Dry Fork Station Feed Study Signals First Possible Coal Expansion In Decades

Governor Mark Gordon (R-WY) and the Wyoming Energy Authority (WEA) announced today its funding of three innovative projects using Energy Matching Funds (EMF) provided by the Wyoming Legislature. The projects reflect the Governor’s leadership in advancing core energy development. Among the projects is a feed study for a possible first–of-its-kind-in-decades expansion of the coal-fired station at Dry Fork. “The feed study for an additional unit at the Dry Fork Station stands out as especially significant,” said Governor Gordon. “It represents the first potential expansion of a coal-fired power station in our nation in many years.” “This is clear proof that coal is not dead and a reminder that Wyoming’s strength has always come from our ability to innovate without abandoning our values,” said Governor Gordon. “Wyoming continues to show that innovation and stewardship can go hand in hand, and that reliable, affordable, baseload power remains essential to America's energy future.” “Strategic investment through Energy Matching Funds projects is vital to ensuring Wyoming remains at the forefront of energy innovation,” said Rob Creager, Executive Director of the Wyoming Energy Authority. “By partnering with industry leaders, we’re not only accelerating the development of innovative technology, we are also honoring Wyoming’s legacy as a powerhouse in American energy. These collaborations strengthen our economy, demonstrate our commitment to resource development, and reinforce Wyoming’s role as a national leader in shaping the future of energy.” The Wyoming Energy Authority's management of the Energy Matching Funds program drives innovation for transformative energy projects in Wyoming, providing opportunities to reclaim energy independence, revitalize the economy, and secure a prosperous future," said EPA Regional Administrator Cyrus Western. "The proposed expansion at Dry Fork Station exemplifies our commitment to provide reliable affordable power. By promoting energy independence and reducing regulatory burdens, we are powering the Great American Comeback and securing a brighter future for all Americans." Basin Electric has been awarded $4,000,000 for their Dry Fork Station Unit 2 Front-End Engineering Study (FEED) Study, Contango Resources has been awarded $343,005 for their Big Horn Pipeline Feasibility Study and The University of Wyoming School of Energy Resources has received approval for $5,500,000 to enhance the Wyoming Integrated Test Center (ITC) near Gillette, Wyoming. Basin Electric Power Cooperative’s FEED Study will assess the potential development of a second coal-fired generation unit at its Dry Fork Station facility in Gillette, Wyoming. This comprehensive study will determine the feasibility, technical requirements, and broader implications of introducing a new unit to meet the region’s increasing energy demands. The FEED Study will deliver a detailed analysis encompassing technology selection, preliminary engineering and design, and an Association for the Advancement of Cost Engineering International (AACE) class three cost estimate, laying the groundwork for informed decision-making on the proposed expansion. “We are grateful for Governor Mark Gordon’s support and approval of our application,” said Gavin McCollam, Basin Electric Senior Vice President and CEO. “Partnering with the Wyoming Energy Authority on this FEED study allows us to responsibly explore innovative, cost-effective ways to meet future energy needs. We’re committed to evaluating every opportunity that supports reliability and keeps power affordable for our members.” Contango Resources’ Big Horn Basin CO₂ Feasibility Study will evaluate the development of a CO₂ transportation pipeline in Wyoming’s Big Horn Basin, aimed at connecting key sites for enhanced oil recovery. The study will assess the technical, economic, and environmental viability of the project, which could unlock an estimated 4 billion barrels of recoverable oil and accelerate carbon capture and utilization efforts. “We are excited to partner with Contango and the Wyoming Energy Authority on this important feasibility study to further the development of Enhanced Oil Recovery in Wyoming,” says Dan Zilmer, Vice President of Merit Energy, a collaborator on the project. “We would like to thank Governor Gordon, Executive Director Creager, and Lon Whitman at EORI for their support of Oil and Gas development in the state.” The University of Wyoming School of Energy Resources is set to significantly enhance the capabilities of the Integrated Test Center (ITC), strengthening its role as a premier facility for advancing carbon management technologies. This expansion will attract an array of research partners, reinforce Gillette’s reputation as a national hub for carbon innovation, and support workforce development in the energy sector. Since 2018, the ITC has provided researchers with a platform to test and refine carbon capture technologies, accelerating their path to commercialization, particularly enhanced oil recovery. The upcoming enhancements will also foster educational opportunities, deepen community engagement, and solidify Wyoming’s leadership in energy innovation and production. “We are grateful for the continued state support through the Energy Matching Funds, allowing us to advance innovative technology in Wyoming,” says SER Senior Director of Research Scott Quillinan. “The Integrated Test Center has been an indispensable resource in proving novel capture technologies that can support continued use of Wyoming’s fossil fuels. These matching funds will allow for expanded capabilities and longevity for testing at the Integrated Test Center.” The EMF project review process includes an initial concept paper, followed by an invitation to submit a formal proposal. The project proposal then goes to a Review Committee – comprised of the Executive Director of the WEA, a designee from the Governor’s Office, the Director of the Department of Workforce Services, the Wyoming State Geologist, and the CEO of the Wyoming Business Council. If projects are recommended to proceed, a ten-day public comment period opens. All comments are reviewed and considered in the final decision to award EMF. The project proposal goes to the Attorney General’s office and then the Governor for final approval. This public process ensures that each project awarded has been thoroughly considered by multiple parties, including an invitation to members of the public to weigh in on projects. The Energy Matching Funds continuously accepts concept papers but follows a periodic review process. For more information and to learn more about these projects, please visit https://wyoenergy.org/energy-matching-funds.