Albany County IDA slashes Plug Power job requirements for incentives
BETHLEHEM – The Albany County Industrial Development Agency has decided to give fuel cell and hydrogen manufacturer Plug Power a major break on the job-creation requirements the agency tied in 2022 to millions of dollars in financial support the company received from the county to build its new, $125 million headquarters in Slingerlands.
The Business Review was the first to report the IDA’s decision, although the two sides had been in discussions about modifying the agreement for months.
Under the terms of the deal, Plug Power was required to have 1,087 employees in Slingerlands by the end of 2025. Instead, it had just 848 workers in Slingerlands, less than 80% of the requirement.
Plug Power makes fuel cells that run on hydrogen, a relatively cheap and sustainable renewable energy source. Plug Power also makes the technology to produce hydrogen directly from water (it is normally extracted from methane gas) and to store and transport the fuel to its customer sites across the country. Plug Power’s largest customers include Amazon and Walmart, which use Plug Power’s fuel cell stacks to run forklift trucks at their large warehouses and distribution centers.
Plug Power has been rapidly growing since its technology was developed in the region in the 1990s. However, the company has lost about $7 billion over the years and has yet to turn a profit. Company President Jose Luis Crespo, who will become CEO next month, believes the company can become profitable within three years.
Plug Power and the renewable energy sector have faced significant headwinds in pursuit of that goal, leading the company to develop what’s called Project Quantum Leap, an internal cost-cutting “diet” that is designed to reduce its annual spending by $200 million. Last year, Plug Power cut 261 local jobs.
The Business Review reported that the changes to Plug Power’s job requirements took place at an IDA board meeting last week. The move reduces Plug Power’s job requirements by 60%. So, by the end of 2027, Plug Power will only need to have 650 jobs in Slingerlands. Otherwise, the IDA has the right to “claw back” some of the financial support it provided Plug Power and the developers of the Vista tech park. The IDA approved not only more than $6 million in tax breaks for the project but also $2 million in direct support, the Business Review reported.
The Times Union has reached out to IDA CEO Kevin O’Connor for comment. He told the Business Review that the IDA board wants to support Plug in a time of need because the county remains very optimistic about the company.
O’Connor told the Business Review about the IDA’s reasoning,
They would rather be supportive of Plug in hopes that they grow in the future,
He said that the original Plug Power job figures were in anticipation of Plug Power receiving $5 million in cash from the county. But Plug Power has only been given $2 million. The lower job totals reflect this lower county investment, O’Connor told the Business Review.
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Albany County IDA slashes Plug Power job requirements for incentives, source
