A $2.6 billion natural gas power facility is set to be built in Independence County, replacing the long-operating coal-fired Independence Steam Electric Station near Newark. Arkansas Electric Cooperative Corporation (AECC) CEO Vernon "Buddy" Hasten outlined the project, approved by regulators this summer, which is expected to begin operations in January 2031 after the coal plant permanently shuts down in December 2030.
The new facility, called the Independence Gas Plant, will feature a high-efficiency combined-cycle system that utilizes natural gas turbines alongside a steam system. The design makes use of exhaust heat to generate additional electricity, allowing the plant to produce up to 1,500 megawatts. By comparison, a similar AECC natural gas plant under construction in Naples, Texas, will produce 900 megawatts using the same amount of fuel. AECC intends to cover approximately $2 billion of the project’s cost, owning 75% of the facility. The remaining 25% will be co-owned by five municipal utilities and a Texas-based power cooperative.
The gas plant will be constructed adjacent to the coal plant, enabling project partners to use existing interconnection infrastructure already in place. Construction is projected to provide up to 850 jobs during its peak and result in 25 to 35 permanent jobs once the plant becomes operational.
Hasten noted that the project will likely lead to increased electricity rates for AECC cooperative members, with natural gas prices playing a key role in determining future costs. However, AECC stated to the Arkansas Public Service Commission that the facility is intended to provide long-term protection for cooperative members from fluctuating electricity prices in the Midcontinent Independent System Operator (MISO) market.
The Independence Gas Plant represents a major shift for local energy production as the state transitions away from older coal-fired technology, aiming for increased efficiency and reliability in power generation.