Niagara Low-Cost Hydropower Allocations Approved by NYPA Board of Trustees to Spur $356 Million in Private Capital Investments
Stavatti Aerospace, Trek, Life Technologies and Sucro Real Estate NY to Utilize Low-Cost Power for Economic Development Projects in Niagara and Erie Counties
Governor Andrew M. Cuomo today announced the New York Power Authority's Board of Trustees has approved four economic development awards that will support 583 jobs and spur $356 million in private capital investments across Western New York. The allocations of 11,650 kilowatts of low-cost hydropower from NYPA's Niagara Power Project in Lewiston will be awarded to Stavatti Aerospace and Trek in Niagara County and to Life Technologies and Sucro Real Estate NY in Erie County. Each company will utilize the low-cost power to create or expand new facilities and hire new workers.
"COVID-19 has caused widespread damage to our economy that shouldn't be swept under the rug, and it will take a concerted effort from government and the private sector to facilitate new economic development opportunities for all New Yorkers and bring our state back," Governor Cuomo said. "These low-cost power allocations will help four innovative companies to break ground on new projects, create hundreds of good jobs and invest hundreds of millions of dollars in the Western New York economy. Our state's economy is reeling, but we will bring it back stronger than ever before."
"Like thousands of Western New Yorkers, my father and grandfather worked at the Bethlehem Steel plant, and my grandmother worked during the war effort in aerospace manufacturing," said Lieutenant Governor Kathy Hochul. "For families like mine who lived through the industrial decline of Western New York, today's announcement signals a long overdue rebirth of highly visible abandoned properties and support for businesses. Not only will these allocations create good-paying jobs, they will further unleash the full potential of Western New York as an economic powerhouse for the post-pandemic future."
Stavatti Aerospace in Niagara Falls, an aircraft manufacturer focused on the design and production of military, commercial, and general aviation aircraft, was awarded a 2,700-kW hydropower allocation to create 363 jobs and invest up to $156 million to establish an aircraft research, design, and prototyping facility at Niagara Falls International Airport. The project is expected to be completed in 2022.
Trek in Lockport, a manufacturer of electrostatic measurement and high voltage solutions, was awarded a 350-kW hydropower allocation to create 30 jobs and invest $6 million to establish a new center at its existing facility that would allow the company to centralize engineering resources, develop new manufacturing capabilities, and eliminate redundancies within its organization.
Life Technologies in Grand Island, a subsidiary of Thermo Fisher Scientific, is a producer of cell culture products for the pharmaceutical industry. The firm was awarded a 3,600-kW hydropower allocation to create 140 jobs and invest $175 million to construct a 43,500 square foot addition to its Grand Island plant to accommodate the production of animal origin free and advanced granulation technology products. The project would also support an upgraded water for injection system to increase the production capacity of approximately 12,000 square feet of renovated space. Life Technologies will be undertaking construction on the expansion later this year.
Sucro Real Estate NY was awarded a 5,000-kW hydropower allocation to establish a full-scale sugar refinery at the former Bethlehem Steel site in Lackawanna, creating 50 jobs and a capital investment of $19 million. The new plant will produce organic and conventional refined sugar as bulk and packaged products in both granular and liquid forms. The project site encompasses 12 acres, which includes three large buildings requiring extensive renovations. Sucro is planning to begin construction on multiple phases of the project in 2021.
NYPA Chairman and Buffalo resident John R. Koelmel said, "Low-cost hydropower from the Power Authority's Niagara power plant has been a cornerstone of the Western New York economy for decades. We are very proud to make these four significant power allocations in support of significant investments, which will create more than 500 new jobs and spur exciting growth throughout the region, helping to reinvigorate our economy in 2021 and beyond."
NYPA President and CEO Gil C. Quiniones said, "These power allocations are critical to businesses looking to press forward and safely rebound from the COVID-19 pandemic. As a good neighbor, NYPA is committed to supporting businesses in Western New York as we align with Governor Cuomo's NY Forward plan and return to work safely. These allocations to innovative businesses in Western New York will help us reimagine, rebuild and renew as we not only recover from the pandemic, but as we grow a thriving green energy economy."
Low-cost Niagara hydropower is available for companies within a 30-mile radius of NYPA's Niagara Power Project or businesses in Chautauqua County. Niagara hydropower is linked to tens of thousands of existing jobs in the region. More information about business growth opportunities supported by NYPA is available on its Economic Development webpage.
Senator Tim Kennedy said, "As we continue to rebuild our economy, these critical allocations by New York State will provide a significant boost to our workforce and create new opportunities for long-term investment in Western New York. I congratulate Sucro Real Estate NY, Life Technologies, Trek, and StavattiAerospace on these exciting awards, and look forward to their continued growth and expansion across our region."
Senate Republican Leader Robert Ortt said, "This significant investment from NYPA could not have come at a better time. The ongoing Coronavirus pandemic has affected almost every part of our daily life, with our economy being one of the most heavily impacted aspects. The allocation of over 3,000-kW of power from the New York Power Authority to Stavatti Aerospace and Trek Inc. will give our local area a jolt of energy that is greatly needed at such a crucial time."
Senator Sean Ryan said “Investing in good-paying jobs is how we will bounce back from the pandemic and secure a brighter future for Western New York. Low-cost hydropower from NYPA has been crucial to the success of many companies across our region. This new allocation of hydropower will assist these innovative companies as they expand, creating the jobs we need to recover from the pandemic and move Western New York forward.”
Assemblyman Angelo Morinello said, "The New York Power Authority has long been providing low-cost hydropower to companies who are willing to invest locally. We are particularly excited about the Stavatti Aerospace project at the Niagara Falls International Airport and Life Technologies in Grand Island—the number of job opportunities these endeavors will provide to the area will be a great boost to our local economy and help to jumpstart the region as we move to recover from the pandemic."
New York State's Nation-Leading Climate Plan
Governor Cuomo's nation-leading climate agenda is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State recovers from the COVID-19 pandemic. Enshrined into law through the Climate Leadership and Community Protection Act, New York is on a path to achieving its mandated goal of a zero-emissions electricity sector by 2040, including 70 percent renewable energy generation by 2030, and to reach economy-wide carbon neutrality. It builds on New York's unprecedented ramp-up of clean energy including over $4 billion invested in 91 large-scale renewable projects across the state, the creation of more than 150,000 jobs in New York's clean energy sector, a commitment to develop 9,000 megawatts of offshore wind by 2035, and 1,800 percent growth in the distributed solar sector since 2011. Under Governor Cuomo's leadership, New York will build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while meeting a goal to deliver 40 percent of the benefits of clean energy investments to disadvantaged communities, and advancing progress towards the state's 2025 energy efficiency target of reducing on-site energy consumption by 185 trillion BTUs in end-use savings.
NYPA is the largest state public power organization in the nation, operating 16 generating facilities and more than 1,400 circuit-miles of transmission lines. More than 80 percent of the electricity NYPA produces is clean renewable hydropower. NYPA uses no tax money or state credit. It finances its operations through the sale of bonds and revenues earned in large part through sales of electricity. For more information visit www.nypa.gov and follow us on Twitter, Facebook, Instagram, Tumblr and LinkedIn.