STAMP Pipeline at Genesee County Business Park is stalled

Edwards Vacuum is moving ahead with plans to build a $319 million manufacturing facility at the Science, Technology and Advanced Manufacturing Park (STAMP) in Alabama.

But the schedule for the “green hydrogen” facility being developed by Plug Power is unclear for reasons unrelated to the business park's infrastructure. Construction on the plant has been halted as Plug Power grapples with a lack of funding that is hampering its expansion plans.

Pipeline permitting issues have focused attention on the development of Stamp, located between Buffalo and Rochester and aimed at attracting large-scale high-tech tenants. Genesee County officials are focusing on the STAMP site as an important economic development effort to bring good-paying jobs to the rural area located several miles north of the Buffalo-Rochester highway.

The Tonawanda-Seneca Nation had sought to halt a permit that would allow construction of an industrial wastewater and sewage pipeline through the Iroquois National Wildlife Refuge. The U.S. Fish and Wildlife Service announced in late April that the permit would be withdrawn.

However, even after this decision was announced, Gov. Kathy Hochul and Sen. Chuck Schumer announced that Edwards Vacuum was beginning construction on a dry pump manufacturing facility to serve the semiconductor industry.

Plug Power, the first tenant to begin construction at STAMP, is facing another problem. The Albany-area-based company announced plans for a green hydrogen facility now valued at $678 million at STAMP three years ago.

Construction on that facility has been paused, according to Alabama Town Supervisor Robert Crossen.

Plug Power Chief Financial Officer Paul Middleton said on a conference call with analysts in March that the company “will not invest in follow-on hydrogen facilities in Texas and New York until a suitable financing solution is found.” “It has been delayed,” he said.

Plug Power has just received a conditional commitment of up to $1.66 billion in loan guarantees from the U.S. Department of Energy. “This loan guarantee will support the growth and expansion of Plug's network of green hydrogen plants, as well as the clean hydrogen industry in the United States,” said Andy Marsh, CEO of the company.

Plug Power officials did not provide updates on plans for the facility on the STAMP site. In a shareholder newsletter published late last year, the company said it plans to bring the STAMP plant online this year and reach full production in 2025. The timeline is unclear at this time as construction is paused.

“Our 87 employees will continue to work on developing the planned STAMP facility,” Plug Power said in a statement.

“Currently, our near-term focus is on the expected completion of our Louisiana plant in the third quarter of this year, in parallel with the development of our Texas plant,” the company said. “We are fully committed to building a green hydrogen network.”

The Genesee County Economic Development Center, which has led the development of STAMP, contacted the company with questions about Plug Power's project.

Late last year, Plug Power faced questions about its ability to continue operating in the long term after issuing a “going concern” notice in November. The company said in its annual report in March that its financial footing is now stronger and there is “no longer any significant doubt about its ability to continue as a going concern.”

Edwards Vacuum is beginning construction of a dry pump manufacturing facility in STAMP. The $127 million first phase will include manufacturing, warehousing and administrative facilities and will have the capacity to manufacture 10,000 dry pumps per year. Depending on customer demand, pump manufacturing capacity could eventually be doubled by adding more equipment in the facility.

Edwards hopes to begin steel construction on the 240,000-square-foot all-electric factory by the end of June, with the goal of having the building enclosed by November, project manager Jeff Mikel said.

Plans are to begin installing equipment in July 2025, with the goal of receiving a certificate of occupancy by late 2025. Edwards plans to ship the first pumps to South Korea in early 2026 for certification and customer approval before regular production begins.

Some of the hiring at the Genesee County plant will happen this year, but the process won't really take off until late 2025, Mickel said. The hiring focus is on computer numerical control or CNC machine operators who are in high demand by manufacturers. Edwards is working on plans to meet training needs, including with local educational institutions, and is taking steps to increase awareness of Edwards.

“We are very well known in the industry, but not so well known from a general public perspective,” Mikel said.

Mikkel said Edwards is in regular contact with GCEDC regarding STAMP's infrastructure, including drainage pipeline issues. “I believe we have a plan that we feel comfortable with, so we're going to work on it,” he said.

Edwards is also working with National Grid to build a substation to power its factories, which will be connected to a substation that will power the Plug Power facility.

Meanwhile, GCEDC is trying to move forward with infrastructure development at STAMP, but is facing opposition. The Tonawanda Seneca Nation recently said the STAMP project “poses an existential threat to the nation's people and culture, as well as the wildlife, water and plants of the forest adjacent to the business park.”

Tonawanda-Seneca Nation Secretary Roger Hill said the Fish and Wildlife Service “made the right decision” to terminate the pipeline permit, calling blocking construction of the pipeline through the refuge an “important step.” Stated.

GCEDC said it is “submitting a new permit application to propose a cut-and-cover method to avoid the types of accidents caused by the previous method.”

But will the permitting process delay STAMP's infrastructure development or affect the plant's operational timing?

“GCEDC is considering alternative solutions for sanitary wastewater that would allow for the development and operation of the current tenants at the STAMP site,” said GCEDC spokesperson Jim Krenczyk.

Construction of the drainage and sewage pipeline began in July 2023 using horizontal excavation below the surface. However, two drilling accidents caused spills into the evacuation center.

GCEDC, along with the village of Oakfield and regulators, said it is working with the towns of Oakfield and Alabama to build a type of pipeline called Force Main.

“This project will result in capital improvements to the Village of Oakfield's wastewater treatment facility, including the installation of equipment to reduce current phosphorus discharges to Oak Orchard Creek,” GDEDC said.