Niagara hydropower allocations approved by board of trustees spur $145 million in private capital investments
Gov. Andrew Cuomo on Tuesday announced the New York Power Authority's board of trustees approved three low-cost hydropower allocations that will create 102 jobs across Western New York and spur $145 million in private capital investments. The approved awards of 3,580 kilowatts of hydropower from the Power Authority's Niagara Power Project in Lewiston are to Americold Real Estate in Chautauqua County, SGS Recovery in Niagara County and Sumitomo Rubber USA in Erie County.
"Protecting our environment and supporting our economy aren't mutually exclusive, and the Niagara Power Project provides clean, renewable energy that directly supports economic development throughout Western New York," Cuomo said. "These three power allocations will create more than 100 jobs and spur investment in the region while assisting New York in its transition to a clean energy economy. Our state is committed to a renewable energy future that benefits all New Yorkers, and these awards are an important part of our strategy to foster new investment and job creation while using renewable sources of energy."
Lt. Gov. Kathy Hochul said, "As we focus on our economic recovery, we're working to make sure businesses have the resources they need to grow and succeed in New York state. These hydropower allocations create good-paying jobs, boosts private investment and will further unleash the full potential of Western New York as an economic powerhouse for the post-pandemic future."
Americold Real Estate L.P. – which is based in Georgia and owns and operates 238 temperature-controlled warehouses across the globe for the storage of perishable goods – was awarded 830 kilowatts of hydropower to establish a new cold storage facility in Dunkirk that will create 60 jobs. The new facility will provide storage for Wells Enterprises, an ice cream manufacturer and current NYPA power customer. Construction on the $40 million-plus facility is slated to begin later this year.
SGS Recovery LLC in Niagara Falls, a sustainable waste management and recycling company, was awarded a 750-kW hydropower allocation for its planned lease of a new 30,000-square-foot building in Niagara Falls. The site will convert recycled materials into process engineered fuel, which is used as a substitute for fossil and petroleum-based fuels in the cement industry. The nearly $5 million project, slated to begin later this year, will result in the addition of 12 new positions.
SGS was approved for a power allocation by the NYPA board under the new green jobs criteria announced by Cuomo in December. The new criteria allow for NYPA economic development applicants to be evaluated on their support of green jobs and manufacturing in New York, helping to advance the growing clean energy economy throughout the state under Cuomo and the Climate Leadership and Community Protection Act.
Sumitomo Rubber USA LLC in Tonawanda, a manufacturer of automotive tires for trucks, cars, buses and motorcycles, was awarded 2,000 kW of hydropower for a significant planned expansion to double its daily tire production. The $122 million expansion, scheduled to start later this year, was announced in March by Cuomo and will create 30 jobs. Sumitomo is a longtime NYPA power customer and already receives more than 13,500 kW of low-cost hydropower in support of its more than 1,300 jobs at the Tonawanda facility. Empire State Development is also supporting the expansion with $3.3 million through the Excelsior Jobs Tax Credit Program in exchange for the job creation commitments.
NYPA Chairman John R. Koelmel said, "The Niagara Power Project is a cornerstone for economic development throughout the state, and especially in Western New York where it directly supports tens of thousands of jobs. We at NYPA are proud to make these three hydropower allocations to Americold Real Estate, SGS Recovery and Sumitomo Rubber USA so that these companies can significantly expand in the region. NYPA is pleased to do our part in continuing to reinvigorate our economy as we rebuild New York."
NYPA President and CEO Gil C. Quiniones said, "Today's NYPA board action to award three companies with hydropower allocations will help create more than 100 jobs in Western New York. The Power Authority is committed to help economic recovery in the region as we press forward to rebound smartly and safely from the COVID-19 pandemic."
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. Learn more about business growth opportunities supported by the Power Authority on NYPA's Economic Development webpage.
New York State Sen. Sean Ryan said, "The low-cost hydropower provided by the Niagara Power Project is a crucial resource for businesses across Western New York. As one of the region's major employers, Sumitomo Rubber has already been an important contributor to our local economy for decades. NYPA's decision to allocate more low-cost power to Sumitomo will support the company's expansion, creating more good-paying local jobs and, in turn, strengthening our region's economy."
New York State Assemblyman Angelo Morinello said, "These hydropower allocations will bring much-needed economic stimulus to Western New York to expedite stability and growth in the region. This power project will create over 100 jobs across Western New York, as well as promote and advance clean energy manufacturing throughout New York state. I look forward to continued investments into energy expansion and economic growth for Western New York."
Cuomo's 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 recovers from the COVID-19 pandemic. Enshrined into law through the Climate Leadership and Community Protection Act, New York is on a path to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70% renewable energy generation by 2030, and to reach economywide carbon neutrality.
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. For more information, visit www.nypa.gov.