PA DEP Issues Air Permit for Largest Gas-Fired Power Plant in U.S.
In April, Knighthead Capital Management, Homer City Redevelopment (HCR), and Kiewit Power Constructors Co. announced a plan to convert the former Homer City Generating Station, previously the largest coal-fired power plant in Pennsylvania (Indiana County, 50 miles east of Pittsburgh) into a more than 3,200-acre natural gas-powered data center campus, designed to meet the growing demand for artificial intelligence (AI) and high-performance computing (see Largest Gas-Fired Power Plant in the U.S. Coming in Western Pa.). The new gas-fired plant will be THE LARGEST gas-fired power plant in the country, capable of producing up to 4.5 gigawatts (4,500 MW) of electricity. The Pennsylvania Department of Environmental Protection (DEP) recently floated a draft air permit it planned to issue for the project, which the environmental left objected to (see Big Green Asks PA DEP to Reconsider Homer City Power Plant Permit). Fortunately, the DEP ignored the lefties and issued the permit this week. Read More “PA DEP Issues Air Permit for Largest Gas-Fired Power Plant in U.S.”
Diversified Energy, which owns significant assets in the Marcellus/Utica region (and other regions, too), issued its third quarter update earlier this month. The company owns approximately 8 million acres of leases with close to 70,000 oil and gas wells, mostly conventional wells (by number of wells). However, the company now produces 41% of its production from shale wells, meaning the blend of assets has changed over time. The company’s business model is to buy already-drilled, lower-producing wells on the cheap and find ways to make them more productive. They do a great job at it. Diversified also owns midstream (pipeline) assets, as well as a well-plugging subsidiary, Next LVL. What does the 3Q25 update show? The company produced 1,127 MMcfe/d (74% natural gas, 13% NGLs, and 13% oil). That’s up a huge 36% increase over 3Q24! 
In honor of the new Wizard of Oz movie coming this week: “Lions and tigers and bears, oh my!” The environmental left version of that is, “Fossil fuels, fracking, and data centers, oh never!” Just yesterday, we outlined a trend we see in Pennsylvania (and on the national level): anti-fracking groups morphing into anti-data center groups (see 
The American Energy + AI Initiative, a collaboration between the Hamm Institute and the American Energy + AI Coalition, held a summit on Monday in Washington, D.C., to address the urgent need for firm power to sustain the rapid growth of Artificial Intelligence (AI) in the U.S. Cabinet officials, including DOE Secretary Chris Wright, and industry leaders, discussed concrete steps to modernize federal tools and accelerate power production. During the summit, a new study was released (full copy below) emphasizing that America’s ability to lead in AI depends on quickly building reliable energy and highlighted the immediate need for more natural gas to meet the massive, unexpected demand from data centers. 
MARCELLUS/UTICA REGION: Ohio natural gas plant purchase approved for Indiana Michigan Power; OTHER U.S. REGIONS: New York Gov. Hochul gets a message – legalize natural gas!; NATIONAL: U.S. natural gas price gains ahead of inventory data; US risks winter blackouts on data center demand; U.S. propane stays well supplied as export strength levels off; INTERNATIONAL: Oil falls on rising fuel stocks.