Plug Power to Invest US$290 Million in Hydrogen Fuel Production Facility, Electric Substation

Governor Andrew M. Cuomo recently announced that alternative energy technology provider Plug Power will invest US$290 million in the construction of a state-of-the-art green hydrogen fuel production facility and electric substation at the Western New York Science, Technology and Advanced Manufacturing Park (STAMP) located in the Town of Alabama, Genesee County.

The Plug Power project is the first build at the STAMP site and will require that the company fund the construction of a 450-MW electric substation to support its expansion as well as future growth opportunities at the business park. Plug Power has additionally committed to creating 68 jobs at the new production facility, which will produce 45 tons of green hydrogen daily.

Plug Power's development of its new green hydrogen fuel production facility in New York is the result of a comprehensive state and local incentive package from the New York Power Authority (NYPA), Empire State Development, and Genesee County. Construction on the new facility is expected to begin this summer.

The state incentives directly support the governor's Green Energy Program, which will spur more than US$29 billion in public and private investment across the state and create 12,400 MW of green energy, enough to power six million homes. The investments will not only help shift the state toward a carbon-neutral economy, fulfilling the goals of New York's Climate Leadership and Community Protection Act, but also spur economic recovery from the COVID-19 pandemic.

"New York State is committed to establishing itself as a leader in the national effort toward a more renewable future focused on green energy excellence. We're showing that protecting the environment and encouraging economic growth aren't mutually exclusive," Cuomo said. "We are proud to partner with Plug Power once again and applaud the company's continued investment in the Finger Lakes region and its commitment to creating top-quality green jobs as we work to foster new investment and job growth during a difficult economic time for many New Yorkers."

The NYPA's incentives are subject to approval by the NYPA board of trustees. The governor is recommending that the NYPA board approve:

• 10 MW allocation of low-cost hydropower from the Niagara Power Project
• US$1.5 million from the Western New York Power Proceeds program
• 143 MW of high-load factor power that the NYPA will procure for Plug Power on the energy market

Gil C. Quiniones, NYPA president and CEO, said: "The state's clean energy economy is growing rapidly under the governor's leadership and Plug Power is seizing the plentiful opportunities for green energy companies to expand and flourish in New York. Leveraging the NYPA's carbon-free hydropower from the Niagara Power Project to attract a firm dedicated to the development of green hydrogen for fuel cell applications is an example of how we should address climate crisis."

Empire State Development will provide up to US$2 million in Excelsior Tax Credits in exchange for job creation commitments. Genesee County will provide additional local tax incentives, pending various approvals by the Genesee County Economic Development Center.

The Plug Power expansion is part of a focused strategy to construct up to seven hydrogen production facilities across North America by 2022. In January, the governor announced that Plug Power will be establishing a US$125 million Innovation Center in Monroe County, creating 377 new jobs. That facility will manufacture hydrogen fuel cell stacks for its ProGen hydrogen fuel cell engines used to power a variety of electric vehicles (EVs), including material handling equipment, on-road commercial fleet vehicles, and drones.

Plug Power CEO Andy Marsh said, "Plug Power's future rightfully revolves around building the green hydrogen economy. We are grateful our home state of New York supports aggressive climate and clean energy initiatives. And, that Plug Power's green hydrogen solutions can make such an impact on positive environmental and economic climates in the state."

STAMP is a 1250-acre mega site located at the center of upstate New York's largest population, research, and workforce training hubs. Connected with New York's high-tech corridor by New York State Thruway, STAMP has completed all site-level design and engineering, and all site-level environmental and zoning approvals to house projects including semiconductor manufacturing, renewables manufacturing, biopharma manufacturing, and other high-capacity industries.

The mega site is strategically located in the NYPA's low-cost hydropower zone and will be serviced by high-capacity, 100% renewable, reliable power sources. STAMP has been validated as a regional priority project by the Finger Lakes Regional Economic Development Council and has been supported by local, regional, and state governments, as well as business, university, and utility partners.

Alabama Town Supervisor Robert Crossen said, "I am encouraged by the interest that various advanced manufacturing companies, including Plug Power, have in the Town of Alabama and STAMP. We have worked very hard to bring forward a site suitable for a project of this scale and we look forward to achieving the important steps to develop and advance this project in our community."