U.S. Coal-to-Gas Power Conversions Line Up

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

U.S. power companies are making plans to convert coal-fired units to burn natural gas for a variety of reasons.

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Conversions on the Books

With natural gas prices on the rise and environmental regulations being struck down with some consistency, U.S. power plant owners may be second-guessing their decisions to convert coal-fired boilers to burn natural gas. Nevertheless, a handful of these projects are underway across the country, with dozens more on the books for the future.

Utilities are choosing to convert their coal-fired boilers for a number of reasons--largely to either keep up with federal, state or company environmental goals and regulations, or also to simply replace aging, outdated equipment. Often, the projects kill two or more birds with one stone. Boiler conversions are generally much cheaper that sourcing new gas turbines, which are facing a U.S. supply crunch.

Current & Future Conversion Projects

The largest current coal-to-gas conversion in the U.S. affects more than 1 gigawatt of power and comes from AES Corporation, which is underway with the conversion of units 3 and 4 at its Petersburg Generating Station in Indiana. Units 3 and 4 have a combined generating capacity of around 1,148 megawatts (MW). The conversion is expected to be completed by the end of this year. Readers can access details of the project, including construction timelines, key contact details, and equipment and service needs, by clicking here.

Two more units could be on the conversion block later this year if the Omaha Public Power District in Nebraska carries through with plans to transition the boilers of units 4 and 5 (GE Alstom and Wood Foster equipment) to burn natural gas. The conversions would affect more than 340 MW of power and could be finished by next summer if started as expected.

Around 1,300 MW will be affected if Duke Energy Corporation carries through with plans to convert the coal-fired units 3 and 4 at its Marshall Power Station in Terrell, North Carolina, a process which could kick off later this year.

Even more U.S. coal-to-gas conversions are on the books to kick off next year and further into the future, although not all of these will occur as planned for a variety of a reasons, including supply chain issues, the lifting of environmental regulations, and as companies simply change plans.

Worth mentioning is the East Kentucky Power Cooperative (EKPC), which has plans to next year begin the conversion of two coal-fired units at its H. L. Spurlock Power Station in Maysville, Kentucky, followed by a third unit at the plant in 2028, representing more than 1,200 MW of combined power. EKPC also is making plans to convert the Unit 2 Babcock & Wilcox boiler at its John Sherman Cooper Power Station in Somerset into a dual-fueled coal-and-gas-capable unit starting in 2028.

A dilemma worth noting pits the Trump administration against TransAlta Corporation. TransAlta would like to convert the coal-fired Unit 2 to burn gas at its Centralia plant in southwestern Washington state. However, in December 2025, days before the unit was set to retire, the U.S. Department of Energy ordered the coal-fired unit to continue operating and has subsequently renewed that order to account for further 90-day periods, so that it is currently ordered to remain operating into September of this year, which could lead to further subsequent extensions. Industrial Info Resources estimates the conversion of the 700-MW Unit 2 from coal to gas could keep the unit offline for more than 18 months and also would bring with it a cooling tower replacement. Centralia Unit 2 is the last remaining coal-fired unit in Washington state.

Key Takeaways

• While only a handful of coal-to-natural gas conversions at U.S. power stations are underway, dozens more are on the books.
• Not all of these projects will move forward as planned as companies encounter planning and permitting issues or simply change their plans.
• One of the largest conversion projects underway at the moment comes from AES Corporation for two units at its Petersburg Generating Station in Indiana.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).