Revitalizing Homer City: Transitioning from Coal to Gas to Power Data Centers
Key Ideas
  • Homer City Redevelopment and Kiewit Power Constructors plan to build a 4.5 GW gas-fired generation plant on the site of a retired coal power plant in Pennsylvania.
  • The $10 billion project, expected to start operating in 2027, will utilize hydrogen-enabled gas turbines supplied by GE Vernova, reducing greenhouse gas emissions by 60% per MWh compared to the previous coal plant.
  • The power plant will support a planned data center campus and provide electricity to local homes, with fuel supplied from the Texas Eastern gas pipeline system.
  • The project is backed by Knighthead Capital Management and aims to address the increasing power demands from data centers, expected to consume 6.7% to 12% of U.S. electricity by 2028.
Homer City Redevelopment (HCR) and Kiewit Power Constructors have announced plans to repurpose the former Homer City coal-fired power plant in Burrell Township, Pennsylvania, by constructing a 4.5 GW gas-fired generation facility. The $10 billion project is set to commence operations by 2027 and will cater to a new data center campus. GE Vernova will supply hydrogen-enabled gas turbines for the plant, resulting in a 60% reduction in greenhouse gas emissions per MWh compared to the previous coal plant. The plant, positioned about 50 miles east of Pittsburgh, will interconnect with the PJM Interconnection and New York Independent System Operator grids. It will be the largest gas-fired power plant in the U.S. and receive fuel from the nearby Texas Eastern gas pipeline system. The construction of an interconnection between the plant and the pipeline is supported by a $5 million state grant received by HCR. Apart from serving data centers, the power plant aims to provide electricity to local homes. The project is financially backed by Knighthead Capital Management and is a response to the escalating power demands driven by data centers. Analysts predict that data centers could consume 6.7% to 12% of U.S. electricity by 2028, emphasizing the need for such infrastructure developments. The initiative aligns with efforts from the Federal Energy Regulatory Commission (FERC) to establish policies for colocating data centers at power plants within the PJM region. As data center power demands continue to rise, the project at Homer City signifies a shift towards greener technology and a substantial investment in meeting future electricity needs.
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