ReCharge NY, Niagara Hydropower Allocations and Western New York Funding Awards by NYPA Board of Trustees Spur More Than $580 Million in Private Capital Investments
Awards Include the Creation of 870 Jobs Statewide
Governor Andrew M. Cuomo today announced the New York Power Authority's Board of Trustees has approved economic development awards to 23 entities that will support 2,292 jobs across the state—with 870 jobs being newly created—and spur more than $580 million in private capital investments. Eighteen entities are receiving awards through ReCharge NY energy allocations, while the remaining five are receiving Niagara hydropower allocations and funding awards to enterprises in Western New York.
"These economic development awards will help us secure a promising and robust clean energy future for our state," Governor Cuomo said. "Time and time again, by following the blueprint of our nation-leading climate agenda, we have proven that it is possible to invest in clean energy today and create jobs that will uplift our communities, while establishing a clean energy infrastructure that will benefit future generations of New Yorkers."
NYPA Chairman and Buffalo resident John R. Koelmel said, "NYPA is supporting some very exciting projects today with these economic development incentives—especially in Western New York—and I'm pleased that we are able to stand with New York businesses and communities as we attempt to turn the page from this crippling pandemic. NYPA hydropower and funding will lead to the creation of 870 jobs today by providing businesses critical financial relief and long-term security as they expand and grow right here in New York."
NYPA President and CEO Gil C. Quiniones said, "Today's economic development awards will help to energize the New York economy as we all move to safely rebound from the Covid-19 pandemic. The low-cost power from NYPA's hydroelectric plants is the backbone to the state's economic development efforts and we are eager to leverage it to support businesses in need right now."
ReCharge NY Awards
The approved power allocations of nearly 11,900 kilowatts (kW) of low-cost power under the ReCharge NY program will be directed to 18 companies in the Finger Lakes, Mid-Hudson, Mohawk Valley, New York City, North Country, Western New York, and on Long Island. The awards directly support nearly 2,100 jobs—732 newly created—and more than $259 million in capital investments.
A full list of today's ReCharge NY power allocations and economic development awards is available here .
Included among the awards is a 5,100-kW power allocation to Plug Power, a hydrogen fuel manufacturer, for its expansion project in Monroe County that will create nearly 380 jobs, announced by the Governor in January.
Governor Cuomo's ReCharge NY program has strengthened New York State's economy by encouraging companies to retain and create jobs, while sparking capital investment throughout the state. ReCharge NY offers power contracts up to seven-years. Half of the power—455 megawatts (MW)—is from NYPA's Niagara and St. Lawrence-Franklin D. Roosevelt hydroelectric power plants. The remaining 455 MW is lower-cost power bought by NYPA on the wholesale market.
Niagara Hydropower Allocations
The NYPA board approved three 10-year hydropower allocations from the Niagara Power Project to Western New York businesses:
Amcor Rigid Packaging USA, a global manufacturer of packaging products across the food, beverage, pharmaceutical, and household markets industries, will receive a 1,750-kW hydropower allocation for the investment of nearly $19 million in a new production facility in Cheektowaga in Erie County. The project will lead to the creation of 24 jobs.
The NYPA board today also approved a 10,000-kW hydropower allocation to Plug Power for its expansion project at the Western New York Science, Technology and Advanced Manufacturing Park (STAMP) in the Town of Alabama. Plug Power will be investing $290 million on the construction of a hydrogen fuel production facility and a 450-megawatt electric substation to serve the complex. The NYPA board also approved today $1.5 million in funding for the project from the Western New York Power Proceeds program.
Plug Power has committed to creating 68 jobs at the new production facility, which will produce 45 tons of green hydrogen daily. Last month, the Governor recommended that the NYPA board consider support for the project.
The NYPA board approved a 400-kW hydropower allocation to Pine Pharmaceuticals for the expansion of its manufacturing plant in the Town of Tonawanda. The drug outsourcing company—which moved to the 25,000-square-foot building in the Riverview Solar Technology Park in May 2018—will be investing $8.6 million to triple the size of the facility and create 40 new jobs and retain its 94 existing jobs. The Governor announced the expansion project earlier this year.
Low-cost Niagara hydropower is available for companies within a 30-mile radius of the Power Authority's Niagara Power Project or businesses in Chautauqua County. Niagara hydropower is linked to tens of thousands of existing jobs in the region.
Western New York Power Proceeds Awards
The NYPA board approved three funding awards to enterprises through the Western New York Power Proceeds program (including the $1.5 million award to Plug Power for its expansion in the Town of Alabama noted above).
Eastman Machine Company received $170,000 to add 7,400 square feet to its building in Buffalo that will accommodate new warehouse space, an entrance lobby with a mezzanine and a second loading dock to greatly increase efficiency. The project will also add much needed office space and expand the company's engineering and technical services, accelerating lead and delivery times and increasing competitiveness. The $1.6 million expansion will lead to the creation of six new jobs.
The Center for Kashmir received $225,000 to establish a museum at a 100-year-old church in Niagara Falls. The museum will feature more than 600 original Kashmir paintings, etchings, drawings, and artifacts valued at roughly $2 million, representing the largest collection available outside of Kashmir. The church requires a $1.36 million re-design and re-purposing, including precise climate and lighting control and security to protect the valuable displays.
The NYPA funding award is made possible through net earnings resulting from the sale of unused hydropower generated at NYPA's Niagara power plant and stems from power proceeds legislation signed into law by Governor Cuomo in 2012.
Learn more about how NYPA is helping businesses find the power to succeed on NYPA's economic development webpage.
Assembly Majority Leader Crystal Peoples-Stokes said, "I'd like to thank NYPA and congratulate Eastman Machine Company on being awarded ReCharge NY funding for their expansion. As one of the oldest companies in Western NY at 125 years old, this investment and expansion will help make Eastman more efficient and help to increase their productivity now and into the future."
Assembly Member Angelo Morinello said, "I am extremely pleased that the Power Proceeds award will be used for a cultural purpose which will add to the tourist experience in Niagara Falls."
Assembly Member Monica P. Wallace said, "This hydropower allocation will create dozens of jobs in Cheektowaga and help our community build back after over a year of economic hardship due to COVID-19. I thank NYPA for using its low-cost hydropower to entice new employers to invest in Western New York and to support current businesses and cultural centers in our community."
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-emission 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, supporting more than 150,000 jobs in New York's clean energy sector in 2019, 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 ensuring that at least 35 percent with a goal of 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 of end-use energy 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.