Fuel Cells Expected to Take Longer, Just Ask Siemens

Lots of places are excited about the growth potential of fuel cells. Here is one indication that reaching competitive cost realities with this new technology may take longer than expected.

Just three years ago, Siemens Westinghouse Power Corp. had leaders from three states falling over themselves with incentives to gain a new manufacturing plant that could employ as many as 500 workers by 2006. Now, company officials are hoping someone else will use the 180,000-square-foot building in Munhall, PA that's been sitting empty for more than a year. Instead of moving in, Siemens will invest $2 million this year in upgrading the 140,000-square-foot office and manufacturing space it leases in Churchill, PA.

The building there is owned by a limited partnership associated with the Waterfront development done by Columbus, Ohio-based Continental Real Estate Cos. Siemens is in the second year of a 13-year lease.

Although Siemens had the opportunity to tap state job creation tax credits, as well as apply for industrial development and equipment loans, state records indicate the company ended up taking just the $750,000 opportunity grant. That meant committing to keeping 120 jobs and adding 330 more by 2009, as well as requiring Siemens to invest $40 million in the Munhall site, among other things.

If you're not careful, this could happen to you.

Go here to read more.