It was great to be back in Ohio several weekends ago for one of my favorite annual events, the MS

It was great to be back in Ohio several weekends ago for one of my favorite annual events, the MS 150 Pedal to the Point. My native Austintown buddy Jack and I engaged in our annual ritual of riding our bikes to support Multiple Sclerosis. After a few years in different locations, it was great to do the ride from Cleveland to Sandusky again. We saw the best of Ohio in action — the volunteers are warm and friendly, the fellow riders are fun and jovial, and (not least important) the terrain is flat as a tasty Bob Evans pancake. But the easy course brings a false sense of security, as the closer our bikes took us to Lake Erie and northwest Ohio, we know what’s waiting for us. Wind. Lots and lots of wind, always blowing at us, no matter what direction we seem to be heading in. Normally I can’t stand that wind, but these days it’s a very good thing for the state of Ohio to have.

Wind energy is as hot of a topic as there is in the field of energy and finance. In fact, in 2007, over $50 billion was invested globally into wind power, the most of any of the alternative energy sources. At a recent investment conference I attended, wind energy was brought up as one of the most significant investment opportunities for America in the future. In fact, all of renewable energy is going through a period where capital is flowing to it, with the possibility of some technologies winning out over others. Three years ago, corn-based ethanol was seriously considered a true American alternative to oil-based gasoline. But as corn has almost tripled in price, as pipelines so far cannot transport corn ethanol, and as it is not as energy efficient as sugar-based ethanol, corn ethanol may not be the solution everybody seeks for their gas tanks. Solar is starting to become economical, but there are many technologies competing to be the most efficient.

Similarly, wind has its hurdles. There is little transmission infrastructure in areas like the great plains to move the electricity generated. This is why T. Boone Pickens wants you to join his cause. His ideas are noble, but it will take a lot of government-backed investment to get it to work. And there is no real storage capacity for electricity generated by wind, so the wind has to blow when people need it the most, which is unpredictable.

Wind patterns

The state of Ohio has some great maps online that show where the wind blows in the state. The greater the historical wind patterns, the greater the possibility of the economics working for a possible wind farm location. Unfortunately, the Valley is not a big wind-producing center (insert political joke here). But that doesn’t mean Valley leaders and its citizens should not encourage further development of renewable energy in Ohio, because there are very tangible benefits to be had.

Right now, there is a bottleneck in the supply chain to develop wind mills and related equipment. I had heard that a Czech manufacturer of gears for ship propellers is now investing capital to make gear boxes for wind mills. A Michigan company that historically made fiberglass boat shells is now making blades for the propellers. Given Ohio’s history of being technological innovators during the last turn of the century, it should be also be involved in the supply chain revolution. There are many Valley companies already participating in supplying parts for wind turbines, but Ohio needs to have the visibility associated with actual renewable energy generation.

Recently, Danish turbine maker Vestas announced a new factory to be built in a suburb of Denver. Their rationale for locating there was the natural benefits of the wind in the state. But Vestas also cited the Colorado state government’s pro-active nature towards alternative energy. There are windmills in Ohio. I was happy to hear that my college town of Bowling Green alone has 4. There is talk of creating an offshore wind farm in Lake Erie. The state should commit all resources to developing it. Legislation requiring high amounts of electricity used in Ohio to be from alternative sources is just a start. State grants to universities for research, and to companies for capital spending, are ways to get the ball rolling.

America used to have a not-in-my-backyard attitude towards renewable energy. The only reason it shouldn’t be in the backyard is if its in the front yard. If I owned a house, whether it was here in New York or in the Valley, I would probably look to order a windmill made for the home (you can buy them on Amazon). Truthfully, it would be many years before the windmill paid for itself, but the symbolism of that little turbine would be equally as strong as the wind it takes to power it. Ohio needs to show that it is sincere in the development of renewable energy to convert its historical industrial base into a renewable industrial base.

X Eric Planey, a Youngstown native, is a vice president of the Bank of Tokyo-Mitsubishi UFJ in New York City