WNY STAMP

As more than a dozen sign-holding activists opposed to the idea looked on, the board of the Genesee County Economic Development Center voted unanimously to approve an incentive agreement with Stream U.S. Data Centers, LLC for the company to build a massive $6.3 billion facility on 60 acres at WNY STAMP.

After the vote, one woman said repeatedly, "Shame on you. Shame on you for your vote." 

Outside the conference room, as GCEDC CEO Mark Masse walked back to his office, she yelled, "Shame on you Mark Masse."

Pete Zeliff, chairman of the GCEDC board of directors, said he thinks such reactions are over-the-top and the people protesting the project are not well informed.

"They haven't chosen to read all the reports," Zeliff told The Batavian after the meeting.

He's gotten a lot of emails about the project and he read the report on the objections raised at a Feb. 3 public hearing, he said.

For example, addressing concerns about the amount of water being used by a data center project, he said, "20,000 gallons a day of water is for toilets, for waste, it's not cooling or anything like that."

The advantage of Stream, also known as project Double Reed, is that it will only use a handful of backup generators that will only be used as necessary, far fewer than the other proposed projects, so the emissions will be minimal, he said. 

He said he supported the project because of the revenue it will bring to the three affected taxing jurisdictions -- the town of Alabama, Oakfield-Alabama School District, and Genesee County.

The three jurisdictions will split $7 million in the first year alone. 

U.S. Data Center's winning bid promises to pay at least 105% of the taxable value of the property. Of the course of the 25-year PILOT agreement, it will pay $128 million in fees (after the PILOT, the property will be taxed at its assessed value).

Those fees will be important to Genesee County, County Manager Matt Landers said to The Batavian after the meeting. The county has been wrestling with how to pay for a water project.

"We are dedicating 100% of that revenue towards phase three of the water project, and that's a project that has a potential price tag of $150 million," Landers said. "Whenever we have an opportunity to capture some dedicated revenue for a project like that, we will take advantage of it. So that is definitely something that is positive coming out of this."

Landers and Zeliff also both like the job creation aspect. While the jobs per acre of the project might be fewer than another project might generate, these jobs will pay on an average $89,000 each.

"Any job that we create is great," Landers said. "I know, as a community, as a county, we have to work on getting more housing so we can take advantage of all these jobs that are coming here. Looking around our business parks, it's pretty impressive to see how many jobs they have been able to create over the years. The challenge now is to make sure we have some housing for those jobs. I believe over 100 jobs are being created. That is good to see. I look forward to hopefully the next projects having even more jobs."

The local economy needs those 122 jobs, especially at that pay scale, Zeliff said.

"That's way above normal in Genesee County, Zeliff said. "There were people at the meeting talking about how they want their children to be able to walk through the refuge but this project is not going to affect the refuge. This is a project where their children can get a job when they're old enough to get a job."

Zeliff said the board and staff have done its due diligence on this project and he believes all of the environmental concerns of the opponents have been addressed.

"I really don't see a negative with the project," Zeliff said. "It's not as many jobs per acre, but they're good, well-paying jobs for the county of Genesee."

At Wednesday's WNY STAMP Committee meeting, Masse made the case for Stream Data Centers.

The water district project was part of his pitch.

"This project will help the county cover the shortfall of the water project," Masse said. "It will help maintain rates for all Genesee County residents for water. It will help the health and welfare of all county residents through the water project."

He also said the project is in line with DEC regulations. The noise levels are within the standards set by the environmental review process in 2012. The project is allowed under the 2012 site plan. There is no discharge of heated water. It won't affect the reliability of the power grid nor lead to an increase in rates. It has low air emissions. And, no wetlands will be impacted by the project.

Masse said it also uses far less water than the other two proposed projects.

It was also the only project with an agreement with a Fortune 500 company to lease 100 percent of the data center once it's operational.

"Rampart had promised the highest PILOT payment for three projects, but community members made it clear that money should not be the only factor taken into consideration for this process," Masse said to the committee. "Our job was to determine which project was the best for the community and STAMP, and based on the information provided to us by the three projects, Project Double Reed will have the smallest environmental impact and will best address concerns expressed by the Nation with respect to visual and noise impacts and with respect to local benefits."

The case for Double Reed is also made in the resolution approving the project.

The resolution states:

The agency has determined that the two other competing proposals are not the most advantageous to the State, and that it would be in the public interest to reject the proposals submitted by Potentia Holdings, LLC (hereinafter referred to as "Project Hydroscale") and Project Rampart, LLC (hereinafter referred to as "Project Rampart"), respectively,''' because, among other things, those proposals" prospective profitability is speculative and implementing either proposal is anticipated to yield adverse environmental impacts discussed herein.

GCEDC staff also found the owners of Project Double Reed easier to work with, that the planners demonstrated the greatest "good faith" effort throughout the application process. Project Hydroscale kept changing its proposal, according to the resolution, even after the deadline for changes.

The troubling aspect of Project Rampart's team, the proposal states, is threats of litigation and "other bad behavior trying to manipulate the review of the application."

The resolution states, "Project Rampart’s actions throughout the application review process have indicated that Project Rampart would be unable to have a productive relationship with the Agency and other STAMP stakeholders."

The resolution also states, "Project Double Reed is pledging the highest capital investment at $6.3 billion, with Project Hydroscale at $5.4 billion, and Project Rampart at $3.3 billion."

Project Double Reed pledged an $18 million purchase price for the 60 acres it will acquire.

While the PILOT agreement for Stream U.S. Data Centers is unusual in that the company will pay more in fees than it would in property taxes without a PILOT, the company is receiving an abatement on sales taxes for construction and equipment not to exceed $462,560,000 based on the first $5,782,000,000 invested. 

That sales tax incentive is about 7% of the first year in fees it will pay to local taxing jurisdictions.

It will also receive a $9 million break on the mortgage recording tax, which wouldn't be charged without the purchase of the property.

Previously: 

• Dozens of speakers tell GCEDC proposed data centers pose big environmental threat for little economic gain
• Q&A: GCEDC CEO discusses environmental issues raised at data centers public hearing

Statement from Pete Zeliff, WNY STAMP Committee Chairman at GCEDC:

“The Genesee County Economic Development Center (GCEDC) STAMP Committee unanimously approved a motion at our March 5, 2025 meeting recommending the GCEDC Board approve both a SEQR resolution and final resolution from STREAM US Data Centers, LLC to build a new data center at STAMP.

“The decision to make this recommendation was after a thorough review of public comments from the public hearings held in the town of Alabama on February 3, 2025 as well as extensive analysis by the STAMP Committee, GCEDC staff and members from the STAMP technical team which is comprised of legal, engineering and environmental professionals. 

“In making this recommendation to the GCEDC board, the STAMP Committee followed a deliberative process as we always do. We reviewed the three data center projects’ final and best offer, after which an initial resolution was adopted to schedule a public hearing for comments specific to each project. After the public hearing, we reviewed the public comments and responses to each relevant comment, which were elaborated upon in the staff and technical team reports.

“In assessing each project, we considered several factors, including the number of good-paying jobs that would be created, the footprint of the project, including electric and water needs and impacts on the local community. 

“We also assessed which project would have the least impact on the STAMP’s capacity to bring advanced manufacturing and semiconductor supply chain companies that we are targeting for STAMP and the subsequent jobs and capital investment.

“The STAMP Committee concluded that the project proposed by STREAM US Data Centers, LLC had the fewest impacts, particularly from an environmental standpoint, and provided the best overall fit at the STAMP site.

Statement from a group calling itself Allies of Tonawanda Seneca Nation:

GCEDC Board of Directors Votes Today on Approvals for Project Double Reed and Accompanying SEQR Resolution Despite Strong Regional Opposition  

Residents of Western New York are expressing concern over the Genesee Economic Development Center (GCEDC) Board of Directors' plan to vote on resolutions approving the data center codenamed Project Double Reed and an accompanying State Environmental Quality Review (SEQR) resolution at their 4pm meeting this afternoon. The GCEDC STAMP Committee voted yesterday to approve the staff’s recommendation in favor of Project Double Reed and also instructed the staff to prepare the accompanying SEQR resolution. Announcement of the votes and publication of the accompanying documents did not appear on GCEDC’s website until mid-afternoon yesterday.

Today’s votes are taking place despite strong and ongoing public opposition to GCEDC’s efforts to site a data center at STAMP. Despite GCEDC’s efforts to minimize public participation in a rushed approval process, GCEDC received 618 comments during a poorly publicized 10-day public comment period. At the February 3 public hearings, scheduled during a Monday afternoon, dozens of speakers voiced concerns about environmental harms, quality of life issues, impacts to the Tonawanda Seneca Nation, misallocation of taxpayer dollars and misuse of low cost hydropower, as well the agency’s repeated refusal to answer basic questions about the project applicants. Since the official comment period ended, GCEDC has received more than 702 comments in opposition, including 323 opposing the approval of Project Double Reed since Monday, March 3. 

GCEDC has also refused repeated requests from the Tonawanda Seneca Nation Council of Chiefs for a new set of hearings, even though the February 3 hearings were held during the Nation’s Midwinter Ceremonies. The Nation has raised extensive concerns about the SEQR environmental review process, for which GCEDC is acting as lead agency. GCEDC has dismissed those concerns in a SEQR resolution, which finds that Project Double Reed will not have a significant adverse impact upon public health that was not analyzed in the original 2012 STAMP Environmental Impact Statement. The Nation has consistently criticized this document as profoundly inadequate and out of date. 

Among the three data centers currently under consideration for the WNY Science and Technology Advanced Manufacturing Park (STAMP) mega industrial site, Double Reed has requested the largest amount in tax breaks - $472 million in combined sales and mortgage tax exemptions. Double Reed is projected to produce 122 jobs, for a per job subsidy of $3.9 million. According to the GCEDC staff report, these subsidies would potentially be directed to a Fortune 50 company worth $100,000,000,000.

Backed by STREAM U.S. Data Centers, Double Reed will use 250 megawatts of electricity per year - significantly more than either competitor. This electricity would be drawn primarily from low-cost Niagara River hydropower, which the New York Power Authority (NYPA) allocates to STAMP even though the site lies outside the designated radius for this subsidy. In addition, Double Reed would have the potential to burn over 20,000 gallons of diesel fuel per day. 

According to their report, GCEDC staff chose Double Reed despite its high energy usage and requested tax breaks because the other two applications lack credibility and would have faced significant challenges and delays in obtaining permits. However, the staff also acknowledges that Double Reed lacks a firm commitment from a tenant, meaning it is not known what company would locate there, when, or what its operations might entail. 

Despite 15 years of effort and more than $410 million in taxpayer subsidies, GCEDC has struggled to attract viable tenants or construct basic infrastructure at the rural site proposed to become a “mega industrial park.” The agency pivoted to data centers to fill a gap in financing for the onsite electrical substation following the withdrawal of funding from Plug Power, which paused construction on its green hydrogen manufacturing facility in 2023. Each of the three data center applicants pledged contributions toward completion of the substation; Double Reed would pay $50 million. Its requested $3.9 million per job approaches the $4.3 million per job allocated to Plug Power. Edwards Vacuum is the only tenant under construction at STAMP.

GCEDC has not filed a new permit application for the proposed “Big Water” pipeline that would bring 6 million gallons of water daily to the site from the Niagara River, raising questions about the source of Double Reed’s proposed 10,000 gallons of water per day. The NYS Department of Environmental Conservation Region 8 Office rejected GCEDC’s previous application as incomplete in August 2024. GCEDC recently filed a Basis of Design Report for a reroute of the Wastewater Treatment Pipeline that would pump raw sewage from STAMP uphill and under multiple waterways to the Oakfield Wastewater Treatment Facility; treated wastewater would be discharged into a tributary of Oak Orchard Creek. Construction of the original pipeline was halted in September 2023 following fracouts of 500-700 gallons of hydraulic drilling fluid into the Iroquois National Wildlife Refuge. 

‘Data center’ is a generic term that can refer to operations ranging from cryptocurrency mining to Artificial Intelligence processing. Data centers create minimal jobs, use massive amounts of water and energy, and face opposition from other WNY communities concerned about their noxious public health and environmental impacts. The proposed data center would be sited on a parcel of land characterized by wetlands and located immediately adjacent to the Reservation Territory of the Tonawanda Seneca Nation, whose Council of Chiefs opposes STAMP.  

“We are confident that STREAM US Data Centers, LLC will provide all the taxing jurisdictions with significant financial benefits making it a transformative project for our region while further enhancing economic development opportunities at STAMP.”

Press release:

Statement from Mark Masse, CEO of the Genesee County Economic Development Center:

“The Genesee County Economic Development Center staff and the STAMP technical team, which is comprised of legal, engineering and environmental professionals are recommending that the GCEDC Board of Directors advance a proposal from STREAM US Data Centers, LLC to build a new data center at STAMP. 

“The first step in this process is for the GCEDC STAMP Committee to review all the supporting materials that accompany the recommendation to the Board, and if they agree with the conclusion, approve moving the recommendation to the full Board at the March 6, 2025 Board meeting. This matter will be discussed at the STAMP Committee meeting on Wednesday, March 5, 2025.

“The staff and technical team assessed several factors in our recommendation to the Board, including thorough review of the responses to relevant comments raised at the February 3, 2025 public hearing. We also took into consideration the number of good-paying jobs that would be created, the footprint of the project, including electric and water needs and impacts on the local community. 

“Another factor that was considered in our recommendation was which project would have the least impact to the STAMP footprint as GCEDC staff continues to focus on bringing advanced manufacturing and semiconductor supply chain companies to STAMP.

“Staff ultimately concluded, in close consultation with the technical team, that STREAM US Data Centers, LLC project had the fewest impacts, particularly from an environmental standpoint, and provided the best overall fit at the STAMP site.

“GCEDC staff and the technical will be prepared to discuss our recommendation to the GCEDC board at the March 5^th STAMP Committee meeting.”

Statement from a group calling itself Allies of Tonawanda Seneca Nation:

Local residents are highlighting the Genesee Economic Development Center (GCEDC) staff’s recommendation to approve the data center codenamed Project Double Reed. The GCEDC STAMP Committee will vote on this recommendation, as well as the staff’s recommendation to prepare a State Environmental Quality Review (SEQR) resolution for Double Reed, at a meeting on March 5. The full Board meets on March 6. 

Among the three data centers currently under consideration for the WNY Science and Technology Advanced Manufacturing Park (STAMP) mega industrial site, Double Reed has requested the largest amount in tax breaks - $472 million in combined sales and mortgage tax exemptions. Double Reed is projected to produce 122 jobs, for a per job subsidy of $3.9 million.

Backed by STREAM U.S. Data Centers, Double Reed will use 250 megawatts of electricity per year - significantly more than either competitor. This electricity would be drawn primarily from low-cost Niagara River hydropower, which the New York Power Authority (NYPA) allocates to STAMP even though the site lies outside the designated radius for this subsidy. In addition, Double Reed would have the potential to burn over 20,000 gallons of diesel fuel per day.. 

According to their report, GCEDC staff chose Double Reed despite its high energy usage and requested tax breaks because the other two applications lack credibility and would have faced significant challenges and delays in obtaining permits. However, the staff also acknowledges that Double Reed lacks a firm commitment from a tenant, meaning it is not known what company would locate there, when, or what its operations might entail. 

GCEDC staff are advocating that the full Board approve Double Reed despite strong and ongoing opposition from residents as well as previously stated internal questions regarding the ‘fit’ of a data center at STAMP. At public hearings held on February 3, dozens of speakers voiced concerns about environmental harms, quality of life issues, impacts to the Tonawanda Seneca Nation, misallocation of taxpayer dollars and misuse of low cost hydropower, as well the agency’s repeated refusal to answer basic questions about the project applicants. GCEDC also received 618 written comments. 

Since the hearings, CEO Mark Masse has received at least 379 emails demanding that applicants conduct additional research regarding noise, traffic, hydrology, economic impacts to the Oak Orchard watershed, and EMS services. GCEDC has also refused repeated requests from the Tonawanda Seneca Nation Council of Chiefs for a new set of hearings, even though the February 3 hearings were held during the Nation’s Midwinter Ceremonies. The Nation has raised extensive concerns about the SEQR environmental review process, for which GCEDC is acting as lead agency. GCEDC appears poised to dismiss those concerns. 

Despite 15 years of effort and more than $410 million in taxpayer subsidies, GCEDC has struggled to attract viable tenants or construct basic infrastructure at the rural site proposed to become a “mega industrial park.” The agency pivoted to data centers to fill a gap in financing for the onsite electrical substation following the withdrawal of funding from Plug Power, which paused construction on its green hydrogen manufacturing facility in 2023. Each of the three data center applicants pledged contributions toward completion of the substation; Double Reed would pay $50 million. Its requested $3.9 million per job approaches the $4.3 million per job allocated to Plug Power. Edwards Vacuum is the only tenant under construction at STAMP.

GCEDC has not filed a new permit application for the proposed “Big Water” pipeline that would bring 6 million gallons of water daily to the site from the Niagara River, raising questions about the source of Double Reed’s proposed 10,000 gallons of water per day. The NYS Department of Environmental Conservation Region 8 Office rejected GCEDC’s previous application as incomplete in August 2024. GCEDC recently filed a Basis of Design Report for a reroute of the Wastewater Treatment Pipeline that would pump raw sewage from STAMP uphill and under multiple waterways to the Oakfield Wastewater Treatment Facility; treated wastewater would be discharged into a tributary of Oak Orchard Creek. Construction of the original pipeline was halted in September 2023 following fracouts of 500-700 gallons of hydraulic drilling fluid into the Iroquois National Wildlife Refuge. 

‘Data center’ is a generic term that can refer to operations ranging from cryptocurrency mining to Artificial Intelligence processing. Data centers create minimal jobs, use massive amounts of water and energy, and face opposition from other WNY communities concerned about their noxious public health and environmental impacts. The proposed data center would be sited on a parcel of land characterized by wetlands and located immediately adjacent to the Reservation Territory of the Tonawanda Seneca Nation, whose Council of Chiefs opposes STAMP.

GCEDC STAMP Committee Meeting
March 5, 2025 at 8am 

GCEDC Board of Directors Meeting 
March 6, 2025 at 4pm 

Location: 99 MedTech Drive, Innovation Zone. Batavia, NY 14020
Meetings are open to the public. 

Last week, The Batavian met with Mark Masse, CEO of the Genesee County Economic Development Council to ask him to respond to some of the issues raised at a public hearing on potential incentives for construction of a data center in WNY STAMP.

The public hearing was held on Feb. 3 in the town of Alabama.

More than two dozen people spoke, raising a range of objections to the construction of a data center on the site.

On Thursday, the GCEDC board may consider whether one of three potential projects -- from STREAM U.S. Data Centers, LLC, Project Rampart, LLC, or Potentia Holdings, LLC -- should be welcomed into the technology park.

Q. We asked Masse to respond to the appearance that the data center projects don't seem to generate as many jobs per square foot as a project like Edwards Vaccum.
Masse: "I think if you look at the average salary, I think these jobs are in the triple digits, $100,000 average, $80,000 to $100,000. With the way technology is going in AI, I think that those are high-value, high-technology jobs. Now, are those the number of jobs that we would like to see? And again, all of these applicants are very conservative on their numbers, because they're concerned about clawback and not meeting numbers. So our anticipation is they would come in higher than what they pledged, but what they pledged is a number that they feel is easily achievable for them. And data centers were proposed way back in 2012 as one of the original uses at the site, along with all of the other advanced manufacturing when we did the technology districts.

Q. Data centers have been controversial in other communities. People mentioned North Tonawanda. Have you looked at those data centers and how they've been received in those communities, and whether that's a concern for you?
Masse: "I think it really depends upon a lot of variety of factors. So our board has been very clear that they don't want any crypto or any bitcoin, absolutely none. And if you look at a lot of the louder, noisier ones, they tend to be the crypto Bitcoin operations. So we would actually put into the documents that if we come to find out you're doing Bitcoin or crypto, we would terminate benefits and claw back. And that clawback would obviously include a very significant sales tax exemption, so we feel pretty good about the penalties that would be in place, but our board's been adamant that we don't want crypto in that technology has also come a long way. And I don't think the building in Tonawanda was originally built as a data center. It was an adaptive reuse. So the facility that they're going to be building (in STAMP) is going to be brand new. It'll have all of the lessons learned from previous projects, such as noise mitigation and things like that. So we anticipate it to fit within the parameters of what was analyzed for the EIS, and we would anticipate them to propose and follow through on any potential mitigation that we would suggest for noise or that the town board planning board may suggest for noise. If we decide to go through our board would decide on either one or none. I think there's no desire to do more than one data center at STAMP."

Q. What about excessive greenhouse gas emissions?
Masse: "Again, we've done our analysis on the air emission side of that. We're following all of the permitting requirements by the DEC. The GCEDC does not meet the definition of a state agency under the CLCPA guidelines, but we do an analysis for that under the CLCPA, and the DEC would also do an analysis of that if a company were to move forward with air permitting. So we feel that it's within the parameters that would have been previously analyzed under the EIS, and that any of those air emissions would be permitted through the DEC process."

Q. One speaker spoke about hydrology in the region, in the wetlands and surrounding areas. What are the concerns there that you are looking at? What is your response?
Masse: "Again, the sanitary sewer would be force main discharged into the village of Oakfield wastewater treatment facility where it would be treated and discharged. Any on-site stormwater would be captured on-site. The DEC requirements for that are that the water can't flow off of the site at any greater rate after development than it did before development, so any cause concerns for flooding or things like that wouldn't happen. And they do enforce bioswales, green infrastructure, and things like that to ensure that the water quality on site is maintained. If there is runoff from parking lots or things like that, that it's contained on-site and treated on site before any of that would be potentially discharged."

Q. A letter read at the hearing stated that the project contradicts New York State's international commitments to environmental sustainability, social responsibility, and long-term stewardship of the wetlands. Any response?
Masse: "So again, everybody seems to be talking about the wetlands on site, as if they are like a wildlife refuge. This is agricultural land that has been farmed for a number of years. Our EIS originally proposed only impacting, I think, nine acres of wetlands, and then when we revised it. We're down to six, and they are classified as wetlands. But if you go out there, a lot of them are just drainage ditches through fields, a depressed area in a field. That's not year-round; they dry out, so I don't understand. And same thing when they talk about like pristine habitat. It's been farm fields. It's been farmed. It hasn't been good habitat. They rotate crops. Many of the crops there are not what the birds would use to do their hunting. So again, it's been farm fields for over 200 years. We do comply with all regulations that are out there. We've had a jurisdictional determination done between Army Corps as far as what wetlands they take jurisdiction over. We're complying with all of those. That was last updated in 2023, I think, and they're good for five years. I know the state regs are changing where they're going to drop their jurisdiction to anything greater than seven acres, but that doesn't affect what we're doing on-site. So, again, I understand their concerns, but I just don't think they understand the land that's out there and what it really is."

Q. People mentioned the Big Woods (on the reservation). Does that the neighbor the site, or is it just close by?
"If you look on the map there, you see the power line kind of rerouted. The yellow area is 310 acres; if you go directly to the west at the edge of that line, that is the Big Wood. So that power line reroute, there'll be no development to the west of that. That's a 115 kV line, and we rerouted it that way to help provide a visual buffer so you can't go past that, so to speak. And as part of our agreement, the settlement agreement with the nation, we did provide for the green area, basically, aside from that 80 acres on the south, the majority of that green area there is a buffer area and wetlands that are basically not going to be touched, so that's just going to be grown forever wild."

Q. There was a statement that a data center will consume 200 megawatts of electricity annually, training the regional system, and the center would use 800,000 gallons of fresh water daily. Are those numbers accurate? Are those legitimate concerns?
Masse: "As far as the power goes, it's not going to strain the system. Anybody in New York State who tries to draw down more than 10 megawatts off of any power line anywhere is required to undertake a study with a New York independent system operator, where they will take your request and they will do an analysis of the entire grid and bring in all the operators, so National Grid. RG&E NYSEG, NextEra, and they'll run a model to say, if you were to draw X amount of megawatts off, how does that affect everything in the system? And if it requires some improvements in what they call remote ends or other substations before you draw down the power. Those improvements have to be made. So we did two different studies, each one for 300 megawatts, and it took us about four to five years to get through that study. So the NYISO has given us, I think, there was $6 million of potential improvements at a station up in Rochester, and that was it for us to get the 600 megawatts. So, according to the NYISO and the study they've run, there is no degradation or problem on the overall grid to draw down 600 megawatts. Those studies are all being done in conjunction with a lot of solar projects because they're trying to put power on the lines while we're trying to draw it off. So, all of those are being taken into consideration across the state in various studies at various times. So as far as the power not being available, it's there. The NYISO has confirmed it for us. And as far as causing issues on the grid, it will not. 

"As for us, the 800,000 gallons per day of water, that was what one applicant put in with their first application. After reviewing and discussing with them, they came back with a revised, I think, 30,000 gallons per day. So, all three of them are probably between 20,000 and 30,000 gallons per day of water, which is not a significant use. A lot of them are going with closed-loop cooling systems. The ambient air temperature here obviously is very helpful for them to be able to use air for cooling."

Q. Evelyn Wackett brought up threatened species, the short-eared owl, northern Harrier Hawk, monarch butterfly and bog turtles, any threats to these species?
Masse: "We did receive what's called a part 182 incidental take permit. We did propose a net conservation benefit. So, we created 58 acres of grassland habitat on the site that'll be maintained in perpetuity. Part of that will be a 33 acre site that'll be turned over to the DEC to be merged into the John White game farm, as far as the others, they were not identified in any of the studies we've done. I do know that as part of the construction of the substation, there is a berm there, and I've talked to our environmental company about using that berm as a pollinator field, specifically to help monarch butterflies and other pollinators. It'll also help us maintain that berm and also give it more coverage on that as well."

Q. One of the more dramatic moments, Kristen Moser, with her recording from in the Big Woods of birds and then a truck going by. What do you say to that?
Masse: "Number one, it's hard because I don't know her data points, right? I don't know where you were when you did the recording or what time of day. It's hard to say any of that. I mean, if you go to (Route) 77, there's heavy truck traffic on 77 all day long, coming up and down that road. So there's not much I could really comment on that without knowing more details about where those recordings were taken and what the time was and the distances involved."

Q. I think she's equating the truck traffic that's there for construction with -- and we've kind of discussed already -- the sound issue of the plants.
Masse: "My question would be, I don't know where she was when she recorded the truck traffic. That's the point. If she was in the Big Woods, I doubt it because all truck traffic right now comes in off STAMP Drive and then goes right down the hammerhead to the Edwards site. You know, the town has received some complaints from some truck traffic coming down the north end of Crosby. I think those were mainly concrete trucks or gravel trucks coming from Orleans County down Salt Works Road. So the town made sure that they've got to come around and come in off a 77."

Q. More than one speaker questioned whether public funds should e used to incentivize uncertain benefits, without first conducting an independent economic analysis of costs and benefits. Response?
Masse: "First of all, this is a common misconception. Public funds are not being invested in this. Companies do not receive cash. They receive abatements of taxes that they would normally pay. In this particular case, two of the three data centers would be paying about 105% to 110% of the property tax rate under a pilot. They would get a PILOT, but they would be paying more than market rate for what the property taxes are. The significant abatement is the sales tax exemption. Now, what people probably also don't realize is that in 2012, the New York State Department of Taxation and Finance issued an opinion that servers are tax-exempt from sales tax. If I think something along the lines of, if a company is using the internet, broadband is part of it. So basically, that was done to, I think, attract the Yahoo facility up to Lockport. Now, if data centers start becoming extremely interested in New York State, there is a chance that the Department of Taxation and Finance could revise that opinion and say that servers are tax-exempt altogether, in which case it's a moot point. So my guess is that these companies would ask for the abatement, and then they would probably apply to the Department of Taxation and Finance for an opinion, and if the opinion comes back and says they're tax-exempt, then really all we've given up is a mortgage tax exemption to get somebody to pay 110 or 105% property taxes on the site."

Q. They're paying 110% of the property tax rate?
Masse: "We do a fixed dollar pilot, so we calculate based on the square footage and choose a rate per square foot. We actually had the companies make us their offers. So they independently submitted their final investment offers, and it was calculated on a per square foot basis, times the square footage. And then there was, and I think some of them had an escalation rate every year, whether it was two, two and a half percent, something like that. So it would start at a fixed dollar, and then it would go up after that. So when we do a fixed dollar pilot, they pay the dollar value in the pilot. It's not 10% or 100% of whatever the current value is, which is what some of them are when they do the abatement."

Q. Okay, so, I guess I'm kind of confused. If they're paying more, they're paying what their taxes would be without the pilots ... 
Masse: "They're paying more than what the taxes would be."

Q. Without a PILOT. Why would they do that?
Masse: "That's how much they want to come to the site, and that's why power is such a scarce resource for companies like this."

Q. I know it's been the practice for GCEDC to be the lead agency, but given the the wide range of environmental concerns here, is it best for GCEDC to be lead agency on this, or should somebody else be lead agency?
Masse: "We did the original EIS, and usually whoever was the lead agency for the EIS should remain as lead agent for that. We did all the original studies. We've done the appropriate ones. And again, we're required as lead agency to send out a notice every time we want to re-establish ourselves. It goes out to all interested, involved agencies, which includes the Army Corps of Engineers and the DEC. We receive comments from the Army Corps and DEC on any of the SEQR analyses we do; they get copies of it. So, there is appropriate other parties that have a significant investment and interest in the site, who are actively involved in the review and commenting on the overall environmental review."

Q. How does the general public have confidence that all the environmental concerns have been addressed through the SEQR process?
Masse: "We have at least 7,000 pages of studies, reports, documentation, comments from DEC, and responses to DEC. And again, at the end of the day, any company that wants to build there has to get a permit from the DEC. So if there were something inappropriate or something that wasn't there, then the DEC probably wouldn't issue a permit. We would hope we would hear if they had concerns before that. And again, they've expressed their comments on some of our SEQR things."

While Plug Power has paused construction of its $290 million green hydrogen plant at WNY STAMP it has continued to make full PILOT payments to local taxing jurisdictions, according to Mark Masse, CEO of the Genesee County Economic Development Center.

According to the tax agreement between GCEDC and Plug Power, the payments are $147,599 annually to Genesee County, $308,368 to school districts, and $42,805 to the town of Alabama.

The project has been on pause since January 2024, Masse said, and that pause led GCEDC to take over the construction of a $55 million 450-megawatt substation electrical transmission to STAMP projects, which Plug Power originally agreed to fund. 

Empire State Development agreed to allow GCEDC to tap into a $56 million grant to help pay for the substation.  The grant was intended for other infrastructure at STAMP. Masse said that once completed, the substation will generate fees for electric delivery that will enable GCEDC to recover the funds and return the expenditure to the grant account.

"As companies come online, they will buy into the substation on a per megawatt charge," Masse said. "So, we'll take the total cost of the station divided by 600 megawatts and come up with a per megawatt charge. So, for ballpark, if it's $200,000 a megawatt, somebody wants 200 megawatts, it's a $40 million pay-in to buy into the substation, which will enable us then to basically get that money back for New York State, so we can use that to pay for the substation, and then repurpose the FAST New York funds back for what we originally wanted to use them for on infrastructure."

Masse said he has no insight on what Plug's long-range plans are for the project. 

Each year, projects that receive GCEDC assistance must submit Annual Performace Reports that detail the number of jobs created and the amount of capital investment. 

"We summarize all of those. We share them with the board," Masse said. "The board reviews them every year, and then the board makes a determination, did they meet their job requirements? Do they have the insurance requirements? And where are they in that one plus three."

The "one plus three" means a project has one year to complete construction and three years to complete its job creation promise.

"Then the board would make a determination -- do we want to ask them to come in and explain anything? Do you want to move forward with a termination? Any of those things are always on the table," Masse said. "In Plug's case, they are current with all of their PILOT payments, and the payments they're making to the municipalities are significant, which is the other thing to balance in the whole piece of it as well."

Plug Power seems like a company very much in limbo.  Its stock price has been hovering around a buck fifty for a few weeks and hasn't traded above $2, except briefly, for months. The company continues to get bad press over its inability to turn a profit, with one recent article noting Plug Power has lost $3.12 billion of other people's money since 2010.

An important potential path for Plug Power is producing more of the hydrogen it distributes. If ever completed, the WNY STAMP plant is expected to produce 45 metric tons of green liquid hydrogen daily. It would be fair the most product plant under the company's control so its surprising that there is no clear indication that Plug intends to complete the plant.

Plug Power's representatives have never responded to The Batavian's requests for comment on the future of the plant.

Just before Donald Trump took office in January, the Plug Power secured a $1.7 billion loan guarantee from the Department of Energy. After taking office, Trump froze DOE grants and loans for green energy.

In an interview with a site called Sherwood News, Plug Power CEO Andy Marsh said he's not worried about the stall in funding.

"I see that the DOE loan will be supported," Marsh said. "It’s a contract with the government. I’m not too worried; it’s not out of line with the goals of the Trump administration. So, you know, from a policy environment point of view, it feels hectic at the moment, but I’m really not that concerned that these things will all work themselves out."

Data centers are big, noisy, use too much energy, and pose a risk to watersheds, more than two dozen speakers told the staff of the Genesee County Economic Development Center at three public hearings on Monday in the town of Alabama.

The hearing was held at the rec hall of the Alabama Volunteer Fire Department and was attended by more than 50 people. Some brought signs or wore T-shirts expressing their opposition to locating a data center at WNY STAMP.

They came from Syracuse, Buffalo, Rochester, Niagara County, Orleans County, and Genesee County, including the Tonawanda Seneca Indian Reservation.

The proposed projects are massive -- all more than 750,000 square feet, or more than 13 football fields -- and will range in cost from $2.2 billion to $6.32 billion. They would each create from 100 to 200 jobs.

The three projects are STREAM U.S. Data Centers, LLC, Project Rampart, LLC, Potentia Holdings, LLC.

Exactly what kind of data the proposed centers would store and retrieve is unclear, but data centers typically provide services for artificial intelligence, cryptocurrency data mining, data analytics and storage, IT and telecommunications, and co-location services for major corporations.

Stream Realty Partners builds data centers for Fortune 500 companies. PRP Real Estate Investment Management backs Project Rampart, and its clients include Meta (Facebook), Microsoft, and Amazon.  Potentia Capital is an Australian private equity firm specializing in technology, software, and tech-enabled services.

These sorts of projects are usually backed by a consortium of private equity investors, often global in nature. 

CORRECTION from prior version of the story: Neither Steam nor Project Rampart are seeking property tax exemptions, just sales tax and mortgage tax exemptions.  The Stream project would generate $10.9 million in annual revenue for local municipalities and school districts, and Project Rampart, $10.3 million annually. Potentia is seeking $42.7 million in property tax exemptions over 20 years, resulting in an average of $7.1 million in annual PILOT fees.

Many speakers questioned whether data centers fit into the promised profile of WNY STAMP, which was sold to the community as a high-tech manufacturing hub, much like the Edwards Vacuum plant currently under construction.

Edwards is promising 600 jobs in a 240,000-square-foot facility, or one job per 400 square feet. Stream is projecting one job (at a salary of $89,000 annually) per 7,800 square feet, Rampart, one job ($64,000 annually per 7,142 square feet, and Potentia, one job ($129,000 annually) per 4,460 square feet.

There is only enough space available in STAMP for one of these data centers, so the GCEDC board will need to decide whether to reject all of them or pick only one of them for approval.

Data centers have been controversial in other communities, and several speakers brought up issues with the Digihost Fortistar Niagara County facility. It is a 60 MW cryptocurrency mining operation located off Erie Avenue in North Tonawanda. Residents there have protested against noise pollution, leading the city to ban the facility from expanding for two years. 

Other complaints about the facility have included excessive greenhouse gas emissions, 

There have also been complaints about noise from data centers in Loudoun County, Virginia, Granbury, Texas, and Fairfax County, Virginia.

Health concerns from data centers include stress and anxiety, hearing loss, disrupted sleep, and even cardiovascular risk.

The controversy in Niagara County about data centers may have contributed to chasing away Kevin O’Leary, of Shark Tank fame, when he sought to build a data center in the region. He claimed the project was fully funded and would have created thousands of jobs. He said he ran into significant roadblocks raised by local politicians and state policies. 

He reportedly said on CNN, "It got so bad with the politicians in the local region and the state policy, we moved it to Norway, and all the jobs. Norway has it now. Thousands of jobs coming out of that! That’s New York. Uninvestable.”

While many speakers on Monday focused on these issues, the only matter before the GCEDC board, when the projects come up for a vote, is economic -- will a data center create jobs and help grow tax revenue in Genesee County? NOTE: The environmental issues will come before the board during the SEQRA, if GCEDC is lead agency.

If approved by the board, the winning project must jump through a series of regulatory hoops, including:

• State Environmental Quality Review Act (SEQRA) compliance, which assesses potential impacts on air quality, water resources, wildlife, and other environmental factors.  GCEDC has applied for lead agency status for the SEQRA review.
• Air and Water Quality Permits, which cover air emissions and water usage.  It would be up to the Department of Environmental Conservation to provide the permits.
• The project must comply with the Climate Leadership and Community Protection Act (CLCPA), which focuses on greenhouse gas emissions. There would also be a requirement for energy consumption disclosure.
• The town of Alabama's local zoning boards and the Genesee County Planning Board would review the projects. The project would need to comply with existing noise ordinances, for example, as well as other land-use regulations. As part of the public hearing process at the local level, the developer would need to address community concerns about noise, emissions, and resource usage.

Highlights of speakers' remarks (not all speakers included):

Madeline Nyblade, an assistant professor at SUNY ESF with a Ph.D. in Earth and Environmental Sciences, specializing in hydrology.
Nyblade expressed concern about the hydrology of the region, which includes wetlands and clay-rich soils that create perched water tables. The area is upstream from critical ecosystems such as the Tonawanda Seneca Nation lands, the Tonawanda Wildlife Management Area, and the Iroquois National Wildlife Refuge, making it susceptible to downstream impacts.

“This land is wetland, part of this larger wetland complex, yet none of the proposals take into account the wetlands that will be destroyed,” she said.

Margaret Wooster, reading a letter from Allies of the Tonawanda Seneca Nation, Western New York Environmental Alliance, and 57 other environmental, faith-based, human rights, and good governance groups.
The letter states that the project contradicts New York State’s and international commitments to environmental sustainability, social responsibility, and long-term stewardship and expresses concerns about the destruction of wetlands. The data centers will consume 200 megawatts of electricity annually, straining regional energy systems, she said. The centers would also use 800,000 gallons of fresh water daily. She also raised concerns about air pollution. 

“Industrial runoff, hydrological disruptions, and heated water discharge from a data center would devastate these fragile ecosystems,” she said.

Joseph O’Malley (reading a statement by John Whitney)
The letter noted the area is a 20,000-acre network of wetlands and wildlife refuges critical to biodiversity and carbon sequestration. 

“The GCEDC STAMP site is situated in an area with deep cultural and ecological significance," the letter stated. "It is central to Western New York’s heritage, including that of the Haudenosaunee people and the Tonawanda Seneca Nation.”

It also called into question the "excessive" financial incentives given the limited number of jobs expected. 

“Public funds should not be used to incentivize these uncertain benefits, not without first conducting an independent economic analysis of the costs and benefits,” he said.

The long-term costs could outweigh any short-term financial gains, he said, especially if rapid technology advancements render the facilities obsolete in a few years. 

Dr. Kirk Scirto, a family physician who treats patients from Tonawanda Seneca Nation and is a public health specialist
He said the data centers would emit at least 500 tons of carbon dioxide annually and burn 60,000 gallons of diesel fuel per year, leading to air pollution that disproportionately affects the nearby Tonawanda Seneca Nation.  The noise, he said, would be 50–90 decibels, "akin to jet engine noise." The projects he said are a threat to The Big Woods, a key hunting ground for residents of the reservation. Water usage, he said, would deplete resources for the surrounding counties. The superheated discharge water, which could also contain toxins, could harm downstream fisheries. If the centers are used for AI, AI could lead to significant job loss throughout the United States.

"In medicine, we study how parasites suck up the nutrients or resources while harming them," Scirto said. "Well, that's exactly what these data centers are -- parasitic centers that would suck up an immense amount of the drinking water of Niagara, Orleans, Erie and Genesee county residents. They would also steal a huge amount of their energy in exchange for a barrage of contamination. What's more, hardly any jobs would be offered to local residents."

Diane Sirczyk, representing the Atlantic Chapter of the Sierra Club
"Data centers around the country are notoriously dirty and noisy consumers of vast amounts of electricity, which are straining electric grids, emitting large volumes of greenhouse gas pollution and undermining our country's ability to transition away from fossil fuels," she said.

She noted that Project Potentia, if approved, would require 195 megawatts of electricity per year, which is enough to power about 32,000 homes.

She suggested the data centers would not comply with CLCPA.

Barbara Jonathan
Jonathan said she lives near Big Woods. She expressed concern about the impact on future generations, given the potential for a negative environmental impact. She expressed concerns that the data center will have no accountability and no relationship with the local community once built. 

“Where are these people who operate these data centers? Are they going to really give a damn about you or me?” she said.

Sarah Howard, a resident of Syracuse
Howard opposed the incentives and criticized GCEDC for a "lack of transparency" and "procedural flaws." 

She expressed environmental concerns, concerns about energy consumption, and a lack of a significant number of jobs created by the projects.

“The revised EAF states no water is needed for cooling but includes an 8-acre retention pond holding 10 million gallons. This raises serious questions about transparency," she said.

Howard was the only speaker who steadfastly refused to stop talking at the end of her time limit.

Maggie Cowen (reading a statement from a person named George)
Cowen noted that wastewater from a data center could contaminate Orleans County rivers and creeks, ultimately reaching Lake Ontario and affecting its growing tourism industry, notably fishing.  Cowen noted that a data center in Niagara County generates noise levels from its cooling fans of 85 decibels. Cowen argued that a data center provides no meaningful value to the community. 

Cowen fought back tears near the end and said,  "I've got a little bit more time, so I just like to say, like, this is one of the few natural areas remaining in this region of the state, and it seems ridiculous to throw away."

Evelyn Wackett, Buffalo resident and environmentalist
The STAMP project threatens endangered and threatened species, she said, including the short-eared owl, northern harrier hawk, monarch butterfly, and bog turtles. She said a data center would draw six million gallons of water from the Niagara River daily. 

“Yesterday was World Wetlands Day," she said. "I want to celebrate the wetlands. I don’t want to see them destroyed.”

Kristen Moser, a wildlife photographer from Syracuse
Moser said these projects do not belong near the Tonawanda Seneca Nation or the surrounding wildlife refuges, including the John White Wildlife Management Area, Iroquois National Wildlife Refuge, Tonawanda Wildlife Management Area, and Oak Orchard Wildlife Management Area.

“The Big Woods is home to over 100 species of birds, many of which are dependent on undisturbed areas to reproduce,” she said.

She played a recording of birds singing in the woodlands and then a recording from the same spot when a supply truck for one of the STAMP projects passed by. The birds were silent and only the truck could be heard.

"That's what you'll be hearing if these three data centers go in," she said. "If any of this continued destruction continues, the data center would be one of the closest complexes to this exceptional forest. The sound of the trucks will be multiplied by the constant industrial sounds of the center. Noise pollution will not only impact and displace wildlife in the Big Woods, it will forever destroy the peace and serenity of this sacred land for the people of Tonawanda."

Katie Rivers, Alabama
Rivers said she has lived near the project site for 30 years. She said development has already disrupted local wildlife, particularly deer, which have been displaced from their natural habitats. She suggested economic developers and planners prioritize corporate interests over community welfare.

“It seems like you’ve all been bamboozled," Rivers said. "I can’t even imagine that you think this could be beneficial to anybody in the town.”

Angela Carlson, from Oakfield, now living in Batavia
She claimed that a cost-benefit analysis has not been produced, violating General Municipal Law 859-a. She highligned the environmental risks of the project and its potential adverse impact on threatened species such as the northern harrier and short-eared owl. 

She called on GCEDC to produce a cost-benefit analysis, disclose the names of the owners and operators of the projects, conduct a comprehensive noise study, and provide more opportunities for public participation. 

“One cannot claim to care about the environment while continuing to disregard and disrespect the rights of Indigenous peoples,” Carlson said.

Officials at the Genesee County Economic Development Center do anticipate that Plug Power will complete construction, at some point, of its clean hydrogen fuel plant at WNY STAMP.

"We continue to check in with them periodically," said CEO Mark Masse. "They've said the project is on pause, but it's still a very important part of their overall strategic goal of green hydrogen production, and they're still intending to construct the facility at STAMP."

The Lathan-based hydrogen company received word a week ago that the Department of Energy finalized a $1.66 billion loan guarantee with the company, which the company said would be used to complete construction on six plants, without specifically naming the $290 million project in Genesee County as one of the plants it will continue work on.

There's been some doubt about the future of the plant since HeatMap reported in  October that the WNY STAMP project was not included in the DOE loan application. The DOE has not responded to The Batavian's request to obtain a copy of the document. 

Chris Suozzi, VP for business and workforce development at the GCEDC, reportedly told a Washington, D.C.-based commercial real estate firm that Plug Power's STAMP project is on hold.

According to Heatmap, Suozzi spoke to PRP Real Estate Management. The firm recorded the phone call.

“They’re not ready to go," Suozzi reportedly said. "They’re on pause. We don’t know what’s going to happen with them at this point.”

Masse said Plug Power was in a "holding pattern" while awaiting news of the DOE loan.

"I have not followed up with them since the announcement," Masse said. "I don't think the announcement stated where the loan guarantee was going to go, but I'm sure we'll be reaching out to them at some point here soon, just to get another update from them and find out what their plans are for that funding."

The new potential barrier for Plug Power, however, may be an executive order signed by Donald Trump on his first day in office freezing disbursement of funds under the 2022 Inflation Reduction Act targeted to clean energy projects.

The order explicitly targets grants, which have mostly been distributed already, but it's unclear how it affects the DOE's Loan Program Office.  

The loan closed a week ago, but it is unclear whether the funds were transferred to Plug by Monday. A public relations representative did not respond to The Batavian's request for comment on the project.

The office of Sen. Charles Schumer did not respond to The Batavian's request for a comment on the status of the project and the loan.

The stock market has not reacted favorably to news of the loan closing. Since Thursday, the price per share of Plug's stock has dropped from an open of $2.75 to a close on Wednesday of $2.05.

The company reportedly already carries $930 million in debt, and at no point in its 28-year history has it turned a profit.

Plug Power also faces a class-action lawsuit filed in May claiming that the company's stock price was artificially inflated between May 9, 2023, and January 16, 2024.

The plaintiffs claim that the company and a pair of senior officers misled investors by lying and withholding information about delays in the build-out plans of its production facilities in SEC filings.

Plug Power is currently the nation's largest producer of green hydrogen. Its Georgia plant produces 15 tons of liquid hydrogen per day. Its Tennessee plant produces 10 tons per day. It also has an operational plant in St. Gabriel, Lousiana. 

If the WNY STAMP plant ever comes online, it is expected to produce 74 tons daily. The company is also constructing additional plants in New York and Texas.

The company seeks to become the nation's first vertically integrated green hydrogen producer, providing customers with fuel, products, and support. Plug aims to provide customers fuel cells, electrolyzers (splitting water into hydrogen and oxygen), and liquid hydrogen fuel. They currently provide companies like Walmart and Amazon with hydrogen-powered forklifts.  The company sees a future in hydrogen powering long-haul trucking.

Plug Power, the green hydrogen manufacturing firm based in Lathan, with a plant under construction in the town of Alabama, has closed on a $1.66 billion loan guarantee with the U.S. Department of Energy.

The loan guarantee has been under negotiations for months and closes just days before President Joe Biden leaves office.

“Finalizing this loan guarantee with the Department of Energy represents a significant step in expanding our domestic manufacturing and hydrogen production capabilities, which create many high-quality jobs throughout the U.S.,” said Plug CEO Andy Marsh in a release. “In addition to reducing carbon emissions and enhancing the resilience of the U.S. energy grid, we believe the hydrogen economy aligns closely with national security interests, ensuring that the U.S. remains at the forefront of energy technology development and deployment on a global scale.”

Based on prior reporting, it's unclear if Plug intends to use a portion of the loan funds to complete its $290 million green hydrogen fuel plant under construction in WNY STAMP.

Chris Suozzi, VP for business and workforce development at the Genesee County Economic Development Center, reportedly told a Washington, D.C.-based commercial real estate firm that Plug Power's STAMP project is on hold.

However,  throughout the negotiations process, Plug Power has publicly maintained that it intends to use the fund to complete six plants, which has previously included the local plant.

In a release on Thursday, Plug stated:

The loan guarantee will help finance the construction of up to six projects to produce and liquify zero- or low-carbon hydrogen at scale throughout the United States. Plug’s Graham, Texas, green hydrogen plant, the first to benefit from this financing, will create hundreds of high-quality jobs. Powered by an adjacent wind farm, Plug’s green hydrogen production plant will utilize the company’s electrolyzer stacks manufactured at its factory in Rochester, N.Y., and its liquefaction and storage systems built at its facility in Houston.

The company already has operational plants in Georgia, Charleston, Tennessee, and Louisiana.

The loan is for $1.55 billion in principal, and Plug is expected to pay $107 million in interest.

The DOE release states:

Advancing clean hydrogen is a key component of the Biden-Harris Administration’s whole-of-government approach to building a robust clean energy economy that creates healthier communities, strengthens energy security, and delivers new economic opportunities across the nation. Today’s announcement will help unlock the full potential of this versatile fuel and support the growth of a strong, American-led industry that ensures the United States remains at the forefront of the global economy for generations to come. Plug submitted its application to LPO in November 2020. 

The release states the Plug is positioned to build out clean hydrogen facilities in several potential locations and to supply its national customer base with end-to-end clean hydrogen at scale.

This project advances President Biden’s efforts to strengthen domestic clean energy supply chains, which are essential to meeting the nation’s ambitious climate goals and enhancing our national and energy security.

The DOE expects that hydrogen from the plants will fuel cell-electric vehicles in material handling, transportation, and industry, which could result in an 84 percent reduction in greenhouse gas emissions compared to conventional hydrogen production. 

The clean hydrogen facilities will utilize Plug’s electrolyzer stacks that are manufactured at the company’s state-of-the-art gigafactory in Rochester, NY and will use modular designs to ensure a resilient hydrogen fuel delivery network. Plug is among the leading commercial-scale manufacturers of electrolyzers in the United States and currently operates the largest Proton Exchange Membrane (PEM) electrolyzer system in the United States at its Georgia hydrogen plant. 

The DOE explains the process:

Electrolyzers use electricity to split water into its component parts, hydrogen and oxygen. Plug’s PEM technology allows it to operate efficiently even with variable electricity, enabling it to leverage electricity from intermittent renewables. Electrolyzers that use renewables to power their hydrogen production produce emissions-free clean hydrogen. The electrolyzer stacks can be easily configured to produce systems at 1 megawatt (MW), 5 MW, and 10 MW scales. (One MW powers the equivalent of 750 American homes based on their instantaneous demand.)

Wall Street's reaction to the news of the loan? A 7% drop in the stock price, bringing it down to $2.44 a share by the close on Friday. 

The Motley Fool stock news site suggests history is working against Plug in investor's minds. 

In its 28-year history, Plug has never turned a profit. The company has reported reported $1.4 billion in losses. It also has $930 million in debt already on its books.

Press release:

After announcing Edwards Vacuum’s plans to build a manufacturing facility in Western New York two years ago, U.S. Senator Chuck Schumer today announced Edwards Vacuum and the U.S. Department of Commerce had finalized its CHIPS award of $18 million from his bipartisan CHIPS & Science Law. 

Schumer explained this would lock in the federal funding Edwards Vacuum needs for plans to build its new $300+ million dry pump manufacturing facility for the semiconductor industry, the first of its kind in the country, as there is currently no domestic production of semiconductor-grade dry vacuum pumps.

“Edwards Vacuum’s $18 million CHIPS award is locked in. This finalized federal investment will help ensure NY’s semiconductor supply chain is made right here in Genesee County,” said Senator Schumer. “The signed CHIPS award is a major step forward for this $300 million, 600 job project that will be a pivotal stop on America’s semiconductor superhighway. All the major semiconductor companies in New York and across America need this vacuum technology for their chip fabs, that only Edwards will make in the USA. It is a prime example of why our region is growing as the nation’s semiconductor ‘Tech Hub.’ With the funding from my bipartisan CHIPS & Science Law now signed and sealed, Edwards Vacuum’s growth in Western NY can continue knowing the funding will be secured for them to tap no matter the administration. This is a win-win-win: for Genesee County, for Upstate NY, and America.”

This federal funding will support a planned $300+ million investment and 600 good-paying jobs when the facility reaches full production capacity. Schumer explained all chip fabs need vacuum technology, such as that produced by Edwards, to power the sophisticated equipment and state-of-the-art machine tools needed to make microchips. Those tools use vacuum pumps, like those that will now be made in Western New York, to manipulate the chip wafers and control industrial gasses needed to manufacture the finished microchips. By bringing manufacturing to New York, new chip fabs such as Micron and GlobalFoundries in New York and Intel in Ohio can have access to critical dry pumps that will now be made in the U.S., offering chip producers shorter wait times, improved responsiveness, lower risks of supply chain disruptions, and reduced CO2 emissions from an American-made product. 

The U.S. Department of Commerce will disburse funds in the coming years as Edwards Vacuum meets project milestones agreed to in the final award.

Schumer has been a relentless champion for expanding the semiconductor supply chain in Western NY. Schumer personally called Geert Follens, who was then President of the Vacuum Technique Business Area for Edwards parent company Atlas Copco Group, to urge the global semiconductor supply chain company to expand in Upstate New York. Later that year Schumer announced with Governor Hochul that Edwards Vacuum had heeded their calls and planned to build their new manufacturing facility in Genesee County. Last year, Schumer celebrated Edwards Vacuum’s groundbreaking ceremony in Genesee County for Phase 1 of their construction, which is expected to be completed in 2028.

Schumer also helped the Buffalo-Rochester-Syracuse region win the prestigious Tech Hub designation to support the buildout of the semiconductor supply chain in Upstate NY through his bipartisan CHIPS & Science Law and last year secured a major $40 million investment to implement the Tech Hub’s work with companies like Edwards. The proposal, called the “NY SMART I-Corridor Tech Hub” has built on the historic investments Schumer delivered that have spurred a boom in semiconductor manufacturing and innovation across Upstate NY. Edwards Vacuum is working with Genesee Community College and Tech Hub partners like Monroe Community College, Erie Community College, and the Northland Workforce Training Center to help them hire and train hundreds of new workers.

“The Empire State is becoming a national leader in advanced manufacturing because of the investments New York has made in this industry and the extraordinary help of President Biden. New York State has the talent, infrastructure and innovation to continue on this trajectory and the best is yet to come. My 2025 State of the State includes new initiatives to grow this critical industry, and we’ll continue doing everything in our power to great jobs and boost economic growth,” said Governor Kathy Hochul.

Is Lathan-based Plug Power pulling the plug on its $290 million green hydrogen fuel plant under construction at WNY STAMP?

Heatmap, a news organization that tracks alternative energy companies, reports that the STAMP site is not included in Plug Power's loan application with the Department of Energy. 

Plug Power has preliminary approval for a $1.6 billion loan from the DOE to help it build more fuel plants. The company is aiming to become the nation's first vertically integrated green hydrogen producer, providing customers with fuel, products, and support.

Chris Suozzi, VP for business and workforce development at the Genesee County Economic Development Center, reportedly told a Washington, D.C.-based commercial real estate firm that Plug Power's STAMP project is on hold.

Asked to authenticate the quote, Suozzi said, "no comment."

According to Heatmap, Suozzi spoke to PRP Real Estate Management. The firm recorded the phone call.

“They’re not ready to go," Suozzi reportedly said. "They’re on pause. We don’t know what’s going to happen with them at this point.”

Plug Power has not responded to The Batavian with requests for comment, including a spokesperson The Batavian has communicated with before, who didn't respond to an email sent early Friday morning.

The Batavian also reached out to two people in Sen. Charles Schumer's office  seeking comment. Schumer has been a major proponent of STAMP and a supporter of Plug Power's initiative. The Batavian has not received a response.

Editor and Publisher has described Heatmap as a start-up news company run by seasoned professionals. The company lists its leadership and reporters on its masthead, and all have substantial credentials.

The story published two days ago indicates a lawsuit filed by the Tonawanda Seneca Nation may be influencing Plug Power's actions.

Environmental justice issues have also been a drag on development. The native Tonawanda Seneca Nation is opposed to the entire industrial park because of the resulting impacts on wildlife, noise and the visual landscape. In April, the Fish and Wildlife Service revoked a necessary permit for a wastewater treatment pipeline that would be used by companies at the park.

Earthjustice attorney Alex Page – who is working with the Nation to fight the project – told me the tribe was told last year by the Energy Department that Plug Power had withdrawn the New York site from its loan application. The Nation will continue to fight the project and DOE’s loan financing to Plug Power on the chance that money could be reprogrammed to the industrial park. Page said: “The Nation remains very, very much opposed.”

When Plug Power received its preliminary loan approval in May, The Batavian published this explainer about the project:

• Plug Power is a New York-based company with headquarters in Lathan. It is a "green hydrogen" company, which means it uses renewable energy sources to convert water into hydrogen fuel, which can be stored in fuel tanks and sold to power vehicles and factory equipment.  
• In its 20-year history, Plug Power has never turned a profit. It's annual revenue is currently about $800 million. In 2023, the company reported a $1.4 billion loss. 
• Plug Power is building a $290 million hydrogen energy plant in WNY STAMP, the GCEDC-developed high-tech business park in Alabama. The plant is expected to employ 69 people with an average annual salary of more than $70,000. In exchange for the job creation, the company is anticipating $2 million in grants from New York State. 
• The company received $118.2 million in sales and property tax exemptions from the Genesee County Economic Development Center. Over the 20-year life of the property tax extensions, Plug Power will make payments in lieu of taxes totaling $2.3 million annually, which will be shared by Genesee County, the Town of Alabama, and the Oakfield-Alabama School District.  Each jurisdiction will also receive an increasing amount of property tax payments each year over the life of the agreement.
• In March, the DOE awarded Plug Power grants totaling $75.7 million.
• The DOE loan, if finalized, is expected to help Plug Power complete the WNY STAMP plant, along with five others in the nation, which is reportedly critical to the company generating the hydrogen fuel sales necessary to start achieving profits.
• This phase of the loan guarantee process requires the DOE and Plug Power to negotiate a term sheet, which means "certain technical, legal, environmental and financial conditions, including negotiation of definitive financing documents, must be satisfied before funding of the loan guarantee" (company statement).

For previous coverage of Plug Power, click here.

Press release:

“Almost 20 years ago, the Genesee County Economic Development Center developed a concept to bring the next generation of emerging businesses to Genesee County.  This led to the development of the Science Technology and Advanced Manufacturing Park (STAMP) in the town of Alabama.

“Through the years, STAMP has been fortunate to receive significant financial support from our federal, state and local government partners which has been contingent on our commitment to bringing these next generation of businesses and the significant number of good paying jobs and economic impact that come with them.  This support has also resulted in hundreds of inquiries from companies and site selectors in the United States and internationally.  This strong interest in STAMP continues today.

“As such, the GCEDC Board and staff remain resolute in our vision to bring these jobs and capital investment from companies in the advanced manufacturing, renewable energy and semiconductor sectors. We also need to be mindful of continuing to build out infrastructure at the site, including the electric substation, which is a critical aspect of bringing these companies to STAMP.

“Regarding the latter, two projects not in targeted industry sectors have approached the GCEDC with an interest in coming to STAMP.  At this time, the GCEDC Board and staff is considering applications from these applicants, both of which are proposing to construct data centers at STAMP. 

“In assessing projects such as data centers, the GCEDC considers several different factors, including assessing the number of good-paying jobs in the local community created, the footprint of this type of project and its electric and water needs with the intent of minimizing its impacts so we can further our continued efforts in bringing to STAMP the types of companies that can create significant job and economic growth that we are targeting for at STAMP.  Advanced manufacturing, renewable energy and semiconductor sector projects often require a much larger footprint. They can have significant infrastructure needs that must be considered when evaluating applications for projects such as data centers.

“We are obligated to our government partners and Genesee County residents to carefully vet applications to facilitate local economic growth and development, which fosters investment and job creation to benefit our residents and children. 

“In this instance, a decision will ultimately be made on whether the proposed projects fulfill our vision for STAMP. We look forward to working with companies and stakeholders as the GCEDC Board considers these applications.”

Press release:

After announcing that Edwards Vacuum plans to build a manufacturing facility in Western New York two years ago, U.S. Senate Majority Leader Chuck Schumer today announced Edwards Vacuum has reached a $18 million preliminary memorandum of terms (PMT) funding agreement with the U.S. Department of Commerce under the CHIPS & Science Law he championed. This proposed federal funding will support Edwards Vacuum’s plans to build its new $300+ million dry pump manufacturing facility for the semiconductor industry, the first of its kind in the country, as there is currently no domestic production of semiconductor-grade dry vacuum pumps.

“This investment will ensure an essential part of the semiconductor supply chain – that will be surging in demand – is made right here in Genesee County. I am proud to announce my CHIPS & Science Law is investing $18 million in Edwards Vacuum’s expansion in Western New York, creating the first dry pump vacuum manufacturing facility of its kind in America,” said Senator Schumer. “From Micron to GlobalFoundries, all the major semiconductor companies in New York and across America need vacuum technology for their chip fabs, that only Edwards will make in the USA. A historic $300+ million manufacturing facility like this, with over 600 good-paying jobs, was only a dream a few years ago. But I urged Edwards Vacuum to expand in Western NY because I knew this region had the potential to become the beating heart of America’s semiconductor supply chain.”

Schumer added, “This continued investment by the Biden administration is proof positive the value of our region as a ‘Tech Hub’ and America’s emerging semiconductor superhighway. Today, Edwards Vacuum’s plans to expand in Western NY move forward. And that dream becomes one step closer to becoming a reality thanks to my CHIPS & Science Law.”

Today’s proposed federal funding will support a planned $300+ million investment and 600+ good-paying jobs when the facility reaches full production capacity. Schumer explained all chip fabs need vacuum technology like what Edwards makes to power the sophisticated equipment and state-of-the-art machine tools needed to make microchips.  Those tools need and use vacuum pumps, like those that will now be made in Western New York, to manipulate the chip wafers to manufacture the finished microchips. By bringing manufacturing to New York, new chip fabs such as Micron and GlobalFoundries in New York, and Intel in Ohio can have access to critical dry pumps that will now be made in the U.S., offering chip producers shorter wait times, improved responsiveness, and reduced CO2 emissions from an American-made product. 

This is the third agreement for a New York company from the CHIPS Incentives Program funded by Schumer’s CHIPS & Science Law. Earlier this year, Schumer announced that Micron, which plans to invest $100 billion over the next two decades – the largest private investment in New York’ s history – reached a $6.1 billion CHIPS PMT funding agreement. In addition, GlobalFoundries in the Capital Region also reached an agreement for $1.5 billion in direct grant funding under his CHIPS  & Science Law to support a $12.5 billion public-private investment over the next ten plus years to expand and construct a second, new state-of-the-art computer chip factory in Malta, NY.  

Schumer added, “The CHIPS & Science Law keeps delivering for New York. We are seeing more targeted federal investment in this region to bring back manufacturing than ever before, and awards like this show that the I-90 corridor truly is becoming America’s semiconductor superhighway.”

 “New York State is a national leader in reshoring advanced manufacturing and research and this could not have been accomplished without the combination of the federal CHIPS and Science Act and New York State's Excelsior Jobs Program,” Governor Hochul said. “As a result, Edwards Vacuum is bringing 600 good jobs to Upstate New York, bolstering our semiconductor ecosystem, and setting the stage for regional success. This is proof that when we work together the sky's the limit, and none of it would be possible without the partnership of the Biden-Harris Administration, Commerce Secretary Raimondo and New York’s congressional delegation."

Schumer has been a relentless champion for expanding the semiconductor supply chain in Western NY. Schumer personally called Geert Follens, President of the Vacuum Technique Business Area for Edwards parent company Atlas Copco Group, to urge the global semiconductor supply chain company to expand in Upstate New York. Later that year Schumer announced with Governor Hochul that Edwards Vacuum had heeded their calls and planned to build their new manufacturing facility in Genesee County.  Earlier this year, Schumer celebrated Edwards Vacuum’s groundbreaking ceremony in Genesee County for Phase 1 of their construction which is expected to be completed in 2028.

Schumer last year also helped the Buffalo-Rochester-Syracuse region win the prestigious Tech Hub designation through his CHIPS & Science Law and earlier this year secured a historic $40 million investment to implement the Tech Hub’s work with companies like Edwards. The proposal called the “NY SMART I-Corridor Tech Hub” has built on the historic investments Schumer delivered that have spurred a boom in semiconductor manufacturing and innovation across Upstate NY. Edwards Vacuum is working with Genesee Community College and Tech Hub partners like Monroe Community College, Erie Community College, and the Northland Workforce Training Center to help them hire and train hundreds of new workers.

 

Thanks to Schumer’s CHIPS & Science Law, Upstate New York has seen a major revival in tech manufacturing. Micron has announced plans for a historic $100+ billion investment to build a cutting-edge memory fab in Central New York. GlobalFoundries plans to invest over $12 billion to expand and construct a second, new state-of-the-art computer chip factory in the Capital Region. In the Mohawk Valley, Wolfspeed has opened a 200mm silicon carbide fabrication facility, one of the largest, with plans to further expand their operations. TTM Technologies, a printed circuit board manufacturer, plans to invest up to $130 million to expand their facilities in Onondaga County, creating up to 400 good-paying jobs. Menlo Micro will invest $150 million to build their microchip switch manufacturing facility in Tompkins County, creating over 100 new good-paying jobs. In addition, Upstate New York is home to semiconductor supply chain companies like Corning Incorporated, which manufactures glass critical to the microchip industry at its Canton and Fairport, NY plants.

The PMT outlines key terms for Edwards Vacuum’s CHIPS agreement. To finalize the federal CHIPS agreement, the Commerce Department will now begin a comprehensive due diligence process on the proposed project and other information contained in the application. After satisfactory completion of the due diligence phase, the Commerce Department will finalize the PMT.

With the groundbreaking for Edwards Vacuum's new plant at WNY STAMP in Alabama, it's all going according to plan.

In August 2020, Schumer traveled to WNY STAMP to propose a bill that eventually became law, funding the semiconductor industry in the United States to the tune of $50 billion.  He said ramping up domestic semiconductor production was a matter of national security. He also wanted to create jobs in Upstate New York, including rural counties. At another news conference in 2022, he said chip manufacturing "belongs in Batavia, not Bejing." 

"What makes us so happy about this project is J-O-B-S," Schumer said at Tuesday's ceremony. "Jobs, right here. In just over a year, hundreds of local workers will be employed at this factory behind me, where they will build some of the most sophisticated, cutting-edge equipment for the semiconductor industry, not just in New York and not just in America, but in the world. This will be one of the world-class plants right here in Genesee County."

In November 2022, Schumer announced that Edwards Vacuum had committed to building a $319 million dry-pump plant in WNY STAMP, which would provide a critical tool to semiconductor manufacturers in New York and beyond. Edwards is building a 240,000-square-foot campus that includes manufacturing, a warehouse and administration. The company is expected to employ 600 people.

Schumer said Edwards will pump $300 million into the Genesee County economy.

"This story is going to be repeated over and over again across upstate New York, over and over again, of what we now call the 'Semiconductor Superhighway,' which is I-90, as it runs from Albany all the way to Buffalo, through Rochester and Syracuse. 

Mark Masse, CEO of the Genesee County Economic Development Center, thanked all the agencies—from Gov. Kathy Hochul and Empire State Development to Genesee County and the town of Alabama—for their efforts to collaborate and help make Tuesday's groundbreaking possible.

"It requires collaboration at all levels of government to make an economic development project like Edwards Vacuum a reality," Masse said.

The work to build out STAMP is ongoing, Masse said, and it isn't easy.

"The competition to develop sites like STAMP and bring companies such as Edwards to New York has never been more challenging," Masse said. "The opportunities for communities across New York State, particularly upstate, are unlimited in terms of creating generational wealth that we have not experienced in a very long time."

Alabama Town Supervisor Rob Crossen said the town welcomed the opportunity for economic growth.

"Why would we accept such a thing in a very small town? It's about jobs. It's about good-paying jobs," Crossen said. "I spent my entire life growing up here, as many of us did, watching everybody move from Genesee County and from Western New York. Now, we're going to start seeing license plates from other states coming here."

During his speech, Schumer recalled watching WNY companies such as Kodak, Bausch and Lomb, Xerox, Bethlehem Steel, Bell Helicopters, and more either reduce manufacturing locally, move away, or close up shop.

"It pained me to see jobs leave Upstate New York to hear the stories and actually witness some parents at airports waving goodbye to their kids in their early 20s who wanted to stay here," Schumer said. "They liked the good life here, but they couldn't find a job here. Now, the reverse is going to be true. Parents will be going to airports in the rest of the country and waving goodbye to their kids as they come to Upstate New York for the good paying jobs."

The Genesee County Economic Development Center plans to build a 500,000-gallon water storage tank at WNY STAMP to help with the fire suppression needs of current and potential park tenants. 

The immediate need to provide sufficient water pressure for the Edwards Vaccum plant is now under construction.

Mark Masse, CEO of GCEDC, said a 12-inch water main supplies STAMP now, but the water pressure isn't sufficient to meet Edwards's fire suppression needs.

Edwards will need 120,000 gallons of water at the ready from the tank to support its fire impression system. The excess capacity will provide service to any future tenants. 

The water will be non-potable and rarely changed. A heating element will keep it from freezing in the winter.

A 30-acre parcel is available to the north of the new Edwards facility. If a potential buyer were interested, Edwards would have first right of refusal.

"There is a potential for a project there that could utilize that tank as well," Masse told the Genesee County Planning Board on Thursday.

STAMP Waterworks Corporation, which will own the tang, currently has an operations and maintenance agreement with the town of Batavia for the tank and the rest of the water system at the STAMP site.

The tank's design and engineering have yet to be completed, so Massee couldn't provide an estimated cost when asked by The Batavian. He said bids should go out by the end of the year. Funding is from a grant, Fast New York, already received by GCEDC to fund the overall infrastructure for STAMP.

Press release from GCEDC: 

A Federal Tech Hub supporting the semiconductor industry at the STAMP Mega-Site and a region running from Buffalo to Rochester to Syracuse is growing with new investments announced Monday.

Governor Kathy Hochul today announced that the U.S. Department of Commerce has awarded a phase two Regional Technology and Innovation Hubs (Tech Hub) grant of $40 million to the New York Semiconductor Manufacturing and Research Technology Innovation Corridor (NY SMART-I Corridor) consortium.

The announcement comes as Edwards builds the semiconductor industry's dry pump manufacturing factory of the future at STAMP.

Over the next five years, the consortium will serve a critical role in supporting Upstate New York’s continued growth into a globally competitive center of semiconductor workforce development, innovation, and manufacturing – part of the continued transformation of the state’s rust belt cities into a brand new innovation belt.

Empire State Development has committed up to $8 million in match funding along with significant additional aligned resources to support the NY SMART-I Corridor and will serve as a member of the Tech Hub’s implementation steering committee. 

“With this transformative federal grant, New York is taking another major leap toward building Chips Country in our state,” Governor Hochul said. “This award will help to bring the next generation of semiconductor research, manufacturing, and workforce training upstate and unlock even more funding – on top of our other state investments – to attract chipmaking businesses and jobs. From Micron’s historic investment to our first-in-the-nation chips research center in Albany, New York is all in on semiconductors and I thank the Biden administration, Majority Leader Schumer, Senator Gillibrand, and Congressman Morelle for ensuring we remain competitive in the global race for chips business.”

The NY SMART-I Corridor was awarded one of 31 Tech Hub designations by the federal Department of Commerce’s Economic Development Administration (EDA) in October 2023 from a pool of nearly 400 regional applications, and is one of only four semiconductor tech hub designations in the nation.

The consortium comprises the Western NY, Finger Lakes, and Central NY regions and is convened by the Buffalo-Niagara Partnership, ROC2025, and CenterState CEO respectively. It includes more than 80 members that include economic development organizations, government, workforce development, labor, industry, academia and nonprofits.

The Tech Hub will work to build a world-class semiconductor ecosystem across a range of focus areas including equitable workforce development and talent placement, research and commercialization pathways in partnership with leading academic institutions, chip manufacturing supply chain growth and development, and technology innovation.

Managed by a multi-sector implementation governance committee, the consortium will serve as a key coordinating body for semiconductor industry growth alongside the Governor’s Office of Semiconductor Expansion, Management, and Integration housed within ESD. 

Empire State Development President CEO and Commissioner Hope Knight said, “New York State’s efforts to re-shore the semiconductor industry in a way that emphasizes smart and strategic growth, equitable and diverse workforce development, and cutting-edge R&D and innovation are a model for the nation and the world. Funding for the Tech Hub provided by the Biden administration will help us realize this shared vision to build a thriving innovation sector, increase our domestic semiconductor supply chain, and protect our economic and national security – all while creating good jobs for all New Yorkers.”

Press release from Rep. Claudia Tenney:

Congresswoman Claudia Tenney (NY-24) joined Representatives Joe Morelle (NY-25), Nick Langworthy (NY-23), Tim Kennedy (NY-26), Marc Molinaro (NY-19), and Brandon Williams (NY-22) to announce that the New York Semiconductor Manufacturing and Research Technology Innovation Corridor (NY SMART I-Corridor), comprised of the Buffalo, Rochester, and Syracuse areas, has been selected to receive $40 million in Phase II funding in the Regional Technology and Innovation Hubs (Tech Hubs) Program. 

The creation of the NY SMART I-Corridor will allow for the Buffalo-Rochester-Syracuse region to combine its expertise in advanced manufacturing with both ongoing and new investments in semiconductor and sensing technology. The NY SMART I-Corridor coalition emphasized collaboration over competition, utilizing their unique universities, field experts, and local and federal advocates to build a brighter future for the Buffalo-Rochester-Syracuse region.

In October 2023, the NY SMART I-Corridor was designated a Regional Tech Hub during Phase I of the program. Selection for Phase II funding further underscores the strength and promise of our region.

"With this additional investment into the Buffalo-Rochester-Syracuse corridor and its designation as a Regional Technology and Innovation Hub, our region will be at the forefront of innovative advancements benefiting our nation, and the world," said Congresswoman Tenney. "This funding will onshore critical parts of our nation's supply chain, bringing jobs to our communities and promoting technological advancement. I am eager to see the positive impact this funding will have on our community."

Press release from Sen. Charles Schumer:

After years of relentless advocacy and landing the prestigious federal Tech Hub designation for the Buffalo-Rochester-Syracuse that he created in his CHIPS & Science Law, U.S. Senate Majority Leader Chuck Schumer today announced the “NY SMART I-Corridor Tech Hub” was just selected as one of only 12 Tech Hub award winners in the nation, bringing a major $40 million in federal funding to further position Upstate NY as a semiconductor center for the world. 

Schumer said this prestigious and highly competitive federal investment will supercharge Upstate NY to build out its workforce training initiatives, strengthen existing manufacturing and innovation, and help attract new supply chains from the billions in private and federal semiconductor investment the senator has helped bring to the region, helping ensure this industry that is critical to our nation’s future, and that once was being lost to overseas, now is not just made in America, but made in Upstate NY. 

“This is a monumental victory for the Buffalo-Rochester-Syracuse region as the first major Tech Hub award in the nation, bringing a whopping $40 million from my CHIPS & Science Law. With this major investment, the feds are shining a national spotlight, and confirming what I have long known, that America’s semiconductor future runs through the heart of Upstate NY along the I-90 corridor.,” said Senator Schumer. “From the fields near Syracuse that will become Micron’s massive mega-fab to the cutting-edge research labs in Rochester and workers learning these manufacturing skills in Buffalo, this award helps connect the region to seize this once-in-a-generation opportunity and establish Upstate NY as the heart of America’s semiconductor industry. I created the Tech Hubs competition with Upstate NY in mind, and pulled out all the stops to win this award –first proposing this program in my Endless Frontier Act, then passing it into law as part of my CHIPS & Science Act, making the case to bring the region together, advocating at the highest levels and delivering the transformational investment to make today possible. It’s never been more clear: the heart of America’s semiconductor industry runs along the I-90 corridor in Upstate NY!”

Today’s award is the culmination of years of work by Schumer both creating the program through his CHIPS & Science Law with Upstate NY in mind, and working meticulously to lay the foundation for the region to succeed in securing this award. Going back to before the creation of the program, Schumer cited Upstate NY as ready to compete, and began working to build the coalitions to come together to be ready to tap the federal funding award, including landing major grants like  $25 million from the American Rescue Plan for Buffalo to boost its growing tech industry, while simultaneously working to land major companies in the semiconductor and related industries in the region from Micron’s massive over $100 billion federal investment in Central NY to Edwards Vacuum in Western NY. 

Thanks to Schumer’s efforts, the multi-region consortium beat out nearly 400 initial applications in the first phase of the Tech Hubs competition and was one of only 31 proposals selected for the prestigious federal Tech Hub designation that allowed them to compete for the funding awarded today. This fits together with billions in private and federal investment Schumer has helped deliver for Upstate NY, and companies we are seeing already expand in the region. Just after receiving the Tech Hub designation, Schumer announced TTM Technologies intends to build an up to $130 million, 400 job high-tech manufacturing facility in Central NY, citing the Tech Hub designation as a reason for wanting to locate in Upstate NY.

This is on top of other major investments in the semiconductor industry, including GlobalFoundries plans to invest over $12 billion to expand and construct a second, new state-of-the-art computer chip factory in the Capital Region, Wolfspeed recently opening the first, largest, and only 200mm silicon carbide fabrication facility in the world in the Mohawk Valley, and Menlo Micro investing $50+ million to build their microchip switch manufacturing facility near Ithaca, creating over 100 new good-paying jobs. In addition, major supply chain companies like Edwards Vacuum is making a $300+ million investment to build a dry pump manufacturing facility in Western NY, creating 600 good-paying jobs to support the growing chip industry in Upstate New York. Niacet Specialty Chemicals also announced an investment of $50 million in its Niagara Falls facility to strengthen the semiconductor manufacturing supply chain, and Corning Inc., which manufactures glass critical to the microchip industry, is investing $139 million in Monroe County – creating over 270 new, good-paying jobs, and many more.

 

The $40 million in Tech Hubs funding will go towards specific component projects that aim to solve the growth challenges the region would otherwise face over the coming decade and ensure that growth is translated to all members of our communities.  Specifically, the component project efforts will be led by Monroe Community College, the University at Buffalo (UB), and Syracuse University, all of which will be coordinating across the region to bolster workforce training initiatives, help elevate local supply chain companies, create a collaborative ecosystem for semiconductor R&D commercialization. According to the proposal, by the end of the decade, 25% of all chips produced in the United States will be manufactured within 350 miles of this Tech Hub, – with no other region in the nation accounting for a greater share of microchip production.

The NY SMART I-Corridor Consortium Tech Hub spans across the Buffalo, Rochester, and Syracuse region and has engaged 100+ institutions, including assembling commitments from industry, academia, labor, non-profit, government, and other private sector members. The implementation phase of the program will allow the region to expand the semiconductor ecosystem already in existence to develop and make the future of semiconductor technology in Upstate NY. 

Earlier this week, the Genesee County Economic Development Center issued a press release on the promotion of Batavia resident Mark Masse from senior vice president of operations to president and chief executive officer.

Masse, 51, (in file photo at right) is a lifelong Genesee County resident, growing up in Stafford, graduating from Le Roy Central School and spending some of his spare time at Adam Miller Toys & Bicycle on Center Street in Batavia – a business started by his grandfather and later owned by his mother, Joyce, and uncle, Gary Miller.

An avid golfer and bowler, Masse joined the Polish Falcons leagues in both sports in 1995 and has been participating ever since. The start of his 30^th year in the bowling league will be delayed a bit, however, due to a scheduled hip replacement in October.

He has a daughter, Grace, and 6-month-old granddaughter, Kennedy, and a son, Jack.

Masse is a certified public account who worked for Freed, Maxick & Battaglia for 15 years before being hired by the GCEDC. 

On Thursday afternoon, Masse sat down with The Batavian to talk about his expanded role with the agency, which will be official on Aug. 1. He succeeds Steve Hyde, who guided the organization as president and CEO for the past 21 years.

Q. You’re succeeding Steve Hyde in the lead role with the agency. Is that something that you had been discussing with Steve after he announced his retirement last month?

A. I think it was just a natural progression, to be honest. When I started here, the position was created to help Steve with the number of projects that we had ongoing and STAMP (Western New York Science, Technology and Advanced Manufacturing Park in the Town of Alabama) was just getting off the ground at the time. Over the years, it’s something that I’ve enjoyed doing and I learned a lot from Steve. When it came time for him to retire, I was here with the right kind of experience and knowledge to be able to hopefully step in and continue on what he had started.

Q. Your title was senior vice president of operations. Have there been any other changes now in (employees’) titles. Has anyone moved into the VP/Operations position?

A. No other changes at this point in time but that’s not to say there couldn’t be some in the future. But for now, no.

Q. Steve Hyde has left a big imprint on this corporation with everything that he has done over the years, not just with the STAMP site but throughout the county. You have big shoes to fill. What are your thoughts about trying to fill those shoes and do you have specific things that you’re looking to do?

A. Obviously, we want to continue the momentum we've had in the past … such as our corporate business parks that are almost full. We’ll be starting to look at some other future parks. But we do face some significant challenges, especially the water capacities in the county and it’s no secret. That’s a large issue that the county is diligently working on, but it could be a few years before we get those capacities. I think the electric grid is seeing significant challenges as well --with the shutdown of fossil fuels -- and alternative energy generation projects coming on. We’re running into a lot of issues with capacities on the utility lines. We want to develop a few more corporate business parks but until some of those capacity issues get addressed, it's going to be difficult. But fortunately, we have STAMP that we can continue to work on and can continue to attract tenants to and build out.

Q. Now that you brought up STAMP, you’ve had some legal issues there with trying to push wastewater to Oak Orchard Creek (in Orleans County). Where does that stand now and do you feel that you will be resolving that issue?

A. So, one of the lawsuits was resolved, the one with Orleans County on the article 78, that was ruled in our favor. The eminent domain one was heard on April 16. And we're waiting to hear back on that. I think there are opportunities to come back together and discuss things and try and work things out. Ultimately, we are also looking at other options; we have to look at other alternatives that might be available to us. I'm confident one way or another, we'll figure out a solution. One of the things that we've always done is we've been able to figure out a way to get things done. And I think that's emphatic of what Genesee County is, right? We're resilient. We're determined, and to some extent, we're all a little stubborn.

Q. How is the agency’s relationship with Orleans County? Has it been hampered or hurt because of this Oak Orchard Creek issue? Do other alternatives include working with the Town of Oakfield?

A. We are looking at a short-term solution, potentially for sanitary sewer to go the Oakfield treatment plant. I don't want to say that, you know, Orleans County relations are hurt. I mean, people, neighbors fight all the time, siblings fight all the time. And I think that after some time, after we've had a chance to kind of settle down, I think there's an opportunity to get back together and see if we can work it out.

Q. One of the criticisms you hear on social media, from the so-called experts, is that the GCEDC just hands out money. Those who cover the GCEDC know that there’s a formula involved (for determining tax abatements), but how to you fight and overcome that perception?

A. One thing that we always try to do is meet with our stakeholders as much as we can and we try and explain the process. I present to the Leadership Genesee class every year about who we are, what we do, and my three top slides that are we don't give out money. So, it's an abatement and I don't think people truly understand how that works. They feel like we're subsidizing a company. But if you look at the way tax rates are and the municipal services that corporations draw versus municipal services that residents draw, corporations are generally around 70 cents or so let's say out of $1 for services while residences are like $1.20. So, even if a corporation comes in -- number one, the fire district fees are never abated, those are always paid 100 percent. So those corporations are helping to offset those costs of services that municipalities offer that the residents use. It's not too often that those corporations draw down those services. The PILOT (payment in lieu of taxes) revenue that's being generated is usually significantly more than what the vacant land or the previous land was generating for those municipalities as well. Not to mention that you're creating jobs locally that those people are going to spend their money here; you've got a company that's going to buy from local companies or bring in other revenue from outside the community.

Q. Do you have a one-year, five-year, and 10-year strategic plans? What are some of the strategies going forward?

A. That’s a process that the board (of directors) is going to undertake and we (staff) will undertake with them. Shortly, we'll examine what's out there and see what land is available, where it would make sense to potentially look at another corporate business park and what other sectors we want to try and get involved in. I think one of the areas we've seen where there's a bit of a shortfall is in workforce training and workforce development. I think there's an untapped market for us to be able to assist our local ag farmers in trying to find some skill sets and trainings for some of their employees. A lot of what their employees do are the skilled trade work on a regular basis that we've seen a significant decline in over the years, and we're trying to get kids excited about and get back into.

Q. The GCEDC has been pretty active in the Pembroke area. Are there other areas in the county that are untapped, so to speak?

A. A lot of that is going to be driven by the location and the size and the capacities and the infrastructure that's there. Unfortunately, the majority of large scale water, large scale sewer and electric is generally around where the Thruway exits are. However, there is a significant need for single-family housing market rate apartments in our communities. And we've reached out to a few of the outlying communities about what opportunities might be there, if they've got areas identified for housing because that seems to be what they are interested in -- is trying to attract people. In the most recent census, I think Genesee County's lost like 1,500 people over the last couple of years. So, we aren't growing and we need to figure out a way to do that. And one of the keys is to have housing here for people.

(The GCEDC’s corporate park sites include Apple Tree Acres in Bergen; Buffalo East Tech Park in Pembroke; Gateway I & II, Genesee Valley Agribusiness Park and Upstate Medtech Park in the Town of Batavia; and Le Roy Food & Tech Park).

Q. Are you connected with the apartment complex that is going on next to you (on College Road)?

A. Yes, that’s a market rate apartment complex that a gentleman will be renting those units out. It’s called Medtech Landing. We did sell the land, obviously, that was part of our Medtech Park. We did incentivize that with a PILOT and sales tax and mortgage tax abatement on there as well. And then part of those funds are going to be used to fund our Batavia Home Fund, which will help with some programs within the City of Batavia for housing. We just recently had our first draw on that for a gentleman who replaced the roof on his house and got a grant from the Batavia Home Fund to cover 50 percent or 60 percent of the cost of replacing his roof.

Q. Speaking of the City of Batavia, there's a something sitting there called Ellicott Station, which has not been completed and could be considered as an embarrassment to the city. What is GCEDC’s role in getting tenants in there?

A. The GCEDC board terminated all of its benefits that were awarded to that -- the PILOT, the sales tax and mortgage tax.  I think our board's position is that unless it's going to be market rate., we don’t have a desire to participate in that project. Now, where it stands, I don't know. That's up to (Buffalo developer) Sam Savarino.  People have said there's been work on going out there. I don't really know what's going on. We haven't been contacted by anybody who's been interested in trying to acquire it and using our any of our incentives that we have.

Q. What do you feel your strengths are – things that you have already brought to the company – and what are some of the things you need to work on?

A. I definitely think I have an extensive background from accounting with a wide variety of businesses and learning how to interpret financial statements and how to work with a company and how to work with people. I do think that my people skills are good. You know, I think that people know that I care and know that I work hard. And I truly believe in what I'm doing here. And everybody here believes in what we're doing here and trying to move our county forward and make it a better place. Working with Steve, he's brought me along. So, I have a lot of those key relationships with stakeholders as well. We do need to work on things like public perception. I think there’s some messaging we can get out there. Not everybody's going to believe it. But I think there's opportunities out there to try … and engage people and provide that information.

Q. Getting back to STAMP, there was a big presentation by Senator Schumer a couple years ago about Plug Power coming there. Right now, the company’s stock has bottomed out and they just received a $1.66 billion conditional loan from the Department of Energy. Is Plug Power going to make it?

A. They’ve told us they have full intentions of finishing their project at the STAMP site. They have put it on pause temporarily. Beyond that, I think any other questions would be for them directly. I don't ever like to speak for a private company and what they've got going on. They've received incentives no different than most other companies. And we do have triggers in there similar to like with Savarino that if things were to go bad, that there are opportunities for us to not only cancel those, but potentially claw them back. But there's been nothing done to date that would lead us to go down that path. 

Q. Is there a company operational now at STAMP?

A. No, Edwards Vacuum has just broken ground and they're under construction. They’re in the semiconductor supply chain. They make dry vacuum pumps, which means there's no oil lubrication in the pumps at all. So they're used in the semiconductor industry in the sub floor to help regulate gases and clean the air within clean rooms. Basically, they're the premier pump manufacturer for most semiconductor manufacturers. These particular pumps were only made overseas. So, by building in the U.S., they're significant cutting their greenhouse gas emissions by locating closer to their potential customers and their current customers and to be able to truck those pumps to them. They intend to complete construction by June or July of next year. (Edwards Vacuum is owned by Atlas Copco, a worldwide company).

Q. Did you get a raise? It’s public knowledge. What is your salary?

A. (After a hearty laugh), It will be in the contract and I would prefer not to (disclose it now) but if you ask for it later, we’ll have to provide it.

(According to the GCEDC, Masse’s compensation in 2023 was $129,369, while Hyde earned $263,161. Masse said his new salary is less than what Hyde was making).

I’m very, very fortunate not only for the salary but the opportunity and the confidence that the board and our local communities have put in me and the people I work with put in me to be able to continue this going forward. 

EXPlAINER:

• Plug Power is a New York-based company with headquarters in Lathan. It is a "green hydrogen" company, which means it uses renewable energy sources to convert water into hydrogen fuel, which can be stored in fuel tanks and sold to power vehicles and factory equipment.  
• In its 20-year history, Plug Power has never turned a profit. It's annual revenue is currently about $800 million. In 2023, the company reported a $1.4 billion loss. 
• Plug Power is building a $290 million hydrogen energy plant in WNY STAMP, the GCEDC-developed high-tech business park in Alabama. The plant is expected to employ 69 people with an average annual salary of more than $70,000. In exchange for the job creation, the company is anticipating $2 million in grants from New York State. 
• The company received $118.2 million in sales and property tax exemptions from the Genesee County Economic Development Center. Over the 20-year life of the property tax extensions, Plug Power will make payments in lieu of taxes totaling $2.3 million annually, which will be shared by Genesee County, the Town of Alabama, and the Oakfield-Alabama School District.  Each jurisdiction will also receive an increasing amount of property tax payments each year over the life of the agreement.
• In March, the DOE awarded Plug Power grants totaling $75.7 million.
• The DOE loan, if finalized, is expected to help Plug Power complete the WNY STAMP plant, along with five others in the nation, which is reportedly critical to the company generating the hydrogen fuel sales necessary to start achieving profits.
• This phase of the loan guarantee process requires the DOE and Plug Power to negotiate a term sheet, which means "certain technical, legal, environmental and financial conditions, including negotiation of definitive financing documents, must be satisfied before funding of the loan guarantee" (company statement).

Press release:

U.S. Senate Majority Leader Charles E. Schumer today released the following statement on the U.S. Department of Energy announcing a conditional commitment to Plug Power for an up to $1.66 billion loan guarantee to supercharge American-led industry clean hydrogen production:

 “This $1.6 billion federal investment will supercharge Plug’s world-class workforce across Upstate New York as Plug builds new facilities across the nation, all powered by the equipment made in New York.  Green hydrogen has the potential to help us decarbonize some of the trickiest parts of our economy – from the industrial sector to marine shipping – and with the major federal investments through the Inflation Reduction Act I championed, Upstate NY is poised to lead the way in powering America’s clean energy future. From the electrolyzers made at Plug’s state-of-the-art Gigafactory in Henrietta, NY to the fuel cells manufactured at Plug’s Capital Region facility, this means new growth, new demand for Plug across Upstate NY. With federal investments like this we are unlocking the potential for green hydrogen to power America’s clean energy future, with Plug and Upstate NY leading the way.”

UPDATE, Press release from the Department of Energy:

Today, the U.S. Department of Energy’s (DOE) Loan Programs Office (LPO) announced a conditional commitment to Plug Power Inc.’s (Plug) subsidiary, Plug Power Energy Loan Borrower, LLC, for an up to $1.66 billion loan guarantee to help finance the construction of up to six facilities across several states to produce clean hydrogen utilizing the company’s own electrolyzer technology. Advancing clean hydrogen is a key component of the Biden-Harris Administration’s whole-of-government approach to building a robust clean energy economy that creates healthier communities, strengthens energy security, and delivers new economic opportunities across the nation. Today’s announcement will help unlock the full potential of this versatile fuel and support the growth of strong, American-led industry that ensures the United States remains at the forefront of the global economy for generations to come.

As part of President Biden’s Investing in America agenda to create good-paying, high-quality job opportunities for American workers, this loan guarantee, if finalized, will support an estimated 100-300 jobs during the construction period when at full capacity, and at least 50 new full-time jobs for each location. Together with the Regional Clean Hydrogen Hubs, and ongoing research, development, and demonstration in the DOE Hydrogen Program, this announcement will help strengthen local economies, create and maintain high-quality jobs, reduce greenhouse gas emissions in sectors critical to meeting U.S. net-zero goals, and enhance America’s manufacturing and industrial competitiveness.

Plug has a development pipeline that includes the build-out of clean hydrogen facilities in several potential locations across the United States to supply its national customer base with end-to-end clean hydrogen at scale. This conditional commitment advances President Biden’s efforts to strengthen domestic clean energy supply chains, which are essential to meeting the nation’s ambitious climate goals and enhancing our national and energy security. If finalized, the project will support an integrated and resilient commercial scale clean hydrogen fueling network across several regions of the United States.

The hydrogen fuel from the project is expected to power fuel cell-electric vehicles used in the material handling, transportation, and industrial sectors, resulting in an estimated 84% reduction in greenhouse gas emissions compared to conventional hydrogen production, which derives hydrogen from natural gas (CH4) and ultimately produces carbon dioxide (CO2).  The benefits of harnessing hydrogen fuel cells in applications such as material handling equipment include enhanced operational efficiency, reduced environmental impact through zero-emission operations, and increased productivity due to faster refueling times compared to conventional batteries. Major corporations such as Amazon, Walmart, and Home Depot use Plug’s hydrogen fuel cells across their warehouse and distribution centers.

The clean hydrogen facilities will utilize Plug’s electrolyzer stacks that are manufactured at the company’s state-of-the-art gigafactory in Rochester, NY, and will use modular designs to ensure a resilient hydrogen fuel delivery network. Plug is among the leading commercial-scale manufacturers of electrolyzers in the United States and currently operates the largest Proton Exchange Membrane (PEM) electrolyzer system in the United States at its Georgia hydrogen plant. 

Electrolyzers use electricity to split water into its component parts, hydrogen and oxygen. Plug’s PEM technology allows it to operate efficiently even with variable electricity, enabling it to leverage electricity from intermittent renewables. Electrolyzers that use renewables to power their hydrogen production produce emissions-free clean hydrogen. The electrolyzer stacks can be easily configured to produce systems at 1 megawatt (MW), 5 MW, and 10 MW scales. (One MW powers the equivalent of 750 American homes based on their instantaneous demand.)

Plug is expected to develop and ultimately implement a strong Community Benefits Plan for each project and has committed to working with local communities for project siting, including soliciting input from local economic development corporations. In particular, Plug will initiate a community outreach program dedicated to promoting awareness, understanding, and utilization of hydrogen as a clean and sustainable energy source, which aims to engage and empower communities by providing educational resources, interactive activities, and collaborative initiatives that highlight the benefits and potential applications of hydrogen technology. Plug employs local workforce development strategies and programs that leverage the comprehensive suite of services offered by the Workforce Innovation and Opportunity Act’s network of One-Stop Career Centers, including the development of apprenticeship programs for operations jobs.  

LPO works with all borrowers to create good-paying jobs with strong labor standards from construction through the life of the loan. Plug also supports President Biden’s Justice40 Initiative, which set the goal that 40% of overall benefits of certain federal investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.

This announcement is part of a broader suite of actions LPO has taken in line with the President’s Investing in America agenda, which is growing the American economy from the bottom up and middle-out—from rebuilding our nation’s infrastructure, to creating a manufacturing and innovation boom powered by good-paying jobs that don’t require a four-year degree, to building a clean-energy economy that will combat climate change and make our communities more resilient. Leveraging loan authority from the President’s Inflation Reduction Act, LPO is spurring billions in public-private investments to boost the nation’s competitiveness, strengthen supply chains, and create good-paying jobs to power the clean energy economy. 

The financing would be offered through LPO’s Title 17 Clean Energy Financing Program, which includes financing opportunities for innovative energy and supply chain projects like Plug’s, certain state-supported projects, and projects that reinvest in existing energy infrastructure.

While this conditional commitment indicates DOE’s intent to finance the project, the company must satisfy certain technical, legal, environmental, and financial conditions before the Department enters into definitive financing documents and funds the loan guarantee.

Learn more about the U.S. National Clean Hydrogen Strategy and Roadmap, the Pathways to Commercial Liftoff: Clean Hydrogen report, and how the DOE Hydrogen Program and Hydrogen Interagency Task Force are supporting the Biden-Harris Administration’s all-of-government strategy to addressing the climate crisis and delivering a clean and equitable energy future for all.

UPDATE, Press release from Plug Power: 

Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, received a conditional commitment for an up to $1.66 billion loan guarantee from the Department of Energy’s (“DOE”) Loan Programs Office (“LPO”) to finance the development, construction, and ownership of up to six green hydrogen production facilities.

The production facilities, which will be selected for financing in accordance with procedures to be set forth in definitive documentation with DOE, will be built across the nation and supply major companies, including Plug’s existing customers, with low-carbon, made-in-America green hydrogen. The hydrogen generated will be used in applications in the material handling, transportation, and industrial sectors.

“Green hydrogen is an essential driver of industrial decarbonization in the United States,” said Plug Power CEO Andy Marsh. “Earlier this year, Plug successfully demonstrated our innovation and technical ability by launching the first commercial-scale green hydrogen plant in the country in Woodbine, Georgia. This loan guarantee will help us build on that success with additional green hydrogen plants.”

Marsh added, “We appreciate the partnership with the DOE Loan Programs Office and are pleased to have worked through an intensive due diligence process. The loan guarantee will prove instrumental to grow and scale not only Plug’s green hydrogen plant network, but the clean hydrogen industry in the United States.”

​Plug, the leading commercial-scale manufacturer of electrolyzers, currently operates the largest proton exchange membrane (PEM) electrolyzer system in the United States at its Woodbine, Ga., hydrogen plant. Plug’s current green hydrogen generation network now has a liquid hydrogen production capacity of approximately 25 tons per day.

Plug’s green hydrogen production plants utilize the company’s own electrolyzer stacks manufactured at its state-of-the-art gigafactory in Rochester, NY, and Plug’s liquefaction and hydrogen storage systems engineered at its facility in Houston.

DOE’s support for Plug’s green hydrogen projects represents a major milestone in the U.S.’s commitment to advance the development of large-scale hydrogen production, processing, delivery, and storage. It also underscores the application of green hydrogen to help meet decarbonization goals across multiple sectors of the economy.

While this conditional commitment represents a significant milestone and demonstrates the DOE’s intent to finance the project, certain technical, legal, environmental and financial conditions, including negotiation of definitive financing documents, must be satisfied before funding of the loan guarantee.

LPO works in support of President Biden’s ambitions to drive growth in US manufacturing and innovation, create jobs, and build a clean energy economy that will address climate change and make communities more resilient.

Plug’s projects under the loan will adhere to the Biden Administration’s Justice 40 Initiative. This process includes gathering input from local labor, workforce, and economic development organizations in addition to first responder and non-profit organizations. The plants are expected to create good-paying jobs accessible to a diverse talent supply and help develop workforce skills needed to drive the transition to a clean energy economy.

LPO’s Title 17 Clean Energy Financing Program, which supports innovative energy and supply chain projects and projects that reinvest in existing energy infrastructure, will provide the financing to Plug.

For prior Plug Power coverage, click here.

Press Release:

Governor Kathy Hochul and U.S. Senate Majority Leader Charles Schumer today announced the start of construction on the first phase of the $319 million Edwards Vacuum dry pump manufacturing facility, located in the Genesee County town of Alabama. 

The British-based global leader in vacuum and abatement equipment for the semiconductor industry, part of the Atlas Copco Group, chose the Western New York Science & Technology Advanced Manufacturing Park in Genesee County as the location for its new U.S. dry pump manufacturing facility. 

The technology produced at the new facility is a vital component to controlling the highly sensitive environment of semiconductor manufacturing processes. Edwards Vacuum's decision to invest in New York State followed the passage of the federal CHIPS and Science Act, New York’s Green CHIPS legislation, and the domestic semiconductor industry growth the complementary programs have spurred, including Micron's unprecedented $100 billion commitment to Central New York, which is expected to create nearly 50,000 jobs.

“As a Western New York native, I experienced the years of decline from the exodus of manufacturing from Upstate New York,” Governor Hochul said. “Those days are over. The start of construction on the newest Edwards Vacuum facility signals the beginning of a new chapter for both Western New York and the Finger Lakes regions.  Edwards’ choice to build in New York State brings hundreds of good paying jobs and millions of dollars in investment Upstate while helping strengthen our domestic semiconductor supply chain, shorten delivery times for suppliers like Micron, reduce carbon emissions, and bolster national security.”

Senate Majority Leader Chuck Schumer said, “Today is a great day for the Western New York and Finger Lakes region, with Edwards Vacuum breaking ground on its $300+ million manufacturing plant, which will create an estimated 600 good-paying jobs and boost New York’s already booming semiconductor supply chain. Thanks to my CHIPS & Science Act, which continues to deliver investment after investment for Upstate NY, we are adding another stop to our semiconductor superhighway along the booming I-90 corridor Tech Hub with Edwards Vacuum’s groundbreaking today. I pushed Edwards Vacuum to come to New York because I knew we had the resources, infrastructure, and most importantly, the world-class workforce, to host this major company right here in Genesee County. Edwards is a leading developer of some of the most cutting-edge dry pumps needed to bring the massive cleanrooms of chip manufacturing fabs to life, and with their investment, we are helping bring one of the most critical elements of the semiconductor supply chain to Upstate NY. This is yet another example of my CHIPS & Science Law bringing manufacturing back to America, especially Upstate NY, and is only the beginning of the next chapter in Upstate NY’s manufacturing renaissance.”

Construction on the $127 million first phase of Edwards Vacuum's 240,000 square-foot campus will include manufacturing, warehouse, and administration facilities, with a capacity to produce 10,000 dry pumps per year. The all-electric facility will strive for LEED certification, with a majority of the power generated via hydroelectricity.

Edwards’ commitment to build in the U.S. comes after significant investments by the Biden Administration to increase domestic chip manufacturing, and the passage of the federal CHIPS and Science Act and New York’s Green CHIPS legislation, as well as a growing need to support its customers in North America. Edwards dry pumps are currently manufactured in Asia. By bringing manufacturing to New York, Edwards customers – including Micron and GlobalFoundries in New York, and Intel in Ohio – will experience shorter wait times, improved responsiveness and reduced CO2 emissions from an American-made product. Edwards estimates that when phase one is operational, it will reduce CO2 emissions by 13,000 tons per year.

Empire State Development has awarded Edwards Vacuum up to $21 million through a combination of performance-based Excelsior Jobs Tax Credits and Investment Tax Credits in exchange for 600 jobs, and an additional $1 million to support workforce development efforts and the training of a diverse and inclusive workforce. Additionally, the New York Power Authority is supporting the project though a 4.9-megawatt (MW) low-cost Niagara hydropower allocation and a 2.1 MW of High Load Factor power allocation that NYPA will procure for Edwards on the energy market. 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.

Empire State Development President, CEO and Commissioner Hope Knight said, “The start of construction for Edwards Vacuum’s new facility signals that hundreds of good jobs and millions of dollars in investments are headed to Upstate New York. We are well on our way to becoming a global hub for advanced manufacturing and building a strong semiconductor ecosystem in New York State.”

New York Power Authority President and CEO Justin E. Driscoll said, “By leveraging low-cost hydropower, NYPA plays a pivotal role in attracting manufacturers of advanced technologies to New York. Edwards will be a key supply chain partner in New York’s globally recognized semiconductor industry, and the firm’s expansion will stimulate the region’s economy—creating hundreds of jobs and spurring hundreds of millions in capital investments.”

Semiconductors, and their supply chain partners, are vital to the nation's economic strength, serving as the brains of modern electronics, and enabling technologies critical to U.S. economic growth, national security, and global competitiveness. The industry directly employs over 277,000 people in the U.S. and supports more than 1.8 million additional domestic jobs. Semiconductors are a top five U.S. export, and the industry is the number one contributor to labor productivity, supporting improvements to the effectiveness and efficiency of virtually every economic sector — from farming to manufacturing.

Governor Hochul has taken significant action to ensure that New York plays a vital role in the reshoring of the semiconductor industry including New York's nation-leading Green CHIPS program that is attracting top semiconductor manufacturing businesses to the state and securing commitments to good-paying jobs, sustainability, and community benefits. Additionally, Governor Hochul created the $200 FAST NY program in 2022 to support the preparation and development of sites across the state. This program was designed to jumpstart New York's shovel-readiness and increase its attractiveness to large employers, such as semiconductors and clean tech and high-tech manufacturing companies. Since the program’s inception, ESD has awarded $175 million to 20 sites across every upstate region, including the Science & Technology Advanced Manufacturing Park (STAMP), to develop more than 2,500 acres. Governor Hochul also created the Governor’s Office of Semiconductor Expansion, Management, and Integration (GO-SEMI), which leads statewide efforts to develop the chipmaking sector.

In the FY 2025 Enacted Budget, Governor Hochul doubled down on her commitment to establish New York as a global hub for semiconductor research and manufacturing, including:

$100 million in funding for additional rounds of the FAST NY program.

$500 million for NY CREATES’ Albany Nanotech Complex – with a total State investment of $1 billion – to jumpstart a $10 billion partnership that will bring the future of advanced semiconductor research to New York’s Capital Region by creating the nation’s first and only publicly owned High NA EUV Lithography Center.

$200 million to establish One Network for Regional Advanced Manufacturing Partnerships (ON-RAMP) – a network of four new workforce development centers to prepare New Yorkers for the jobs of the future created by companies like Micron and Edwards Vacuum.

The bipartisan CHIPS and Science Act creates an Investment Tax Credit for semiconductor manufacturing facilities and supply chain partners such as Edwards Vacuum as well as a first-of-its-kind $52 billion in federal incentives, which Edwards is pursuing, to spur American semiconductor research, development, manufacturing, and workforce training to bring good-paying jobs back from overseas, strengthen national security, and reestablish America's technological leadership. The bill requires recipients of these incentives to make significant worker and community investments that support broad-based economic growth.

Accelerating Finger Lakes Forward

Today’s announcement complements “Finger Lakes Forward,” the region’s comprehensive strategy to generate  robust economic growth and community development. The regionally designed plan focuses on investing in key industries including photonics, agriculture‎ and food production, and advanced manufacturing. More information is available here.​

Senator Kirsten Gillibrand said, “I am thrilled to see the start of construction on the Edwards Vacuum facility in Genesee County, which will create hundreds of good-paying jobs and grow the economies of both Western New York and the Finger Lakes. The construction of the Edwards Vacuum facility is just the beginning as New York continues to grow as a global leader in semiconductor manufacturing. I’m proud to have fought to pass the CHIPS and Science Act that helped lay the groundwork for companies like Edwards Vacuum to expand in New York, and I look forward to seeing the growth this facility brings to the region for years to come.”

Representative Joe Morelle said, “This exciting announcement is further proof of our region’s leadership in the global semiconductor industry. Not only will construction of Edwards Vacuum strengthen our supply chain and create good-paying job opportunities, it will also grow our economy and enhance our competitiveness on the world stage. I’m proud to have helped facilitate investments like this by passing the CHIPS and Science Act, and I look forward to continuing our work to cement our position as a center of innovation.”

State Senator George M. Borrello said, “This groundbreaking of Edward’s Vacuum and the investment, jobs and economic growth that will follow it will usher in a new chapter for Genesee County and strengthen its growing status as a hub for tech manufacturing. The path to this landmark moment was fueled by a grand vision for the STAMP site and years of planning, funding and hard work. Driving it forward all along was the conviction that this region and its world class workforce had the ingredients for success. The collaboration of dedicated local, state and federal partners brought us to this historic achievement and reflect our shared commitment to upstate’s resurgence. The future is limitless.”

Assemblymember Steven Hawley said, “I’m proud to see the announcement today that Edward’s Vacuum is starting construction at the STAMP mega-site. The 139th Assembly District has always been a hub of innovation and it's only fitting that it will be at the center of New York’s emerging semiconductor industry. This project is another step in the right direction toward growing the local economy, creating good-paying jobs and making New York a leader in this sector.”

Genesee County Legislature Chair Shelley Stein said, “Today’s announcement is reaffirmation of the positive attributes of Genesee County in bringing a company with the stature of Edwards Vacuum to the STAMP mega-site. Our community can be proud to be part of the growing semiconductor industry not only in New York State but across the nation and world. Genesee County’s location, people, and infrastructure make STAMP the ideal place for future industry growth here. We look forward to Edwards Vacuum’s continued success.”

Town of Alabama Supervisor Rob Crossen said, “We congratulate Edwards Vacuum on the start of construction at the STAMP mega-site. This latest milestone in the development of STAMP continues the realization of our shared vision for investments that improve the economy, attract good paying jobs, and enhance our community.”

GCEDC President and CEO Steve Hyde said, “As we work to grow our economy and deliver family-sustaining careers at the STAMP mega-site, having partners like Edwards Vacuum, Senator Schumer, and Governor Hochul is gratifying. The start of construction for this critical semiconductor industry project demonstrates the impact that STAMP provides in our shared state and federal vision to grow semiconductor and related advanced manufacturing sectors.”

Greater Rochester Enterprise President and CEO Matt Hurlbutt said, “Top-tier talent, world-class R&D resources, access to low-cost hydropower, and the premier infrastructure available at the STAMP mega site are some of the assets that made the Greater Rochester, NY region the right place for Edwards' expansion. We celebrate Edwards' groundbreaking at STAMP and the significant partnership Greater Rochester Enterprise (GRE) has formed with Edwards leaders and our regional economic development partners to reach this milestone in the company's expansion plans. GRE will continue to support Edwards by facilitating connections between the company's leaders and key stakeholders from business, community, and academia. This collaborative effort is aimed at ensuring a successful launch and further enhancing the ties between Edwards, the community, and the region's thriving advanced manufacturing and semiconductor sectors. We look forward to the positive impact this expansion will have on the Greater Rochester, NY region.”

Phase One Renderings Available Here.

Press release:

“The Genesee County Economic Development Center (GCEDC) is pleased to announce that we are working closely with the towns of Oakfield and Alabama, along with the village of Oakfield and regulatory agencies, to construct a force main to accommodate the current projects at STAMP and a potential future project.

“This project would result in capital improvements to the Village of Oakfield wastewater treatment plant, including the installation of equipment to reduce the current phosphorus discharge into Oak Orchard Creek.

“As the Oakfield line cannot fully replace the Orleans County line, we will continue to pursue the force main to Oak Orchard Creek in the town of Shelby through a different construction method, and we look forward to working with the United States Department of Fish and Wildlife and the Tonawanda Seneca Nation as this process moves forward. The Oakfield plan alleviates the timing pressures for the build-out of the force main to Oak Orchard Creek.

“As a result of being recently notified by the USFWS that our permit for horizontal directional drilling for the force main to Oak Orchard Creek in the town of Shelby has been terminated, we are in the process of submitting a new permit application to propose an open cut construction method which will avoid the types of incidents that resulted from the former method.

“The determination by USFWS is unrelated to claims made by Orleans County regarding the force main to Oak Orchard Creek.  Those claims brought by Orleans County were recently dismissed by the State Supreme Court following an Article 78 hearing.”

The Department of Energy has awarded grants totaling $75.7 million to Plug Power, the Latham-based green hydrogen power company currently constructing a production facility in WNY STAMP in the town of Alabama.

The funds are part of a $1 trillion infrastructure bill approved by Congress and President Joe Biden in 2021 and are intended to help with research and development of hydrogen fuel production.

The company has also applied for a $1.6 billion low-interest loan from the DOE. That loan is apparently still under consideration.

Plug Power is betting that hydrogen power will become a big winner in the race to develop clean, renewable energy to sustain the economy and protect the environment in the coming decades. The Latham-based company specializes in "green hydrogen," which is the generation of hydrogen fuel using renewable energy sources such as solar and hydropower. An apparent attraction of WNY STAMP is the ability at that location to tap into hydropower generated by Niagara Falls.

Plug Power aims to provide customers with fuel cells, electrolyzers (splitting water into hydrogen and oxygen), to liquid hydrogen fuel. Plug Power wants to provide distribution, delivery, and services and foresees a future for hydrogen that includes uses such as long-haul trucking.

Plug Power's executives have set ambitious goals -- producing 2,000 tons of hydrogen daily by 2030. At that rate, the company hopes to generate $20 billion in annual revenue at that point with a profit margin of at least 30 percent.  

“The Bipartisan Infrastructure & Jobs Law is helping supercharge Upstate NY’s clean hydrogen sector. With this federal funding, Plug Power and other cutting-edge companies will be able to increase production capacity and spark new innovation to reach the next frontier of clean hydrogen manufacturing and research, all while supporting good-paying clean energy jobs and boosting the fight against climate change,” said, Sen. Charles Schumer. “Clean green hydrogen is one of the most exciting forms of new energy production, and with the major federal investments being made thanks to the Bipartisan Infrastructure Law and Inflation Reduction Act I championed, Upstate NY is poised to lead the way in powering America’s clean energy future.”

The grants are divided into two components.

The company will receive $45.7 million for the following project description:

The goal of this project is to establish and implement automation capabilities within our high-performance PEM stack manufacturing facility in Rochester, New York capable of producing 5,000 1 MW stacks per year.

This project will scale up manufacturing of proton exchange membrane electrolyzer stacks to the multi-GW scale, driving down costs to meet DOE targets. This project will automate membrane electrode assembly fabrication and stack assembly and enable automated inspection with machine learning to accelerate factory acceptance testing.

The project description for the second grant, $30 million:

This project will demonstrate a production pathway to meet a projected 2030 system cost of $80/kW for 100,000 heavy-duty fuel cell systems per year and automate the manufacturing of high-performance, low-defect membrane electrode assemblies in collaboration with the National Renewable Energy Lab.

The project will demonstrate an innovative expansion of their current manufacturing line.

“We are very appreciative and excited about the DOE's clean energy manufacturing initiatives and their profound impact on propelling Plug's industry-leading manufacturing capabilities in fuel cell and electrolyzer MEAs (Membrane Electrode Assemblies) and stacks," said Andy Marsh, CEO of Plug. “Congress enacted these policies to advance hydrogen and fuel cells as vital components of the United States’ climate strategy.  This funding will advance Plug’s fuel cell and electrolyzer manufacturing capabilities, create good paying jobs in New York, and fortify the region’s leadership in the national clean energy transition.”

The company selected WNY STAMP for the construction of a liquid hydrogen plant in February 2021.  The plant will cost more than $290 million to complete. 

Plug Power expects to generate 74 tons per day of liquid hydrogen at its WNY STAMP plant. The company recently opened two new production facilities in Georgia and Tennessee, and the WNY STAMP plant is expected to open in early 2025.

Empire State Development is scheduled to pay up to $2 million in Excelsior Tax Credits in exchange for the creation of 68 jobs at the plant, or about $2,941 per job per year over 10 years. Plug Power is not eligible to receive the tax credits until the jobs are filled. The average starting salary is expected to be approximately $70,000 plus benefits.

As part of the project, Plug Power agreed to invest $55 million in a 450-megawatt electrical substation that will make electricity available to other WNY STAMP tenants.

The company received $118.2 million in sales and property tax exemptions from the Genesee County Economic Development Center. Over the 20-year life of the property tax extensions, Plug Power will make payments in lieu of taxes totaling $2.3 million annually, which will be shared by Genesee County, the Town of Alabama, and the Oakfield-Alabama School District.  Each jurisdiction will also receive an increasing amount of property tax payments each year over the life of the agreement.

In accordance with Security and Exchange Commission Rules, Plug Power disclosed in November that a shortage of cash threatened its ability to remain a "going concern" within the following 12 months.  It suggested it could raise more cash by selling stock and that the company expected to receive a sizable loan from the Department of Energy.

Since then, Plug Power authorized B. Riley Securities to offer additional public shares of the company for sale at market rate with the goal of raising an additional $1 billion in capital.  That agreement was announced in January.  Since then, it has reportedly sold 77,417,069 new shares of stock, raising more than $300 million in cash. The company is continuing to sell new shares with a goal of selling another $700 million in 2024.

On Monday morning, the company announced its fourth quarter 2023 results and that it has removed its "going concern" guidance, stating, "The Company has determined it has sufficient cash on hand coupled with available liquidity to fund its ongoing operations for the foreseeable future."

It also announced record revenue of $891 million for the year, a 27% increase over the prior year.

However, the company continues to lose money and has never turned a profit, which, 25 years into its existence, continues to spook investors. After the Q4 report was released on Monday, the price per share of the company's stock dropped 17 cents and closed at $3.37. It hasn't traded above $5 since November. In early 2021, it was trading for more than $60 a share.

For previous Plug Power coverage, click here.