Homer City Generation Receives Air Quality Plan Approval from PA DEP

Air Permit clears the way for full construction of 4.4-GW natural gas-powered energy and data center campus, with initial power production targeted for 2027

Project expected to support thousands of jobs and attract billions in private investment to the region

Homer City Generation (“HCG”)1 today announced that the Pennsylvania Department of Environmental Protection (“PA DEP”) has issued air quality plan approval, commonly referred to as an “Air Permit,” which authorizes construction and initial operation of the natural gas generating facility at the heart of the 3,200-acre Homer City Energy Campus.

“Receiving air quality plan approval is a major milestone for our team, our partners, and the entire region,” said Corey Hessen, CEO of Homer City Generation. “We truly appreciate the efforts of both Governor Shapiro’s office, which helped move this process forward, and the expert team at PA DEP, who diligently reviewed our application to ensure that the project would proceed in full compliance with Pennsylvania’s air quality regulations.”

With this approval in hand, Homer City Generation is positioned to complete site readiness and begin construction of the power plant, with power generation expected to commence in 2027. Once fully developed, the approved facility is expected to deliver up to 4.4 gigawatts of power that should serve multiple large data center customers and supply power to potentially thousands of homes on the local grid.

In the coming weeks, Homer City Generation’s construction partner, Kiewit Power Constructors Co., will begin mobilizing crews to accelerate development of the project. The development will soon be ready to transition from demolition and site readiness to the full construction schedule required to bring the Homer City Energy Campus to life.

The project’s financing is led by Knighthead Capital Management, LLC (“Knighthead”)2. Knighthead has had significant equity positions in Homer City for nearly eight years.

“PA DEP’s approval of our air quality plan allows our team to move decisively into the next significant phase of development,” said Andrew Shannahan, a Partner at project sponsor Knighthead, and a member of Homer City Generation’s parent company’s Board of Directors. “We look forward to advancing the work to create this remarkable asset, which will deliver reliable capacity for AI and data center growth, attract billions in private investment to the region, and create thousands of high-quality jobs across Indiana County and the surrounding area.”

Homer City Generation’s receipt of its Air Permit follows several other significant project milestones announced earlier this year, including the agreement in principle for EQT Corporation to serve as Homer City Generation’s exclusive partner to source and supply the natural gas needed to power the facility and the announcement that GE Vernova will provide seven high-efficiency 7HA.02 natural gas turbines to the Homer City Energy Campus, with the first of these turbines expected to be delivered next year.

About Homer City Generation

Homer City Generation is focused on transforming legacy energy infrastructure into state-of-the-art digital and energy assets. Located in Indiana County, PA, the Homer City Energy Campus will be the largest of its kind in North America upon completion.

____________________________

1  

Homer City Generation, LP is the permitted entity related to Homer City Redevelopment, LLC. Corey Hessen serves as CEO of both entities.

2  

On behalf of certain funds and accounts managed and/or advised by Knighthead.

 

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