NorthWestern Energy plans second natural gas plant in Aberdeen as electricity demand grows

NorthWestern Energy is planning to build a second natural gas plant to generate electricity in Aberdeen.

The company has filed a notice of its intent to apply for a construction permit to build the $276 million, 131.2-megawatt facility.

NorthWestern Energy spokesperson Jo Dee Black said although the company plans to seek a permit, it will make a decision later about moving forward with the project. 

“This has to be cost efficient and meet the needs of our South Dakota customers,” she said.

The Public Utilities Commission heard the company’s plan at the commission’s Tuesday meeting in Pierre.  

Pre-construction activities could start in 2027, with commercial operations set to start by mid-2030, according to documents submitted to the commission. The company said it’s responding to an “imminent” and growing need for electricity.

Consumers in the state used 95.5 billion cubic feet of natural gas in 2023 — up 5.6 billion cubic feet from the 89.9 billion consumed in 2019, according to the U.S. Energy Information Administration. Natural gas consumed for electric power drove most of that consumption.

Population growth and energy demand drive the need for another natural gas plant, Black said.

“As an energy service provider, we need to plan for all the things we need to do to deliver reliable energy service in South Dakota now and into the future,” she said.

If built, the facility will be located on the south side of Aberdeen, near 135th Street and South Fifth Street, on a piece of land already owned by NorthWestern Energy and near an existing natural gas plant. The facility will tap into existing infrastructure.

In addition to the Aberdeen plant, NorthWestern has a natural gas plant in Huron. NorthWestern provides electricity or natural gas to about 842,000 customers in Montana, South Dakota, Nebraska and Yellowstone National Park.