Kentucky Utilities' Mercer gas plant could test Beshear's data center executive order
Kentucky's Governor Andy Beshear issued an executive order requiring the state Energy and Environment Cabinet to deny air quality permits for data center projects that worsen the environment. A proposed natural gas power plant by Kentucky Utilities in Mercer County is being cited as a test case for this order due to its connection to data center demand. Environmental advocates are requesting an extension for public input on the power plant's permit, which indicates an increase in air pollutants.
Kentucky Governor Andy Beshear's executive order, issued on August 6, mandates that the state Energy and Environment Cabinet deny air quality permits for any data center project that could harm the environment. This order is now being invoked in connection with Kentucky Utilities' (KU) proposed E.W. Brown natural gas power plant in Mercer County.
During a virtual public hearing, Byron Gary, a program attorney for the Kentucky Resources Council, argued that the KU plant's permit application should be subject to the governor's order. He stated that the facility's justification is tied to data center demand, despite the power plant not being linked to a specific data center proposal. The permit application, filed in June, indicates increases in various air pollutants such as carbon monoxide, carbon dioxide, volatile organic compounds, and particulate matter.
Louisville Gas and Electric (LG&E) and KU received approval from the Kentucky Public Service Commission in October for the Brown project and a similar one in Jefferson County. KU spokeswoman Liz Pratt asserts that the projects will actually lower the intensity of emissions due to modern, efficient technology, producing 65% less carbon dioxide per megawatt hour compared to coal-fired units. Gary, however, requested the Division of Air Quality to extend the public comment period, emphasizing the timing of the governor's order and the need for public evaluation.
The Division of Air Quality is also reviewing a permit application from East Kentucky Power Cooperative for a 745-megawatt combined-cycle plant in Pulaski County. East Kentucky Power spokesman Nick Comer stated that while overall emissions would increase due to tripling generating capacity, per-kilowatt emissions would remain low. Gary noted that Beshear's executive order would not apply to this project as it is not tied to data center development.