The Walker County Commission recently approved an incentive package for Ingka Investments, a company looking to build three to five solar farms in the southern part of the county. The incentive package for what’s known as Project Helios included a 20-year abatement of non-educational property taxes and a reduction of sale tax during construction.
For three farms, the company’s investment would be $525 million. Two more farms could bring the investment to more than $800 million.
“Ingka Investments is constantly looking for new opportunities to increase our renewable energy production to help reduce the footprint of Ingka Group, its value chain partners, or its customers,” said a spokesperson for the company. “Our Walker County projects are early-stage developments but have the potential to advance our wider commitment to secure long-term access to renewable energy that can help to further reduce our footprint and improve our renewable energy production.”
“Final investment decisions will be taken only in 2025 following further technical design and development activities. We look forward to continuing to work closely and constructively with local officials as we progress these plans,” added the spokesperson.
The company would still pay the county’s 10-mill property tax for education. Walker County Schools is estimated to see $20 million in revenue from the project throughout the first 20 years. For the life of the 35-year project, the district could see an estimated $28 million.
The construction phase of the project could also provide an economic boost. Each site would be built one at a time. It takes eight to 12 months to complete a site.
Hundreds of construction workers would be needed.
“I’m sure that they will have people come with them from their company but local people will be employed. They’ll use private companies here that can help in the building process of these things. That’s going to be a boost,” said Jeff Burrough, Walker County District 2 Commissioner “Of course, they’ll have to buy supplies and spend money, stay in hotels while this process is going on. It is going to be a huge benefit to people around here that’s actually constructing the solar farms.”
The company owns 12,000 acres in unincorporated Walker County. The land falls into Commission District 2.
“It’s sort of a triangle-type area between Corona, Oakman, and Townley is where most of the property is,” said Burrough.
It’s unclear exactly where the 500-acre farms will go in that area, but all of the land is previously strip-mined property.
“If you live in Walker County, you’ve been affected by the coal industry at some point in time in your whole life. Our tax base structure was based on coal taxes for so many years. We’re proud of the coal industry because it has provided for many families here in Walker County,” said Burrough. “As time passes, new energies come along and I think it’s exciting that they can take these old mine properties and turn them around.”
David Knight, Executive Director of the Walker County Development Authority, was unable to directly speak to Project Helios due to a non-disclosure agreement, but said growth across the county is promising, from the automotive sector to the multi-use property of Heritage Landing.
“Over the last 10 years, we’ve seen more opportunity for development in Walker County than the previous 20 in part due to the completion of I-22 which was finally connected in with I-65 in 2016. That really opened the door for us for a lot of projects that we would not have had the opportunity to present information to previously,” said Knight.
Diversity in industry is crucial to securing the future of the local economy.
“We’ve been successful with the automotive sector, but we definitely want to make sure that we continue to diversify our industrial prospects. If there is ever a hit in any one sector, it doesn’t hurt quite as bad as if you have all your eggs in one basket,” said Knight. “When you have dips in certain sectors, whether it be coal mining, textile apparel, or whatever. If that is where all of your investment is, it is going to hurt really badly when those sectors have a decrease. Being able to diversify and have different types of industrial companies, and manufacturing. We hope to be able to get into warehouse distribution. We’ve had recent success in some wood products industries as well. That’s all part of trying to secure the economy moving forward.”
He added the development authority is in the process of identifying significant tracts of land for industrial use in the same area around Heritage Landing.
Alabama Secretary of Commerce, Greg Canfield, was also limited in what he could say regarding Project Helios. The Department of Commerce has not finalized a State incentive offer for the use of tax abatements at this time.
However, Canfield said the State is supportive of the solar energy production project.
Each site is an 80-megawatt project and the energy would be sold to Alabama Power.
