Terra Energy Center pitches coal-with-carbon-capture project, asks borough for DOE grant support

Jason Motica and Chaz (Chad) Schoissner of Terra Energy Center presented the company’s proposal for a biomass-decarbonized coal-fired power plant in the West Susitna and asked the Matanuska-Susitna Borough Assembly to consider a letter of support for a $400 million Department of Energy grant application.

The project team said the plant would use local coal reserves, integrate carbon-capture technology, and provide long-term, in‑state firm power for Southcentral Alaska, while offering ancillary products such as captured CO2 for industrial use. The presenters said the concept paper for the DOE funding was due March 1, 2025, with a full application due July 1, 2025, and that Terra Energy Center had already secured a $400 million grant development target and expected to reach final investment decision (FID) in 2026 if financing and permits progress.

Why it matters: The presenters argued the plant would address a projected Cook Inlet gas shortfall, provide predictable in‑state fuel priced lower than volatile imported fuels, and support economic development including potential data center customers and downstream uses of heat and CO2. The company asked the borough to signal support and help coordinate with the Municipal Electric Authority of Alaska (MEA) and the state to strengthen the grant application.

Terra Energy Center said its West Susitna site has identified coal reserves it described as sufficient to power a 1-gigawatt plant for decades; presenters described modern plant technology with integrated carbon capture that, they argued, would reduce lifecycle greenhouse emissions compared with imported LNG and typical older coal plants. Terra Energy Center said in prior work it had helped secure a $9 million UAF grant and related state match for CO2 storage studies in Alaska and that public polling showed majority support for coal with carbon capture in the state.

Assembly members asked about competition for the DOE grant, customer commitments, timeline, and local economic effects. The presenters said the topic area for the $400 million award is competitive; they said they were in discussions with MEA and some potential commercial offtakers but had not announced executed long-term power purchase agreements. They estimated construction would create “2,000 to 3,000” direct construction jobs and that most permanent operations jobs would be located in the Matanuska-Susitna Borough.

Public commenters raised concerns. Margaret Stern, representing the Susitna River Coalition, told the assembly that the project had already received public funds for studies and questioned whether the captured CO2 would be stored in Alaska or sold, noted the company had no signed power purchase agreements, and warned public subsidies could end up supporting private benefit or coal exports. Stern asked the assembly to scrutinize claims about fixed energy prices and the project’s alignment with rail-belt resident priorities.

No formal borough action was recorded at the meeting. Presenters asked for a letter of support and for the assembly to consider assistance with state-level coordination; assembly members expressed interest in receiving more information and in potentially drafting letters to MEA, the governor, or federal decisionmakers, but did not move or vote on a formal endorsement during the session.

Looking ahead: Terra Energy Center asked borough staff and elected officials to work with the company to strengthen the DOE application and explore joint outreach to MEA and other potential offtakers. The company said the next immediate deadline was the concept paper due March 1, 2025.