11 firms awarded low-cost hydropower from NYPA

11 firms awarded low-cost hydropower from NYPA
Robert Moses Niagara Power Plant (photo courtesy NYPA)

Governor Hochul announced low-cost hydropower awards to 11 firms that will spur more than $5.2 billion in capital investments. The awards, approved by the New York Power Authority Board of Trustees, support 5,781 jobs throughout the state.

“My administration is spurring $5.2 billion in low-cost power investments across the State of New York – helping businesses thrive, and creating and maintaining jobs for New Yorkers,” Governor Hochul said. “The Empire State is open for business, and these substantial investments in a clean energy future underscore our position as a global hub for modern manufacturing.”

Under the ReCharge NY program, the approved allocations of nearly 32 MW of low-cost power will be directed to nine companies in the Capital District, Finger Lakes, Southern Tier, Mohawk Valley, Hudson Valley, New York City and on Long Island.

These companies include fairlife, a producer of milk and protein shakes, which is investing $650 million to construct a 745,000-square-foot manufacturing facility in Monroe County that will lead to the creation of up to 250 jobs. Empire State Development (ESD) is additionally providing up to $21 million in assistance through the performance-based Excelsior Jobs Tax Credit Program in exchange for the job creation commitments.

Also included was a 15 MW power allocation to GlobalFoundries, a Saratoga County-based semiconductor manufacturer, to expand its Fab 8 manufacturing site and then build a new, 358,000-square-foot semiconductor manufacturing facility on its campus in Malta as part of a nearly 2 million square-foot expansion, tripling its capacity to meet growing demand for chips.

ReCharge NY has strengthened the state’s economy by encouraging companies to retain and create jobs while sparking capital investment throughout the state. ReCharge NY offers power contracts with terms up to seven years. Half of the power (455 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.

In addition, the NYPA Board of Trustees approved low-cost Niagara hydropower allocations to Buffalo Games and Mayer Brothers in Western New York.

Buffalo Games, an Erie County manufacturer of jigsaw puzzles and board games, was awarded 750 kW of Niagara hydropower to support the firm’s $6.5 million expansion. Buffalo Games is upgrading its manufacturing capabilities, warehousing and distribution infrastructure, and power service to increase its puzzle production and create 95 jobs. ESD is incentivizing Buffalo Games’ continued growth by providing up to $1 million in Excelsior Jobs Program tax credits in exchange for job creation commitments. In addition, Buffalo Games received a $105,000 economic development grant from National Grid.

The NYPA trustees also approved a 210-kW Niagara hydropower allocation to Mayer Brothers for a more than $1.5 million expansion project. Mayer Brothers is a manufacturer, processor and distributor of apple juice, cider, water and other beverage products. The firm will construct a new building to produce bottles used in the cider and water sectors of its operation. The building will accommodate an increase in the output of bottles and allow the company to produce beverages in a more efficient and cost-effective manner. The expansion will support nearly 300 jobs, with six being newly created.

Low-cost Niagara hydropower is available for companies within a 30-mile radius of NYPA’s Niagara Power Project or businesses in Chautauqua County.

“The New York Power Authority is committed to its support of Western New York through the allocation of low-cost power from the Niagara Power Project, which supports tens of thousands of regional jobs in the region and is the backbone of New York’s clean energy economy,” said NYPA Chairman John R. Koelmel.

New York State’s climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues to foster a green economy across all sectors and ensures that at least 35%, with a goal of 40%, of the benefits of clean energy investments are directed to disadvantaged communities. New York is on a path to achieving a zero-emission electricity sector by 2040, including 70% renewable energy generation by 2030, and economywide carbon neutrality by mid-century.

NYPA is the largest state public power organization in the U.S., operating 16 generating facilities and more than 1,400 circuit-miles of transmission lines. More than 80% of the electricity NYPA produces is clean renewable hydropower. NYPA finances its operations through the sale of bonds and revenues earned in large part through sales of electricity.