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Released July 15, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Natural gas is enjoying slightly higher prices in 2025 when compared with previous years, but it remains much less expensive than most of its competing energy resources. That's no doubt a reason why the Midwest, which is expected to see more coal-fired power plant retirements than any other U.S. region, is looking at a promising slate of gas-fired capacity additions in the near term. Industrial Info is tracking about $13 billion worth of active and proposed gas-fired power-generation capacity additions across the U.S. Midwest region, which includes Iowa, Kansas, Minnesota, Missouri, North Dakota, Nebraska and South Dakota.
Click on the image at right for a graph detailing the top 10 parent entities for gas-fired power-generation capacity additions across the U.S. Midwest region, by total active and proposed investment.
Natural gas prices averaged $2.21 per million British thermal units in 2024, which was the lowest on record when adjusted for inflation, according to the U.S. Energy Information Administration (EIA). That makes gas the most popular candidate to replace the 10 gigawatts (GW) of coal-fired generation projected to close by the end of 2028, according to the EIA.
Nebraska has emerged as a top destination for data-center developers, boosted by its centralized location, ample workforce and generous tax incentives. Omaha Public Power District (OPPD) announced last year it would respond to the unprecedented growth in power-generation demand by adding nearly 2.5 GW of generation over the next decade, including 900 megawatts (MW) of simple-cycle gas generation with fuel-oil backup. One such project, the $350 million Standing Bear Lake Power Station in Omaha, is preparing to begin full-scale operations this fall.
OPPD also plans to add 225 MW of capacity to its 450-MW Turtle Creek Power Station in Springfield, which is just southwest of Omaha, in a $240 million expansion slated to begin construction this summer. Mick Spencer, the chief operating officer for Nebraska Public Power District, recently told Nebraska Public Media that using natural gas as a primary fuel "is pretty much the sole alternative at this point, from a practical standpoint," given its low cost and the legal hurdles associated with new coal or nuclear capacity.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can detailed reports on the Standing Bear and Turtle Creek projects. OPPD also offered updates earlier this year on both projects; for more information, see February 5, 2025, article - OPPD's Standing Bear Lake Station Tuning SCRs in Pre-Startup Phase, and February 4, 2025, article - OPPD's 450-MW Turtle Creek Final Milestones Underway.
Other projects nearing completion include Xcel Energy Incorporated's (Minneapolis, Minnesota) 27-MW, $115 million addition to its Blue Lake Power Station in Shakopee, Minnesota, which is just southwest of Minneapolis. Xcel is adding a trio of Wartsila's (Helsinki, Finland) dual-fuel reciprocating engines, each with a 9-MW capacity, to the 559-MW facility.
Wartsila also is providing five such engines for Xcel's $280 million repowering of the Wheaton Generation Station in Eau Claire, Wisconsin, as well as an F-Class combustion turbine generator, which will add 45 MW to the 255-MW facility. The project is slated to wrap up in the fourth quarter. Subscribers can read detailed reports on the Blue Lake and Wheaton projects.
Bob Frenzel, the chief executive officer of Xcel, echoed many of his industry peers in the company's most recent quarterly earnings-related conference call, when he pointed to "an unprecedented period" of demand growth on the horizon: "We see increased electric demand from the oil and gas sector. We see demand from residential customer growth, [electric vehicle] adoption and beneficial electrification across our service territories. We see demand from data centers in Texas, Colorado, Wisconsin and Minnesota. And in the medium-term, we expect to see continued trends towards electrification, as well as re-onshoring, as potential outcomes of federal actions."
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed reports for active and proposed gas-fired power-generation capacity additions across the U.S. Midwest region.
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) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing the top 10 parent entities for gas-fired power-generation capacity additions across the U.S. Midwest region, by total active and proposed investment.Natural gas prices averaged $2.21 per million British thermal units in 2024, which was the lowest on record when adjusted for inflation, according to the U.S. Energy Information Administration (EIA). That makes gas the most popular candidate to replace the 10 gigawatts (GW) of coal-fired generation projected to close by the end of 2028, according to the EIA.
Nebraska has emerged as a top destination for data-center developers, boosted by its centralized location, ample workforce and generous tax incentives. Omaha Public Power District (OPPD) announced last year it would respond to the unprecedented growth in power-generation demand by adding nearly 2.5 GW of generation over the next decade, including 900 megawatts (MW) of simple-cycle gas generation with fuel-oil backup. One such project, the $350 million Standing Bear Lake Power Station in Omaha, is preparing to begin full-scale operations this fall.
OPPD also plans to add 225 MW of capacity to its 450-MW Turtle Creek Power Station in Springfield, which is just southwest of Omaha, in a $240 million expansion slated to begin construction this summer. Mick Spencer, the chief operating officer for Nebraska Public Power District, recently told Nebraska Public Media that using natural gas as a primary fuel "is pretty much the sole alternative at this point, from a practical standpoint," given its low cost and the legal hurdles associated with new coal or nuclear capacity.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can detailed reports on the Standing Bear and Turtle Creek projects. OPPD also offered updates earlier this year on both projects; for more information, see February 5, 2025, article - OPPD's Standing Bear Lake Station Tuning SCRs in Pre-Startup Phase, and February 4, 2025, article - OPPD's 450-MW Turtle Creek Final Milestones Underway.
Other projects nearing completion include Xcel Energy Incorporated's (Minneapolis, Minnesota) 27-MW, $115 million addition to its Blue Lake Power Station in Shakopee, Minnesota, which is just southwest of Minneapolis. Xcel is adding a trio of Wartsila's (Helsinki, Finland) dual-fuel reciprocating engines, each with a 9-MW capacity, to the 559-MW facility.
Wartsila also is providing five such engines for Xcel's $280 million repowering of the Wheaton Generation Station in Eau Claire, Wisconsin, as well as an F-Class combustion turbine generator, which will add 45 MW to the 255-MW facility. The project is slated to wrap up in the fourth quarter. Subscribers can read detailed reports on the Blue Lake and Wheaton projects.
Bob Frenzel, the chief executive officer of Xcel, echoed many of his industry peers in the company's most recent quarterly earnings-related conference call, when he pointed to "an unprecedented period" of demand growth on the horizon: "We see increased electric demand from the oil and gas sector. We see demand from residential customer growth, [electric vehicle] adoption and beneficial electrification across our service territories. We see demand from data centers in Texas, Colorado, Wisconsin and Minnesota. And in the medium-term, we expect to see continued trends towards electrification, as well as re-onshoring, as potential outcomes of federal actions."
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed reports for active and proposed gas-fired power-generation capacity additions across the U.S. Midwest region.
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) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
