Project Selections for Broad Agency Announcement DE-FOA-0003605, Restoring Reliability: Coal Recommissioning and Modernization (Topic 1)
AES Puerto Rico Plant Modernization and Resiliency Program — AES Puerto Rico, L.P. (Guayama, Puerto Rico)
AES Puerto Rico L.P., part of The AES Corporation, will undergo a comprehensive modernization and resiliency project at its 510-megawatt (MW) coal-fired generating facility in Guayama, Puerto Rico. The project leverages AES’s demonstrated experience in executing complex capital projects safely and efficiently while maintaining strong operational and environmental compliance performance.
The primary objective of the project is to enhance grid reliability, operational efficiency, and asset longevity while supporting Puerto Rico’s evolving energy needs. Key technical investments include major overhauls of steam turbines to restore efficiency and performance, upgrades to generator components to improve reliability, and comprehensive rehabilitation of the cooling tower system to enhance thermal performance. Additional improvements to balance-of-plant systems—such as fans, feedwater equipment, and other critical mechanical and electrical components—will further improve operational stability and efficiency.
From a resilience standpoint, the project directly addresses aging infrastructure and operational vulnerabilities, strengthening the facility’s ability to withstand system stresses and reduce unplanned outages. These upgrades are critical to ensuring continued reliable power generation in Puerto Rico, where grid stability remains a key challenge.
In support of long-term decarbonization goals, AES Puerto Rico will also conduct a carbon capture, utilization, and storage (CCUS) front-end engineering design (FEED) study. This study will evaluate the technical, economic, and operational feasibility of integrating CCUS technologies at the facility, positioning the project to advance carbon reduction pathways while maintaining energy reliability.
This project represents a critical investment in modernizing existing infrastructure, enhancing system resilience, and preparing for future emissions reduction technologies—delivering measurable reliability, environmental, and economic benefits to Puerto Rico’s energy system. By modernizing existing infrastructure, advancing potential carbon reduction technologies, and supporting local economic activity, the project will deliver tangible benefits to Puerto Rico’s communities while helping build a more stable and sustainable energy future.
DOE Funding: $164,500,000
Non-DOE Funding: $655,400,000
Total Value: $819,900,000
AES Warrior Run Generating Plant Recommissioning Project — AES Warrior Run (Cumberland, Maryland)
This project will support the recommissioning of the Warrior Run Coal-Fired Generating Facility located in the City of Cumberland within Allegany County, Maryland to provide near-term resource adequacy benefits to the PJM Interconnection L.L.C. region. The Facility is a 205 MW gross/180 MW net coal facility owned and operated by AES WR Limited Partnership (AES WR), an indirect subsidiary of the AES Corporation. AES WR has a strong track record of safe and efficient operation over the facility’s more than 20 years in service, which has routinely operated at availability levels above 90%.
The project will support the recommissioning and resumption of operations of the existing ABB/Alstom designed plant equipment, and the necessary operational maintenance and repairs necessary to ensure safe, reliable, and efficient operation. Upon resuming operations, the facility will utilize low-sulfur bituminous coal from local or regional mines. The project will also assess the feasibility of adding a carbon capture, utilization, and storage component to the facility.
The resumption of operations of the facility will directly support approximately 45 full-time operations and maintenance jobs and indirectly support the employment of approximately 300 additional jobs in and around Allegany County, including in the coal mining, limestone, and trucking industries.
DOE Funding: $78,000,000
Non-DOE Funding: $78,000,000
Total Value: $156,000,000
Alaska Carbon Capture, Utilization, and Storage Coal Commissioning Project — Terra Energy Center Corporation (Anchorage, Alaska)
Terra Energy Center Corporation (TECC) will begin the Alaska Carbon Capture Utilization and Storage Coal Commissioning Project focusing on engineering and design of a 1,250 MW nameplate-capacity, coal-fired baseload power facility with integrated CCUS, sited in the Matanuska-Susitna Borough of Southcentral Alaska. The power generation facility will consist of 5 independent 250 MW circulating fluidized bed power trains, with an integrated CCUS system to capture greater than 90% of the carbon dioxide (CO2) emissions, or an estimated 8.26 million tonnes annually. The captured CO2 could be sold for industrial and agricultural utilization in the Alaskan market, geologically sequestered, or used for enhanced gas or oil recovery. Specifically, this project aims to complete FEL-3/Class 3 engineering in 2027, enabling fixed-price engineering, procurement, and construction solicitation as well as completion of a bankable feasibility study. This project has the potential to address Alaska’s energy concerns as the Cook Inlet natural gas supply is projected to be unable to meet utility demand as early as 2029. The Alaska CCUS Commissioning Project is uniquely positioned to provide long-term, local, and price-stable baseload generation by 2031 to multiple high-value load categories including utilities, military installations, data centers, and critical mineral operations. Alaska Native corporations are engaged as equity and operational partners, and letters of support have been received from Alaska’s Congressional delegation and Railbelt utilities.
DOE Funding: $89,000,000
Non-DOE Funding: $101,375,155
Total Value: $190,375,155
West Virginia Energy Campus — TerraSpark (Mt Storm, West Virginia)
This project will support the initial engineering, design, and permitting phases for the West Virginia Energy Campus, a proposed greenfield 1.6 GW (gross) next-generation coal-fired power plant located near Dominion Energy’s existing Mount Storm station. Developed by TerraSpark, the facility is designed to co-locate with behind-the-meter mixed industry applications. This configuration provides dispatchable, 24/7 baseload power directly to high-density infrastructure, reducing regional grid impacts and avoiding the need for ratepayer-funded transmission upgrades.
The Department of Energy partnership funds Phase 1 (FEED Study) and Phase 2 (Initial Design) of the project. Managed by Sargent & Lundy, these phases will establish the fully integrated system design, including preliminary engineering, water balances, and the drafting of construction and environmental permits—including Title V Air and Class VI geologic sequestration permits. Under the geological scope led by Advanced Resources International, a stratigraphic test well will be drilled to characterize the subsurface reservoir and design the CO2 injection and monitoring wells.
The power plant will integrate state-of-the-art emission controls with Babcock & Wilcox supercritical boilers featuring ultra-low nitrogen oxide burners, selective catalytic reduction, and dry flue gas desulfurization systems. These systems will feed flue gas to a high-temperature molten-salt carbon capture system developed by Mantel. This energy-efficient technology targets a CO2 capture rate of approximately 90% to 95%, significantly lowering the parasitic energy load compared to traditional capture systems.
Sited in a rural, coal-impacted community, the full campus is expected to support regional economic stability by creating up to 900 local jobs, establishing a 10-acre Coal Innovation & Training Center in partnership with West Virginia University, and supporting regional energy industry employment.
DOE Funding: $18,500,000
Non-DOE Funding: $21,462,500
Total Value: $39,962,500