FOLLANSBEE — News that the city is expected to become part of a network of hydrogen fuel suppliers and other developments involving Empire Diversified Energy were discussed before and during Monday’s Follansbee Council meeting.
“Kudos to Empire for making this happen. They have been working very hard for this,” Mayor David Velegol Jr. said of the company, whose riverfront property is expected to be part of one of several regional hubs involved in the production and transport of hydrogen fuel and supported by up to $925 million in federal funds through the U.S. Department of Energy.
The funds are a portion of $7 billion to be released through President Biden’s Investing in America agenda and expected to spur nearly $50 billion in private investments.
Velegol noted U.S. Sens. Joe Manchin, D-W.Va.; and Shelley Moore Capito, R-W.Va.; also had a hand in the development, securing $9.5 billion in federal funding for hydrogen research that led to the West Virginia Hydrogen Hub Working Group, a group of state and federal elected leaders, submitting a proposal for a West Virginia hub to the Department of Energy.
The Department of Energy has announced seven proposed regional hydrogen hubs throughout much of the nation, including an Appalachian Hydrogen Hub including areas of West Virginia, Ohio and Pennsylvania.
Velegol noted the Appalachian hub is expected to generate 18,000 jobs in construction and 3,000 permanent ones.
He predicted the development will fill a void left with the closing of the Mountain State Carbon coke plant, which resulted in a loss of 288 jobs and at least $450,000 in taxes paid to the city.
Velegol said the company’s riverfront operations, known as the Port of West Virginia, have been eyed for its part in the hydrogen hub because of its easy access to both the Ohio River and major highways.
He said the project is separate from Empire’s plans for a plastics recycling plant.
The company has filed for a permit from the West Virginia Department of Environmental Protection for that facility, which is slated to use a process called pyrolysis.
Empire also has announced plans to build a pig iron plant, dubbed Jefferson Metals Recovery, on property west and east of state Route 2 at the city’s north end. The project has been estimated at $240 million.
“Empire is going to be key to the city’s future,” said City Manager Joe DiBartolomeo.
On Monday, he presented, for council’s approval, two building permits for smaller projects planned by the company: the $700,000 demolition of the coke plant’s No. 8 battery, which required a $3,350 permit fee to the city; and the $83,000 removal of asbestos at the plant, which netted the city a $440 fee.
Council also granted a building permit for the demolition of structures at the former Tire USA location to be occupied by Geno’s, a limited video lottery establishment; and Gumby’s Cigarette World.
The permit was in the amount of $165 for the $37,000 demolition.
Demolitions didn’t require building permits from the city in the past and are part of a new, higher rate structure introduced by DiBartolomeo that calls for $50 to be paid for commercial construction totaling $4,999 or less, with an additional $5 paid for each additional $1,000 in capital improvements.
In related business, council agreed to swap about 1,800 square feet of city property for land of the same acreage near the two warehouses under construction by Empire on former Follansbee Steel property at the city’s south end.
Velegol told council members the warehouses partially occupy the city property, and the company offered the trade as compensation while also granting easement off State Street to a garage at the city’s water plant.
In other business, council approved a letter of support for a grant sought by officials with the Brooke County Public Library to replace the heating and cooling systems for its Follansbee branch.
DiBartolomeo said if approved, the city would provide a 50 percent match for the $25,000 grant.