NRG withdraws permit for proposed Tolar gas plant amid community opposition

NRG withdraws permit for proposed Tolar gas plant amid community opposition

News ClipKERA News·Tolar, Hood County, TX·6/25/2026

NRG withdrew its air permit application for a proposed natural gas plant in Hood County, Texas, following significant community opposition. The plant was intended to power the Comanche Circle data center development by Sailfish Investors. While the power plant project is halted, the data center project remains active and its concept plan was recently approved by the Hood County Commissioners' Court.

oppositionenvironmentalelectricityzoninggovernment
Gov: Hood County Commissioners Court, state regulators, Tolar ISD

NRG has withdrawn its air permit application for a proposed 2-gigawatt natural gas-fired power plant in Hood County, Texas, a significant victory for community opponents who campaigned against the project. The Tolar Power Center was intended to supply electricity to Sailfish Investors' proposed Comanche Circle data center development, located along the Hood and Somervell county line. Environmental and community groups, including Protect the Paluxy Valley, had raised concerns about air quality, water consumption, and the impact on the rural character of the Paluxy River Valley, submitting over 11,000 public comments and filling local meetings.

NRG spokesperson Erik Linden stated the withdrawal was part of a normal review process, not due to public opposition, noting the company "routinely evaluate[s] a range of sites and development options." However, Joanne Carcamo of Protect the Paluxy Valley lauded the withdrawal, calling it a "huge win" and highlighting the community's "ecstatic" reaction.

While the power plant project is halted, the 2,100-acre Comanche Circle data center development by Sailfish Investors remains active. Ryan Hughes, a principal partner for Sailfish Investors, confirmed the Hood County Commissioners' Court recently approved the Comanche Circle Concept Plan, calling it a "milestone" that will bring "substantial private investment" and "broaden the local tax base." Protect the Paluxy Valley has affirmed it will continue to monitor the data center project and work with local officials on future development regulations.