By Denise Richardson
Staff Writer
ONEONTA _ A local firm’s plan to open a
manufacturing plant could create up to 185 jobs
within five years as it produces ultracapacitors
to sell in global markets, officials said.
Renewable Energy Development Inc., a subsidiary
of Custom Electronics,
plans to make
the devices for use in
forklifts and electric vehicles
and aims to meet
expanded applications,
officials said.
However, REDI’s
plans are pending approval
of a zoning variance
to use a building at
118 Winney Hill Road in
the town of Oneonta. The
firm also seeks public financing.
The Otsego County
Economic Development
Office will have public
hearings at 9 a.m. today
and Aug. 5 on an application for a Small Cities
grant of $750,000 to the county in support of
REDI. The application sets REDI’s project cost
at $3.1 million, of which $2.5 million would be to
buy equipment and $600,000 would be working
capital.
Carolyn Lewis, Otsego economic developer,
said today’s hearing will focus on economic
needs of the county, and next week’s meeting
will be about the REDI project.
The hearings will be
in the Economic Development
Office at 242 Main St.
in Oneonta.
The Otsego County
Board of Representatives
will consider submitting
the Small Cities application
at its Aug. 6 meeting,
Lewis said, and a response
is expected in September.
If approved, funding to
REDI would be a $500,000
loan and a $234,000 grant
after subtracting an administrative
fee, she said.
Public aid to Custom
Electronics helped that
firm start its subsidiary
last year, officials said.
The Otsego County Industrial
Development
Agency recently approved
a $200,000 loan to REDI,
Lewis said.
The project also is supported
with private venture
capital, according to REDI.
REDI officials said the
patent-pending ultracapacitor
devices and systems
represent a new and important
technology because
the devices can store more
electrical energy than traditional
counterparts.
The storage capability
means the devices can be
used with batteries, solar
cells and any other power
source to build renewable
energy-storage devices
that are more efficient and
more reliable, according to
a product description.
In 2007, the New York
State Energy Research
and Development Authority
entered into a $200,000
contract with Custom Electronics
for expansion into
the ultracapacitor market,
and the company spun off
REDI, said Colleen Ryan,
NYSERDA spokeswoman.
The market for energystorage
devices is growing,
she said last week, and energy
storage is considered
``the next big thing in the
energy industry.’’
Rob Robinson, president
and chief executive
officer of the Otsego County
Chamber, said REDI would
provide long-sought lightmanufacturing
jobs in the
area.
The project also would
be positive economically
in terms of wages, growth
potential and in drawing
revenues from outside U.S.
borders, a counter to jobs
lost to outsourcing overseas,
he said.
On Monday night, the
Oneonta Town Zoning
Board of Appeals was to
consider a variance request
for the REDI project
and set a public hearing,
said Paul Neske, town code
enforcement officer. The
building at 118 Winney Hill
Road is in a general business
district, and the firm
seeks a variance for manufacturing
and processing,
he said.
Most recently, Mac-Laser
Technologies has occupied
the building.
Michael Pentaris, chief
executive officer of REDI,
said there is no other site
locally that meets the needs
of the fledgling firm, which
has two employees _ Chad
Hall, chief operations officer
and Thor Eilertsen,
chief technical officer.
The firm has a lease-topurchase
agreement for the
Winney Hill building, Pentaris
said, and he hopes the
town ZBA acts on the zoning
request next month.
REDI may hire 10 or 12
workers this year and start
them on ``the long learning
curve’’ of manufacturing,
he said. Later, the firm
plans to hire supervisors,
sales staff and employees
for other positions.
According to projections from REDI, a plant in the town of Oneonta would have employment reach 91 workers in the second year, 124 in the third year and about 185 by the end of the fifth year.
The firm projects creating 25 jobs for low- to moderate-income individuals in the second year, 75 in the third year and 80 in the fourth year, with average wages of $10.40 per hour.
According to a description
of the project, REDI
would have a three-person
manufacturing team responsible
for plant setup, a
five-person sales and marketing
team, a two-person
development team, a chief
executive officer and an
administrative assistant.
After the plant is ready to
begin production, the number
of employees will increase
to 35.
Pentaris said the goal is
to begin manufacturing for
product output early next
year.
According to REDI’s
business plan, the worldwide
market demand for
small- to medium-sized ultracapacitors
is expected
grow nearly 20 percent
within five years.
REDI plans to be poised
for the emerging market
with its new high-voltage
cell, officials said.
Earlier this month, Sen.
Charles Schumer, D-N.Y.,
announced that a Senate
committee had approved a
bill that includes $1.5 million
for Sandia National
Laboratories to work with
Custom Electronics on developing
ultracapacitors
for military and industrial
uses.
Pentaris said he is working
with the Immigration
and Naturalization Service
so that REDI can hire
personnel from Korea who
have more than 50 years
of experience in the field
and who have been instrumental
in setting up production
facilities for two
of the world’s largest electric
double-layer capacitor
manufacturers .
According to REDI’s
plan, after manufacturing
for two or three years
at the Winney Hill site,
the firm would move to a
facility in the Pony Farm
Industrial Park in Oneonta
to meet projected demand,
he said.
