MASSENA, N.Y. — One of the North Country’s largest employers has a new power-supply contract with the New York Power Authority (NYPA). Alcoa Corp. (NYSE: AA) signed the deal for its Massena smelting-plant operations in St. Lawrence County. Alcoa — an aluminum producer — is based in Pittsburgh, Pennsylvania. The pact includes a commitment of […]
MASSENA, N.Y. — One of the North Country’s largest employers has a new power-supply contract with the New York Power Authority (NYPA).
Alcoa Corp. (NYSE: AA) signed the deal for its Massena smelting-plant operations in St. Lawrence County.
Alcoa — an aluminum producer — is based in Pittsburgh, Pennsylvania.
The pact includes a commitment of $30 million in capital investments and supports 500 jobs at Alcoa’s Massena plant for the next 10 years, the office of Gov. Kathy Hochul announced on Oct. 22.
In addition to the contract, Alcoa is investing nearly $60 million through 2028 to rebuild and modernize a portion of the Massena facility.
This investment is made possible by the new energy contract as well as a $5.2 million capital grant and $1 million in Excelsior Jobs Program tax credits from Empire State Development (ESD). This improvement will “enable process stability and operational efficiency,” Hochul’s office said.
The Oct. 22 announcement of a signed contract by Alcoa and NYPA follows approval of the final agreement’s terms by the Power Authority’s board of trustees and Gov. Hochul.
“By securing good paying jobs and fostering investment, this agreement ensures Alcoa will continue to be a major presence in Massena while supporting New York families and communities,” the governor said in the announcement. “The aluminum manufacturing industry has played a significant role in the nation’s economic development, and New York’s Alcoa facility has been at the forefront, driving economic growth and opportunity in the North Country.”
The contract includes a 240-megawatt (MW) allocation of low-cost power through NYPA’s Preservation Power program to Alcoa for its Massena plant. This power allocation will support Alcoa’s operations through March 31, 2036, with options for two additional five-year extensions, contingent on maintaining a minimum of 500 full-time equivalent jobs and increased capital investments.
“Alcoa has been a vital part of the North Country economy for more than 120 years. With Governor Hochul’s support, this new contract with one of the Power Authority’s oldest customers secures essential jobs and significant capital investments in the region,” Justin Driscoll, president and CEO of the New York Power Authority, said. “We are proud to continue our partnership with Alcoa and to support their growth and investment in the community.”
Alcoa has also agreed to invest a minimum of $30 million in the plant’s operation over a period of 10 years. If market conditions permit, Alcoa may extend the contract an additional 10 years, which would foster capital investments totaling $145 million over a 20-year period.
“We are proud to make aluminum in New York and the United States. Long-term, competitively priced energy enables Alcoa to proceed with this important investment that will help us meet the demands of today while planning for tomorrow,” William Oplinger, president and CEO of Alcoa, said in a separate announcement on the company’s website. “We are extremely pleased to have worked with NYPA and ESD to achieve this outcome for our Massena Operations, which will bring economic benefits to the region and sustain American manufacturing.”
The contract provisions build on a seven-year agreement approved by NYPA in 2019. The 2019 agreement provided 240 MW of low-cost St. Lawrence-FDR hydropower in return for Alcoa’s commitment to retain 450 jobs at the aluminum company’s smelting plant in Massena.
