Gov. Mike Parson’s veto of an $8.5 million no-interest loan to an aluminum smelter company last week highlights the challenges Southeast Missouri manufacturing firms are facing, according to an environmental activist.
Located in Marston, Magnitude 7 Metals has been in business since 2018 and reportedly employs 500 residents.
“The high energy bills, not to mention some of the environmental regulations they're facing put them at some financial peril,” said James Owen, president of Renew Missouri, a non-profit committed to the development of clean energy access. “That means jobs are at risk as well as economic benefits from that plant.”
The 501(c)(3) has been touting the need for Missouri’s utilities to play a strong role in economic development statewide because companies like Magnitude 7 Metals are allegedly strained financially due to excessive utility bills.
“On face value, I think Gov. Parson believes that giving a loan to an individual company violates the state constitution but there is a desire for the aluminum smelting industry to become more reliant on renewable energy,” Owen told the St. Louis Record. “That's an industry goal.”
Renew Missouri is calling on the state’s Rural Electric Cooperatives (RECs) to step in to provide relief to Magnitude 7 Metals and other companies in the region.
“They could take advantage of some of this money that's available from the Inflation Reduction Act and use that to help deliver cheap clean power to that plant and hopefully help lessen their utility bill, which would give them some relief,” Owen said in an interview.
The Inflation Reduction Act (IRA) includes funding programs such as the Empowering Rural America (ERA) and the Powering Affordable Clean Energy (PACE) program through the U.S. Department of Agriculture.
“The New ERA and PACE programs provide a great opportunity for rural communities such as Southeast Missouri,” Owen said. “The funding is out there that will allow Associated Electric Cooperative to provide cheap, clean power to this manufacturer in Southeast Missouri. It is funding provided by the IRA and there’s no reason to not take advantage of it.”
However, the application deadline is Aug. 31 and requires a letter of interest to be considered for funding.
“Applications for the PACE program can be submitted as early as today,” Owen added. “The key is applying for funding under the IRA. Associated Electric, for example, can use the money from the New ERA program to buy clean power while retiring their old, dilapidated coal plants in order to sell power directly to a customer like M7M. Member-owners of Missouri’s RECs can call their general manager or their Board of Director members and tell them to sign up for New ERA and PACE funding.”