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in Minneapolis Saint Paul Phase I: Initial Findings on Three Green Manufacturing Sectors & Local Economic Development Opportunities Report to the Mayors’ Initiative on Green Manufacturing Co-Chaired by: Prepared by: R. T. Rybak, Mayor of Minneapolis Christopher B. Coleman, Mayor of Saint Paul David Foster, Executive Director of the BlueGreen Alliance
MAKING IT
GREEN
in Minneapolis Saint Paul
Executive Summary ...................................................1
I. Green Manufacturing Market
and Product Opportunities........................................3
II. Building on a Solid Green Foundation ....................12
III. Review of Best Practices in
Green Economic Development ...............................16
IV. Detailed Strategy Recommendations .....................21
Appendices:
A. Mayors Agreement
B. Resources
C. Green Companies in Minneapolis Saint Paul Area
D. List of Participants
E. Location Quotient Analysis for Building
Products Sectors
EXECUTIVE SUMMARY educational institutions engaged in a green manufacturing sectors
process to jointly move toward with high potential for near term
“Making it Green” is an initiative of “Making it Green” in Minneapolis and growth and job creation — green
Saint Paul. This is a starting point — buildings, renewable energy and
Mayor R.T. Rybak in Minneapolis and
Phase I — in a multi-phased process transportation industries. We
Mayor Christopher B. Coleman in
identified a substantial base of
Saint Paul with the Blue-Green of identifying the green products
manufacturers with product
Alliance, a national partnership of the marketplace, our existing strengths
applications for 29 subsectors of
Sierra Club and the United Steel to support its growth and ways to these growing green industries.
Workers, based in the belief that market our strengths and build up on Further analysis of these prod-
investments in solving critical environ- them in the future. ucts and manufacturers, as
mental challenges, such as global well as other green sectors, is
warming, represent strategic eco- The following highlights our findings: needed to target expansion and
nomic opportunities for the future. Its ● There is and will continue to be recruitment to makers of these
mission is to recommend policies substantial growth of markets products and align existing
and actions to position Minneapolis for green products — estimates public and private resources to
range from 17-23% per year for support them.
and Saint Paul as national leaders in
promoting and developing green building products to 40% per ● Minneapolis and Saint Paul are
year for renewable energy already recognized leaders in
manufacturing technologies and
production to 100% percent in green initiatives – this provides
products while creating family sup-
3 years for green products of an edge in recruiting companies
porting jobs. There is growth and all types. that are seeking sites in a
opportunity in green manufacturing, progressive green community,
● Minneapolis and Saint Paul have
especially in building products, and gives clear market signals
significant strengths in manu-
renewable energy and transportation that their products will have
facturing and green product
— green enterprise is an estimat- opportunities. Phase I of the customers here.
ed $229 billion market sector.1 Mayors’ Initiative looked at three
The Natural Marketing Institute proj-
ects that sales of green products of
all kinds is “on track to jump (from Green Product Opportunities for Minneapolis Saint Paul
$200) to $420 billion in just three Green Building Transportation Renewable Energy
years and then jump to $845 billion
by 2015.”2 This report provides base- • Insulation • Batteries • Wind Turbine OEM
line information about these markets • Windows & Doors • Bio-Fuels suppliers – blades,
gear boxes, other
in Minneapolis and Saint Paul, best • Glass/ Films • Fuel Cells
practices of other cities and a set of • Bio-fuels systems –
• HVAC (heating, • Generators Ethanol, Bio-Diesel,
recommendations to guide the two ventilation and air • Bio-fuels Engine Cellulosic possibilities
cities. It calls for Minneapolis and conditioning) Systems systems (parts) • Solar/PV
Saint Paul to roll out a strategy to and Controls
make increasing jobs, products and • Hybrid Buses • Solar Hot Water
• Lighting
profits in green manufacturing a • Neighborhood • Geothermal – pumps
• Wood Products (FSC- Electric vehicles (NEV)
core element of their economic
Forest Stewardship • Pelletization systems
development plans. Council) - Certified) • Electric cooling/
heating of vehicles • Distributed Power
• Alternative Materials Management Systems
This strategy was crafted by a cross
section of community leaders who • Site and landscape • Sensors & diagnostic
devoted time and expertise to identi- materials equipment
fying green markets and developing • Adhesives • Energy Efficient
recommendations for the Mayors, • Paints Products
other elected leaders and their staffs. • Testing Kits/ • Energy Conservation
From June to December, more than Remediation & Green Energy
70 representatives of green industry, products
labor, state and local government,
environmental organizations and 1 Management Information Services, Inc. Jobs Creation in the Environmental Industry in the U.S. and Nine States:
Arizona, California, Connecticut, Florida, Michigan, Minnesota, North Carolina, Ohio, Wisconsin, April 2006.
2 Lifestyles of Health and Sustainability, Press release May 24, 2007.
The Mayors’ Initiative on Green Manufacturing April 2008 1
● The “Making it Green” cam- 2. Realign Our Tools — Realign This initiative offers a pathway to a
paign focuses on packaging our cities’ economic develop- new green economy and a joint
our existing strengths to ment tools to focus on the green strategy for Minneapolis and Saint
capture and grow more green “industries of the future”; Paul to be in the forefront of this
manufacturers in Minneapolis growth. This report details the
and Saint Paul, create more 3. Grow Markets for Local
Suppliers — Grow receptive findings and recommendations that
family — supporting jobs for the
markets for these green manu- led us to this strategy – the first
future and maximize the commu-
nity’s future return on investment facturers by sharpening our chapter details the market growth
by siting green manufacturing procurement and public policies; and product opportunities in green
facilities on the two cities’ manufacturing, the second chapter
4. Coalesce State Policies and
valuable industrial land. reviews strengths of Minneapolis
Programs — Create a set of
and Saint Paul for recruiting and
state policies and incentives to
growing green manufacturers, the
The world is facing significant support the creation of green
third chapter highlights best practices
changes in energy policy and the jobs in Minneapolis and Saint
of other cities in addressing opportu-
environment. Those who help design Paul; and
nities in the green economy, and the
and implement change first will reap
5. Forge Enduring Partnerships fourth chapter details the rationale
the economic benefits. We recom-
— Adopt and strengthen the and steps to implementation for each
mend that the Mayors, city councils
culture of innovation and partner- of the recommendations.
and their staffs adopt the following
ship of the cities of Minneapolis
strategy:
and Saint Paul with the on-going
1. Market Aggressively — Initiate work of the Mayors’ Green
an aggressive, leadership-driven Manufacturing Initiative through
marketing plan — “Making it a restructured Mayors’ Green
Green in Minneapolis & Saint Manufacturing Development
Paul” campaign; Team.
2 “Making it Green” in Minneapolis Saint Paul
I. GREEN MANUFACTURING MARKET hold the greatest promise to reduce
global warming.
AND PRODUCT OPPORTUNITIES
Defining Green Manufacturing ● Reduce energy use in its The EPA figures3 below illustrate
product and process; that emissions are largest in trans-
The Mayors’ Initiative chose to define portation and electricity generation
green manufacturers as those who ● Use renewable energy sources;
(e.g. coal-fired power plants) sectors;
make products that have an impact ● Manage water in industrial sites however, when the electricity
on reducing global warming and and in manufacturing processes
produced is distributed to the
creating immediate employment. appropriately;
sectors which consume it then
At the same time, we recognize the ● Maximize healthy environment industry, and residential and
importance of working, over time, to for workers; and
commercial sectors show greater
encourage manufacturers of green ● Use and maintain green sites. emissions. For example:
products to improve in the areas of
process, energy sources, buildings, “In the U.S. alone, buildings account
Because the primary goal of the
sites and workforce. The Mayors’ for the following: 36 percent of total
Mayors’ Initiative is to capture
Initiative on Green Manufacturing is energy use and 65 percent of elec-
market opportunities for the products
focused primarily on manufacturers tricity consumption; 30 percent of
needed to address climate change
that produce goods that reduce greenhouse gas emissions; 30 per-
— the Initiative chose to focus on
greenhouse gas emissions. The cent of raw materials use; 30 percent
opportunities in green building
initiative intends to encourage and of waste output and 136 million tons
products, renewable energy and
provide priority for manufacturers annually; and 12 percent of potable
transportation. While they are not the
that also: water consumption.”4
only green industries, growth in
renewable energy use, green building
● Consider environmental factors
products (heating, ventilation and The Mayors’ Initiative recognizes that
and/or reduces environmental
air conditioning (HVAC) systems, significant opportunities exist in
impacts;
windows, doors, insulation and other other green industries – e.g. green
● Maximize use of local suppliers;
energy-efficient building products) chemistry, water conservation,
● Reduce transportation impacts, and green transportation options recycling and reuse, etc. We also see
including workers’ transportation (reducing fossil fuel combustion) a growing interest among all manu-
and goods’ shipment; facturers to “green” their processes
Figure ES-13 Figure ES-14
Emissions Allocated to Economic Sectors Emissions with Electrcity Distributed
to Economic Sectors
3,000
2,500
Electricity Generation
2,500 Industrial
2,000
Transportation Transportation
2,000
Tg CO, Eq.
Residential
Tg CO, Eq.
1,500
1,500 Industry
Agriculture 1,000
1,000 Commercial
Commercial
500 500 Agriculture
Residential
0 0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Note: Does not include U.S. territories Note: Does not include U.S. territories
3 Figures ES 13 and Es 14 are from EPA U.S. Inventory of Greenhouse Gas Emissions and Sinks: 1990-2005, April 15, 2007, Pages ES14-15.
4 U.S. Green Building Council
The Mayors’ Initiative on Green Manufacturing April 2008 3
(reducing waste and toxic materials, ● The green segment of the con- increased by 20 percent, from an
increasing energy efficiency, enhanc- struction industry is expected to average of $12.3 million in 2006
ing worker productivity and safety, climb from 2 percent of all hous- to $14.7 million in 2007. The top
and considering life cycle cost – ing starts in 2005 to between 5 five sectors receiving venture
cradle to cradle analysis). Our first and 10 percent in 2010.7 investments were:
phase; however, focused on oppor- ● Green building products are ● Energy Generation:
tunities in the three critical industries: estimated to capture 3.3 - 6.7% $2.75 billion; 172 deals
of the total U.S. market for
● Renewable Energy ● Energy Storage:
construction/renovation by 2010
● Building Products (estimated at $1-3 trillion).8 $471 million; 20 deals
● Transportation Annual growth rates between ● Transportation:
17 and 23% are projected.9 $445 million; 20 deals
Growing Markets for Green ● Energy Efficiency:
According to Clean Edge, a publica- $356 million; 41 deals
Products
tion focusing on the clean technology ● Recycling & Waste:
However defined, it is clear that the
market, clean energy segments are $291 million; 17 deals11
market for “green” products is large
also predicted to grow significantly:
and getting larger at a rate far greater
than average economic growth. ● Biofuels, ethanol, and biodiesel Green Product Opportunities in
There is and will continue to be will grow from $15.7 billion in Minneapolis and Saint Paul
2005 to $52.5 billion by 2015
substantial growth of markets for Minnesota has its share of major
green products — estimates range ● Wind power will expand from players in this “green economic revo-
from 17-23% per year for building $11.8 billion in 2005 to $48.5 lution.” Mortenson, headquartered in
products to 40% per year for billion in 2015 Minneapolis, is one of the top
renewable energy production to ● Solar photovoltaics will grow installers in the wind industry.
100% percent in 3 years for green from an $11.2 billion industry in According to a 2008 report in
products of all types. 2005 to $51.1 billion by 2015.10 Windtech International, an online
news source providing information on
Some estimates of green products’ Venture capital is seeking out “green” wind energy industry development,
market size and growth in total rev- companies. According to CleanTech
enue in the U.S., as quoted from a Group, a firm that tracks these Mortenson Construction recently
variety of reliable sources of data, investments: celebrated the completion of its 50th
include: wind power project. In the last
● The environmental sector is North American “cleantech” investing decade, Mortenson has constructed
estimated by Management in 2007 grew by 38 percent, from 34 percent of the wind energy
Information Systems, Inc., as a $2.87 billion invested in 2006 to capacity in the U.S. to date.12
$341 billion industry in 2006 $3.95 billion invested in 2007. The
providing 5.3 million jobs — “It number of deals increased by 15 We also have some of the leading
creates three times more jobs percent, from 233 in 2006 to 268 in producers of energy efficiency
than the chemical industry, six 2007. The average deal size products (windows, doors, HVAC
times more jobs than the apparel
industry, and 10 times more 5 “Hendricks, Bracken “D.C. Invests in Green Collar Jobs,” Center for American Progress,
jobs than the pharmaceutical September 17, 2007.
industry.”5 6 Roger Bezdek, Management Information Services, Inc. for American Solar Energy Society (ASES) report,
Economic Renewable Energy and Energy Efficiency: Drivers for the 21st Century, 2007. pp. vii, 4-5. RE
● The renewable energy and and EE includes hydroelectricity, biomass, geothermal, wind, photovoltaics, solar thermal, insulation
energy efficiency industries sales, energy service co industry sales, U.S. recycling and reuse industry sales, vehicles that get at least
10% better mpg than CAFÉ mileage, Energy Star rated lighting and household appliances, windows and
generated 8.5 million new jobs,
doors, and components of the industrial sector.
nearly $970 billion in revenue, 7 National Association of Home Builders, “Green Building to Become a $40-50 Billion market by 2010,”
more than $100 billion in industry NBN Online, April 2, 2007.
profits, and more than $150 8 McGraw Hill, Green Building SmartMarket Report 2006.
billion in increased federal, 9 SBI, Green Building Materials in the U.S., November 2007.
state, and local government tax 10 www.cleanedge.com
11 Cleantech Group press release, January 7, 2008.
revenues in 2006.6
12 Windtech International, 16 January 2008
4 “Making it Green” in Minneapolis Saint Paul
systems, paints, adhesives, etc.) and advantage of growing ● assess the strengths, weaknesses,
many role models and trail blazers for market opportunities in the opportunities and challenges of
other green manufacturers to follow, wind industry. each sector
including: ● Rock Tenn – This hundred-year ● identify opportunity sites for local
● Tennant Corporation – old Saint Paul paper mill growth and expansion
Headquartered in Golden Valley, processes 50% of Minnesota’s
Minnesota, with a manufacturing paper into recycled materials for
The Project Steering Committee met
plant in Minneapolis, is a leading future use and employs 500
monthly from June 2007 to February
manufacturer of machines and union workers locally with
average annual salaries of 2008. Each sectoral subcommittee met
cleaning solutions that are environ-
$60,000. The company, 3 times as did the Green Manufacturing
mentally friendly.
previously powered by steam Development Team, a subset of the
● Quality Bicycle Products - QBP subcommittees’ memberships. Finally, a
from a now closed coal burning
(Bloomington, Minnesota) – recent-
plant, has been actively exploring group of finance experts also advised
ly built a green building as part of
alternative energy sources for the Initiative. A full list of all participants
its commitment to environmental
future use, including the burning is included in Appendix D.
living. The QBP facility, which the
of biomass.
USGBC awarded Gold level LEED
certification in April 2007, features ● Innovent – This Minneapolis- The following lists the subcommittees
innovative wastewater technolo- based subsidiary of the larger and their leaders:
gies, high-efficiency appliances, Wisconsin based firm, ● Building Products – Co-Chairs
and a design capitalizing on Greenheck Fan, makes high effi- Rick Carter, LHB and Gerry
natural light. A 40-kilowatt solar ciency air handling equipment for Flannery, Flannery Construction
power array—the largest in the the HVAC market. It often seeks
employees for both engineering ● Transportation Products – Co-
Midwest—replaces energy
and production positions. The Chairs Lynn Hinkle, UAW 879 and
normally provided by coal-fired
assembly jobs start at $14 per Dee Long, retired Speaker of the
power plants, preventing 65,000
hour plus benefits. MN House
fewer pounds of carbon dioxide
from entering the atmosphere ● Renewable Energy – Co-Chairs
each year. The structure, which is Michael Noble, Fresh Energy and
A partial list of green companies
30 percent more efficient than Julie Esch, Mortenson Company
located in Minneapolis and Saint Paul
required by Minnesota state is included as an appendix to this ● Finance Focus Group – Tom
code, will generate significantly Halverson, Piper Jaffray
report. In the next phase of this initia-
lower long-term maintenance
tive, the Mayors will convene these
and operation costs than a CDC Associates provided market analy-
conventional building.13 companies to gather ideas about
sis of each sector including
how to build the market presence
● Remmele Engineering – major market and technology trends
and identify ways in which the cities
Remmele has about 500 employ- and a local baseline of firms. Using
can support the growth of these and
ees in the Minneapolis-Saint Paul this data and the expertise of the
area including its automation divi- other similar firms. Efforts in other
subcommittees’ members, the Mayors’
sion in Saint Paul. The company cities and states like “Spec it Green”
Initiative identified 29 subsectors
has an established market share in and the “Green Suppliers Network”
with opportunity for local economic
medical and defense markets but can be used to offer local companies
development. CDC Associates provided
its intent is on growth in renewable market opportunities created from
energy. Recognizing the market market analysis of each sector including
city procurement policies and those
opportunity in the upper Midwest major market and technology trends
of other local institutions like colleges
region for wind energy installations, and universities in the two cities and and a local baseline of firms. Using this
Remmele, working with Minnesota LEED certified projects and builders. data and the expertise of the subcom-
Department of Employment and mittees’ members, the Mayors’ Initiative
Economic Development (DEED), is identified 29 subsectors with oppor-
The scope of Phase I included an
positioning itself to become a first- tunity for local economic development.
effort to tap the ideas and expertise
tier supplier to wind turbine original These subsectors offer hundreds of
equipment manufacturers (OEMs) of a number of local experts and product and product lines worthy of
able to directly meet their demand national data sources to: further investigation and development in
for components, while building a ● identify the baseline of local
future phases of activity by the Mayors’
robust supply chain, or a cadre manufacturers engaged in
Initiatives on Green Manufacturing.
of companies considered to be “green manufacturing” in the
second-tier suppliers, to take three sectors 13 October 4, 2007 media release, www.QBP.com
The Mayors’ Initiative on Green Manufacturing April 2008 5
29 Green Product Opportunities for Minneapolis Saint Paul
Green Building Transportation Renewable Energy
• Insulation • Batteries • Wind Turbine OEM suppliers—
• Windows & DoorsGlass/ Films • Bio-Fuels blades, gear boxes, other
• HVAC (heating, ventilation and air • Fuel Cells • Bio-fuels systems– Ethanol,
conditioning) Systems and Controls Bio-Diesel, Cellulosic possibilities
• Generators
• Lighting • Solar/PV
• Bio-fuels Engine systems (parts)
• Wood Products (FSC-Forest • Solar Hot Water
• Hybrid Buses
Stewardship Council) - Certified) • Geothermal – pumps
• Neighborhood Electric
• Alternative Materials vehicles (NEV) • Pelletization systems
• Site and landscape materials • Electric cooling/ heating of vehicles • Distributed Power Management
• Adhesives Systems
• Paints • Sensors & diagnostic equipment
• Testing Kits/ Remediation • Energy Efficient Products
• Energy Conservation & Green
Energy products
Greening our Business Base – products, and to assist existing man- 4. Establish new locations of
Product versus Process ufacturers to green their production existing companies with
The focus of the Mayors’ Initiative is processes need to be added. At this production facilities in other
to identify ways to help create family juncture, the priority rankings of tar- regions (including local OEMs
supporting jobs in green manufactur- gets for the “Making it Green” like Cargill and 3M.)
ers. Therefore the initial priorities are marketing strategy are companies 5. Make existing manufacturing
to assist existing local companies to with the opportunity to: processes greener
expand production and employment 1. Expand existing manufacturing
here. Over time, efforts to bring in of green products This Phase I analysis identified key
key manufacturers and suppliers to 2. Expand production into new strengths and challenges in green
Minneapolis and Saint Paul industrial lines of green products manufacturing in the three targeted
sites, to help existing manufacturers industry sectors:
3. Create new start-up ventures
and startups begin to produce green
to produce green products
Green Building Products Transportation Products Renewable Energy Products
Strengths • Windows & Doors • Hydraulic Systems for Trucks • Close to market & supply
• Energy-Efficiency-Related • Generator Sets • State mandates for energy
• HVAC System Controls • Neighborhood Electric reduction
• Alternative Materials Vehicles
Challenges • Certification systems • Energy Storage (Lithium-Ion • Green Building Products
quality/ costs battery R & D) • Lack of transmission lines
• Sector has shallow/ • Ethanol slowdown
unorganized local presence
• Urban site limitations esp.
for turbine mfg.
6 “Making it Green” in Minneapolis Saint Paul
We recommend that Phase II of the building products manufacturers self select to be included. OIKOS
Initiative perform an in-depth analysis there should be ample opportunity to lists 82 producers of green building
of these market opportunities as well capture additional growth and expan- products in Minnesota, 13 (16%), of
as some in areas such as green sion within the confines of the cities which are located in Minneapolis and
chemistry, water conservation and of Minneapolis and Saint Paul. Saint Paul. Building Green Inc. lists
recycling and reuse. Phase II should Appendix D lists the Minnesota 11 of a total of fifty (50) or 22% of
also provide qualified business companies that were identified in a Minnesota manufacturers of green
prospects and location advice for search of data sources listing green building products in Minneapolis and
the two cities, and a detailed companies, which include OIKOS ©, Saint Paul.
marketing strategy for how to an information resource on energy
best approach these economic efficiency and environmentally The following matrix is a partial list of
development opportunities. responsible building construction, the emergent product opportunities
and a proprietary database called in the Minneapolis – Saint Paul area
Green Building Products Building Green Inc., which is the only that were identified by participants in
Building Products are a major sector database comprised of companies the Mayors’ Initiative on Green
of Minnesota’s manufacturing base, assessed by third party criteria for Manufacturing. A deeper analysis of
especially windows and doors, insu- inclusion. Others list companies that each of these subsectors would
lation (and related energy efficiency Objective Product Line Local Products
applications including HVAC systems
and controls), FSC-certified wood, Energy Use Insulation • Structural Insulated Panels (SIP)
and site and landscape products. Reduction • Insulated Concrete Forms (ICF)
Minnesota has the potential to • Spray Foam
become a larger player in the bio-
materials area, given local compa- Windows & Doors • Plastics
nies’ competencies and the research • Post-Industrial
talent and capacity of the University • Post-Consumer
of Minnesota, which is helping to
Glass/ Films • Low-Emittance (E)
develop these products. For exam-
ple, Cargill’s NatureWorks whose • Argon-filled
Nebraska plant makes PLA, a • Integrated HVAC/energy
corn–based fiber, is working on other
HVAC Systems • Energy Recovery Ventilators (ERV)
bio-based applications and 3M is
and Controls • Heat Recovery Ventilators (HRV)
active in developing and producing
coatings for glass with energy • Programmable Thermostats
saving properties. Testing Kits • Air Leakage (Blower Door)
Minnesota and nearby Iowa are the Lighting • Compact Fluorescent Lamps (CFL)
home to several of the major produc- Protect Natural Wood Products • FSC- certified
ers of windows and doors for resi- Resources
dential and commercial construction • Rapidly Renewable
(Marvin, Anderson, Pella, Apogee). • Salvaged
The supply chain for this sector Alternative Materials • Bio-based materials
ranges from sustainable wood and
other bio-based products to adhe- Site and landscape • Permeable pavers
sives and coatings as well as hard- • Irrigation/geo-thermal installations
ware, fittings and insulating materials
Indoor Adhesives/Coatings • Water-solvent
and compounds.
Environmental • Water-based
USGBC predicts that, by 2012, the Quality
Paints • Low-Zero VOC (volatile organic
annual market for green building compounds)
products will be $60 billion — twice
the size of today’s market. Given Testing Kits • Radon – Testing for
Minnesota’s sizable number of Remediation Purposes
The Mayors’ Initiative on Green Manufacturing April 2008 7
provide a prioritized list of local
business expansion opportunities and
identify prospects for recruitment to
industrial sites in the two cities.
We identified the number of companies
and employment in each of these
industries classified according to the
North American Industrial Classification
System, (NAICS). Using the most
Minneapolis Mayor R.T. Rybak with the city’s first plug-in hybrid vehicle.
recent (2005) County Business Pattern
data and these NAICS codes, we
assessed employment in the metro the Minneapolis – Saint Paul area. workers at its Saint Paul site. It
area and the state (see Appendix E.) While this data is not precise, it does was recently announced that the plant
This assessment is very rough as the provide an overall assessment of the is scheduled for closure in 2009. Saint
NAICS codes do not align with the size of some of the existing produc- Paul is also home to 3M whose trans-
product application as much as the ers of building materials and gives us portation division makes reflective tape
product content – e.g. adhesives confidence in the capacity of the and transportation systems. Local
for building products versus other Minneapolis and Saint Paul building producers of green transportation
industrial uses. Given these data products’ industry to respond to the products include Cummins, supplying
limitations, we know that these building rapidly growing market for green a range of low carbon emission
product sectors in the metro area building products. engines for hybrid buses, Eaton Fluid
currently employ approximately 30,000 Power Corporation, manufacturing
workers. If only 10% of these are Transportation Products hydraulic systems and generator sets
manufacturers of green products – that Transportation products made in for wind energy and hybrid applica-
is nearly 3,000 jobs. Minnesota primarily include recre- tions, Donaldson, developing fuel cell
ational vehicles (boats, watercraft technology, 3M, enhancing lithium ion
We also used the codes to evaluate and snowmobiles); small airplanes, battery construction and Thermo-King,
the extent to which we had a concen- school buses and engine parts. The increasing the energy efficiency of its
tration of workers in a particular largest and most significant vehicle refrigeration trucks among others.
industrial classification. The Location producer in the cities of Minneapolis
Quotient is an economic base analysis and Saint Paul is the Ford Motor The following lists growth opportunities
used to determine whether a local company employing nearly 2,000 and local companies active in green
economy holds a greater share of a transportation products:
particular industry than a reference
economy. For our purposes, we Green Transportation
Local Company
compared total employment in the Product Opportunity
industry locally to total employment Generators Cummins (Fridley), Eaton (Eden Prairie)
locally to total employment in the
industry nationally to total employment Electric vehicles E-Ride (Cambridge)
nationally. If the ratio is greater than 1, Fuel conversion systems – TBD
it means we have a concentration and
the product is probably exported to Efficient systems (refrigeration trucks) Thermo-king (Bloomington)
other regions – if it is less than 1.0 it Storage/Batteries 3M (Maplewood)
may mean that we import the product
from elsewhere. Hydraulic systems Eaton (Eden Prairie)
Fuel Cells Donaldson (Minneapolis), Toro
The tables in Appendix E show that the (Bloomington)
largest concentrations are in three sub-
Off-Road Alternative fuels Polaris (Medina, Wyoming)
sectors – 1) wood windows and doors,
2) alternative materials/composites and Bio-Materials for road and highway TBD
3) testing kits. Overall most of the ratios construction
hover at or above 1.0, indicating a suf-
TBD (to be determined) as in-depth company research was limited in Phase I, no local suppliers were able to
ficient supply to meet local demand in be identified.
8 “Making it Green” in Minneapolis Saint PaulAs reported in Minnesota LMI to achieve energy efficiency, and
Trends, June 2004: the products needed to assemble
the production plant/site. This
Minnesota companies are already sector includes equipment used in
playing a role in defining the state renewable energy generation from
of the art technology that goes sources such as wind, solar PV,
into fuel cells. Donaldson, for solar thermal, geothermal, biofuels
example, has developed purifica- (ethanol, biodiesel, etc.), biomass,
tion systems that allow the clean hydropower, municipal solid waste
intake of air into fuel cells. This is and landfill gas (MSW/LFG). The U.S.
critical since some fuel cell com- Department of Energy predicts that
ponents are easily poisoned by the biomass and wind energy indus-
environmental impurities. Other tries will experience the most market
companies such as 3M, Entegris growth between now and 2030. The
and ICM Plastics have developed renewable energy subcommittee of
fuel cell components that address the Mayors’ Initiative identified a
some of the durability, cost and number of potential growth opportu-
performance issues that currently nities for renewable energy products.
plague the technology. While a The growth rates are drawn from a
hydrogen-powered vehicle recent DOE analysis of annual
may never roll off a Minnesota growth over the long-term. Photo courtesy of Green Institute.
assembly line, Minnesota
companies are working to insure Minnesota is well positioned to par- tious Renewable Energy Standard
that the state has its stamp on ticipate in that growth as it is near the (RES), requiring 25% of all electricity
the final product. market of wind farms (North Dakota, to be from renewable sources by
South Dakota, Nebraska, Minnesota, 2020. A recent announcement of a
Renewable Energy Products Iowa, Wisconsin and Illinois) and the wind turbine tower manufacturer,
The renewable energy products heart of biomass raw materials. Iowa Hendricks Industries, to be located in
sector includes the products that has already attracted five wind tur- Keokuk, Iowa will provide added
generate renewable energy, equip- bine and turbine parts manufacturers market opportunity for suppliers in
ment that manages energy systems since Minnesota enacted its ambi- the Twin Cities region. The Minnesota
Minnesota Product Projected Annual Growth Local Companies
RE Source
Opportunities Rate Nationally to 2030 (A,B) (C,D)
Wind Suppliers to Turbine OEMs — 7.1% Remmele Engineering, Eaton
blades, gear boxes, other
Biofuels Biodiesel, cellulosic, ethanol 5.6% Cargill, CHS, Minnesota Corn
Processing
Biomass Turbines 9.5% Bixby Energy Systems, Inc.
(Elk River)
Solar Solar Hot Water systems Solar thermal (6.4%) Red Rock Energy (White
Solar PV (19.5%) Bear Lake)
Geo-Thermal Heat Pumps 3.4% ECONAR (Elk River)
Energy Monitoring & Management 10-30% Honeywell’s Automation &
Efficiency Systems, Energy Saving (estimate from Building Products analysis) Control Solutions (ACS) Division
materials (Golden Valley)
(A) Energy Information Administration U.S. Annual Energy Outlook with projections to 2030 (early release) 2008; (B) CDC Associates;
(C) www.energy.sourceguides.com; and (D) Minnesota Department of Employment and Economic Development (DEED)
The Mayors’ Initiative on Green Manufacturing April 2008 9Department of Employment and
Economic Development (DEED)
worked with the Mayors’ Initiative to
sponsor a meeting in each city to
explain the opportunity for manufac-
turers to supply OEMs in the wind
turbine industry. More than 30 com-
panies attended these 2 sessions.
They received the invitation to
engage as part of the supply chain in
this growing market and it was well
received. DEED will continue to
develop a wind energy supply chain
marketing program in the coming
year. The two cities have an opportu-
nity to engage in this process and
focus on increasing the participation
of local machine shops in wind
energy component parts. Renewable Energy Policy Project MinnesotaSolar.com reports:
projects more than 500 potential
The American Wind Energy suppliers in the Twin Cities metro- According to the Department of
Association recently announced that politan area, assuming a national Energy, the costs of solar
2007 was a record year for additions renewable energy standard of 15%. photovoltaics (PV) have dropped
to the installed production capacity of Energy Source Guides (a self- 200 percent over the last three
wind, adding 6,000 MW, a 45% decades. Costs today range
identified list of renewable
from 10 to 40 cents per kilowatt-
increase from the previous year and companies) lists 31 companies in
hour. The PV market is worth
the third consecutive record breaking Minnesota, 8 of which are located in $2 billion today, but is expected
year for wind. DEED estimates the Minneapolis and Saint Paul. (See to grow to $10 billion by 2010.
wind turbine industry market in Appendix C). The annual growth rate of solar
Minnesota alone to be $14 billion PV products has grown by
over the next 10 years, a direct Minnesota Department of Commerce 20 percent annually and is
result of Minnesota’s decision to website points out that “Minnesota expected to double every three
pass the RES. has more annual solar energy poten- years for the next 20 years.
tial than Houston, Texas and nearly
The actual number of manufacturers as much as Miami, Florida.” Minnesota now has two Solar Rating
already in the Renewable Energy However, the costs of installation for and Certification Corporation (SRCC)
industry or its supply chain in many residential users are expensive listed manufacturers, although none
Minnesota is undetermined. The and have a long payback period. in the cities of Minneapolis and Saint
Paul. A recent joint application of the
cities of Minneapolis and Saint Paul
with the Minnesota Department of
County Investment Jobs Commerce aims to increase installed
($millions) solar (thermal and photovoltaic)
Hennepin $ 394.8 2,708 capacity by 500% by 2010 with
Ramsey $ 156.4 1,041 support of a pending Solar America
Cities 2008 grant. International
Anoka $ 80.4 586
Brotherhood of Electrical Workers
Carver $ 68.8 475 (IBEW), the National Electrical
Dakota $ 55.2 409 Contractors Association (NECA) and
Washington $ 17.0 108 local technical college, Century
Total $ 772.6 5,327 College each have training and
apprenticeship programs to certify
Source: Renewable Energy Policy Project, Location of Wind Manufacturing, 2007 solar installers.
10 “Making it Green” in Minneapolis Saint PaulThe Minneapolis IBEW has a 1000
sq ft lab designed to teach learning
objectives set by NABCEP (North
American Board of Certified Energy
Practitioners). It works in conjunction
with an active grid-tied solar array
system. The array has 36 panels
that can be distributed individually
for students to learn how to install
various types of solar systems. When
not used in teaching, the panels are
reconfigured to produce as much as
6000 watts. The Joint Apprenticeship
Training Center (JATC) is currently
certified to give the NABCEP
Certificate of Knowledge exam at
the IBEW St. Michael facility.
Longer-Term Opportunities
In addition to the immediate opportu-
nities identified above, the Mayors’
Initiative recommends concentrating ● Center for Sustainable There is great opportunity and momen-
research and development in the Building Research (CSBR) tum building in the commercialization of
key enabling technologies identified http://www.csbr.umn.edu/ R & D and many synergies possible
below. These technologies are organizes and effectively grows through better linking university
capable of supporting the growth the research and outreach mis- research and business. Both cities and
sions of the University of
of new companies and products in a the university are supporting the devel-
Minnesota’s College of Design,
number of new applications and opment of the University Research
as well as working with other
green manufacturing subsectors. units to enhance the college's Park as a center to house more indus-
teaching mission. CSBR serves trial jobs in its 700 plus acres, located
In addition to several corporate as a resource for State of near the border of the two cities along
and private research centers in the Minnesota, the design profes- the proposed Central Corridor LRT line.
region working on related products, sions, and the building industry. The park’s focus is to draw upon its
the University of Minnesota has There is a substantial and grow- proximity to the University of
research centers conducting ing amount of building research Minnesota’s Minneapolis and Saint Paul
basic andapplied research in the activity in the following areas: campuses to house R & D projects,
following areas: sustainable design, energy-effi- start-up firms and research divisions of
cient buildings, windows and larger companies. In addition, the
● Institute for Renewable Energy glazing research, building design
and the Environment (IREE) University of Minnesota’s Carlson
process and evaluation, human
http://www1.umn.edu/iree/ School of Management offers the
factors, and building science.
promotes statewide economic Minnesota Cup competition for
development, sustainable, ● Center for Transportation entrepreneurs with ‘breakthrough”
healthy, and diverse ecosystems, Studies (CTS)
ideas to receive recognition, advice
and national energy security http://www.cts.umn.edu/
and some start-up funding. Its annual
through development of bio- works with more than 75
faculty from 25 different depart- Commercialization Challenge
based and other renewable sponsored by the University’s Venture
resources and processes. ments in seven colleges — a
spectrum of disciplines including Center aims at getting university
engineering, planning, econom- technology into the marketplace.
ics, public policy, computer This year, if a green product wins,
science, human factors, and it’s eligible for $1 million in start-up
environmental studies. money — a non-green winner can
only receive $100,000.
The Mayors’ Initiative on Green Manufacturing April 2008 11II. BUILDING ON A SOLID GREEN FOUNDATION increasing the city’s proportion of
renewable energy used and
Minneapolis and Saint Paul are build- Minneapolis and Saint Paul have reducing CO2 emissions in its
ing on their strengths in green initia- each been recognized as being operations and citywide. It
tives, their policies to support strate- among the top “green” cities in the has also developed a set of
gic development of scarce industrial U.S. The Green Guide did rankings in sustainability indicators and
land and their many other assets as 2005 and 2006 – Minneapolis was publishes an annual report of
its GreenPrint, tracking sustain-
a location for green manufacturing. among the top ten in 2005 and Saint
ability efforts.
As early signatories of the U.S. Paul was named in the top ten in
Conference of Mayors’ Climate 2006. Another ranking of green cities ● Sustainable Saint Paul — Saint
Protection Agreement, Mayors R. T. comes from SustainLane (www.sus- Paul has been recognized by
many national organizations for
Rybak and Christopher B. Coleman tainlane.com) that ranked the largest
its efforts to build a citywide
have demonstrated substantial lead- 50 US cities by sustainability factors.
recycling program; combined
ership. Minneapolis and Saint Paul Finally, Minneapolis and Saint Paul heat power plant, reclaiming and
already have a number of green pro- ranked eleventh and twelfth respec- redeveloping brownfield industrial
grams and initiatives in place such as tively based on air quality, electricity sites; and building a nature cen-
the Sustainability Plan initiative in use and transportation habits in ter. The city also sponsors an
Minneapolis and the District Energy Popular Science Magazine’s annual Sustainable Saint Paul
heating system in Saint Paul. An 2008 “Top 50 Greenest Cities” awards program to honor citi-
expanded list follows later in this sec- (www.popsci.com). zens and businesses that are
tion. Furthermore, the cities have dis- making significant achievements
tinct qualities to support the expan- The cities of Minneapolis and Saint in protecting and restoring the
sion of green manufacturing, but they Paul have already established them- environment.
need to be packaged and marketed selves as early adopters of green ini- ● Energy Corridor in Saint Paul
in order to capture the full benefits of tiatives. As early as 1993 the city — a proposal to link develop-
the emerging green economy. councils of both cities adopted an ment of renewable energy to
advisory plan prepared by the UN supply the Rock-Tenn recycling
plant and other area businesses
sponsored International Council for
along the Central Corridor to
Local Environmental Initiatives to
benefits of reducing greenhouse
Top 10 Greenest US Cities work to reduce CO2 emissions. gases and maintaining as many
(SustainLane, 2006) as 500 family supporting union
Since that time they have put in jobs in this facility.
1. Portland, OR
place many pioneering green features ● Minneapolis Solar Facilities —
2. San Francisco, CA ranging from land use, transporta- The City of Minneapolis has
3. Seattle, WA tion, energy efficiency, renewable been selected to receive a $2
4. Chicago, IL energy, storm water reduction and million grant to construct the
urban greening. Some notable and largest urban solar array upper
5. Oakland, CA recent efforts include: Midwest. The grant is funded
6. New York City, NY ● Saint Paul District Energy — through the Xcel Energy
the district heating and cooling Renewable Development Fund,
7. Boston, MA
system developed more than and will allow Minneapolis to
8. Philadelphia, PA 20 years ago now serving 30.7 build a 600 kilowatt array. The
million square feet in downtown solar array is currently planned to
9. Denver, CO
Saint Paul. be constructed on the roof of
10. Minneapolis, MN the City’s Public Works Currie
● Minneapolis Sustainability Maintenance Facility.
Plan and GreenPrint — The
Ranked against the 50 largest US Cities
Minneapolis Sustainability Plan
Note: Saint Paul was not included in the Joint Energy Efficiency Efforts
was adopted in 2003 after the
ranking as it is not among the largest 50
public process that established Both cities were early adopters of
cities in the U.S. (Minneapolis 48th
24 sustainability indicators. A LEED or its equivalent, the MN
largest). www.sustainlane.com
subset of these indicators, the Sustainable Building Guidelines, for
GreenPrint includes goals for
newly built city-owned properties.
12 “Making it Green” in Minneapolis Saint Paul● Minneapolis and St. Paul are ● The City of Minneapolis has
also committed to energy installed solar systems on four
conservation efforts in their city buildings including a fire sta-
facilities including changing of tion and two public works facili-
traffic signal lights to LED’s and ties. The City’s new 3rd Police
hiring Energy Managers. Precinct building uses a passive
● Both cities supported Xcel solar heat exchanger to pre-heat
Energy’s plan called the air before it enters the building’s
Minnesota Metro Emissions ventilation system.
Reduction Project (MERP) to ● The city is integrating general
significantly reduce air emissions sustainable design criteria into
from three Twin Cities’ coal-pow- economic development related
ered generating plants including Requests for Proposals. For
one in Minneapolis and another example, Minneapolis recently
one in Saint Paul. The change to negotiated commitments from
the Riverside plant alone will two developers to obtain LEED
reduce CO2 emissions by one certification on three projects.
million tons per year ● The city is currently updating its
● The Cities are using the ground- comprehensive plan, The
breaking State of Minnesota Minneapolis Plan for Sustainable
Building, Benchmarking and Growth. The updated plan will
Beyond (B3) guidelines devel- contain additional policies and
oped by Xcel Energy, the implementation that expand the
Department of Commerce and City’s sustainability goals and
the Weidt Group to identify and renewable energy targets.
prioritize public buildings and ● In 2006, the City waived permit ● The zero-energy-consumption
make the necessary improve- fees for the installations of twelve Science House Experiment
ments to reduce CO2 emissions solar water heaters, as part of Center on the Mississippi River
and save taxpayer dollars. the SE Como Neighborhood in downtown St. Paul features a
Solar Thermal Project, each sav- solar-powered classroom, an
Additional Minneapolis highlights ing about 120 therms of natural 8.4 kW photovoltaic laminate on
include: gas each year. standing-seam steel roof and
includes passive solar design.
● The City Council passed a new
ordinance requiring all new or Additional Saint Paul highlights ● The Saint Paul City Council
significantly renovated city- include: unanimously passed a
owned buildings be built to Sustainable Development Policy
● District Energy Saint Paul owns
LEED Silver national green build- for New and Renovated
and operates the largest hot
ing standards, the upcoming Municipal Buildings in January
water district heating system in
Hiawatha Maintenance Facility to 2007. All new or major renovat-
North America, along with a
be LEED Gold certified, and key ed Saint Paul municipal facilities
large chilled water cooling sys-
staff be LEED AP. will use one of the following two
tem providing green energy to
well-established standards: 1)
● The city has 28 hybrid electric 80% of downtown Saint Paul
Leadership in Energy and
vehicles in its fleet, and Mayor R. buildings including the State
Environmental Design (LEED) or
T. Rybak’s official City of Capitol complex from its new
2) State of Minnesota
Minneapolis car is a plug-in, gas- combined heat and power plant,
Sustainable Building Guidelines.
electric hybrid Toyota Prius that fueled by 300,000 tons of clean
In December of 2007, the City
gets 70+ miles per gallon of urban wood waste per year.
opened the new Saint Paul
gasoline. A new program will
Police Department’s Western
allow charging this vehicle with
District Police LEED Silver facility.
solar electricity.
More complete information on each city’s efforts can be found at
http://www.ci.minneapolis.mn.us/sustainability/ and http://www.stpaul.gov/initiatives/sustainable/
The Mayors’ Initiative on Green Manufacturing April 2008 13The following table lists some key
factors for green manufacturers and
indicates that each city can provide
them all.
According to the November 2007
release of Manufacturers’ News, Inc.,
the publisher of directories of
manufacturers:
● Minneapolis is home to the most
industrial jobs in Minnesota with
13% of the state’s manufacturing
employment or 65,797 jobs.
● Saint Paul accounts for 47,644
manufacturing jobs. MNI reports
the Twin Cities rank high among
the top 25 cities in the US for
industrial employment with
Minneapolis ranking 13th in the
nation and Saint Paul 25th.
● The city now requires that all in place to attract industrial firms;
new affordable housing projects ● Together, their 2,028 plants rank
both offer ready marketplaces for
follow the Green Communities Minneapolis/Saint Paul fourth in
green products and suppliers, both
protocol and all new commercial the nation for the number of
have an increasing variety of renew- manufacturers.
projects utilize Xcel Energy’s able energy sources and green trans-
Energy Design Assistance portation/shipping options, such as
program. With a grant from the From: http://www.manufacturersnews.com/
the Mississippi River. news/release.asp?ID=101
Minnesota Pollution Control
Agency (MPCA), the city con-
vened a group of stakeholders to
examine the city’s policies and
What companies need to thrive What exists in
practices to encourage “green”
development for all projects in a green economy: Minneapolis Saint Paul
●
receiving public investments.
The city awarded its first
Market Opportunity ✓
Sustainable Saint Paul Green Access to the Market (Concentrated
Building Design award to
Flannery Construction’s new
Demand, Transportation Hub,
Educated Workforce…)
✓
headquarters. The building uses
37% less energy than traditional
architecture with a PV system,
Appropriate Materials/Suppliers ✓
ground source heat pump and
energy-efficient HVAC. Accessible/ Trained Workforce ✓
Other Location Advantages of
Minneapolis and Saint Paul
Sufficient Finance for Growth ✓
Minneapolis and Saint Paul are lead-
ing centers of manufacturing includ-
Green Power ✓
ing world-class manufacturers such
as 3M, Medtronic, Cargill, Ecolab, Green Buildings/Sites ✓
General Mills, Andersen, Donaldson,
Toro, and Pentair. In fact taken Green Transit/Transport/Logistics ✓
together, Minneapolis and Saint Paul
are the 4th largest manufacturing city
in the U.S. Both cities have policies
Green Process Assistance ✓
14 “Making it Green” in Minneapolis Saint PaulMinneapolis and Saint Paul Opportunity Sites St. Paul Port Authority has taken
As in many other cities, former industrial space has been converted to other efforts to green their business
uses and some awaits environmental remediation to enable it to be reused. centers in the following ways16:
Overall, land for manufacturing purposes is becoming scarcer within the cities
of Minneapolis and Saint Paul. An analysis of data from the Metropolitan ● provide access to district
Council shows the loss of land dedicated to manufacturing uses. heating,
● install state-of-the-art
stormwater ponding and
Acres of Manufacturing Land stormwater management
systems,
% Chg.
1990 2000 2005 ● clean-up polluted lands for
00-05
new development, and
Minneapolis 5460 4599 4010 -12.8 ● advise business center
tenants on energy efficient
Saint Paul 4505 4520 4143 -8.3 construction, high perform-
ance (e.g. LEED or equivalent)
TOTAL 9965 9119 8153 -10.6 building and sustainable site
design including employee
productivity design elements.
Report to Saint Paul Port Authority, Industrial Land Use Policy, July 25, 2007.
Source: Metropolitan Council
Among the green product manu-
facturers in the Saint Paul Port
Both Minneapolis and Saint Paul Each city has programs to support
Authority Business Centers are17:
have taken measures to stem this growth in manufacturing employment
decline and preserve scarce industrial and strategic use of valuable industri-
● Capital Wood Products which
land for industry with high employ- al lands. The Mayors’ Initiative rein-
designs wood fixtures from
ment densities (jobs per acre) and forces these efforts by identifying
“green” wood.
good wages. Through recent adop- growth opportunities in clean indus-
tion of industrial land use policies, tries with family-supporting manufac- ● NW Sheet Meta which sells
Minneapolis and Saint Paul have rec- turing jobs. There have been many high-efficiency products (e.g.
ognized the value of maintaining an strides here and nationally in devel- air conditioners).
industrial base and manufacturing oping green sites such as The ● Twin City Glass which sells
jobs within their boundaries. Enterprise Foundation’s effort with a low-e glass.
Minneapolis has developed a number number of other national organiza- ● University Enterprise Labs
of employment zones where existing tions to develop green communities
which produces biodegrad-
industrial buildings cannot be con- targeted at affordable housing devel-
able plastic bags.
verted to living space or other non- opment in U.S. Cities. Their checklist
confirming uses. Saint Paul has ana- assesses the “green”-ness of their ● Warners’ Stellian which
lyzed the real estate market trends projects. The Saint Paul Port markets high-efficiency
and its position vis a vis the sur- Authority (SPPA), best known locally applicances (e.g. washer/
rounding community and developed for putting the Energy Park Business dryers).
a plan to redevelop and market its Center in place in response to the ● Westway which ships
available industrial land to achieve 1970s energy crisis and redeveloping biodiesel fuels.
high employment density and living the city’s industrial sites and brown- ● Hawkins which produces
wage jobs. St. Paul’s recent study fields, judges manufacturers “green”- ethanol additives.
suggests, “..appropriate preservation ness according to their use of green
of employment-generating land is a inputs, green products, green
critical strategy to maintain Saint process and green R &D.
16 Saint Paul Port Authority, Memorandum to
Paul’s healthy and diverse economy Board of Commissioners, re: Port Authority
into the future.” Green Initiatives, January 15, 2008
17 Ibid.
The Mayors’ Initiative on Green Manufacturing April 2008 15You can also read
