Tax break OK’d for new facility

MALTA, N.Y. » A fall groundbreaking is planned for a 20 megawatt, utility-scale battery energy storage facility – the largest of its kind in New York – at Luther Forest Technology Campus.

The $9 million project, proposed by Albany-based Key Capture Energy LLC, is expected to create 25 construction jobs and nine fulltime positions.

This week, the Mechanicville-Stillwater Industrial Development Agency approved nearly $650,000 worth of tax incentives or the project, which will interconnect to the adjacent NYSEG substation.

The board also approved a payment-in-lieu-of-taxes (PILOT) agreement that will provide more than $160,000 to local taxing jurisdictions.

The company could have used a provision in the state tax code to avoid property taxes altogether, a spokesman said.

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.

“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, in a statement. “We look for-

ward 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.”

Saratoga 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. “This project exemplifies a long-term, sustainable approach to economic development,” said Marty Vanags, Prosperity Partnership president.

The new facility will meet a growing industry need.

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.