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FOR IMMEDIATE RELEASE: September 25, 2003

SCHUMER, CLINTON SECURE $17.5 MILLION FOR CAPITAL REGION AREA PROJECTS

$3 million will go to Watervliet BAE Systems for the production of top-of-the-line canon, the XM777 Lightweight 155mm Howitzer , and is expected to create up to 40 new jobs

$3.5 million will go to Arsenal Support Program Initiative that attracts private business and jobs to Watervliet facility (funding goes to 3 different arsenals); $2 million in additional Watervliet projects; $6.5 million for Plug Power; $2.5m for Albany Nanotech

US Senators Charles Schumer and Hillary Rodham Clinton today announced that Congress has given final approval for $17.45 million for defense projects in the Capital Region, including $8.5 million for Watervliet-related projects, $6.5 million for Plug Power, and $2.5 million for Albany Nanotech. The joint House-Senate conference report has been passed by Congress and now just awaits the President's signature.

“The Watervliet facility is one of the Capital Region’s best kept secrets, just waiting for private investment. Like the new cannon, the Arsenal Support Program Initiative is sure to bring jobs to the facility and give a much needed boost to the local economy," Schumer said.

"As a member of the Senate Armed Services Committee, I am so pleased to announce these funds for federal programs to benefit the Watervliet Arsenal, they represent an investment in both the arsenal and the capital region" said Senator Clinton. "Now more than ever we must continue our support for important defense programs like this one with roots in Upstate New York. I am proud to stand behind Watervliet because it has always stood behind America's military."

Schumer and Clinton said the funding breaks down as follows:

• $3 million for the manufacture of the XM777 Lightweight155mm Howitzer. The new canon will provide the US military with an important equipment upgrade because it will replace the current M198 canon which is 25 years old and increasingly unable to meet the needs of current combat conditions. In addition its manufacture is believed to involve 35-40 jobs.

The Watervliet Arsenal is the oldest active manufacturing arsenal in the United States and produces thick-and thin-walled cannon, howitzers and mortars.

• $3.5 million for Arsenal Support Program Initiative. ASPI has received consistent support over the past two years as a result of the Senators’ efforts. The purpose of the ASPI is to help maintain the viability of Army manufacturing arsenals and the unique capabilities of these arsenals in supporting the national security interests of the United States. ASPI funds are used by the arsenal to market its unused space – and its potential – to private contractors. In Watervliet's case, this program would help the arsenal get companies to set up shop in its vacated buildings, bringing significant new investment to the Capital Region. Last year, Hartchrom Inc decided to set up shop in the Arsenal as a result of ASPI’s efforts.

• $450,000 for Watervliet Homeland Security Incubator. With the provided funding, a feasibility study will be conducted to identify a market for utilizing the excess capacity of the U.S. Army Watervliet Arsenal into a secure facility to incubate, prototype and test National Security and Homeland Defense related technologies. The feasibility study would include the hiring of an industry consultant, development of research survey as to the viability of the site and a scan of the marketplace and identification of potential industry sectors.

• $1.5 million for Watervliet MILPARTS. Funding for this program will establish an advanced center for laser data acquisition and reverse engineering to leverage the Army Watervliet solid model creation capability to reengineer military parts. Because of increased military readiness and deployment, the U.S. military is facing a significant increase in demand for parts for military equipment. As a result, the United States Army has experienced a lack of availability of replacement parts to support vital military weapon systems.

• $2.5 million for Cryo-Power for the All Electric Ship at Albany Nanotech. This project will demonstrate the effectiveness and integration of cryogenically cooled power semiconductor devices used by the US Navy. This program will develop self-contained, compact, commercial power semiconductor modules that operate at temperatures as low as that of liquid nitrogen (77K). The goal is to enhance power electronics by employing cryogenic cooling to improve device speed, and component reliability.

The technology will be deployed in the US Navy’s All-Electric Ship concept that is expected to revolutionize the Navy’s war fighting capabilities by improving combat effectiveness while reducing operational costs and crew size. The primary reason for developing Cryo-Power is the extraordinary efficiency and power densities that can be realized. The potential benefits of an all-electric ship include improve fuel efficiency, flexible design ability, reduced internal volume and improved signatures.

• $4 million for Common Core Power Production. The Plug Power program, which will receive a large portion of the funds, will develop a modular fuel cell architecture that comes in a variety of sizes, creating fuel cells that can operate in different settings and equipment. The military will use the technology to provide energy for bases used in forward troop deployment, airplane and boat refueling, and other sea port and air field applications.

The expandable modular architecture will also allow engineers to design equipment with varying power demands that are based on a fuel cell power source that is more efficient, clean and reliable than a traditional power supply. As a result, modular fuel cell architecture is likely to increase the use of fuel cells in both military and civilian applications.

• $2.5 million for PEM Fuel Cell Demonstration. Proton Exchange Membrane (PEM) fuel cell systems produce electricity by operating on hydrocarbon fuels such as natural gas, propane, and other types of hydrogen-rich fuel while producing nearly zero emissions of pollutants such as nitrogen oxide and sulfur dioxide. Plug Power has traditionally received the bulk of the funding allocated to contractors by the Department of Defense under this program. The program furthers the development of this new, cost-saving technology, bringing it closer to being ready for general consumer use. This fuel cell system technology could reduce future dependence on traditional energy in an environmentally-friendly way.

"Fuel cells are the wave of the future - efficient, clean and reliable," Schumer said. "This funding will ensure that our military is at the cutting edge of new energy development and will undoubtedly have a positive impact on developing new ways for civilians to use fuel cells. It’s also a great boost for the Capital Region economy and another example of how the region has become the nation’s hub in the development of alternative energy technology."

“I support increased support and funding for fuel cell technologies like the ones being developed at Plug Power because I believe it is good for the environment and good for the economy - specifically, the economy of upstate New York, where we have a lot of fascinating, cutting-edge work going on with fuel cells both in private industry and at our academic institutions,” Senator Clinton said. “By moving towards new technologies like fuel cells, we can improve our energy efficiency, ensure our energy security and create jobs in places like Upstate New York.”

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