CenterPoint to build gas-fired power plants in coal-to-gas push

US electric utility CenterPoint Energy has received state regulatory approval to build two natural gas combustion turbines in Indiana, allowing it to replace some of its coal generation capacity.

The $334mn project will provide 460 MW of gas-fired electricity, allowing CenterPoint to phase out two coal production stations, located at the A.B. Brown power plant, in late 2023.

CenterPoint aims to source almost two-thirds of its energy from renewable resources and natural gas. It believes this will save its customers money as well as reduce emissions. Indiana residents and businesses are ultimately expected to save around $320mn over 20 years, and CenterPoint expects the disposal of its coal units to save a further $60mn.

Steve Greenley, senior vice president for generation development, said the gas turbines will provide crucial baseload power for the energy transition. He added: "While the combustion turbines may not run constantly, it is very likely they will operate several hours each day in order to supplement our renewable generation with a lower carbon solution, when renewable facilities are not at peak generating levels."