FORT DRUM — The Black River facility of ReEnergy Holdings continues providing biomass energy for Fort Drum. The U.S. Army’s Defense Logistics Agency (DLA) on Nov. 21 announced that it would no longer seek to renegotiate its contract with ReEnergy, the office of U.S. Representative Elise Stefanik (R–NY 21) said in a news release. The […]
FORT DRUM — The Black River facility of ReEnergy Holdings continues providing biomass energy for Fort Drum.
The U.S. Army’s Defense Logistics Agency (DLA) on Nov. 21 announced that it would no longer seek to renegotiate its contract with ReEnergy, the office of U.S. Representative Elise Stefanik (R–NY 21) said in a news release.
The Army had sought to change its 20-year agreement that allows ReEnergy to provide Fort Drum with biomass energy, the office of U.S. Senate Minority Leader Charles Schumer (D–N.Y.) said in a Nov. 26 statement reacting to the Army’s decision.
DLA had awarded a 20-year contract to Fort Drum in 2014.
Schumer said he helped facilitate the contract. However, news reports indicated that the Army “had proposed ending or significantly amending the contract,” despite ReEnergy meeting all performance requirements and investing $50 million into the facility.
ReEnergy is a 60-megawatt facility that generates 422,000 megawatt hours per year and is located on Fort Drum, providing the installation with “100 percent energy independence,” per Stefanik’s office.
Larry Richardson, CEO of ReEnergy Black River, also reacted in a statement.
“We are pleased that the Defense Logistics Agency has decided not to renegotiate the terms of ReEnergy’s agreement to supply secure, resilient, renewable energy to Fort Drum. We are proud to provide secure and resilient electricity to the post and support the critically important mission of the Army’s 10th Mountain Division,” Richardson said. “We deeply appreciate the support we have received over the years from Senator Chuck Schumer, Senator Kirsten Gillibrand, and Representative Elise Stefanik in our work with the Department of the Army and Fort Drum. The ReEnergy Black River biomass power facility supports more than 300 direct and indirect jobs and serves as an important market for regional forest and mill residue. We are gratified to play a supporting role in the regional forest products industry and we look forward to our continued partnership with Fort Drum and the Defense Logistics Agency.”
Schumer explained that ending or amending the current deal would not only have “jeopardized hundreds of good-paying jobs” in upstate New York, but it would have undermined Fort Drum’s “energy resilience when facing potential threats to the energy grid.”
Schumer added that such an action would have a negative impact on all future agreements because bidders will price into contracts the risk that the Army may change its mind mid-contract.
In May of this year, Schumer met with the Secretary of the Army, Ryan McCarthy, and the Chief of Staff of the Army, General James McConville, and urged both senior leaders to honor ReEnergy’s contract with Fort Drum, the Democrat’s office noted.
“I’m so pleased to hear that the Army will be honoring its contract with ReEnergy, and that Fort Drum will maintain its status as the only 100 percent energy-independent, self-sustaining and off-the-grid military installation in the country. Not only does this contract support good-paying jobs in the North County, but it also ensures that in the event of an attack on our power grid, Fort Drum could continue to meet readiness requirements without disruptions,” Schumer said.
Stefanik added, “DOD’s use of alternative energy strengthens their ability to conduct combat operations, humanitarian response and protects our national security.”