Why Michigan?
Michigan has a unique opportunity to grow its bio-based economic sector by coordinating the efforts and assets of the agriculture and natural resources sector with those of the research, technology and manufacturing sectors to meet a growing demand for renewable sources fuels, materials, chemicals and energy. The goal is to produce not only non-petroleum, biomass-derived products for industrial and consumer use, but also to catalyze the creation of new enterprises, new jobs and new intellectual property in the State.
On the supply side, Michigan has abundant natural resources with diverse agricultural production and forests that are a dominant feature of state’s landscape, covering approximately half of the land surface. Fresh water is available and well managed and a sophisticated transportation infrastructure is in place. Considering the skilled workforce and other favorable factors, Michigan is well positioned to expand the economic opportunities associated with the use of a broad range of biomass sources for energy, fuels, chemicals, and other structural materials and products.
On the demand side, Michigan is located near several major Midwestern population centers and enjoys proximity and commerce with several diverse manufacturing markets. Our geographic positioning along the “NAFTA Highway” is a plus, and we may be positively influenced by our northern neighbor. Canada has a very active agenda of bioeconomy development, encouraged by the fact that the country claims 7% of the world’s land mass, nearly 10% of its forests and 15% of its fresh water supply.
Access to advanced education, research resources and intellectual property is crucial to the advancement of any knowledge-based economic endeavor. In Michigan State, we have a University that is recognized world-wide as a leader in research and innovation involving agricultural technologies, plant sciences and biochemistry, and MSU has joined several other Midwest states in forming organizations to investigate and support the development of a vibrant bio-based economy. And now, the presence of MSU in Holland, MI with the new Bioeconomy Institute will support the generation of a cluster of bioeconomy related enterprises – a key to long-term and large-scale industrial development.
In addition, several statewide organizations have cooperated to support the Michigan’s growing bioeconomy agenda, including:
Michigan Economic Development Corporation
Michigan Department of Agriculture
Michigan Agri-Business Association
Michigan Farm Bureau
Michigan Forest Products Council
MSU Product Center for Agriculture and Natural Resources
Michigan Agricultural Experiment Station
Michigan State University Extension
In order to extract maximum value from the utilization of renewable biomass resources there must be more highly integrated, collaborative efforts between the agricultural sector, researchers in various industries, manufacturers and marketers. In addition, public policies and regulatory efforts will gain complexity and impact the process as new standards are considered for “green” industries and bio-based products.
Small business will likely be able to identify many opportunities in the new bioeconomy, and are well positioned to capitalize on opportunities to provide high value-added products that fill niche markets, rather than attempting to compete in globalized commodity markets such as those for many raw materials and fuels.
Small businesses that focus on offering local/domestic markets alternatives to currently imported petroleum-based products may find receptive markets. And proceeding with a near-term flexible strategy of developing solutions which combine the use of conventional and bio-based inputs, particularly if those inputs utilize other residual waste streams associated with bioproduction and bioprocessing activities, may offer significant advantages.