FRANKFORT, Ky. — Gov. Andy Beshear, D-Ky., announced the approval of an up-to-$81 million federal grant to construct a first-of-its-kind $1.3 billion hydropower facility in Bell County. Dubbed the Lewis Ridge Pumped Storage Project, it will create about 1,500 construction jobs, 30 operation jobs and enough energy to power nearly 67,000 homes each year, according to the governor’s office.

The U.S. Department of Energy’s Clean Energy Demonstration Program and Former Mine Land grant, funded through the Bipartisan Infrastructure Law, was approved for Rye Development to transition the former coal mine site, located next to the Cumberland River, to a pumped-storage hydroelectric facility.

“We are so proud to support a project that builds on the region’s strong energy-producing history while creating those 1,530 good jobs that will help power the next generation,” said Beshear.

“President Biden believes that the communities that have powered our nation for the past 100 years should power our nation for the next 100 years,” said U.S. Secretary of Energy Jennifer M. Granholm. “Thanks to the President’s Investing in America agenda, DOE is helping deploy clean energy solutions on current and former mine land across the country—supporting jobs and economic development in the areas hit hardest by our evolving energy landscape.” 

Rye Development has been engaging stakeholders since 2022 in the region to build support for the project, resulting in a partnership with Shaping Our Appalachian Region, one of Kentucky’s six regional innovation hubs. Rye and SOAR plan to prioritize local hiring through partnerships with several unions, the Southeast Kentucky Community & Technical College, and by providing an apprenticeship program and other workforce training activities.

The governor’s office said the Lewis Ridge Project is the type of infrastructure project envisioned by Beshear’s overall energy strategy. Facilities like the one planned for the project are the most common form of energy storage in the U.S., representing 93% of all “utility-scale” storage. The project has the potential to produce up to eight hours of dispatchable power when needed, such as times of peak demand or during extreme weather events.

Rye Development specializes in hydropower development in the U.S. and has created energy infrastructure projects across the country.

“Just as we are leading the EV revolution, Kentucky can also lead the energy storage revolution,” the governor said. “Our economy is gaining momentum like we’ve never seen before, and the energy industry is a big part of it.”

Kentucky’s energy sector currently employs over 150,000 workers.