Saturday, 30 November 2013

$1.7 billion investment towards Buffalo energy facilities a 'game-changer'

There are a lot of great developments going on in Buffalo for the time being: Canalside restoration efforts are beautifying the waterfront, the HARBORCENTER will draw elite youth hockey talent and many spectators, and the new UB medical school will offer the region’s first comprehensive academic medical center – to name a few. But even if many of Buffalo’s faithful citizens aren’t aware, the announcement of not one, but two new manufacturing tenants in the heart of South Buffalo could trump them all.

On November 21 Gov. Andrew Cuomo (NY-D) shared the momentous news of the state’s successful effort to draw a pair of high-tech giants to Buffalo’s waterfront. The Buffalo News quoted Cuomo saying, “It’s probably the most exciting economic development announcement that we’ve had statewide since I’ve been governor. This project, I believe, is a game changer for Western New York.”
Dubbed the Buffalo High-Tech Manufacturing Innovation Hub at RiverBend, six 275,000 square-foot facilities (one each for the new tenants, the remaining four buildings remain vacant for now) will house the new companies at the old Republic Steel site. The development is a huge gain for South Buffalo, as is at least 850 new permanent jobs for a region that has clamored for decades to develop quality employment. State officials noted during the announcement that approximately 800 of those jobs will go to those living in the Buffalo Niagara region.
Soraa, the world’s leading developer of solid-state LED lighting technology built on pure gallium nitride substrates, as stated on their website, will generate 375 new jobs. The company was founded in 2008 in California, and has seen strong growth in a few short years. Their business model revolves around being the world’s best LED light-maker through innovation, which was spotlighted in the Wall Street Journal (WSJ) in April. Their latest LED creation generates 40 percent more light than standard halogen LED bulbs while cutting power consumption by 80-85 percent. “We really pushed the envelope of what is possible,” said Soraa Chief Executive Eric Kim in the WSJ piece.
The remaining 475 permanent jobs will be through Silevo, a solar panel manufacturer founded in Silicon Valley in 2007. Currently the company manufactures out of its California headquarters, as well as a facility in China. In terms of panel efficiency, Silevo’s solar panels are on the higher end of most high-volume solar panel manufacturers (21 percent, compared to 14-16 percent for most others), according to ThinkProgress earlier this year.
Despite being courted by several other locations for expansion, Silevo CEO Zheng Xu told The Buffalo News that production costs were a major selling point in selecting the Riverbend location. “The production costs in Buffalo are as good or as cheap as in China,” Xu stated, and expects the Buffalo facility to produce around 200 megawatts of panels each year once fully operational.
Each company will invest $750 million of their own funds for the South Buffalo facilities.
Ninety acres of brownfield space along the Buffalo River will be converted into some of the most innovative green energy research and high-tech manufacturing space in the country. Convincing many companies to clean up chemically-contaminated land for reuse can pose a challenge. However,New York State is one of many states to offer tax breaks for businesses to revitalize brownfields.
As the Environmental Protection Agency explains, cleaning up brownfield regions “protects the environment, reduces blight, and takes development pressures off greenspaces and working lands.” It also improves the property value of the surrounding businesses and residences.
The RiverBend project will be run by the State University of New York’s Research Foundation, based out of Albany. In all, New York State invested $225 million into the project – nearly a quarter of the Buffalo billion-dollar commitment by Cuomo in 2012 to revitalize the Western New York region. No other investment through the billion-dollar commitment has matched the $225 million price tag. “Today we come full circle,” Cuomo stated during his announcement speech, adding, “Buffalo’s future is the future of the state of New York.”

http://theenergycollective.com/ecskris/309811/17-billion-investment-towards-buffalo-energy-facilities-will-be-game-changer

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