Blackstone funds $1.2B gas power plant in WV, creating 500 jobs by 2027

In a significant development for West Virginia's energy landscape, construction has commenced on a $1.2 billion natural gas power facility near Clarksburg. This marks the state's first combined-cycle plant of this type, spearheaded by Blackstone's Energy Transition Partners unit, a sector of the New York-based private infrastructure investor and asset manager.

The facility, known as the 625-MW Wolf Summit Energy plant, will incorporate GE Vernova gas turbines. Management and operations will be handled by partners Kindle Energy and Wolf Summit Energy. Following a decisive final investment decision on November 13, Blackstone confirmed the project's full financing and contracting.

Equitrans Midstream has received county approval to assess Harrison County-owned land for a natural gas pipeline to the new site, anticipated to further streamline the energy supply.

While it remains unclear if any other partners have invested financially in the project, the initiative benefits from state and local incentives, such as a 30-year exemption on county property taxes.

Site preparations, including controlled blasting, are already underway. Blackstone projects that the plant will become operational by 2027. The construction phase is expected to generate approximately 500 jobs, according to the company. However, Blackstone chose not to disclose the contractors involved in the project when queried by ENR.

Recently, Blackstone acquired a majority stake in Westwood Professional Services Inc., an engineering firm based in Plano, Texas. Known for its expertise in various energy sectors, Westwood ranks 77th on ENR's Top Design Firms list, with significant revenue portions arising from power and building construction. The firm named Dean Palumbo, formerly of Stantec, as its chief operating officer in August.

The power generated by the Wolf Summit plant will be purchased by Old Dominion Electric Cooperative, a Virginia-based co-op serving approximately 1.5 million customers across Virginia, Maryland, and Delaware.

"Helping meet the rising demand for electricity from AI and other areas is among our highest conviction investment themes at Blackstone," noted Bilal Khan, a senior managing director at Blackstone, in a statement.

The project was initially proposed in 2017 by the Energy Solutions Consortium as a 579-MW plant with an investment of $615 million. However, it faced setbacks due to a lawsuit concerning air permits and financial difficulties, leading to the consortium's withdrawal. In 2023, Wolf Summit Energy, a General Electric subsidiary, revitalized and expanded the project. Blackstone has not disclosed whether the plant will host a data center or utilize hydrogen-blended fuel.

According to Data Centre, Blackstone is the largest investor in global data centers and AI infrastructure. The company's recent acquisitions include the Hill Top Energy Center, a 620-MW gas-fired plant in Pennsylvania, for nearly $1 billion, and the Potomac Energy Center, a 774-MW plant in Virginia, in January, both highlighting its aggressive expansion strategy.

West Virginia Governor Patrick Morrisey announced in August the state's ambitious 50 by 50 generation plan, aiming to triple the current electrical capacity to 50 GW by 2050, focusing on coal, natural gas, and nuclear energy sources.