Nov. 4--Voith Hydro in West Manchester Township is expected to benefit from a round of federal funding announced Wednesday morning at the plant by Kristina Johnson, U.S. undersecretary of energy.

Under the American Recovery Reinvestment Act of 2009, the government is directing $30.6 million toward hydropower initiatives. The money is being matched with another $117 million in private money, for a total investment of about $148 million, Johnson said.

The money will be used toward seven hydropower projects to modernize hydropower infrastructure, increase efficiency and reduce environmental impacts at existing facilities.

Among the projects are an Alcoa Inc. project in Robbinsville, N.C., for which Voith is building two turbines.

Voith had already started the project, but put the work on hold when Alcoa was searching for funding.

Alcoa received one of the government grants, and that will allow Voith to resume work on the project and retain about 40 jobs, said Voith CEO and president Mark Garner.

Alcoa will receive $13 million for the project, to replace four 90-year-old turbines with new high-efficiency turbines, generators, and transformers.

Johnson said she made the major funding announcement at Voith because it's "the heartland of hydro."

Addressing a crowd of hundreds of employees at the plant, she touted hydro power as a solution to the country's need for clean power.

Garner said hydropower is underutilized and sited industry studies that show the potential

for increased generation.

Voith was also instrumental in another large hydro project. PPL Corporation purchased the turbine generators for its expansion of Holtwood hydroelectric plant from Voith.

PPL announced Tuesday it has received approval by the Federal Energy Regulatory Commission to undergo the $440 million expansion, which will add enough renewable energy to power 100,000 typical homes.

The 125-megawatt increase in generating capacity will more than double Holtwood's existing generating capacity of 108 megawatts. FERC also extended the existing operating license for the plant through August 2030, according to PPL.

-----

To see more of The York Dispatch or to subscribe to the newspaper, go to http://www.yorkdispatch.com.

Copyright (c) 2009, The York Dispatch, Pa.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NYSE:AA, NYSE:PPL,

A service of YellowBrix, Inc.