Mason County biomass plant permit surrendered amid shift to prioritize data centers
A developer has surrendered an air quality permit for a biomass plant in Mason County, West Virginia, shifting its state-supported Mountaineer GigaSystem project to focus on establishing advanced computing data centers. This change is influenced by legislative efforts to attract data centers to West Virginia, despite ongoing environmental concerns and opposition from community groups. The project involves significant power capacity and potential partnerships with major tech companies.
Fidelis New Energy LLC, through its affiliate MGS CNP 1 LLC, has informed the West Virginia Department of Environmental Protection (DEP) of its decision to surrender an air quality permit for a planned biomass and carbon-capture facility in Mason County. Peter Markham, an attorney representing MGS CNP 1, stated that the state-supported Mountaineer GigaSystem project is reconfiguring its focus from hydrogen production to the "immediate establishment of advanced computing data centers." This strategic shift, prompted by legislative, political, economic developments, and market opportunities, means the previously envisioned biomass plant will not be constructed at the Point Pleasant site.
The Mountaineer GigaSystem project, initially conceived as a hydrogen production facility, had secured a forgivable $62.5 million loan from the West Virginia Economic Development Authority in 2023. Under then-Gov. Jim Justice's administration, plans for data centers powered by net-zero carbon hydrogen, with a potential capacity of 1,000 megawatts, were also announced. The current shift maintains a focus on carbon capture and storage, according to Markham.
The site is now linked to a planned 2,300-acre Monarch AI Data Center System, comprising the Monarch Compute Campus in North Point Pleasant and an expansion campus. Nscale, a UK-based AI infrastructure company, acquired American Intelligence & Power Corporation, an affiliate of Fidelis New Energy, securing the campus site. Nscale announced a non-binding letter of interest with Microsoft to deliver up to 1.35 gigawatts of AI compute, with the site capable of generating its own power via a microgrid to potentially achieve 8 or more gigawatts of capacity.
The biomass permit had faced an appeal from the West Virginia Citizen Action Group to the West Virginia Air Quality Board, raising concerns about the facility's classification as a "minor source" of hazardous air pollutants. Additionally, the project has drawn criticism due to the involvement of West Virginia House of Delegates Speaker Roger Hanshaw, who co-represented MGS CNP 1, amidst his support for legislation (HB 4983 and HB 2014) aimed at fast-tracking data center growth by limiting local control.