EnergyAlaska · June 10, 2026
a power plant for the valley
The federal government put $89 million behind a proposed 400-megawatt coal and biomass power plant near Big Lake in the Mat-Su Borough.
Daily Alaska staff · June 10, 2026
The U.S. Department of Energy has awarded an $89 million grant to Flatlands Energy Corp. to fund a development study for a proposed 400-megawatt power plant in the Susitna River valley near Big Lake in the Mat-Su Borough. The plant would run on a mix of coal and biomass, with a carbon capture and storage system designed to pipe captured emissions 60 miles to a geological storage site near Beluga. The grant was announced as part of a broader federal commitment to coal energy projects under the Trump administration.
The plant would meaningfully add to Southcentral Alaska's power grid, with a stated goal of serving military installations near Anchorage, regional industry, and the Mat-Su Valley's growing residential base. Big Lake and the surrounding communities have been growing faster than the existing grid was built to handle, and a facility of this size could offer steadier and potentially more affordable power as the area adds homes and businesses.
State Rep. Kevin McCabe of Big Lake has voiced support for the project, while the Susitna River Coalition has raised environmental concerns about it.
The $89 million grant funds a study and design phase, not construction. The project still faces years of review, and the study now underway will determine whether building the plant actually makes sense.
In this story
Questions people ask
How much federal money for the Big Lake power plant?
The U.S. Department of Energy awarded $89 million to fund a development study for the proposed plant, not construction.
Where would the plant be built?
In the Susitna River valley near Big Lake, in the Mat-Su Borough.
How big is the plant and what runs it?
It would generate 400 megawatts and run on a mix of coal and biomass, with carbon capture built in.
Has construction been approved?
Not yet. This is a study and planning phase, and the project faces years of review before any construction decision.
Evidence
Sources
Claims and where they come from
- The U.S. Department of Energy awarded an $89 million grant to fund a development study for the proposed plant. · adn.com
- The proposed plant would generate 400 megawatts of power in the Susitna River valley near Big Lake. · adn.com
- The plant's carbon capture system would use a 60-mile pipeline to a geological storage site near Beluga. · adn.com
- State Rep. Kevin McCabe of Big Lake supports the project while the Susitna River Coalition has raised environmental concerns. · adn.com
Produced with AI assistance, narrated with Slav Lund's voice clone with his consent, and reviewed by a person before publishing. How we use AI →