BETHLEHEM After completing construction on a new power substation, Callanan Industries has received a $250,000 grant from National Grid as a capital investment for replacing its aging infrastructure.
The award comes from National Grid’s Capital Investment Incentive grant program, which “provides funding to help offset costs associated with upgrading utility infrastructure to support a business expansion or attraction projects located in National Grid’s Upstate New York service territory.” The grant is given to applicants who plan projects that will improve National Grid’s electric or natural gas system.
The paving materials supplier is in the midst of a $24 million capital improvement project at its South Bethlehem site after moving the majority of operations to Ravena in the 1990s. Last year, Callanan moved its asphalt and stone operations back to Bethlehem and later decided to upgrade its energy infrastructure. The company was founded by Peter Callanan in 1883 in South Bethlehem as an aggregate mining company.
“We are excited about the move back to South Bethlehem and how it has helped Callanan maintain a strong presence in the Capital Region,” said Callanan President Jonas Havens in a statement. “We look forward to continuing our service to communities in our area that will realize the benefits of our recent business expansion.”
The company purchased and constructed a state-of-the-art asphalt pavement plant and a new primary crushing system was designed to increase efficiencies. Havens said the former substation was a “pile of rust” and needed to be restored. So the company committed to building a new one with power provided by National Grid.
In return, National Grid spent $100,000 to upgrade and maintain the transmission lines that provide the substation with power. To replace the entire 2.5-mile line, the utility is expected to spend about $2.5 million by completion in 2015.
National Grid also extended a new high-pressure gas service more than 800 feet. It will provide fuel-to-heat aggregate in the asphalt plant, the lab building and offices, and is said to be a cleaner, more cost-effective alternative to the waste oil that the company was previously using.
“Supporting the Upstate New York economy and jobs is at the core of National Grid’s commitment to the communities we serve,” said National Grid director of Customer and Community Management Bill Flaherty. “We applaud Callanan Industries on this major capital improvement project, and are pleased to be their partner in success.”