Formation of Rockford Bergé

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Nick Wasmiller
Seyferth & Associates Inc.
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wasmiller@seyferthpr.com

SPAIN-BASED COMPANY PARTNERS WITH MICHIGAN FIRM TO CREATE COMPREHENSIVE WIND FARM CONSTRUCTION AND LOGISTICS ORGANIZATION
The Right Place helps bring companies together

GRAND RAPIDS, MICH. (March 11, 2009) – Spain-based Bergé Logística Energética and Rockford Construction today announced the formation of Rockford Bergé, an organization combining wind farm construction with comprehensive logistical services.  Rockford Bergé will focus its initial efforts in Michigan with plans to service the entire Great Lakes region.

“Rockford Bergé is a one-of-a-kind company in Michigan, offering construction and logistical services for clients who wish to construct wind farms,” said Mike VanGessel, president and CEO of Rockford Construction.  “With this unique combination of expertise, Rockford Bergé will provide utilities and municipalities that wish to develop wind farms with a cost-efficient, deadline-oriented partner.”

Rockford Construction was recently ranked as a Top 50 Green Contractor by Engineering News-Record.  Bergé has expertise in many aspects of energy infrastructure logistics, including transporting massive turbine parts from around the world.  Approximately half of the parts for wind turbines in the United States currently come from overseas as the support industries are being developed in North America.

Together, Rockford Bergé will support the sourcing, construction and on-site management for smaller-scale wind farm (150-foot-tall turbines) projects, often developed in cities or smaller communities, as well as utility-scale (more than 350-foot-tall turbines) projects.  The Rockford Bergé organization will offer technical support, sourcing assistance, logistics experience in all modes of transportation (rail, water, road), transporting and managing shipments of wind turbine components from multiple locations and single-source capability to receive parts, assemble and manage large-scale construction.

“The size and scope of wind farm construction is daunting for most,” added VanGessel.  “A utility-scale wind turbine rotor with three blades attached is larger than a Boeing 747.  Each blade weighs thousands of pounds and the rotor makes a revolution every two or three seconds.  With an object that large and that heavy spinning hundreds of feet off the ground, a great deal of expertise is needed to ensure that the project is done right.  We have that expertise.”

The size of the wind farms will vary. Many cities across the United States, some in Michigan, have plans under way to add as many as 15 turbines and as few as three. In addition to the sheer size of a wind turbine, the fact that many of the parts are produced in a variety of locations throughout the world creates the need for long distance shipping. These realities add logistical and construction complexities that Rockford Bergé will address.

“Data analysis indicates that Michigan offers some of the best opportunities in the nation to capture wind energy,” said Jorge Gonzalez, Bergé project manager.  “Currently, Michigan ranks 22nd in the nation in terms of the amount of power being generated from wind, producing nearly 130 megawatts of power.  But it is 14th in terms of wind abundance.  That gap between power generation and wind abundance is an indicator of a largely untapped market.”

There are two commercial wind farms currently in operation on the east side of Michigan and there are more than 30 developments under consideration or in the research phases.

Michigan has the capacity to generate more than 16,000 megawatts of power from onshore sources.  In addition, Michigan’s generation potential from off-shore sources is 330,000 megawatts, according to a recent Michigan State University study.

“Rockford Bergé represents more than just two companies with specific expertise areas coming together,” said John Wheeler, chairman of Rockford Companies.  “Both organizations are committed to renewable energy, are full of entrepreneurial spirit and are leaders in their categories.  The Right Place served as the catalyst to introduce us. They have helped our organizations better understand how Michigan needed this combined level of construction and logistics expertise.  While we will initially support the development of farms at all levels, our intent is to serve as a catalyst to grow the renewable energy industry in Michigan.”

The Right Place, a nonprofit economic development organization serving Greater Grand Rapids, helped bring the two companies together.  The Right Place, in partnership with the West Michigan Strategic Alliance, commissioned a study on the wind industry in Michigan in 2008.  The study identified organizations already in the region, such as Rockford Construction, with the expertise needed to construct wind farms.  It also identified needs that would not be met by companies in the region, such as logistics, and found leaders in these categories, such as Bergé, that could fill those needs.

“Two organizations of this magnitude coming together to bolster renewable energy in this region is exactly what Michigan needs and The Right Place is pleased to have played a role in bringing these companies together,” said Birgit Klohs, president and CEO of The Right Place.  “As our manufacturing community begins to embrace wind energy and the number of wind turbine components made here in Michigan continues to rise, Rockford Bergé will be a company that offers the numerous services needed to get those parts to generate power from wind.”

Washington, D.C.-based MAPA Group also will serve as a strategic partner in Rockford Bergé.  MAPA Group consults with a number of global suppliers tied to the renewable energy industries. MAPA representatives have helped connect Rockford Bergé to wind energy industry suppliers throughout the world.  As parts are brought to the United States, the MAPA Group will help connect the international manufacturers with U.S. partners to assemble, produce and locally source as the industry grows. Bruce Thompson, based in MAPA Group’s Grand Rapids office, will direct business development for the new venture.

“The portfolio standard that was passed in late 2008 by the Michigan legislature has utilities, municipalities and many other organizations searching for ways to generate power from renewable sources,” said Thompson.  “Rockford Bergé will provide a one-stop shop for those organizations to meet their construction and logistical needs.”

Michigan’s renewable portfolio standards mandate that 10 percent of the state’s electricity (approximately 1,100 megawatts) comes from renewable sources by 2015.

“In addition, the federal government is moving toward implementing its own set of renewable portfolio standards that are very similar to those adopted in Michigan,” added Thompson.  “When combined with possible greenhouse emission guidelines that could raise the costs of traditional energy sources, it is clear that the market for wind energy will continue to grow.”

Grand Rapids’ Mayor George Heartwell is enthusiastic about this joint venture and the increased opportunity for additional sources of renewable energy that it represents.

“This is an exciting announcement for the entire state of Michigan,” said Grand Rapids Mayor George Heartwell.  “The city of Grand Rapids has been at the forefront of renewable energy initiatives for many years and we’re proud to have this announcement come from here.  The city is now setting its sights higher by moving the percentage of power that we use from renewable sources for municipal purposes from approximately 20 percent to 100 percent by 2020.  This partnership is likely to help us to meet this standard.”

For more information about Rockford Berge, visit www.rockfordberge.com.

Rockford Construction Company, Inc. was founded in 1987 by John Wheeler and Michael VanGessel. Today, the organization has nearly 200 employees, locations in Grand Rapids, Traverse City, and Phoenix, Arizona, and is currently licensed in 40 states throughout the nation. The company has made “green” building and environmental awareness a top priority on its corporate agenda. Rockford is a corporate member of the United States Green Building Council (USGBC), the originator and administrator of the LEED building rating system.

Bergé Logística Energética was founded in 2007 and is a division of Bergé Y Cia, a 139-year-old company that currently has more than 4,000 employees and operates in more than 20 countries.

The MAPA Group is a strategic business development firm focused on building and executing sustainable market strategies for its clients. MAPA leverages the expertise of its partners to assist clients in establishing and growing its North American presence.