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Hydrogen production facility in Massena could create 65 jobs

Posted 5/31/23

BY JEFF CHUDZINSKI North Country This Week MASSENA — Hydrogen production company Air Products is set to receive property tax relief from the St. Lawrence County IDA as part of a planned $500 …

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Hydrogen production facility in Massena could create 65 jobs

Posted

BY JEFF CHUDZINSKI
North Country This Week

MASSENA — Hydrogen production company Air Products is set to receive property tax relief from the St. Lawrence County IDA as part of a planned $500 million facility that could bring as many as 65 jobs to the area.

Industrial Development Agency board members unanimously approved the resolution during a May 23 meeting. IDA members also agreed to assist Air Products seek a sales tax exemption.

“They’re seeking a PILOT that is a deviation from a standard 10-year PILOT,” Pat Kelly, CEO of the IDA said.

Instead, Air Products will seek a 15-year PILOT.

According to Kelly, the next steps will include hammering out a final deal regarding a PILOT for Air Products before holding a public hearing on the potential tax breaks. Following that, a vote will be held by the IDA board to officially approve the tax breaks.

Kelly commented on the low key nature of the project, saying that it appeared the public was not aware of just what would potentially happen in Massena.

“I think more is being said outside of the area and other areas that might also be potentially affected,” Kelly said.

Board Member Ernie Labaff noted that many residents in the North Country are likely jaded after years of potentially industrial development and job creation, only to be continually disappointed.

“I get calls all the time about this project and that project. They’re anticipating something happening with all the land and substance down there from the past mills, the past plants,” Labaff noted.

According to Labaff, residents are skeptical because nothing has really gained momentum since losing numerous jobs at Alcoa and Arconic, as well as the closing of the GM plant in 2007.

Labaff said the potential creation of 65 jobs in Massena would be a huge boost to the local job force and local economy.

“You bring 65 jobs here and they’ll pin a medal of honor on you,” Labaff told Kelly.

Kevin McAuliffe, an attorney from Barclay Damon in Syracuse, who represents Air Products, elaborated further on the company’s plans for Massena.

According to McAuliffe, Air Products will initially hire 65 employees but expansion plans will allow for continued workforce growth.

As production ramps up, Air Products will eventually utilize all land available and could potentially double the scale of the operation.

“I don’t think it would double the employment but it certainly would add a lot more jobs,” he said.

McAuliffe also clarified that all previous presentations, including one held with the Massena Town Planning Board, were for a “doubled project size” that would utilize the entirety of the land available to Air Products.

“We’re not committing to doing that now because, as all of you know, the use of liquid hydrogen in trucks and buses is relatively new to the market. We have to ascertain how quickly this will be absorbed in New York,” he said.

That doesn’t mean that the project will not fully expand, McAuliffe noted.

“We’d be happy to be back to you in a couple of years to modify the PILOT, to modify the relationship and on land that will be the leased premises, to build an expanded plant,” he said.

“So we could potentially anticipate more jobs, I’ve got no problem with that,” Labaff said.

In regards to the environmental impact, Kelly also noted that Air Products is an environmentally friendly company with plans to implement a green project.

“This is a nearly totally green project as well,” Kelly said.

“I don’t think anyone will care if they’re black, white or blue. This would be big for Massena,” Labaff said.

Air Products previously announced the facility will produce 35 metric tons per day, with

commercial operation of the facility is targeted to begin in 2026-27.

The New York Power Authority has already approved 94 megawatts of low-cost hydroelectric power for Air Products in a move that will assist in bringing the facility to Massena.

Air Products was founded in 1940 but first began producing hydrogen in the early 1960’s, first shipping product to market in 1963.

Air Products operates in 50 countries with 21,000 employees and a net value of nearly $13 billion dollars.