NYPA anticipated to spark $127M in capital investments

ALBANY | Gov. Kathy Hochul has announced economic development awards from the New York Power Authority (NYPA) expected to spur more than $127 million in private capital investments throughout the state and support 4,249 jobs — 158 newly created. The awards, approved today by the NYPA Board of Trustees, include low-cost power allocations through the statewide ReCharge NY program, and the regional Western New York Hydropower program. Additionally, the NYPA board approved funding awards totaling more than $1.6 million under the Western New York and Northern New York Power Proceeds programs. "The New York Power Authority is one of the state's most critical economic development engines," Gov. Hochul said in announcing the awards Dec. 10. "By leveraging low-cost power allocations and regional funding awards, NYPA is incentivizing job creation and sparking major capital investment in every corner of New York State. The awards approved today by the NYPA board — tied to more than $127 million in investments and 4,000 jobs — reflect the strength of New York's clean energy economy." ReCHARGE NY The approved allocations of more than 11 megawatts (MW) of low-cost power under the Power Authority's ReCharge NY program will be directed to 29 firms in the Capital District, Finger Lakes, North Country, Southern Tier, Mohawk Valley, Western New York, Mid-Hudson region, New York City and on Long Island. Included among the awards is a nearly 4.3-MW low-cost power allocation to General Motors that will support the retention of 528 jobs and lead to investments totaling $40 million at its Rochester location. The facility specializes in producing cooling lines used in electric vehicle batteries. NYPA President and CEO Justin E. Driscoll said, "The ReCharge NY low-cost power allocation awarded to General Motors will directly support more than 500 green jobs at the firm's Rochester plant. GM's $40 million investment in the facility underscores the important role New York State plays in the transition to an emissions-free transportation sector." ReCharge NY 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 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. A full list of Wednesday's ReCharge NY power allocations and economic development awards is available here. WESTERN NEW YORK At Wednesday's meeting, the NYPA Board of Trustees approved 590 kilowatts (kW) of low-cost Niagara hydropower to two Erie County firms, U.S. Sugar and Agri-Plastics. U.S. Sugar in Buffalo was awarded a 210-kW low-cost Niagara hydropower allocation to support a $12.5 million expansion project at its Buffalo facility. The firm — a distributor and packer of brown and powdered sugars — will install two new high-efficiency bagger lines and add an additional packaging line to expand its operational capacity. The project includes a building expansion and new machinery and equipment purchases. The expansion will support 240 jobs — 35 of which will be newly created. Agri-Plastics designs and manufactures innovative calf housing and a variety of livestock equipment, including feeders, waterers and ventilation systems. The firm was awarded 380 kW of Niagara hydropower to support the establishment of a new manufacturing facility in Lackawanna. The new site will produce calf hutches — individual pens that provide shelters for calves that protect them from harsh weather conditions and reduce the risk of disease transmission. The $3.5 million project will lead to the creation of 26 jobs. Both projects are located within disadvantaged communities. Low-cost Niagara hydropower is available for eligible companies located within a 30-mile radius of the Power Authority's Niagara Power Project and in Chautauqua County. The NYPA board also approved Western New York Power Proceeds funding totaling nearly $630,000 to Balthasar Industries in Niagara County and Professional Plastics in Erie County. Balthasar Industries was awarded $90,000 in NYPA funding to support its relocation to a new 37,000-square-foot facility in North Tonawanda. The firm is a Computer Numerical Control (CNC) milling and turning machine shop that serves a wide variety of customers, including those from the medical, optic, aerospace, and semiconductor industries. A CNC machine is a type of automated equipment used in manufacturing that's controlled by pre-programmed software. Such machines can perform precise cutting, drilling, milling and a variety of other tasks. The power proceeds funds will be used by the firm to acquire and upgrade its new building and to invest in new advanced CNC machinery and software. The firm's nearly $1.5 million expansion is expected to increase its production capacity and will result in the creation of three full-time employees. Professional Plastics, a global distributor and fabricator of high-performance plastics, was awarded $539,000 in power proceeds funding to support an expansion at its Orchard Park facility that will lead to the creation of 49 new jobs. The firm currently lacks sufficient electrical capacity to support additional on-site CNC machining and will use the funds to take measures to expand it, including the addition of a semiconductor-grade clean room. The space will be outfitted with ultrasonic part cleaning systems that are used by customers in the semiconductor industry. Currently, semiconductor parts are sent out-of-state for cleaning. The firm's nearly $3 million expansion project is expected to reduce turnaround times and costs for its customers in the semiconductor industry, strengthening New York's position in the supply chain. NYPA Chairman and Western New York resident John R. Koelmel said, "In the past year alone, NYPA has awarded $12 million in funding through the Western New York Power Proceeds program, supporting a variety of firms and institutions that contribute to Western New York's economic landscape. The nearly $630,000 in funding approved to Balthasar Industries and Professional Plastics — two firms using cutting-edge technology to support customers in advanced manufacturing — builds on the Power Authority's efforts to create jobs and spark meaningful investment throughout the region." NORTHERN NEW YORK $1 million in Northern New York Power Proceeds funding was approved by the NYPA Board of Trustees today to Empire State Mines in St. Lawrence County. The NYPA funding award will support Empire State Mines' Kilbourne Graphite Project in Gouverneur. The $5.6 million project will establish a micronization and purification facility to process natural flake graphite discovered at the mine in 2023 into a powder suitable for applications requiring a finer product with reduced particle size. Graphite is by far the largest component in lithium-ion batteries, and is classified by the U.S. government as a critical mineral for the country's defense, aerospace and clean energy industries. The project, which would be the first fully integrated U.S. graphite production operation since 1956, will strengthen national security interests and supply chain resilience. NYPA Trustee and North Country Resident Cecily L. Morris said, "The Power Authority's economic development awards continue to be an important part of efforts to create jobs and foster investment in Northern New York. NYPA directly supports more than 3,800 jobs in St. Lawrence County — a figure that reflects the Power Authority's commitment to support its host communities." The NYPA funding awards are made possible through the Western New York and Northern New York Power Proceeds Funds, composed of net earnings resulting from the sale of unused hydropower generated at the Power Authority's Niagara Power Project and St. Lawrence-FDR Power Project and stem from power proceeds legislation signed into law in 2012 and 2014, respectively.

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NYPA anticipated to spark $127M in capital investments

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