Terra Energy Center is investing $1 billion into a deal for a planned coal project in Alaska. The Alaska Coal Power Plant Project marks the first investment in new US coal power in more than a decade. US has been recently relying on clean energy projects such as Natrium Demonstration Project to meet its power needs.

The in-principal agreement with Hyundai Heavy Industries Power Systems for an order of power-plant boilers was described in a US Interior Department fact sheet Monday. The transaction is one of several that advanced during talks at the Indo-Pacific Energy Security Ministerial and Business Forum in Tokyo this weekend.

Terra Energy Center to Spearhead Coal Power Revival

Terra Energy Center’s plan shows a striking reversal for the US coal industry. Coal once supplied more than half of the nation’s electricity. However, that figure has been steadily declining. Currently, the figure stands at approximately 16%. The shift came as utilities turned to cheaper and cleaner power sources.

This includes natural gas and renewables amid the efforts to rein in climate change. Furthermore, the environmental groups have been pushing to eradicate coal power completely and questioned the economics of developing new projects.

President Trump Pushes for Coal Power

On the contrary, US President Donald Trump has been pushing for the country to burn more coal. This is especially with electricity demand set to surge as power-hungry data centers run artificial intelligence. The move is part of Trump’s expansive plan to reshape the US energy landscape, promoting fossil fuels over intermittent renewables.

Even though Trump’s efforts to revive coal in his first term had little impact, he’s now having more success since returning to the White House last year. The US Energy Department has also ordered five coal plants that were set to retire to remain in service. Also, they have indicated that it may issue similar orders to other sites that are preparing to shut down.

Experts are still skeptical about the long-term prospects for coal, and demand for the dirtiest fossil fuel is projected to continue its steady decline. There’s also no guarantee that decisions made now would continue to receive support under future administrations.

Project Factsheet

Location: Near Skwentna, Matanuska-Susitna (Mat-Su) Borough, Alaska.

Capacity: 1.25 GW (Gigawatts)

Investment: $1 Billion initial agreement (Part of a larger $4 billion project scope)

Main Developer: Terra Energy Center Corp (subsidiary of Flatlands Energy / Asia Alaska)

Operational Date: Estimated 2030

Project Status: Pre-FEED stage; Final Investment Decision (FID) expected in 2026.

Project Team

Terra Energy Center Corp (TECC): The primary project owner and developer.

Korate Asset Management (KOREIT): A prominent South Korean private equity and asset management firm that committed $500 million in equity investment in March 2026.

U.S. Department of Energy (DOE): Providing technical oversight and being petitioned for a $400 million clean energy grant under carbon capture funding initiatives.

Alaska Energy Authority (AEA): The state corporation coordinating with the developers to integrate the plant into the Alaska Railbelt grid.

Hyundai Heavy Industries Power Systems (HPS): The South Korean industrial giant signed an in-principle agreement in March 2026 to supply the plant’s high-efficiency, coal-fired boilers.

Sargent & Lundy: A world-leading engineering firm acting as the primary technical consultant for the power plant design and the integration of Carbon Capture and Storage (CCS) systems.

University of Alaska Fairbanks (UAF): Engaged in collaborative research regarding local coal quality and carbon sequestration viability.

AIDEA (Alaska Industrial Development and Export Authority): Leading the development of the West Susitna Industrial Access Road, which is the critical 100-mile corridor required to reach the plant site.

Matanuska Electric Association (MEA): Has been in close coordination with Terra Energy regarding a potential Power Purchase Agreement (PPA) to distribute the electricity to local consumers.

Alaska Department of Transportation (DOT&PF): Involved in the planning and expedited permitting of the public-access portions of the road infrastructure.