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By By David Bertola Growth at Edwin J. McKenica & Sons Inc. means manufacturing parts for wind turbines. The 36-year-old company, which machines items such as heat exchangers, pump casings and parts for gas turbines, has already taken steps to do that: It’s certified by General Electric to make parts for turbines, including the 1.5-megawatt towers that comprise the Noble Bliss, Noble Wethersfield and High Sheldon wind parks. It also has made replacement gearbox parts for area wind farms. McKenica & Sons is among dozens of companies listed on the Great Lakes Offshore Wind registry. Created by the New York Power Authority, it links wind-power manufacturers that responded to NYPA’s request for proposals for the project with companies like McKenica & Sons that have expertise in a range of areas. At the company’s Clinton Street shop in Buffalo, Vice President Trent McKenica said he is excited about the possibilities of wind power. "This is a huge growth opportunity," he said. McKenica & Sons General Manager Glenn Milbrand said the company has had revenues as small as $2 million and as large as $4 million. "Opportunities are deep and huge, depending on how involved you want to get. And with the local opportunities, like the ones at Noble, the opportunities will be pretty big as the equipment ages,” he said. Buffalo Niagara Enterprise President and CEO Thomas Kucharski agrees. But not in terms of companies like McKenica & Sons. He talks about all of Western New York. Kucharski said every other week or so, he meets with a company from out of town to discuss the region’s assets, workforce and ability to supply a wind-power manufacturer with everything it needs. "You want to have companies and developers pretty close to the major projects or assembly operations," he said, adding that Western New York is poised to offer all that and more. Region poised to support new energy industries Back on Jan. 12, at a forum titled "Economic Development Tools for a New Economy," results were revealed from a study funded by National Grid and performed by New York City-based KWR International Inc. The research focused on ways to pitch potential businesses on why they should invest in the region. The report highlighted regional assets that would let Western New York participate in 10 renewable-energy sectors such as wind power and solar energy. Buffalo Niagara Enterprise is targeting these because they have the greatest potential. The 10 sectors were analyzed, and synergies were found in such areas as production, research and development, and distribution services. “We feel we have a pretty good story to tell,” Kucharski said. Easy access to manufacturers of glass, concrete, plastics and steel, as well as rebar from Hamilton, Ont., and the number of ports the region boasts are among the selling points. "The location of these plants needs to be strategic, and (manufacturers) need access to rail and the like," Kucharski said. "We believe our regional assets and our advantages point to us as being appealing to companies that make foundations for offshore wind development ... In the next 10 years, if we are real smart about what we are doing, and pursue this abroad at very targeted opportunities in Europe where we know a lot of science and technology and production is already based, we should have some solid development of this cluster." Offshore wind announcement expected in 2011 Thomas Fleckenstein runs Niagara Wind & Solar Inc., a Niagara Falls, N.Y., company that installs smaller-scale wind projects – those that typically generate less than one megawatt. His experience includes building wind towers in India, and he’s hopeful Niagara Wind & Solar – listed on the Great Lakes Offshore Wind registry, like McKenica & Sons – will assist in buliding the Great Lakes towers. Onshore projects, he said, typically cost $1.2 million to $2.2 million per megawatt installed. "Offshore typically is higher due to additional siting and construction costs, and range from $1.5 million to $4 million per megawatt," he said. While it is desirable to produce towers locally, near to where the projects are being built, turbine blades and parts come from all over the world. A Swedish company, SKF, is among the wind industry’s main suppliers of bearings. In recent years, the company expanded its manufacturing presence in Sweden, Germany and the United States. In 2006, it opened a new factory in China. "Transportation and logistics make up a large portion of installed costs," Fleckenstein said. David Flynn, partner in Phillips Lytle LLP, has represented multiple wind-project developers, including Apex Offshore Wind LLC, one of five that responded to the Power Authority’s RFP for the Great Lakes project this past June. "More companies in the supply chain helps developers and the industry to be more competitive," Flynn said. "The more people in the business helps bring prices down and brings quality up at a faster pace." New York Power Authority President and CEO Richard Kessel is targeting the first quarter of 2011 to announce the winning proposal or proposals from among those submitted in June. "We are asking a lot of questions of the proposed developers, who are getting clarifications for us," said Kessel, who anticipates the Great Lakes project to be operational in 2015 or 2016. "The good news is I don’t think there is a fatal flaw to keep the project moving forward. Will there be challenges? Yes. But did anything come up that makes the project not doable? No." To obtain your free subscription to the KWR International Advisor, Website content © KWR International |
