New York State approves grants for 22 companies. This was announced by Governor Kathy Hochul on Wednesday, March 15, 2023. The New York Power Authority (NYPA) Board of Directors has approved economic subsidies for 22 companies. These grants are expected to result in more than $20 billion in capital investment and support 8,336 jobs.
New York State allocates energy subsidies to Amazon and Micron
Among the approved grants are an allocation of 10.7 MW of hydroelectricity from NYPA’s Niagara Power project to Amazon and a ReCharge NY power allocation to Micron, a memory, storage and semiconductor manufacturer.
In addition, Amazon’s allocation will support the construction of a $550 million e-commerce storage and distribution center in Niagara City. This center will receive, store, pack and ship customers’ online orders. This project will create 1,000 new full-time permanent jobs at the site, as well as hundreds of construction jobs.
NYPA also allocated more than 150 MW of low-cost power through its ReCharge NY program, including a 140 MW allocation to Micron. Finally, the board approved 404 MW of high load factor power that NYPA will purchase for Micron in the energy market.
Business grant program boosts New York State’s economic expansion
Governor Hochul announced Micron’s decision to build a new megafactory in Onondaga County in October 2022. Indeed, in August 2022, it signed Green CHIPS legislation, the first of its kind in the U.S., aimed at creating jobs, spurring economic growth, and maintaining strong environmental protections while making New York a center for semiconductor manufacturing.
In addition, the NYPA Board of Directors also approved an allocation of 250 kW of low-cost hydropower to the City of Greene in Chenango County as part of the Industrial Economic Development Program. Cocojune, a New York-based food company specializing in the production of organic coconut yogurt, will build a new facility in the city of Greene. This hydro allocation will support Cocojune’s expansion, stimulating nearly $700,000 in capital investment and creating 24 jobs.
An Overview of the Industrial Economic Development Program through Business Grants
The Industrial Economic Development Program allocates 54 MW of hydroelectric power out of the 768 MW allocated to New York State’s 51 municipal and rural electric systems. The program allocates energy to individual municipal systems to meet the increased demand for electricity resulting from new or expanding eligible businesses in their service area. The remaining businesses in the Capital District, Finger Lakes, Southern Tier, North Country, New York City, Central New York, Western New York, Hudson Valley and Long Island areas will be allocated low-cost electricity through the ReCharge NY program.
In addition, low-cost Niagara hydroelectricity is available to businesses located within 30 miles of the Niagara Power Project or in Chautauqua County. Governor Hochul noted, “These transformative economic development awards for Amazon, Micron and other businesses across the state will create thousands of jobs and stimulate billions in economic activity.”
New York State Climate Goals
New York State is committed to achieving an orderly and equitable transition to a green economy across all sectors, creating sustainable jobs for families and ensuring that the benefits of clean energy investments are directed to disadvantaged communities. In other words, its goal is to reach 40% and a minimum of 35%.
To conclude, New York State is on track to achieve a zero-emissions electricity sector by 2040, including 70% renewable energy generation by 2030 and economy-wide carbon neutrality by mid-century. A pillar of this transition is New York State’s clean energy investments, which include more than $35 billion in 120 large-scale renewable energy generation and transmission projects, $6.8 billion to reduce emissions from buildings, $1.8 billion for solar expansion, more than $1 billion for clean transportation initiatives, and more than $1.8 billion in commitments from the NY Green Bank.
