Story by Darrell Proctor | PowerMag.com | Officials in Pennsylvania have announced the redevelopment of a former coal-fired power plant site into a $10-billion-plus natural gas-powered data center campus, in what they call the largest capital investment project in that state’s history.
Homer City Redevelopment (HCR) and Kiewit Power Constructors on April 2 said the former Homer City Generating Station, which was the largest coal-fired power plant in the state, now will be home to a natural gas-fired facility with as much as 4.5 GW of power generation, which would be the largest gas-fired power station in the U.S. Officials said the Homer City Energy Campus will cover about 3,200 acres, with construction at the site expected to start this year.
Seven GE Vernova 7HA.02 hydrogen-enabled, gas-fired turbines will power the campus. The first equipment deliveries are expected next year. The 4.5-GW facility, once operational, would be the largest natural gas-fired power plant in the U.S., topping the 3,777-MW West County Energy Center in Palm Beach County, Florida.
Renderings of the project, available here, were released as part of Wednesday’s announcement.
“This project will honor Homer City’s place in the proud history of Pennsylvania energy generation, while accelerating the state and local community’s ability to meet the needs of a rapidly shifting energy landscape,” said William Wexler, president and CEO of HCR, a group created to lead redevelopment of the Homer City Generating Station site. The 2-GW Homer City coal plant, located about 50 miles east of Pittsburgh, first came online in 1969 and operated until decommissioned on July 1, 2023.
The Homer City coal plant was known both for being a major polluter and for its smokestacks, with the Unit 3 stack at 1,217 feet tall considered the tallest in the U.S.
“Alongside our best-in-class partners, we have been working tirelessly to ensure that Homer City’s transformation can happen as quickly and seamlessly as possible,” said Wexler. “Further, we are fully committed to maximizing the unprecedented level of economic opportunity this project represents not just for Indiana County, but for all of Pennsylvania and the Mid-Atlantic region of the country.”
Kiewit Will Serve as EPC
Kiewit will serve as the engineering, procurement, and construction (EPC) lead for the project. Officials on Wednesday noted that much of the critical infrastructure for the project is already in place from the legacy Homer City plant. That includes transmission lines serving power grids for both the PJM and NYISO territories, along with substations. The site also has water access.
Dave Flickinger, executive vice president of Kiewit Power Constructors, said, “Kiewit is excited to help advance what is poised to become the nation’s largest natural gas-powered plant. We’ve been pleased by how quickly all parties have worked to make this project shovel-ready, all while holding firm to the highest standards of safety and quality—principles we live by at Kiewit. We look forward to continuing our tradition of collaboration and moving with purpose as we enter the next phase on the ground.”
Plans to build a natural gas-fired power plant at the site were announced last year, part of Pennsylvania’s move to phase out coal-fired power and use more of the state’s own natural gas. Officials on Wednesday noted the site will use natural gas from the Marcellus Shale, the largest natural gas field in the U.S. More than half of Pennsylvania’s electricity is generated by natural gas-fired power plants, with more than three dozen operating in the state. Pennsylvania is the second-largest producer of natural gas in the U.S., behind only Texas.
Pennsylvania Phasing Out Coal
State officials have said all remaining coal-fired units in Pennsylvania are scheduled to be shut down, or converted to burn natural gas, by 2028.
Scott Strazik, CEO of GE Vernova, said, “We are honored to provide our U.S.-manufactured, highly efficient and advanced HA gas turbine technology and combined cycle equipment for the Homer City Energy Campus. This project demonstrates the best in what investing in power can do; more affordable and reliable energy for everyone, revitalizing local economic development benefits with thousands of skilled jobs and enabling Pennsylvania to help lead the future of AI.”
Officials said the redevelopment project, and its use of natural gas, would reduce greenhouse gas emissions by 60% to 65% per megawatt hour compared to the former coal plant. They said the campus will have enough power generation capacity to serve multiple large data center customers, and also supply power to the local grid for residential and other customers.
The project is expected to create more than 10,000 direct on-site construction-related jobs, along with about 1,000 total direct and indirect permanent positions in technology, operations and energy infrastructure, according to a news release. Officials on Wednesday said the project’s initial capital investment is expected to top $10 billion for power infrastructure and site readiness, with “billions more” expected from development of data centers at the site.
Knighthead Capital Management, a New York-based group, on behalf of certain entities it manages and advises, has had significant equity positions in Homer City for nearly eight years and will continue to lead project financing. Andrew Shannahan, a partner at Knighthead, said the group “is thrilled to be involved in the long-term development of the Homer City Energy Campus, which we believe will play a vital role in securing America’s AI [artificial intelligence] and energy capacity dominance. We have long recognized the unique value inherent in Homer City’s infrastructure and power generation attributes, and we look forward to working closely with all of the local and national stakeholders that will play essential roles in making this vision a reality.”
—Darrell Proctor is a senior editor for POWER.
