Sarnia-Lambton Ontario Canada Manufacturing location for the solar industry

1. Sarnia-Lambton Ontario CanadaManufacturing location for the solar industry August 2010

2. Sarnia-Lambton, Ontario, Canada Located on the Ontario-Michigan border, at the southern tip of Lake Huron.

3. Michigan USA Sarnia-Lambton’s municipalities Sarnia-Lambton is comprised of eleven municipalities, which make up the County of Lambton. The largest and most well known municipality is the City of Sarnia. • County population 129,000 • Labour force 62,000 • Labour force within 60 mile radius, 315,700 • Estimated unemployment rate 9%

4. Transportation - highway Sarnia-Lambton is located at the major commercial border crossing of Sarnia/Point Edward Ontario and Port Huron Michigan. Dedicated car and truck lanes for Free and Secure Trade (F.A.S.T.) and Nexus programs. Sarnia-Lambton’s location provides effective truck transportation to key North American markets. Photo – Trucks entering Canada at Point Edward, Sarnia-Lambton

5. Photo – service vehicle enters CN rail tunnel, Sarnia Photo – ship at Sydney Smith Dock, Sarnia Transportation – water and rail CN rail tunnel at Sarnia connects Ontario and Michigan. It accommodates double-stacked rail cars and links to the US Midwest and sea port of Halifax, Nova Scotia Sarnia-Lambton is located on the Great Lakes. Opportunities exist for industries requiring water transportation.

6. Sarnia-Lambton’s strategic direction

7. Benefit from a manufacturing and technically-oriented industrial base

8. Building on regional solar strengths Over 170 solar and related firms in Ontario and Michigan Leading firms include: Arise Technologies, ATS Automation, Bodycote, Hemlock Semiconductor, United Solar Ovonics Easy access to markets and regional solar suppliers and facilities Recent announcements in Sarnia-Lambton; Waterloo; London; Windsor; and St. Clair County, Michigan Regional strengths in manufacturing integration technologies, power and control technologies, and engineering design and services

9. Strong regional approach • Member of Canadian Solar Industries Association • Sustainable Chemistry Alliance – Cleantech focus • Regional Wind Supply Chain Partnership Initiative – Sarnia-Lambton, London, Kitchener-Waterloo, Guelph, Chatham-Kent • Bluewater Sustainability Initiative • Sarnia-Lambton Environmental Association

10. Sarnia-Lambton’s Cleantech manufacturing infrastructure – solar related • Over 30 engineering, process control and technical services firms • Over 50 machining and fabrication firms • Robotics labs at Lambton College • Research and development on energy storage for solar and wind at Lambton College • Improved grid connection research project – Bluewater Power, University of Waterloo, University of Western Ontario, Hydro One, and London Hydro • Large sites and secondary-use land for solar energy farms

11. First Solar, located in Sarnia When 80 MW is complete (by the end of 2010) it will be largest PV solar plant in the world, and is estimated to be so until 2013 Aerial, First Solar, Sarnia Ontario - Photo courtesy of First Solar, Inc.

12. Sarnia-Lambton’s growing energy infrastructure • Enbridge / First Solar – Solar Farm • Lambton Generating Station • TransAlta Energy Corporation • Greenfield Energy • St. Clair Energy Centre • Dawn Township natural gas storage complex • Wind - Sky Generation, Forest Co-op, IPC, Suncor • Pipeline Infrastructure

13. Canada’s Bioindustrial Innovation Centre • North American’s first biotechnology labs • Shared pilot plant facilities • Scientists and researchers available to assist with commercialization projects • located at the University of Western Ontario Research Park, Sarnia-Lambton Campus Labs at the Bioindustrial Innovation Centre

14. The Research Park, Sarnia-Lambton • Multi-million dollar development • Managed by the University of Western Ontario – one of Canada’s top ten R&D universities • Development complementary to the Sarnia Research and Business Park • Focus on commercialization of alternative energy and bio processes • Very cost effective option for research and development • Opportunity for “virtual office”

15. Sarnia-Lambton’s available labour force • Population 129,000 • Labour force 62,000 • Labour force within 60 mile radius 315,700 • Estimated unemployment rate 9% • Low employee turnover and absenteeism • Construction safety record 25 times better than Ontario average • Sarnia Lambton will provide recruitment assistance • Preliminary labour pool assessment • Locations for job fair

16. Highly trained manufacturing workforce Many area light industrial manufacturers Will assist in obtaining the right workforce Other references available upon request College focused on industry specific training as well as leading alternative energy program Community and workforce solidly behind move to alternative energy Strategic leaders are building projects to develop renewable sources for hydrogen Research to integrate old and new energy technologies Productive workforce moving to alternative energy

17. Sarnia-Lambton Workforce 2020 Action Plan New strategy completed in June 2010 with consultants and a core group of 30 community leaders Vision Sarnia-Lambton’s skilled and entrepreneurial workforce will power a prosperous economy led by its globally unique renewable and bio-chemical energy sectors

18. Helping find skilled workers • Will co-ordinate job fair with new industry • Will assist with integration into the community for all employees moving to Sarnia-Lambton • Will co-ordinate application for wage subsidy programs • Ontario Works – subsidies up to $4,500 for workers earning $15.00 per hour, up to $2,500 for workers earning less • Goodwill – subsidies up to $2,000 per worker

19. Helping find skilled workers • $3,500 to $5,000 to hire internationally trained landed immigrants in Canada – focus primarily on engineering • Provide English as Second Language Training directly in the work place • Apprenticeship training tax credit – refundable tax credit up to $5000 per year for qualified applicants • New graduate technician and technologist wage subsidy program up to $10,000 per applicant

20. High quality of life equals high productivity of workforce • Less lateness and absenteeism • Easy commuting distances and times • Less severe weather (Lake Huron effect) • Less stress because of more affordable housing choices and recreational amenities • Smaller schools without big city problems • Little Canadian Auto Workers (CAW) presence and good • labour/management relations across the County • Of 199 reported work stoppages in Ontario between 2003 and March 2010 only three were in Sarnia-Lambton

21. Ontario, Canada: Lambton College University of Western Ontario Fanshawe College Ridgetown College (branch campus University of Guelph) University of Windsor University of Waterloo Michigan, USA Baker College St. Clair College Michigan State Wayne State University Regional educational facilities Lambton College students, Sarnia Photo courtesy of Lambton College

22. Sarnia-Lambton is focused on Cleantech education and research • Lambton College – Programs in alternative energy technologies, chemical and power engineering, computing, instrumentation and controls • University of Western Ontario – Programs in chemical and biochemical engineering, sustainable energy technology, power engineering, and materials science

23. The Ontario Green Energy Act andFeed-In Tariffs Green Energy act targeted to produce 50,000 “green” jobs and eliminate coal-fired power plants Enhanced Smart Grid Right to Connect Feed-In Tariffs Ontario Content - SOLAR 40% of MicroFIT Solar 50% for FIT Solar Both to 60% by January 01, 2011 Content requirements are FIT contract obligations Solar Agricultural Land Restrictions No Class 1 or 2 Lands 500 MW of Class 3 across province Land already zoned Industrial can be used

24. St. Clair Township, Sarnia-Lambton Class 3 Lands

25. Ontario’s Solar Feed-In Tariffs

26. Ontario Solar Contracts

27. Competitive corporate taxes on manufacturing 2009 Combined Federal and State/Provincial Source - Ontario Ministry of Finance

28. Decreasing corporate income tax rates Source - 2009 Ontario budget and Ontario Ministry of Finance

29. Ontario’s research and development cost advantage Cost Advantage (%) After-Tax Cost of $100 Expenditure Ontario has a 16.1% cost advantage relative to USA Sources - Ontario Ministry of Finance and Canada Revenue Agency, 2009 Sources - KPMG and Ontario Ministry of Economic Development and Trade, Dec. 2008

30. Industrial Training – Sarnia-Lambton Industrial Education Co-operative trains people in all work environments to implement and sustain Best Practices performance improvement processes. Twenty-three Sarnia-Lambton member industrial companies Environment – Sarnia-Lambton Environmental Association – positive and measured results are being realized locally through collective commitment to ongoing environmental improvements. Twenty Sarnia-Lambton member industrial companies Sarnia-Lambton’s unique training opportunities

31. Canada’s federal incentives Canadian federal incentives • Scientific Research and Experimental Development (SR&ED) – R&D tax credit • Best in the world • IRAP – Industrial Research Assistance • Assist in Hiring Technical Staff Canadian financing partners • Canadian banks are now the strongest in the world • They are interested in investing in renewable energy • We can make appropriate introductions

32. Desirable locations and competitive housing costs • Sarnia housing prices are very affordable • Houses, condos, and apartments are available on the St. Clair River and Lake Huron waterfronts • Sarnia-Lambton’s picturesque rural areas provide room for hobby farms as well as large agricultural operations • Sample City of Sarnia housing prices: • Detached bungalow – $149,900 • Executive detached two storey – $280,000 • Standard two storey – $139,000 • Standard townhouse – $123,000 • Senior executive - $413,000 • Standard condominium apartment - $179,000 • Luxury condominium apartment - $350,000 Source – Survey of Canadian House Prices, second quarter, 2009, Royal LePage Photo – waterfront condominiums, Village of Point Edward

33. Sarnia-Lambton’s modern health care facilities • Hospital development and expansion, including new seven-storey tower • Community-based health care accessible throughout Sarnia-Lambton

34. State-of-the-art recreation facilities • Sarnia-Lambton’s municipalities value and invest in sports and recreation • New facilities throughout the area provide activities for all ages

35. Third party endorsements North American "Micro-City of the Future Top five best foreign direct investment strategy – City of Sarnia "fDi magazine", 2009 / 2010 Most Livable City in Ontario City of Sarnia Pembina Institute, August, 2007 North American “Micro-City of the Future” 3rd - City of Sarnia "fDi magazine", April/May, 2007 Top Ten Canadian Economic Development Groups Sarnia-Lambton Economic Partnership "Site Selection" Magazine, September 2008

36. Sarnia-Lambton Sarnia-Lambton Economic Partnership 265 Front Street North, Suite 107 Sarnia ON Canada N7T 7X1 www.sarnialambton.on.ca 519-332-1820