Toyota to purchase electricity from massive Martin County solar project

BY ROGER SMITH
MOUNTAIN CITIZEN

MARTIN COUNTY, Ky. — Toyota announced May 24 that it has agreed to offtake 100 megawatts of the electricity generated as part of renewable energy company Savion’s Martin County Solar Project through a virtual power purchase agreement.

A collaboration between Edelen Renewables and Savion, the project is converting the former Martiki Coal Mine, a brownfield site in Martin County, into a new, clean solar photovoltaic energy facility. Once an active coal mine on the top of a mountain that closed in the 1990s, the Martiki Mine site has clear access to light from the sun, making it an ideal location for reclamation and installing solar photovoltaic panels for electricity generation.

Adam Edelen, the founder and CEO of Edelen Renewables, expressed his commitment to bringing the promise of renewable energy to the region.

Adam Edelen during a previous visit to the Martiki site. (Citizen photo by Roger Smith)

“We are passionately committed to bringing the promise of renewable energy to Appalachian coal country,” Edelen said. “Wednesday’s announcement is truly historic. The result is hundreds of new green energy jobs, hired, trained and recruited locally. Hundreds of millions of dollars in private capital investment will result in millions in new tax revenue for Martin County. Congratulations to Toyota for using their clout to bring new investment to Appalachia. And certainly, without lead developer Savion—bringing the full weight of expertise, commitment and national reputation—this important day would have never occurred.”

Construction on the project is anticipated to begin in mid-2023 and commercial operation is expected in 2024.

David Absher, senior manager of environmental sustainability at Toyota Motor North America, emphasized the project’s significance in Toyota’s commitment to reducing its carbon footprint by making all its operations in North America carbon-neutral by 2035. The agreement exemplifies Toyota’s dedication to increasing its purchased renewable electricity to 45% or more of its total purchased electricity by 2025.

“The Martin County Solar Project in Kentucky is really special as an example of how renewable energy VPPAs can bring new opportunities to former coal and energy communities,” Absher said.

The project has received support from state officials and local leadership, solidifying its progress during development.

Once completed, the Martin County Solar Project is expected to be one of Kentucky’s largest solar energy generation facilities.

“The sun is shining a bit brighter in Kentucky today,” said Edelen.

‘Attention of the world’

State regulators approved the 2,541-acre solar farm for construction in Martin County in November 2021.

Edelen said at that time that the project would “bring the attention of the world.”

“This is a magnificent project,” he said. “It’s been described as the most iconic renewable energy project in the country. For it to be happening in the same county where Lyndon Johnson launched the War on Poverty is really a big story.”

The developer said the county needs to prepare for the opportunity.

The construction phase will last 12 to 18 months, employing 250-300 full-time workers with a direct payroll of $17.2 million. Approximately 2-4 full-time jobs will support operations after construction.

The total direct and indirect impact on Martin County is a new payroll of around $20.5 million during the construction phase. The direct and indirect impact for the state is an estimated $39.3 million payroll.

Edelen said Martin Countians would get the first preference for jobs.

Martin County Solar will pay a PILOT amount of $1,500 per MWac annually to Martin County, to be shared between the fiscal court and school district. It is the highest PILOT amount in the state, according to Edelen. The state will get a rate of $0.0015 per $100 of assessed value on both the manufacturing machinery and tangible personal property. This amounts to $9.3 million in combined PILOT and tax revenues to the county and state.

Kentucky Power Company’s substation on the Martiki Mine site. (Citizen photo by Roger Smith)

The facility will include 100,000 solar panels and interconnect to Kentucky Power Company’s substation located on-site. According to Edelen, the substation is what made the entirety of the site work.

“In the transmission world, this was described to me by a utility executive as the 10-lane interstate that runs through downtown Atlanta,” said Edelen. “There may not be another mine site in Appalachia that’s got this kind of internal capacity.”


Leave a Reply