Reports related to this article:
Project(s): View 1 related project in PECWeb
Plant(s): View 1 related plant in PECWeb
Released May 12, 2025 | SUGAR LAND
en
Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--Investing $10 billion to convert what was Pennsylvania's largest coal-fired power plant to what will be the U.S.' largest natural gas-fired power plant is the plan of Homer City Redevelopment (HCR). Work will be done by engineering, procurement and construction (EPC) firm Kiewit Corporation (Lenexa, Kansas).
The Homer City Generation Plant is progressing through the permitting and authorization for expenditure (AFE) process. The plant may produce its first electricity in fourth-quarter 2027, but it could be years before it reaches its full 4.5-gigawatt (GW) capacity. The coal-fired plant closed in mid-2023. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project and Plant databases can click here for the project report and click here for the plant profile.
When completed, the project will be a natural gas-powered data center campus of more than 3,200-acres, according to a statement by HCR and Kiewit. The campus will support "AI-driven hyperscale data centers, while reducing greenhouse gas emissions by 60-65% per megawatt hour compared to the former coal plant," said the statement.
It added that the 4.5-GW capacity will also be enough to power thousands of area homes.
In addition to the first $10 billion, developers are expecting further data center development to inject billions more. That would make the Homer plant the largest investment of this type in the state's history, the company said.
Generation will be powered by seven high-efficiency hydrogen-enabled gas-fired turbines, which means it will be ready for any future conversion to hydrogen. For now, it will burn natural gas produced in the nearby Marcellus Shale.
According to Industrial Info data, Natural gas will be supplied with fuel from the Texas Eastern gas pipeline system (TETCO). HCR received a $5 million state grant to support construction of an interconnection between the generating station and the pipeline, which is about five miles away. There are three lines running east-west between Blairsville and Black Lick, Pennsylvania. The proposed route will start from the Texas Eastern at the Delmont-Armagh pipeline segment in Blairsville, to traverse north to the Homer City Generating Station.
First delivery of turbines is slated for 2026. Much of the critical infrastructure needed for generation and delivery of power is already in place, a legacy from the plant's coal-fired history. It is already connected to the PJM and NYISO power grids, substations, and water access.
Construction is expected to commence later in 2025.
PJM, which is a regional transmission organization (RTO) and independent system operator (ISO), manages the electric grid for 13 eastern U.S. states and the District of Columbia. PJM is awaiting a decision by the Federal Energy Regulatory Commission (FERC) on PJM's request to have participants in co-location arrangements to "pay the costs of any grid services they consume and the arrangements must be reliable and operationally manageable."
On February 20, FERC began reviewing situations arising from collocating such large loads as the Homer project in PJM's region. The commission's decision could set a precedent for this and future colocation applications in other FERC-regulated markets. Observers are looking for a decision by the end of 2025, according to Utilitydive.com.
Financial backing for the Homer City redevelopment comes from Knighthead Capital Management, which has had "significant equity positions in Homer City for nearly eight years and will continue to lead project financing," according to the HCR and Kiewit statement.
In December, the U.S. Department of Energy said data centers could account for 6.7% to 12% of all U.S. electricity by 2028. That's a massive jump from its 2023 level of about 4.4%.
The coming crisis of data center demands on the power grid has been well covered by Industrial Info. For more information, see March 4, 2025, article - Beyond the Grid: Data Centers Find Alternative Power Sources.
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).
The Homer City Generation Plant is progressing through the permitting and authorization for expenditure (AFE) process. The plant may produce its first electricity in fourth-quarter 2027, but it could be years before it reaches its full 4.5-gigawatt (GW) capacity. The coal-fired plant closed in mid-2023. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project and Plant databases can click here for the project report and click here for the plant profile.
When completed, the project will be a natural gas-powered data center campus of more than 3,200-acres, according to a statement by HCR and Kiewit. The campus will support "AI-driven hyperscale data centers, while reducing greenhouse gas emissions by 60-65% per megawatt hour compared to the former coal plant," said the statement.
It added that the 4.5-GW capacity will also be enough to power thousands of area homes.
In addition to the first $10 billion, developers are expecting further data center development to inject billions more. That would make the Homer plant the largest investment of this type in the state's history, the company said.
Generation will be powered by seven high-efficiency hydrogen-enabled gas-fired turbines, which means it will be ready for any future conversion to hydrogen. For now, it will burn natural gas produced in the nearby Marcellus Shale.
According to Industrial Info data, Natural gas will be supplied with fuel from the Texas Eastern gas pipeline system (TETCO). HCR received a $5 million state grant to support construction of an interconnection between the generating station and the pipeline, which is about five miles away. There are three lines running east-west between Blairsville and Black Lick, Pennsylvania. The proposed route will start from the Texas Eastern at the Delmont-Armagh pipeline segment in Blairsville, to traverse north to the Homer City Generating Station.
First delivery of turbines is slated for 2026. Much of the critical infrastructure needed for generation and delivery of power is already in place, a legacy from the plant's coal-fired history. It is already connected to the PJM and NYISO power grids, substations, and water access.
Construction is expected to commence later in 2025.
PJM, which is a regional transmission organization (RTO) and independent system operator (ISO), manages the electric grid for 13 eastern U.S. states and the District of Columbia. PJM is awaiting a decision by the Federal Energy Regulatory Commission (FERC) on PJM's request to have participants in co-location arrangements to "pay the costs of any grid services they consume and the arrangements must be reliable and operationally manageable."
On February 20, FERC began reviewing situations arising from collocating such large loads as the Homer project in PJM's region. The commission's decision could set a precedent for this and future colocation applications in other FERC-regulated markets. Observers are looking for a decision by the end of 2025, according to Utilitydive.com.
Financial backing for the Homer City redevelopment comes from Knighthead Capital Management, which has had "significant equity positions in Homer City for nearly eight years and will continue to lead project financing," according to the HCR and Kiewit statement.
In December, the U.S. Department of Energy said data centers could account for 6.7% to 12% of all U.S. electricity by 2028. That's a massive jump from its 2023 level of about 4.4%.
The coming crisis of data center demands on the power grid has been well covered by Industrial Info. For more information, see March 4, 2025, article - Beyond the Grid: Data Centers Find Alternative Power Sources.
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).
