NYPA Press Release

NYPA Board of Trustees Approve Economic Development Award Spurring $250,000 In Private Capital Investments in Western New York

Power Authority Trustees Approve Hydropower Allocation to

Village of Wellsville in Allegany County

WHITE PLAINS—The New York Power Authority (NYPA) Board of Trustees today approved a 180-kilowatt (kW) low-cost hydropower allocation to the Village of Wellsville in Allegany County under the Power Authority's Industrial Economic Development program. The award will support an expansion by Arvos Ljungstrom, the nation's first supplier of secondary structural steel components for offshore wind, that will spur $250,000 in private capital investments and support the creation of 21 jobs.

“The Power Authority is dedicated to helping its municipal electric system customers throughout New York meet the increased electric load often required by expanding businesses, guaranteeing all corners of the state can benefit from New York’s growing clean energy economy,” said John R. Koelmel, New York Power Authority chairman and Western New York resident. “Arvos Ljungstrom’s continued investment in Wellsville will benefit the state’s economy and ensure that integral parts of renewable energy generation will be manufactured right here in New York.”

Arvos Ljungstrom is a manufacturer that specializes in providing solutions for industrial facilities. The firm will transform its manufacturing facility to produce secondary steel used in offshore wind projects and upgrade its current factory.

The Industrial Economic Development program is comprised of 54 megawatts (MW) of the 768 MW of hydropower allocated to the 51 municipal and rural electric cooperative systems around New York State. Power under the program is allocated to individual municipal systems to meet the increased electric load resulting from eligible new or expanding businesses in their service area.

At its last meeting in December 2023, the NYPA board approved a 580-kW ReCharge NY power allocation to Arvos Ljungstrom at a separate location in Wellsville to support the firm’s expansion that included additional commitments for the firm to retain nearly 300 jobs and invest an additional $12.5 million in the region. Empire State Development (ESD) provided up to $2.5 million in Excelsior Jobs Program tax credits to Arvos Ljungstrom for that location as well.

Empire State Development President, CEO & Commissioner Hope Knight said, “We’re proud to add Arvos Ljungstrom to New York State’s roster of clean tech success stories. By pivoting from coal to offshore wind components, this innovative manufacturer is continuing to drive investment and jobs in Wellsville. Today's announcement builds on the company’s prior commitment in Allegany County that ESD supported with $2.5 million in Excelsior tax credits.”

ReCharge NY has strengthened New York State’s economy by encouraging companies to retain and create jobs, while sparking capital investment throughout the state. ReCharge NY offers power contracts with terms up to seven years. Half of the power—455 MW—is from NYPA’s Niagara and St. Lawrence-Franklin D. Roosevelt hydroelectric power plants. The remaining 455 MW is lower-cost power bought by NYPA on the wholesale market.

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New York State's Nation-Leading Climate Plan

New York State's nation-leading climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues to foster a green economy across all sectors and ensures that at least 35 percent, with a goal of 40 percent, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation’s most aggressive climate and clean energy initiatives, New York is on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and economywide carbon neutrality by mid-century. A cornerstone of this transition is New York's unprecedented clean energy investments, including more than $46 billion in 65 large-scale renewable and transmission projects across the state, $6.8 billion to reduce building emissions, $3.3 billion to scale up solar, nearly $3 billion for clean transportation initiatives, and over $2 billion in NY Green Bank commitments. These and other investments are supporting more than 170,000 jobs in New York’s clean energy sector as of 2022 and over 3,000 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and light-duty trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York’s climate action with 400 registered and more than 100 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State’s largest community air monitoring initiative in 10 disadvantaged communities across the State to help target air pollution and combat climate change.

About NYPA

NYPA is the largest state public power organization in the nation, operating 16 generating facilities and more than 1,400 circuit-miles of transmission lines. More than 80 percent of the electricity NYPA produces is clean renewable hydropower. NYPA finances its operations through the sale of bonds and revenues earned in large part through sales of electricity. For more information visit www.nypa.gov and follow us on Twitter, Facebook, Instagram, Tumblr and LinkedIn.