The Saratoga County Prosperity Partnership has secured incentives to enable Key Capture Energy LLC to build a 20 megawatt (MW), utility-scale battery energy storage facility—said to be the largest of its kind in New York—at the Luther Forest Technology Campus in Malta.
The Mechanicville-Stillwater Industrial Development Agency in July approved tax incentives of nearly $650,000 to advance the Key Capture Energy project, which will interconnect to the adjacent New York State Electric and Gas Corp. (NYSEG) substation.
The board also approved a PILOT agreement sought by Key Capture Energy, though the company could have used a provision in the state tax code to avoid property taxes altogether, according to the Prosperity Partnership. The PILOT agreement will provide more than $160,000 to local taxing jurisdictions.
Supporting New York’s ambitious goal of achieving 1,500 MW of energy storage by 2025, the project will enable the creation of 25 construction jobs and nine full-time positions, officials said.
The facility will provide clean energy to enhance power grid performance and reliability, addressing the needs of advanced technology companies, including GlobalFoundries, and promoting further economic and job growth in Saratoga County.
“We are grateful to the Mechanicville-Stillwater IDA Board for its support of this exciting renewable energy project,” said Key Capture Energy Chief Development Officer Dan Fitzgerald. “We look forward to starting construction on an initiative that is in lockstep with New York’s goal of building a more efficient and environmentally friendly power grid.”
The Prosperity Partnership, which spearheaded the application, will rebate its share of IDA fees, estimated at $33,750, to Key Capture Energy to provide additional savings to the company.
“The Saratoga Partnership is delighted to assist Key Capture Energy in developing this project, which will serve as an important economic driver for Saratoga County,” said Marty Vanags, Prosperity Partnership president. “In better enabling green energy, creating direct jobs, and supporting job growth at companies in Saratoga County, this project exemplifies a long-term, sustainable approach to economic development.”
Officials said the KCE NY 1 facility will address a growing reality in energy generation and delivery. As more large-scale renewable energy projects come online, and intermittent resources are added to the energy mix, it is becoming increasingly important to find ways to keep the electrical grid stable. Energy storage can play a significant role in helping to integrate renewables into the grid while maintaining grid stability, as well as providing firm energy output during periods of peak usage, which prevents system outages during extreme weather conditions.
“We applaud Key Capture Energy for their vision and commitment to this innovative project, which will fuel new economic activity in Saratoga County,” said Kevin Hedley, chairman of the Prosperity Partnership. “The Saratoga Partnership is thrilled to lend its expertise and support to help make this a reality.”
The incentive agreement approved by the IDA will provide the following estimated savings to the company:
• Property tax abatement on real estate improvements to the property: $79,963
• Sales tax exemption on purchase of materials and supplies for the project: $540,000
• Mortgage tax exemption of .075 percent: $30,000
The total savings is $649,963.
Groundbreaking is expected this fall for the project, which will have no emissions, a low-noise profile and be screened by existing vegetation and land masses, officials said.