Dairyland and South Shore Energy drop $1-billion Wisconsin gas plant
Two groups backing the construction of a proposed $1-billion natural gas-fired power plant in northern Wisconsin told state officials on October 28, 2026, that they are pulling the plug on the project, powermag.com reported.
Nemadji Trail Energy Center Dropped by Backers
Dairyland Power Cooperative and South Shore Energy filed a letter with Wisconsin’s Public Service Commission stating they would not move forward with the Nemadji Trail Energy Center. South Shore Energy operates as a subsidiary of Allete, which acts as the parent of Minnesota Power.
Daniel McCourtney, manager of strategic environmental initiatives at Allete, submitted the filing to the state commission. Allete had distanced itself from the project late last year.
No construction has taken place on the facility or its generation tie line. The owners asked the commission to acknowledge their relinquishment of all rights tied to the plant approvals.
Wisconsin Regulators Approved Gas Plant in 2020
Wisconsin regulators originally approved the project in 2020. The commission granted certificates of public convenience and necessity for a natural gas-fired facility designed to generate between 550 and 625 megawatts.
Utilities proposed the station to provide baseload electricity. The plan aimed to replace retiring coal-fired generation and support power reliability while the companies made more investments in renewable energy.
Dairyland Power and South Shore Energy notified Wisconsin regulators this week they were formally canceling the Nemadji Trail Energy Center project. The decision follows legal challenges, expired permits, and failure to secure city approvals.
The proposed site sat in Superior, Douglas County, near Lake Superior and close to Duluth, Minnesota. Supporters estimated the facility would have created about 350 construction jobs and two dozen full-time jobs, alongside roughly $1 million in annual tax revenue.
Permitting Delays and Local Opposition
The project faced hurdles from legal challenges, local opposition, and permitting delays. Indigenous and environmental groups, including Clean Wisconsin and the Sierra Club, filed legal challenges against the facility.
Opponents asked the state’s Supreme Court to hear a lawsuit challenging the commission’s approval, though the court declined to take the case. Jennifer Cady, vice president of public policy for Minnesota Power, noted in a December filing that air, wetland, and construction permits expired due to delays.
Minnesota Power also nixed an agreement with its subsidiary South Shore Energy to purchase power from the station. City officials in Superior denied approval for the plant following concerns from local residents regarding noise, pollution, and the impact on surrounding wetlands.
Regional tribes and environmental groups raised similar concerns. The proposed site stood near a cemetery in Superior holding approximately 200 ancestors of the Fond du Lac Band of Lake Superior Chippewa.
Other Gas Plants Advance Across Wisconsin
While the Nemadji Trail Energy Center ends, other gas-fired power projects are moving forward in the state. Approval was recently granted by regulators for Invenergy to construct two additional gas-fired facilities in the southern region, which We Energies plans to purchase.
According to We Energies, which incorporated the power plants into its regulatory submissions, the 1,200-MW Forest Junction Energy Center and the 750-MW Union Depot Energy Center could achieve operational status by December 2031.