Energy company gets $260M in tax credits to open Camden facility

Tax credits valued at $260 million over 10 years were approved by New Jersey state officials that will bring power plant supplier Holtec International and 395 jobs to Camden.

Evesham, N.J.-based Holtec will locate its greenfield manufacturing facility and design center for its modular nuclear reactor to Camden. It also plans to expand its current line of nuclear products, heat exchange equipment and older weldments for delivery to customers. Holtec will not generate, transport or store nuclear energy at the Camden facility.

CEO Krishna Singh narrowed the company's options to Camden and Charleston, S.C. for the project. Receiving the tax credits was key to the company’s decision to make a capital investment and select Camden, according to the New Jersey Economic Development Authority. New Jersey officials said Charleston would be a lower cost option without the tax credits.

Holtec will lease land from the South Jersey Port Corp. for land on the Camden waterfront and build a 600,000 square feet facility.

New Jersey officials estimated that the project would have a net benefit to the state of $155,520 over a 35 year period. The 395 jobs include 235 new jobs to Camden and 160 moving from Evesham.

This is the second deal that lured a business to Camden via tax credits in as many months. The Philadelphia 76ers were approved for $82 million in tax credits in June to build a new practice facility and headquarters on the waterfront.

South Jersey power broker George Norcross, executive chairman of insurance brokerage Connor Strong & Buckelew, serves on Holtec’s board of directors. Norcross’ brother, State Sen. Donald Norcross, co-sponsored a the Economic Opportunity Act of 2013, which created more incentives for companies to relocate to Camden.

According to the Associated Press, some Camden activists have said the $260 million cost is not worth the number of jobs the Holtec project will generate. Camden Mayor Dana Redd told the AP that she and New Jersey Gov. Chris Christie will detail a program next week to train Camden residents for the jobs that will be created under the Holtec deal.

Source: Philadelphia Business Journal