NextEra Energy has executed definitive agreements with the U.S. Department of Commerce and the Government of Japan to fund the development and operation of up to 10 gigawatts of new natural gas power generation in Texas and Pennsylvania, the company said. The agreements release the first tranche of funding for the two projects.
The deal follows President Donald Trump's approval of the projects, which were selected in connection with Japan's $550 billion investment commitment to the United States under the U.S.-Japan trade agreement, in March. U.S. Secretary of Commerce Howard Lutnick said the initial investment totals $3.3 billion and "will commence the building of the facilities needed to bring up to 10 gigawatts of natural gas power to Texas and Pennsylvania communities."
The money will go toward development activities including down payments on long-lead equipment such as turbines, and the selection of engineering, procurement and construction contractors, the company said.
Two hubs, one strategy
NextEra chairman, president and CEO John Ketchum said the Texas and Pennsylvania projects are two of more than 30 energy hubs in various stages of development across the company's portfolio. He said the approach pairs large-load demand with dedicated generation so the company can move quickly to support growth in digital infrastructure "while ensuring the costs are not borne by American homes and businesses."
U.S. Senator Dave McCormick described the Pennsylvania project as the "$17 billion South Mon project," bringing 4.3 gigawatts of natural gas generation to the Mon Valley region along with construction and trades jobs. U.S. Senator Ted Cruz said the Texas investment would help keep the state, in his telling, "at the forefront of American energy dominance."
The projects also support the White House's Ratepayer Protection Pledge, which NextEra signed in July. Under that pledge, new generation is paired with new demand so that large-load customers, rather than households, cover the cost of the power built for them.
NextEra expects the two hubs to generate thousands of construction jobs and hundreds of permanent operating positions in skilled trades, engineering and plant operations, along with local spending through supply chain and equipment procurement.
Initial resources could come online as early as the end of 2028, with the projects completed in 2032, subject to permitting and regulatory requirements, NextEra said.
