The Texas Commission on Environmental Quality (TCEQ) has issued the air permit for Competitive Power Ventures’ (CPV) planned 1,350 MW combined-cycle natural gas power plant currently in advanced stages of development, with financing expected late in the second quarter of this year.
The CPV Basin Ranch Energy Center is being designed with the option to include a carbon capture system. The permit authorizes the construction and operation of the plant near Barstow, Ward County, Texas, in the Permian Basin. Issuance of the permit is the latest milestone for the project over the last 12 months, in addition to advancing in the Texas Energy Fund (TEF) loan program and finalizing a tax abatement agreement with local officials in Ward County.
Construction is expected to begin late in the second quarter 2025, and commercial operations are expected to start in 2028.
“For the last three years, our company has been diligently working on the development of CPV Basin Ranch. We are proud of the work to date and will remain laser focused as we move through the final steps of development. We thank the TCEQ for its assistance through the extensive air permit process,” said Peter Podurgiel, CPV’s President of Low Carbon Generation. “The Texas Energy Fund is proving to be an excellent tool to help bring needed development of reliable energy resources to the state.”
In a move CPV argues is meant to address a key concern across the state in recent years regarding reliability during extreme weather situations, CPV Basin Ranch will include connections to multiple sources of natural gas supply to maximize the facility’s performance during “critical situations.”
Last August, the Public Utility Commission of Texas advanced CPV Basin Ranch’s application to the due diligence phase of review for a low-interest loan under the Texas Energy Fund (TEF) program. CPV claims this is the largest project to advance under the program and one of the first expected to be built with the option for carbon capture.
“This is a win-win for the State of Texas and the communities in the Permian Basin. We need to bring baseload dispatchable generation online that will strengthen our grid and serve Texans. We have an urgent need to build gas-fired baseload projects in the Permian to support the continued growth of oil and gas production. The location of CPV Basin Ranch is an example of the TEF complementing our efforts to show the opportunities in West Texas and attracting companies to our region,” said state Sen. Kevin Sparks.
Ward County commissioners in September 2024 approved a partial 10-year property tax abatement for the project.
“We’re excited about this project for Ward County. CPV Basin Ranch will not only be a great asset to the state’s energy grid but will have an enormous impact on our local economy. We will see job growth both during construction and into operation along with a long-term tax benefit,” said Ward County Judge Greg M. Holly. “CPV has shown an openness to work with our region, and we feel strongly this will create a positive ripple locally and beyond.”
