The northern Indiana utility NIPSCO plans to build a large natural gas plant to serve data centers. If built, it would have the potential to emit the third most greenhouse gases of any industrial facility in the state.
NIPSCO's proposed air permit shows the gas plant could put out the equivalent of 7 million tons of carbon dioxide a year. Only U.S. Steel Gary Works and Duke Energy's Gibson coal plant emit more.
Ben Inskeep is with the consumer and environmental advocacy group Citizens Action Coalition. He said it's a big change from NIPSCO's plans seven years ago.
"This really highlights how NIPSCO has done a complete reversal of their prior strategy that was focused on being more sustainable, focused on adding renewable energy and retiring their fossil fuel generation," Inskeep said.
Last year, NIPSCO made two plans for how to serve its customers — one with data centers in its area and one without. With data centers, NIPSCO expects its energy needs will more than double.
"So it seems very clear, based on those documents, based on the strategy NIPSCO has outlined, and based on where their customers are today, that it has no need for this gas plant unless it's to serve the data centers exclusively," Inskeep said.
NIPSCO didn't provide anyone for an interview, but said that it has entered into a contract with a data center and would share more during its third-quarter earnings call.
NIPSCO created a separate company called NIPSCO Generation LLC (GenCo) to serve data centers to protect its existing customers from higher bills.
The Indiana Utility Regulatory Commission will have less oversight of the subsidiary. Inskeep said even though the commission still has to approve the gas plant, that process is likely to be quick without much time for the public to weigh in.
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NIPSCO's proposed plant would have a capacity of 2,300 megawatts. That's five times more power than the small "peaker" plant NIPSCO plans to build by 2027 — which will run at times when energy demand is high.
The proposed gas plant would be located at the site of the recently retired R.M. Schahfer coal plant in Jasper County. NIPSCO didn't say how many people the plant would employ.
To avoid the worst effects of climate change, scientists say we need to significantly reduce emissions by 2030.
The Sierra Club recently downgraded NIPSCO's commitment to reduce climate emissions to a "B." The company has had an "A" since 2021.
Rebecca is our energy and environment reporter. Contact her at rthiele@iu.edu or on Signal at IPBenvironment.01. Follow her on Twitter at @beckythiele.
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