Michigan is positioning itself to be a major player in the field of alternative energy. With the state's NextEnergy program at the Wayne State University Research and Technology Park in Detroit and Grand Valley State University's (GVSU) Michigan Alternative and Renewable Energy Center (MAREC) at Edison Landing in the Muskegon Lakeshore SmartZone, both sides of the state have been energized to opportunities the future of alternative energy holds.

The 25,000-square-foot MAREC will open this spring and serve as a business incubator and research center. A poster child for alternative and renewable energy, the center will be the first commercial project in the world to integrate photovoltaics, fuel cells, HVAC heat recovery systems and a nickel hydride battery storage system.

It is anticipated that regional industry clusters, including automotive and aerospace, will benefit from research work performed at the center. Area firms like First Power and Harding Energy Inc. in Muskegon, Fishbeck, Thompson, Carr Huber and URS of Grand Rapids and Johnston Boiler Co. in Ferrysburg are taking an active role in the establishment of MAREC in West Michigan.

Even though the MAREC research will deal with stationary fuel cells as power generators for buildings, the center's research could easily benefit from the Bush Administration's newfound emphasis on the research and development of hydrogen-powered automobiles.

David Cole, president of the Center for Automotive Research (CAR) in Ann Arbor said the first major application of fuel cell technology will be in distributed power applications and not in a vehicle. He told MiBiz the research that will be pioneered at facilities like MAREC will be the engine that drives any automotive breakthroughs.

Cost is one reason, said Cole. For an automotive powertrain application, the energy cost has to be around $50 a kilowatt. A continuous power generation application could be cost-effective at $500 a kilowatt.

Size, weight and the operating environment also favor stationary fuel cell applications, Cole added. "Auto is down the road. If the fuel cell is going to make it, it's going to make it first in distributed power - no question."

The automotive industry's obsession with alternative energy goes beyond fuel cells. Cole said there is activity on a number of energy fronts, with no clear winner emerging. Several energy alternatives being proposed could change the game significantly, he said. "These are very high stakes games going on."

Under consideration are an advanced form of the gasoline-powered engine, clean diesel technology pioneered in Europe and hybrid power trains.

"The technology for all of these is here; it's just a matter of economics," said Cole. "Can make the diesel engine as clean as we want it to be, but do it economically? Can the hybrids be made economically attractive in a commercial market?"

Significant progress is being made in fuel cell technology, but the economic equation is still not strong enough to make that fuel source viable. "We're just starting to get our arms around some of the issues like where to get the hydrogen for these vehicles and what to do with it once you have it," said Cole.

One formula is not going to fit the industry, said Cole. The Big Three automakers could turn to diesel technology for larger vehicles; Japanese manufacturers are focusing on advanced current technology.

While Cole praised state officials for establishing programs like NextEnergy, he said the keys to Michigan's future in alternative energy are the automakers and companies like DTE. "The large companies and their level of investment in these alternative energies dwarfs anything that's being put in by the state of Michigan," Cole said, adding that the automakers are light years ahead of any state initiative. "The auto industry is running fast on the track; NextEnergy is just starting to put on its shoes."