100-megawatt battery storage facility proposed in Saugerties
A public information session will be held on Thursday, February 5, 2026 between 5:30 and 8pm at the Saugerties United Methodist Church, 67 Washington Avenue.
After officials issue a six-month moratorium on lithium-ion battery storage facilities in Hurley, and multiple fires condemn a site and leads to air quality monitoring around the town’s little league park in Warwick, details on another proposed battery energy storage facility in the Hudson Valley will be presented in Saugerties this week.
KCE NY 34 is a proposed 100-megawatt battery energy storage system (BESS) with 110 battery storage containers situated on 11-acres on a currently-vacant lot behind the McDonald’s near the Thruway interchange in the Town of Saugerties, and adjacent to a Central Hudson substation, a critical site component. The site is 0.3-miles from Cantine Field, home of the popular Hudson Valley Garlic Festival, among many other events, and 0.8-miles from Saugerties High School.
In 2024, Key Capture Energy (KCE), which operates the largest battery energy storage facility in New York State, just outside of Buffalo, signed a lease for the property at 7 Tomsons Road in Saugerties. According to the company, permits were submitted to the town in the last quarter of 2025. Following an approval process and construction, KCE NY 34 is projected to go online in November of 2029.
According to KCE, the project will support 20-40 union jobs during construction and “is expected to provide millions of dollars in anticipated taxes to support the local community.”
KCE will host a public information session on Thursday, February 5, 2026 between 5:30 and 8pm at the Saugerties United Methodist Church, located at 67 Washington Avenue in the Village of Saugerites. Representatives from KCE will share details about the project, safety measures, timelines, and will answer questions from residents.
To store electricity, stabilize and offset the expanding energy grid, lithium-ion battery storage facilities are popping up across the country to meet electric demands while “supporting the transition to a grid powered by renewable energy,” KCE says. Public concerns, though, surround the dangerous fire potential at a BESS – lithium-ion battery fires cannot be extinguished with water and are typically allowed to burn out – and the lasting impacts on surrounding communities.
KCE recognizes that “fire suppression is rarely effective with Li-ion batteries,” and says the current industry practice combines explosion prevention with fire containment. “This approach avoids the possibility of contaminated runoff while eliminating risks associated with stranded energy and re-ignition.”
In addition to 24/7/365 “remote site monitoring and system turn off,” as part of its proposal, KCE would meet and help train local first responders emergency personnel to assist with suppression and air monitoring efforts after a fire.
Following the public information session from the company’s representatives on February 5, KCE is expected to be presenting its application to the Town Planning Board during its planned February 17, 2026 meeting. Additional public information sessions are expected, according to town officials.
Images from KCE showing similarly-sized projects in New York and Texas. https://keycaptureenergy.com/kceny34/
Warwick BESS now condemned and disconnected after fire
A lithium-ion storage facility in the Village of Warwick operated by Orange and Rockland Utilities (O&R) partner, Convergent Energy and Power, was condemned in December of 2025 after the second fire at a BESS on Church Street.
While the fire was confined to one container unit, air monitoring continues around the facility, which includes the area of Warwick Little League Park. The system has been disconnected from the power grid, internally disengaged, and tarped, according to officials, and battery removal was expected to begin the week of January 20, 2026. An environmental team will also be testing water, soil and hard surfaces.
After a meeting with representatives on January 14, 2026, Warwick officials said “O&R emphasized adherence to standardized regulatory processes,” but the meeting also “revealed significant gaps in transparency, accountability, and municipal coordination. O&R declined to provide RFP submissions and their contract with Convergent, citing commercial sensitivity, and questioned the need for disclosure.”
O&R confirmed “that there is no formal process to notify municipalities when systems are energized and that they do not independently verify municipal Certificates of Compliance prior to issuing permission to operate.”
State representatives find ‘no safety flags’ for Hurley site
In the fall of 2025, after residents raised their concerns for the proposed 250MW Terra-Gen energy storage project at the former Coleman Catholic High School in Hurley, New York State Assemblymember Sarahana Shrestha and Senator Michelle Hinchey, who represent the Town of Ulster, the Town of Hurley, and the City of Kingston, said they found “no safety flags” with the project, touting it as an opportunity to get away from fossil fuels.
“If we cannot get enough storage facilities running, the alternative is to build modular nuclear facilities or fracked gas pipelines across the state, which are significantly worse options,” the reps said in a joint statement.
“If we are to truly confront the climate crisis, we must step forward with open minds and make decisions grounded in facts,” Hinchey added. ”And the fact is that New York and America have been late to the game when it comes to renewable energy infrastructure, including battery storage. These are investments we need. That said, above all else, we must ensure that these projects demonstrate that they are safe for the communities in which they are sited.”
In September of 2025, the Town of Hurley voted to adopt a six month moratorium on the construction of any energy storage facilities.
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