Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Energy Project topic
No spam. Unsubscribe anytime.
Ansonia aldermen approve $37 million financing to build 3.9 MW fuel cell at Copper & Brass site
Summary
The Board of Aldermen unanimously approved a lease‑purchase resolution authorizing financing for a 3.9 MW fuel cell at the Copper & Brass site; city and project partners projected roughly $1.5 million in recurring net revenue annually and a construction schedule targeting summer 2025 with operation planned in September 2025.
The Ansonia Board of Aldermen on Oct. 8 voted to authorize lease‑purchase financing that will allow the city to partner with Johnson Controls to build a 3.9‑megawatt fuel cell at the Copper & Brass (SHW) redevelopment site.
Corporation Counsel John Marini told the board the resolution authorizes borrowing $37,000,000 to construct the fuel cell and related infrastructure, and framed the project as the next step in returning the former industrial parcel to productive use. "This boils down to allowing the borrowing of $37,000,000 so the city of Ansonia could work with its partner, Johnson Controls, to construct the apparatus," Marini said.
Why it matters: city staff and the project team said the fuel cell will produce electricity sold to the grid under virtual net metering, create beneficial off‑taker accounts, and generate recurring revenue the city can apply to debt service, infrastructure, or school projects. Finance Director Kurt Miller presented conservative projections that put net recurring revenue at about $1.52 million per year, with potential upside toward $2 million or more. "By generating our own electricity, we're going to be able to control those costs," Kurt Miller said, adding the revenue stream could help offset a large upcoming school project.
Project timeline and guarantees: Aaron, the Johnson Controls representative, said design was about 95% complete, that the team is awaiting final utility comments, and that construction is scheduled for summer 2025 with a planned September 2025 "flip the switch" to begin production. The fuel cell manufacturer (identified in presentation materials as Bloom) is contracted for a 20‑year term and provides production and efficiency guarantees that Johnson Controls used in its pro forma to conservatively estimate output.
Financing and incentives: The presentation outlined revenue sources the team used in the pro forma: gross electrical production, a Public Utility Regulatory Authority environmental credit, and a projected one‑time federal investment tax credit payment (ITC) estimated at $11 million captured in year three of operations via safe‑harbor provisions. Aaron described the ITC as conservative in the model and explained components such as a 30% base ITC, a 10% domestic manufacturing bonus and a 10% distressed community bonus that together could yield a 50% credit in some scenarios.
Board concerns and responses: Aldermen asked technical and market questions before the vote. One alderman queried whether a neighboring town building its own fuel cell would undercut Ansonia's credits or market; Johnson Controls said credits are contracted and that regional load needs and the city's location make the project competitive. Board members also asked about hydrogen safety and whether significant off‑site infrastructure (for future hydrogen phases) would be required; the vendor and staff said any future hydrogen or microgrid work would return to the board for review and that safety and permitting considerations would be addressed at that time.
Vote and next steps: The board moved and seconded the leasing resolution and the measure carried by voice vote. The resolution authorizes the financing step and directs staff to proceed with the contract and design finalization; subsequent phases, additional infrastructure or hydrogen components will require separate approvals.
What remains uncertain: several elements in the board presentation depend on future actions and contracts: the exact ITC amount the city ultimately realizes, the final set of off‑taker agreements and rates, and the extent to which later phases (additional fuel cells, hydrogen, or microgrid functions) will be pursued. Project proponents said those details will be developed and brought back to the board for further approvals.
The board is scheduled to review more detailed renderings and fiscal analyses related to the broader Copper & Brass redevelopment in coming meetings; construction for the first phase is expected to begin in 2025.
