IP's Ticonderoga, New York, paper mill's long-term viability, ability to provide jobs helped by New York State's recent allocation of lower-cost energy to facility, which is under constant pressure to be as cost-effective as possible, says mill manager

ALBANY, New York , May 1, 2014 (press release) – Lower Cost Power Supports 600 Jobs and $100 Million in Capital Investment at North Country Paper Mill

Governor Andrew M. Cuomo today announced that ReCharge NY – the State’s innovative program to support business growth by providing low-cost power – will support $100 million in capital improvements at the Ticonderoga paper mill of International Paper. The ReCharge NY power allocation will also help support 600 existing jobs at the facility and assist International Paper’s ongoing investment in substantial energy reduction projects in the North Country.

“ReCharge NY has been an important component of the State’s economic development strategy, helping support new jobs and investments by offering lower cost power to businesses,” Governor Cuomo said. “Over the past three years, we’ve seen a revitalization in the North Country with new businesses and partnerships, real economic growth, and a fresh energy. We are pleased that ReCharge NY is continuing to provide lower-cost power and support energy conscious practices, continued investments in New York State, and jobs that are so vital to the community."

ReCharge NY (RNY) was launched in 2011 by Governor Cuomo to help businesses and other enterprises lower their operating costs and spur economic development, as well as provide lower cost power for businesses and not-for-profit organizations. Nearly 385,000 jobs are linked to RNY statewide. The New York Power Authority (NYPA) administers the RNY program.

International Paper’s Ticonderoga Mill, a leader in environmentally sustainable paper manufacturing, is benefiting from nearly eight megawatts (MW) of RNY power, where one MW is enough electricity to meet the needs of between 800 to 1,000 typical homes. This helps contribute to the company’s ability to meet a portion of its energy needs with renewable resources.

International Paper - Ticonderoga Mill Manager Chris Mallon said, “The Ticonderoga Mill is under constant pressure to be as cost-effective as possible, given the highly competitive nature of the paper manufacturing industry. Lower-cost RNY power is important to managing our energy costs and strengthening our long-term viability and our ability to continue providing good paying jobs for our workforce and their families.”

A total of 21 businesses in the North Country and six not-for-profit enterprises are benefiting from RNY allocations in return for their retention and creation of more than 6,600 jobs.

To locate North Country Recharge New York recipients visit: http://www.nypa.gov/RechargeNY/140325/RNY%20Approved%20Allocations%20thr....

NYPA Trustee and Massena resident Judge Eugene L. Nicandri said, “As a longtime resident of the North Country, I am personally vested in the success of our region. A competitive Ticonderoga Mill is absolutely essential to the economic well-being of its hundreds of employees and their families.”

NYPA President & CEO Gil C. Quiniones said, “Environmental sustainability is one of New York State’s key values and closely integrated with the New York Power Authority’s day-to-day operations. It is gratifying to be partnering with businesses like International Paper, in providing lower cost electricity through Governor Cuomo’s ReCharge NY program, supporting a company whose like-minded values are synonymous with protecting essential resources for future generations.”

International Paper's Imaging and Commercial Printing Papers Vice President and General Manager John Sims said, “Our Papers business and customers rely on the expertise, quality and cost competitive products our Ticonderoga team delivers. Innovative partnerships like ReCharge New York help the Mill remain competitive in a global paper market."

International Paper’s Ticonderoga Mill produces high-end printing, technical and fine papers made from trees harvested in working Adirondack and Vermont forests, in accordance with the highest standards of forestry management and sustainable practices. International Paper is the largest employer in Essex County with 600 employees. An additional 600 to 700 independent loggers and truckers also earn their living directly by providing wood to the mill.

Half of the 910 MW of power under RNY is low-cost hydropower from NYPA's Niagara Power Project and St. Lawrence-Franklin D. Roosevelt Power Project, respectively located in Lewiston and Massena. The remaining 455 MW under the program is power secured from economical wholesale market sources.

In addition to the RNY power, International Paper has received financial awards of $1 million and $750,000, respectively, from Empire State Development, (ESD) and the New York State Energy Research and Development Authority (NYSERDA). This funding will be used to support the Mill’s $11.4 million conversion of the facility’s power boiler and lime kiln from No.6 fuel oil to natural gas. The project is expected to result in the elimination of 55,000 tons of greenhouse gas emissions—an estimated 27 percent reduction annually. The Mill’s commitment is consistent with the aggressive global sustainability goals set by International Paper and is closely aligned with the administration's environmental policies.

Empire State Development President, CEO & Commissioner Kenneth Adams said, “The International Paper project is an important one for the North Country as the Regional Council works to support a sustainable, green energy economy in the region. The company’s energy source conversion to natural gas not only builds on the Governor’s environmental commitments for New York State through programs like Recharge NY, but will also significantly reduce operation costs and ensure the retention of 640 well paying manufacturing jobs in Essex County.”

NYSERDA President & CEO John B. Rhodes said, “We salute International Paper for this great step towards environmental stewardship and showcasing sustainability. NYSERDA is proud to support projects like International Paper's that assist in scaling up New York’s clean energy economy, allow businesses to remain competitive, stimulate economic activity and provide a cleaner environment for all New Yorkers.”

United Steel Workers Local 497 Arnold Ross, Jr. said, “At International Paper’s Ticonderoga Mill, the most important goal of both union and management is remaining competitive so we can protect the jobs of our employees and the employment our operations provide to the local forestry industry. RNY power is essential to our ability to continue to provide over 1,200 North Country families—both directly and indirectly—with good-paying jobs.”

North Country REDC Co-Chairs Tony Collins, President of Clarkson University and Garry Douglas, President of the North Country Chamber of Commerce said, “When Governor Cuomo established the Regional Economic Development Councils (REDC), it was an acknowledgement that each region of the state must look to its unique strengths and needs to chart a successful future. Upstate NYPA hydropower is one of those great assets and it is gratifying to see it being used so effectively at International Paper in support of its sustainable operations.”

State Senator Betty Little said, “International Paper continues to prove that sustainability and maintaining a competitive edge in the global marketplace go hand in hand. With the support and help of Governor Cuomo and state government, International Paper is better positioned to be a leader in the new, green economy, which is good for the environment and very important for the hundreds of employees who work in Ticonderoga.”

Assemblyman Dan Stec said, “The environment and conservation are two of my highest priorities and it’s clear that Governor Cuomo shares these same values. The RNY program, in conjunction with grants from NYSERDA and ESD, is another example of the Governor’s maximization of State resources for the good of the private sector.”

Chairman of the Essex County Board of Supervisors Randy Douglas said, "The Governor's ReCharge NY Power Program is a win-win situation for the North Country. The ReCharge NY Power Program and the success of the North Country Regional Economic Development Council demonstrate Governor Cuomo's commitment to investing in the North Country economy."

Moriah Town Supervisor Tom Scozzafava said, "The results of the ReCharge New York Power Program can be seen right here in the 600 jobs at International Paper. I would like to thank Governor Cuomo for helping our community thrive with the state of New York."

Town of Ticonderoga Supervisor Bill Grinnell said, "International Paper has been a staple of the Ticonderoga community and an integral part of the area economy for as long as any of us can remember. The ReCharge NY Power Program invests in exactly what our community needs - economic viability and job creation and retention. We thank Governor Cuomo and the New York Power Authority for their support of our economic development efforts.”

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.