Minnesota Power Withdraws from $1B Natural Gas Plant Project

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In a surprise move, Minnesota Power has withdrawn from the proposed Nemadji Trail Energy Center, a $1 billion natural gas power plant project in Superior, Wisconsin. The utility cited the need to secure alternative energy sources to meet its goal of retiring coal-fired power by 2030-2035, leaving the future of the long-stalled project uncertain.

Why it matters

Minnesota Power's exit from the NTEC project could reshape the energy landscape of the northern Midwest, as the region grapples with balancing the need for reliable power with the push for cleaner energy sources to address climate change. The decision has sparked debate over whether it prioritizes long-term sustainability or leaves communities vulnerable without a steady backup power source.

The details

The Nemadji Trail Energy Center was originally pitched in 2017 as a 550-megawatt natural gas facility to support Minnesota Power's shift to renewables while retiring dirtier coal plants. However, the project faced repeated regulatory hurdles and opposition from environmental groups and local Indigenous communities. Minnesota Power has now terminated its agreement to provide energy from the plant, citing the need to secure alternative sources to meet its coal retirement goals.

• Minnesota Power filed to withdraw from the NTEC project on December 19, 2026.
• The NTEC project was originally proposed in 2017 with plans to begin construction by 2020 and operations by 2025.
• Minnesota Power aims to retire the remaining coal units at its Boswell Energy Center by 2030 and 2035.

What’s next

The future of the NTEC project remains uncertain, as Dairyland Electric Cooperative holds the majority stake, while Minnesota Power owns the proposed site. The project could potentially proceed under different leadership, but it will need to navigate the remaining regulatory hurdles and community opposition.