- Democratic Kentucky Gov. Andy Beshear announced Monday that Century Aluminum intends to build a smelter in the northeast Appalachian region of the Bluegrass State.
- Further action is still needed to reach an agreement. Construction of the refinery will then receive $500 million in support from the Department of Energy.
- “Many steps still need to be taken to make this a reality,” Beshear said at a news conference. “But this is an important first step.”
Gov. Andy Beshear said Monday that an aluminum company has named northeastern Kentucky as a priority site for a new aluminum smelter that would bring about 1,000 permanent jobs to the Appalachian region, which has been hit hard by the loss of coal and steel production. Stated.
Century Aluminum Co.’s plan to build a smelter that will significantly reduce emissions will be supported by $500 million from the U.S. Department of Energy. Beshear said the project could be the largest investment ever in Eastern Kentucky.
“We still need to take many steps to make this a reality,” the governor said at a press conference. “But this is an important first step.”
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The governor hopes state incentives will help get a deal done. He predicted the state Legislature would provide “the tools we need” as the session nears its end.
Jesse Gailey, the company’s president and CEO, did not attend the press conference, but said in a statement that “numerous steps” need to be resolved and multiple locations are still under consideration. However, he pointed to northeastern Kentucky as a desirable location. . He said development costs, utilities, labor and incentives for the sites under consideration are still outstanding.
Chicago-based Century Aluminum already has a large presence in the Bluegrass State, with two aluminum smelters in western Kentucky.
Gary said Monday’s announcement is “another step in our continued long-term relationship with the state, and we look forward to the opportunity to contribute to the commercial growth of Eastern Kentucky. This is a very attractive opportunity for Century Aluminum.” It’s a great achievement.” ”
Democratic Kentucky Governor Andy Beshear is seen answering questions during an interview in Frankfort, Kentucky, on December 19, 2023. (AP Photo/Timothy D. Easley, File)
According to Century, the company is the largest producer of primary aluminum in the United States and also operates production facilities in Iceland, the Netherlands and Jamaica.
Northeast Kentucky was hit hard several years ago when the steel mills that had been the bedrock of the economy for generations closed. The broader eastern Kentucky region has suffered a sharp decline in coal jobs over the past decade as demand for coal has shrunk.
Hopes for a large aluminum factory in the area were dashed several years ago. Another aluminum company had plans to build a factory near Ashland in northeastern Kentucky, but the project, pushed by Beshear’s predecessor, former Republican Gov. Matt Bevin, was a project that the company was unable to secure sufficient financing for. Because of the difficulties involved, it never materialized.
Beshear, who unseated Bevin in 2019, is now running what he says are game-changing projects for the region and continuing the state’s record economic development pace during the Democratic administration. It is said that Beshear is seen as a rising star within the party and was re-elected for a second term last year in the Republican-dominated state.
Boyd County Judge Eric Cheney, one of several community leaders who attended the news conference with Beshear, said the new potential for the area to be home to an aluminum smelter is “a tough call.” He said it presents an “incredible opportunity” for a region that has been through a lot. .
“We’re going to do everything we can to get us across the finish line,” Cheney said in a subsequent phone interview. “This is a great opportunity for Northeast Kentucky and the entire state.”
The governor said the project will create approximately 5,500 construction jobs and approximately 1,000 additional permanent union jobs. The new smelter will increase the size of the current U.S. primary aluminum industry while avoiding an estimated 75% of emissions from traditional smelters through its cutting-edge, energy-efficient design and use of carbon-free energy. He said it would double. .
The Department of Energy said in a separate news release that the new plant will be the cleanest and most efficient aluminum smelter in the world.
Aluminum produced at the new plant will support national defense, electric vehicle, semiconductor, building and construction, and green energy applications, Beshear said.
While many decisions remain, Beshear pointed to the $500 million in federal support for the project as critical. The funding is provided by the Department of Energy’s Industrial Demonstration Program, and the governor thanked President Joe Biden, Energy Secretary Jennifer Granholm and others.
“We all recognize that this is not a done deal and there is still work ahead, but the $500 million grant is a starting point if it is to be built in this region. It’s a great fit,” Beshear said.
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Last week, Mr. Beshear announced Rye Development’s plan to build a $1.3 billion pumped-storage energy facility on a former coal mine site in Bell County in southeastern Kentucky. The project, also supported by a federal grant, will create approximately 1,500 construction jobs, 30 operational jobs, and enough energy to power approximately 67,000 homes each year.
