The NYPA Board of Trustees has approved 590 kilowatts (kW) of low-cost Niagara hydropower to two Erie County firms, U.S. Sugar and Agri-Plastics.
Governor Kathy Hochul announced economic development awards from the New York Power Authority (NYPA) that will spur more than $127 million in private capital investments throughout the state and support 4,249 jobs 158 newly created. The awards were approved last week by the NYPA Board of Trustees.
“The New York Power Authority is one of the state’s most critical economic development engines,” Governor Hochul said. “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.”
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.
“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,” said NYPA Chairman and Western New York resident John R. Koelmel. “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.”
The NYPA funding awards are made possible through the Western New York and Northern New York Power Proceeds Funds, comprised 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.
