The towns of Saugerties and Hurley have become focal points in one of the Catskills’ most divisive debates: whether lithium-ion battery storage projects are necessary, and whether they are safe.
The issue was front and center again this week. In Saugerties, officials held a nearly three-hour presentation and question-and-answer session on battery energy storage systems, known as BESS, during the monthly Town Board meeting. The event was attended by more than 100 people. In Hurley, the Town Board voted to extend its moratorium on such projects.
Albany-based Key Capture Energy is scheduled to appear before the Saugerties Planning Board this week with a proposal to build a storage facility on a 60-acre parcel adjacent to a Central Hudson substation off Tomson Road. The project would house 110 lithium-ion battery containers.
Since September, when Gov. Kathy Hochul directed state agencies to accelerate renewable energy development, municipalities have wrestled with how to balance safety concerns about BESS projects with state mandates to reduce reliance on fossil fuels. That tension framed Wednesday’s discussion in Saugerties.
Opposition to battery storage facilities has intensified after a series of fires at similar sites nationwide, raising concerns about environmental damage and emergency response.
Jeff Seidman, who teaches philosophy and environmental studies at Vassar College, joined Ian Latimer of the New York State Energy Research and Development Authority and Paul Rogers, a retired New York City firefighter who consults for the energy firm ERSG, in presenting to the board. The panel argued that safety risks have been overstated and that battery storage is critical to stabilizing the state’s electric grid.
“We are lighting gas and oil on fire every single day and we are breathing that in every single day,” Seidman said. “It’s not like we have this pristine, safe status quo. Batteries are a way to stop that.”
Seidman described safety concerns as “grossly overblown” and said battery storage projects could reduce pricing volatility tied to natural gas and other fossil fuels.
Energy customers in the Hudson Valley pay an average of about $27 per megawatt-hour, he said — more than double rates in parts of western New York, where battery storage is more common. In June 2025, when temperatures approached 100 degrees and demand peaked, prices rose to $2,500 per megawatt-hour, he said. Those costs are passed on to residents through monthly electric bills.
“This is a real pain for many families,” Seidman said.
Skepticism remains strong.
A petition circulated by Saugerties residents calling for a ban on all BESS projects had 175 signatures as of Thursday. The petition cites concerns about fire and explosion risks, environmental impacts, and effects on property values and community character.
Rogers, the former NYC firefighter, agreed with Seidman’s assessment that safety concerns surrounding BESS projects were exaggerated. He said that despite reports to the contrary, the recent fire at a Warwick battery storage facility – the second at the site in three years – burned out in less than six hours and had no major environmental impact. He added that the facility was not up to current fire codes, while stressing that the fire remained contained and “went exactly as they are supposed.”
According to Cleanview, an organization that monitors energy projects in New York, 51 utility-scale battery storage facilities exist across the state. The largest is a 25-megawatt plant in Wyoming, N.Y.
In August, the Hurley Town Board passed a six-month moratorium on lithium-ion battery storage projects after a 250-megawatt facility was proposed in the neighboring town of Ulster. The $250 million project brought by San Diego-based Terra-Gen would be built at the former site of John A. Coleman Catholic High School – a location that sits in a corner of Ulster that borders Hurley and Kingston. The proposal is still under review with a public hearing scheduled for Feb. 23.
Hurley officials on Tuesday voted to extend the moratorium for another six months. Additionally, the board scheduled a public hearing on a potential BESS ban for its Feb. 24 meeting.
More than two dozen communities statewide have slowed or halted development of such facilities, citing safety and environmental risks. Opponents have cited a spate of lithium-ion battery fires nationwide in recent years. In addition to Warwick, fires have been reported in Missouri, California, Wisconsin, and Arizona, where noxious fumes unsettled residents. Lithium-ion battery fires are notoriously difficult to extinguish because damaged and overheated cells can reignite repeatedly, even after flames seem to be under control.
Saugerties Supervisor Fred Costello said he thought Wednesday’s presentation created a “useful dialogue”.
“I have heard this presentation three times now and I have learned new things every time,” Costello said in an interview after the meeting. He added that while residents’ concerns are legitimate, he feels there is a “component of white noise” that muddles the clear need to find alternatives to burning fossil fuels.
“We have to be thoughtful about how we handle these things and I think we got a better understanding of why these are viable alternatives,” Costello said. “I think we can all agree fossil fuels are not in our long-term interest.”
Jim Rich is a senior reporter for The Overlook. You can reach him at jim@theoverlooknews.com.