LANSING, Mich. — Investing in emerging industries such as alternative fuels is a “tremendous opportunity,” Gov. Jennifer Granholm told a group of more than 200 participants at the first ever Michigan Bio-Economy Summit on Sept. 20.

Granholm kicked off the two-day conference at the Lansing Center in downtown Lansing by encouraging agricultural industry officials, educators, business representatives and other participants to “use biomass to help create products as well as fuels to help diversify the economy of our state. “This effort is setting the stage for the transformation of Michigan’s economy,” she said.

With Big Three automakers struggling to compete in the global market, Granholm said developing the state’s bio-economy is a “tremendous opportunity for us to jump from (an automobile manufacturing) base of our economy and enlarge it.”

Granholm told the group that Michigan already has a unique infrastructure in place to support such an endeavor, including residential and commercial developments, manufacturers of products and fuels that are renewable and the infrastructure to support these components.

“We are the only state in the nation to have that whole spectrum of development underneath our umbrella,” Granholm said.

She noted that Michigan also has a partner in Michigan State University and other universities “ready to capitalize on the agriculture and automotive spectrum.”

Granholm’s office recently unveiled its first round of grant recipients from its 21st Century Jobs Fund. In its first round of funding, $100 million has been awarded to companies, educational institutions and others for projects in the areas of advanced automotive manufacturing and materials, life sciences, homeland security and defense and alternative energy.

“These are four emerging sectors that build on our strength as a state,” she said.

The grants all require local matches, thus leveraging another $125 million to be applied to the projects. Sixty-one of more than 500 proposals were selected.

“A number of them involved bio-economy. It’s very exciting,” Granholm said. “You are helping to transform Michigan. You are leading the way in this effort in shaping Michigan’s economy.”

Granholm travels around the state in a sport utility vehicle that sports a corn wrap decal on much of the vehicle to illustrate that it’s powered by ethanol fuel.

“She’s not only talking the talk, but she’s walking the walk,” said Michigan Department of Agriculture Director Mitch Irwin.

With nine ethanol or bio-diesel plants either open or breaking ground in the state, Granholm said the state’s bio-economy is “exploding. We are quadrupling our output. We’ve got this incredible base to work from, whether it’s corn or soybeans or sugar beets.

“When you consider all of this, Michigan is going to lead the nation.” Michigan agricultural industry is valued at more than $61 billion and growing, and Irwin lauded Granholm for her support. “She has a focus on ag-related bio-economy,” he said.

“Clearly to focus attention away from the Middle East to growing the fuels of the Midwest and right here.”

Granholm’s $2 billion economic stimulus and job-creation package is aimed at helping high-tech and emerging industries interested in doing business in Michigan. Now, she said the next challenge is to create demand for bio-fuels and other products. “Clearly the manufacturing sector ties into bio-economy,” she said.

Granholm said that while Michigan has relied heavily on its automobile manufacturing industry to drive its economy in the past, it must diversify its economic base in order to be healthy in the future. To do that, she said industries must seek new solutions and new opportunities.

“Since we put the world on wheels we have a moral obligation to make those wheels run on renewable fuels,” she said. “You are all at the ground level of massive change. Alternative fuels, bio-fuels, biomass - this is all the wave of Michigan’s future.”

This farm news was published in the Sept. 27, 2006 issue of Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee.