‘Transformational’ Kentucky renewable energy project on old mine receives $81 million
The federal government has awarded $81 million to develop a renewable-energy project in southeastern Kentucky projected to create about 1,500 jobs during the construction phase.
A division in the U.S. Department of Energy posted information about the award Thursday morning.
The money will help Rye Development create a pumped-storage hydroelectric facility on a former surface coal mine site near the Cumberland River in Bell County.
Water from the river would be used to fill a 60-acre reservoir that would send water downhill, turning turbines to produce electricity.
Another reservoir would catch the water and it would be pumped back to the upper reservoir to be sent down again.
Gov. Andy Beshear said at a news conference that the total project investment would be $1.3 billion. He called it the largest single investment ever in Eastern Kentucky.
“While it will have an incredible impact on Bell County, it’s going to have an amazing impact on all of Eastern Kentucky,” the governor said.
The project would create an estimated 1,500 construction jobs while under development, then an estimated 30 permanent jobs.
However, Bell County Judge-Executive Albey Brock said he believed the facility will drive additional jobs in the community.
It also will boost the local tax base for schools and other programs.
“We’re extremely excited about this project,” Brock said Thursday.
Beshear said Rye Development, working with the Shaping Our Appalachian Region (SOAR) initiative, will work with labor unions and Southeast Kentucky Community & Technical College to focus on local hiring, and provide training for jobs at the project.
Brock said that contrary to some misinformation, the project would not involve damming the river.
The federal news release said the facility could provide enough electricity to power 67,000 homes each year.
Rye Development said the Lewis Ridge facility would be the first project of its kind in the U.S in more than 30 years, and the first ever on land mined for coal.
Rye was one of five organizations that received money under the Bipartisan Infrastructure Law that the Biden Administration pushed. The money is part of a project to boost development of renewable energy on mined lands.
Sandy Slayton, a vice president at Rye Development, told the Herald-Leader that financing is in place for the project, but the company is still pursuing permits from the federal government.
It could take several more years to finish that process. Rye hopes to begin construction in 2027 and then begin generating electricity in 2031, Slayton said.
The company is doing extensive geotechnical work at the site now to prepare for construction, Slayton said.
One key goal is to ensure the reservoirs represent no threat to the river.
The facility would provide additional energy during peak demand times.
“This project is not only a significant investment in Kentucky; it’s an investment in strengthening our national electricity grid, helping to secure our energy future,” said Paul Jacob , CEO of Rye Development. “The Lewis Ridge Pumped Storage Project will protect against blackouts and brownouts, while transforming a former mining site into a long-term economic engine for the region.”
Beshear announced the project along with state Senate President Robert Stivers, R-Manchester; Sen. Johnnie Turner, R-Harlan; Rep. Adam Bowling, R-Middlesboro; and Colby Hall, head of SOAR.
“It is a regional transformational project,” Stivers said.
This story was originally published March 21, 2024 at 12:56 PM.
