green initiatives set it apart from the competition. Michigan is No. 1 in the nation for Inflation Reduction Act projects and has received nearly $1.5 billion of semiconductor and electronics manufacturing investments through the CHIPS Act and IRA funding since they were signed in 2022. Companies in Michigan benefit from advantageous incentives such as the Renewable Energy Credit (REC) program. Through this program, companies that want to meet their renewable energy targets but may not be able to generate enough green energy on-site can pay a small incremental cost on their monthly bill to offset their energy consumption. This allows businesses to experience the benefits of renewable energy without investing in the infrastructure or capacity to generate it themselves. Consumers Energy works with Michigan- based wind and solar facilities to fulfill the renewable energy credits to which its customers have subscribed. Each REC represents one megawatt-hour of renewable energy produced, typically from wind, solar, or other renewable sources. To continue to grow resources for Michigan residents and businesses, state leaders created the Michigan Climate Investment Accelerator in 2024, a program designed to give more families and businesses access to financing for clean energy technologies, create good-paying jobs, lower energy costs, and support the implementation of the MI Healthy Climate Plan. The Accelerator will help community lenders like community development finance institutions (CDFI), credit unions, and green banks across the state secure funding from the Greenhouse Gas Reduction Fund (GGRF), created by the U.S. Environmental Protection Agency (EPA) through the Inflation Reduction Act. The Accelerator includes two strategies to attract both federal and private investment. The first is the Michigan Climate Investment Fund (MCIF), an $11 million initiative to break down barriers to serving low-income communities. It provides targeted grants to Michigan-based community lenders who successfully apply for support through the GGRF. This fund will offer $10 million in matching grants for community lenders and $1 million in technical assistance to help build the capacity of these lenders to apply for the GGRF. The second strategy is the Michigan Climate Investment Hub, created with philanthropic support from The Kresge Foundation. Located in Newlab at Michigan Central in Detroit, the Hub is a dedicated space for the State of Michigan, national GGRF awardees, and Michigan- and Detroit-based stakeholders in clean energy development and financing. It provides a collaborative environment where these groups can work together and host educational events to increase green lending across the state. These initiatives are poised to establish Michigan as a prime location for GGRF investments and will encourage the development of investment-ready projects. “Here in Michigan, we’re facing climate change head on with investments to build up our water infrastructure, produce more clean, reliable energy, enhance our grid resilience, and more. As national leaders in climate action, we are continually finding new ways to make our businesses and communities more prepared for climate events while growing our clean energy economy. ” — Kara Cook, the State of Michigan’s former chief climate and energy strategist, in September 2024M I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE 61 POWERING UP THE JOB MARKET As these climate initiatives gain momentum, their economic impact is already felt across the state. Michigan’s clean energy sector is not only helping companies lower their carbon footprint and operational costs, but it’s also driving significant job creation statewide. Investments in renewable energy, hydrogen innovation, electric vehicle (EV) manufacturing, and sustainable infrastructure have rapidly expanded Michigan’s clean energy workforce. According to the 2024 Clean Jobs America Report from E2, based on an analysis of the U.S. Department of Energy’s 2024 Energy and Employment Report (USEER), Michigan boasts nearly 128,000 clean energy jobs, outpacing 44 states’ job numbers, with clean energy jobs continuing to grow nearly twice as fast as economy-wide employment. To support and sustain this growth, Michigan has implemented critical legislative and funding measures. In 2023, the state passed Senate Bill 519, which created the Community and Worker Economic Transition Office. This office is focused on supporting workers and communities transitioning from fossil fuels to renewable energy. By offering workforce retraining programs and helping diversify local economies, the office ensures that Michigan’s workforce remains prepared and isn’t left behind during this transition. Additionally, Michigan secured $35.7 million in federal funding from the Inflation Reduction Act in 2024 to expand job training and apprenticeship programs. These initiatives are designed to equip Michiganders with the skills necessary to excel in the clean energy sector, including EV manufacturing and renewable energy production. With these efforts, Michigan is advancing its clean energy goals and ensuring its workforce is ready to meet the demands of a rapidly evolving industry. As more companies look to mitigate climate-related risks, Michigan offers a clear advantage — a thriving green economy, a growing clean energy workforce, and a supportive environment for businesses to flourish sustainably. Photo courtesy of MEDC‘Let’s Move Some Dirt’ Michigan heralds an expanding portfolio of industrial sites. ith speed to market an increasingly crucial consideration for global manufacturers, having a deep portfolio of ready industrial sites has gone from being a competitive advantage to a strategic imperative for states pursuing transformative economic development projects. Enter MI Sites. Michigan’s new site development program — spearheaded by the Michigan Economic Development Corporation (MEDC) — is helping to build out a roster of shovel-ready sites across the length and breadth of Michigan. e goal, in a state that over ows with assets, is to check that nal box for site selectors and their corporate clients. “Large companies deserve certainty that a site’s assets will ful ll their needs and accommodate their future growth plans on all fronts, including energy,” says Valerie Christo erson, director of economic development for Consumers Energy, Michigan’s largest electric and natural gas utility. “MI Sites is the latest in a growing network of tools and resources designed to keep companies in Michigan for the long haul.” To develop MI Sites, the MEDC partnered with Quest Site Solutions, a site consultancy based in Greenville, South Carolina, to establish granular protocols for identifying, evaluating and developing industrial sites in a manner that both leverages Michigan’s strengths and advances the state’s strategic goals. Electric vehicles, semiconductors and advanced manufacturing rest squarely within Michigan’s sweet spot. 62 M I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE I N VE S T M E NT P R O F I L E C O N S U M E R S E N E R G Y by GARY DAUGHTERS W ‘Let’s Move Some Dirt’ I N VE S T M E NT P R O F I L E C O N S U M E R S E N E R G Y W“MI Sites,” says Paul O’Connell, MEDC vice president for real estate development, “creates consistent, statewide criteria tailored to the needs of those and other growth sectors,” including, he says, clean energy and the defense industry. “We want to make sure that the sites that we’re developing t exactly what those companies are looking for, so that we’re not doing one thing where they’re looking for something di erent.” ON THE SAME PAGE NOW e MEDC has approved $ . million in grant funding through its Strategic Site Readiness Program (SSRP) to support sites across Michigan. Recipients include Hancock Business & Technology Park in the Upper Peninsula; Muskegon Heights Industrial Parks and Covenant Business Park in West Michigan; Flint Commerce Center in East Central Michigan; and Latson Innovation Interchange Technology & Industrial Park in Ann Arbor. “ ese grants will prepare us to win more manufacturing projects creating thousands of good jobs,” said Gov. Gretchen Whitmer. “Together with a strong, bipartisan economic development toolkit, we are competing with other states and nations to bring home supply chains of cars, chips and clean energy.” She added: “Let’s move some dirt!” MI Sites, says O’Connell, builds upon the broader “Make it in Michigan” framework. “Part of the SSRP funds were sent to economic developers to go out and identify sites in their market. After that,” he says, “the MI Sites program comes in and provides a professional review of those sites to establish exactly where they stand, further support them and get them ready to go for economic development.” In addition to the promise of additional grant funding, MI Sites, says O’Connell, includes innovative marketing support and an important consulting component. “We’ve created a process and built a structure around it,” he says, “to help our economic developers understand the steps that they need to go through to see that shovel-ready site to fruition.” SUPERSITE IN THE MAKING e ,-acre Advanced Manufacturing District (AMD) of Genesee County — being developed near Flint by the Flint & Genesee Economic Alliance — stands out, says O’Connell, among Michigan’s top emerging industrial sites. e project has received a hefty $ million in state grants to purchase targeted land in the county’s Mundy Township. Being developed with high-tech manufacturing in mind, the site is envisioned by supporters as a lure to a multi-billion-dollar investment that could generate thousands of jobs, promote related expansion and pour untold millions into local co ers. “We’re marketing the Advanced Manufacturing District to companies that will help bring our supply chain back to the United States and grow our local talent pipeline,” said Tyler Rossmaessler, executive director of the Flint & Genesee Economic Alliance. “ is will create opportunities for young people, including jobs that don’t require a college degree. Between these jobs and the economic boost this will give our small businesses, we are very excited for the impact this initiative will have on our region and the entire state.” In July , the Flint & Genesee Economic Alliance announced that AMD’s network of supporters has grown to include more than regional employers, community stakeholders and labor organizations. “ is site,” Rossmaessler said, “is among the best in the country. Every day,” he said, “we’re hearing from people who live and work in Genesee County about their excitement and optimism that an advanced manufacturing project can help to turn around our county and our region.” All this goes toward certifying that, when it comes to site development, Michigan is committed to expanding opportunities for both its people and potential investors. “ e bottom line,” says Christo erson, “is that Michigan needs MI Sites to ensure we can compete for and win jobs and investment among states with larger, readier site inventories.” This Investment Profile was prepared under the auspices of Consumers Energy, Michigan’s top energy provider. For more information, contact Valerie Christofferson at Consumers Energy at valerie.christofferson@cmsenergy.com. ‘Let’s Move Some Dirt’ Photo: Getty Images M I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE 63 “MI Sites is the latest in a growing network of tools to keep companies in Michigan for the long haul. ” —Valerie Christofferson, Director of Economic Development, Consumers Energy64 M I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE s the world races toward a more sustainable future, Michigan is emerging as a key player in the green technology revolution. As a manufacturing and automotive industry leader, the state is rapidly transforming into a hub for cutting-edge advancements in clean energy, battery technology, hydrogen fuel, and sustainable materials. The groundbreaking innovations emerging from Michigan are reshaping the future of energy, mobility, and industrial sustainability. From ultra-efficient glass that reduces building emissions to next- generation battery recycling facilities that extend the life cycle of electric vehicles (EVs), Michigan’s impact spans multiple sectors, driving real change in how industries operate. Let’s take a closer look at the companies leading the way, pioneering technologies that are not only transforming the clean energy sector but making a remarkable impact on Michigan’s economy, sustainability goals, and the industries of tomorrow. UL SOLUTIONS The State of Michigan has long been synonymous with automotive innovation, from the days of the assembly line to the cutting-edge EVs of today. As the industry pivots its practices to a greener approach, companies like UL Solutions are playing a pivotal role. UL Solutions is a global leader in applied safety science, providing testing, inspection, and certification services A CL E A N T E CH / CL E A N E N E R G Y by LIN DSAY LOPP Innovations Revolutionizing the Energy Industry Image courtesy of UL SolutionsM I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE 65 across various industries. With a focus on ensuring the safety, reliability, and performance of products, UL Solutions is at the forefront of industries transitioning to cleaner, more sustainable technologies. Their work spans from EVs to energy storage systems, helping manufacturers meet rigorous safety standards as they develop new technologies. In line with its commitment to the evolving clean energy landscape, UL Solutions opened its North America Advanced Battery Laboratory in Auburn Hills, Michigan. This $104 million investment marks the company’s largest laboratory expansion to date. Backed by the support of a $1.5 million Michigan Strategic Fund grant, this lab is set to help many battery manufacturers increase the safety and reliability of their products. The facility will support a wide range of tests, including thermal fire propagation, mechanical abuse, and environmental assessments. “The electrification of everything relies on battery innovation, impacting many industries and elevating the need for safety and performance across the energy transition spectrum,” said Jennifer Scanlon, president and CEO of UL Solutions, in August 2024. “This is where we step in. Our North America Advanced Battery Laboratory demonstrates our commitment to supporting the safer commercialization of new battery innovations that play a vital role in the world’s energy transition.” This new laboratory, located in the Auburn Hills Oakland Technology Park complex near Detroit, places UL Solutions at the heart of Michigan’s automotive and clean energy ecosystem. Being so close to Detroit, a city known as the automotive capital of the world, positions UL Solutions in a prime location to connect with a diverse clientele, especially those affiliated with the rapidly growing EV market. LUXWALL, INC. When LuxWall, Inc. opened the doors to its state-of-the-art production facility in Litchfield on August 12, 2024, it wasn’t just another factory opening — it was a significant leap forward in the clean energy movement. The world’s first high-volume vacuum-insulating glass production facility is already making waves. Founded in 2016 in Ypsilanti, a suburb of Ann Arbor, LuxWall’s mission has always been clear: to push the boundaries of energy efficiency through innovative materials. But the decision to expand in Michigan was about more than just business — it was about honoring its roots. Despite competitive offers from neighboring states, LuxWall chose Michigan, a place that not only fosters its growth but remains steadfast in cultivating an equally pro-business and suitable environment. The Litchfield facility, with its 87 workers, is already producing cutting-edge, energy-efficient windows designed to help buildings reduce heating and cooling costs while minimizing their carbon footprint. This $20 million investment represents the first phase of a much larger vision that will see 450 new jobs created across Michigan as part of a broader $165 million investment. The company already has plans to evaluate Detroit for a second facility that will triple production capacity. This project is supported by $6 million in state grants and over $31 million in federal funding, underscoring the importance of this venture not only to LuxWall but to the State of Michigan and its growing green tech economy. ROBERT BOSCH, LLC Robert Bosch, LLC, a part of the Bosch Group, has a long history of developing advanced solutions across a variety of industries, including mobility solutions, industrial technology, consumer goods, and energy and building technology. Image courtesy of LuxWall66 M I C H I G A N E C ONOM I C DE V E L OP ME N T G UI DE Recently, Bosch has turned its focus to the emerging clean energy sector, investing $13.7 million to expand its Farmington Hills headquarters with a cutting-edge Regional Hydrogen Research and Development Hub. Backed by a $500,000 performance-based grant through the Michigan Business Development Program (MBDP), Bosch plans to upgrade and restructure 2,200 sq. ft. of existing space dedicated to driving advancements in hydrogen technologies, including Bosch’s Proton Exchange Membrane (PEM) fuel cell power module, a highly integrated and compact system solution for fuel cell- electric commercial vehicles. The new hub will include facilities to test hydrogen fuel cells and hydrogen combustion engines, as well as produce onsite hydrogen via water electrolysis. While Bosch operates in over 100 locations across North America, the decision to expand in Farmington Hills was influenced by several factors unique to Michigan. Matt Thorington, engineering manager of hydrogen stacks and systems at Bosch USA, emphasizes the state’s ongoing commitment to hydrogen development, including its involvement in the Midwest Alliance for Clean Hydrogen (MachH2), as a contributing component. This regional initiative supports the development of clean hydrogen technologies and fosters collaboration to build a sustainable hydrogen economy — an effort that resonates deeply with Bosch’s own goals. “Hydrogen will play a role in a diversified mix of powertrain options in the future,” says Thorington. “Our work at the Farmington Hills location underscores our commitment to advancing hydrogen technology, enabling us to deliver innovative solutions that support our customers’ needs and drive progress toward the hydrogen economy. We have a strong team developing here and by locating our knowledge close to our existing powertrain expertise, we benefit from the broad system knowledge that Bosch has when it comes to powertrain. Having a site where the completion of this hydrogen cycle is possible is key to taking advantage of the entire ecosystem from production to offtake.” With companies like UL Solutions, LuxWall, and Bosch leading the charge, Michigan isn’t just adapting to a clean energy future — it’s helping define it. “Our work at the Farmington Hills location underscores our commitment to advancing hydrogen technology, enabling us to deliver innovative solutions that support our customers’ needs and drive progress toward the hydrogen economy. ” — Matt Thorington, engineering manager of hydrogen stacks and systems, Bosch USANext >