FuelCellEnergy.com
This fuel cell on Roosevelt Drive in Derby is operated by FuelCell Energy of Danbury. It provides enough electricity to power 10,000 houses. The company also operates a fuel cell on Coon Hollow Road in Derby.
ANSONIA – Members of the Ansonia Board of Aldermen voted on Oct. 5 to pay $37 million for the construction of fuel cells at the former SHW site.
The board voted unanimously to enter into a lease-purchase agreement with Johnson Controls for the construction of nine, 440-kilowatt fuel cells at 35 N. Main St.
The cells are expected to provide 3.96 megawatts of power. The Cassetti administration hopes to use the project to offset electricity costs of city-owned buildings. It also hopes to sell power to potential nearby private customers.
The $37 million cost will be fronted by Johnson Controls, who will initially own the cells. The city will make rental payments over the next 18 to 22 years using revenue from the cells.
The dollar amount isn’t known. It’s to be decided by the mayor, according to the agreement.
Eventually the city will own the cells outright.
Construction is slated to begin in early 2025, according to a City of Ansonia Facebook post.
Ansonia Corporation Counsel John Marini said the deal doesn’t require voter input – such as through a public referendum — since it’s a rent-to-own deal.
“The financing is being accomplished through a lease-purchase agreement, rather than traditional borrowing that would require a referendum,” Marini wrote in a text message to The Valley Indy.
Budget director Kurt Miller said the project will generate about $1.5 million in net revenue for the city each year, after payments are made to Johnson Controls.
That estimate includes both the money the city will save by producing electricity, and potential income from taking on private customers.
City officials hope some of those private customers could include other tenants at the SHW site.
There are no other tenants as of now. The Aldermen voted in May to authorize negotiations with The Primrose Companies – the Bridgeport developer working on building a sports complex on Olson Drive – to potentially rent out or sell part of the site.
Fuel cells take in hydrogen as fuel to produce electricity, according to the U.S. Department of Energy. Because they create water as a waste product instead of carbon dioxide, they have fewer air emissions than combustion-based power sources. In Connecticut, fuel cells are categorized as a Class I renewable energy source.
During the meeting, Alderman Bob Knott asked whether the city could forbid Johnson Controls from doing business with neighboring towns, to prevent competition over revenues.
Aaron Alibrio, a representative from Johnson Controls, responded that there are “millions and millions and millions of (kilowatt-hours) needed in (utility company United Illuminating)’s territory,” and that fuel cells in other towns would not affect Ansonia’s own ability to sell power.
As it stands, the fuel cell project isn’t the first of its kind in the Valley. A privately owned 14-megawatt facility opened in Derby last year. FuelCell Energy, Inc. operates a fuel cell on public property on Coon Hollow Road in Derby.
Alibrio also said that the SHW site could operate as a “microgrid” once there are other tenants. Having direct proximity to a power source provides added resilience, he said.
“Should we experience issues with regards to the grid going down, we can have microgrid adding services to the tenants and to the spaces associated with it. So when we do see a power failure, the tenants on this development site aren’t going to see any issues or service (interruptions).”
Before Johnson Controls, the city was in talks to lease out the space to HyAxiom, a competitor who also hoped to build fuel cells. However, those negotiations fell through, with the Aldermen rejecting a proposed lease agreement in March and putting the parcel back out to bid.
Reaction
The Valley Indy reached out to state Rep. Kara Rochelle to ask for her reaction to the deal. Cassetti is challenging her for her seat in the state house this year.
Election day is Nov. 5.
Rochelle said the deal is a positive development for the site. She said state money made it possible.
“In total, between SHW, Farrel, and the Ansonia Brass sites, I brought in $23.44 million for environmental cleanup, demolition, and redevelopment, so I’m glad that they’re starting to spend this money and starting to implement this vision. This is what it’s here for,” she said.
