Data center developer wants to reboot a Potomac River power plant with natural gas

An Eastern Shore developer, TeraWulf, has struck a deal to acquire and redevelop the retired Morgantown Generating Station on the Potomac River in Newburg, Charles County, Maryland, with the intention of powering data centers using natural gas. The facility, which retired two coal-fired units in 2022, currently operates oil generators producing about 220 megawatts. TeraWulf proposes to restore its output to a gigawatt of generation and add 500 megawatts of battery storage. The proposal has sparked significant concern within Charles County due to potential impacts on air quality, noise, and water usage, despite TeraWulf's pledge not to use Potomac River water for cooling. Advocacy groups, including Public Citizen, the Sierra Club, Maryland’s ratepayer advocate, and a regional grid operator watchdog, have filed objections with the Federal Energy Regulatory Commission (FERC), which must approve the deal. Public Citizen's energy program director, Tyson Slocum, questioned TeraWulf's resources and expertise, though he worries about the revival of fossil fuel-fired power. While Gov. Wes Moore's administration initially appeared supportive, with Environmental Secretary Serena McIlwain pledging to expedite permits and secure gas pipeline rights of way, a spokesperson for the governor later stated that support hinges on the project's alignment with state law, data center guidelines, and cleanup plans for the polluted site. Community members have voiced frustration over a lack of public engagement from TeraWulf. TeraWulf, an Easton-based energy and cryptocurrency mining company founded in 2021, has reported substantial losses but asserts its management's experience and no plans to use the decommissioned coal units, instead focusing on natural gas and eventual demolition of the plant's stacks.