OAK CREEK, WI – March 21, 2025 — Construction unions are rallying behind a major natural gas conversion project at the Oak Creek Power Plant, highlighting the potential benefits to local labor. The project, valued at $1.2 billion, involves converting a coal plant operated by We Energies to natural gas, though it has faced opposition from environmental advocates who are calling for a greater emphasis on renewable energy sources.

Public Hearings and Project Details

On March 21, 2025, the Public Service Commission (PSC) held two public hearings to discuss a proposed liquefied natural gas (LNG) facility at the Oak Creek Power Plant, located south of Milwaukee. This includes a planned 1,100-megawatt combustion engine and a 30-mile pipeline to transport natural gas. We Energies seeks approval to build the new facility on a former coal yard to help meet power demands during peak times.

The initial construction cost for the LNG project is estimated to be $456.3 million. If the project is approved, construction is slated to begin in June 2025, with completion anticipated by late 2027 or early 2028.

Despite the significant push from construction unions supporting the economic benefits, environmental groups have raised concerns about the carbon emissions associated with the burning of natural gas. Methane, a key component of natural gas, is known to have a much higher global warming potential than carbon dioxide when emitted into the atmosphere.

Union Support for Local Jobs

At the public hearings, union leaders emphasized the project’s potential to generate thousands of construction jobs in the Oak Creek area. Dan Bukiewicz, president of the Milwaukee Building Construction & Trades Council (MBCTC) and mayor of Oak Creek, shared optimistic views about the project's impact on local employment.

“If approved, the project will employ between 2,500 and 4,000 construction workers,” Bukiewicz said. “This is a five-year project, which will result in millions of man hours per year. These are family-supporting careers that will benefit the community.”

Union organizations, including the Wisconsin Building Trades Council and the International Brotherhood of Electrical Engineers 494, have expressed strong backing for the project, noting that such a significant infrastructure project will have long-lasting positive effects on the local workforce.

“These are family-supporting careers going forward, and (workers) can be your friends, neighbors and relatives who support schools and businesses in the city,” Bukiewicz said. “This is a positive step for the community.”

Environmental Concerns and Calls for Renewables

Despite the strong union support, the LNG project has faced significant opposition from environmental groups, who argue that natural gas is a short-term solution to energy demands. Methane leaks and emissions from natural gas plants could exacerbate climate change, they argue.

State Senator Chris Larson, a Democrat from Milwaukee, voiced his concerns over the project, suggesting that renewable energy sources should be prioritized instead of continuing investments in fossil fuels.

“The premise of why (We Energies) is saying this is needed is for data centers in southeast Wisconsin,” said Larson. “But if you look closely, they’ve already paused construction after phase one. We Energies rushed through this conversion plan without clear guarantees of success. It’s not even clear that they will need all of this new infrastructure.”

Larson’s comments come amid recent developments, including Microsoft’s decision to pause construction on parts of its $3.3 billion data center project in Mount Pleasant.

While there is vocal support for natural gas, renewable energy advocates argue that the region should focus on long-term sustainability through wind, solar, and other green technologies.

Midwest Power Deficit and Regional Energy Needs

The need for additional power generation in the Midwest has become increasingly apparent. The Midcontinent Independent System Operator (MISO), the electrical grid operator for much of the central U.S., has warned of a 2.7 gigawatt power deficit next summer. If current energy trends continue, MISO anticipates a 14,000-megawatt deficit by 2030.

Scott Lauber, president and CEO of WEC Energy Group, emphasized that the Oak Creek LNG conversion is part of the company’s broader efforts to address these power shortages. In an investor call earlier this year, Lauber outlined plans for significant investments in renewables to complement the LNG project.

“We are committed to adding 4,300 megawatts of renewable energy capacity in Wisconsin as part of our $28 billion capital plan,” said Lauber. “This includes wind, solar, and other clean energy sources that will be essential for the region’s future power needs.”

WEC Energy Group’s planned renewable energy investments also include projects such as the Paris RICE facility in Kenosha County, which will generate 128 megawatts, and solar farms like the Good Oak Solar Farm in Columbia County.

While the Oak Creek LNG project continues to divide opinions, the debate underscores the growing need for a balanced energy strategy that addresses both immediate power demands and long-term sustainability. Construction unions support the job creation aspects of the project, while environmental groups are pushing for more investment in renewables. As discussions continue, both sides will have to navigate the complexities of energy production, emissions, and the future of the Midwest’s electrical grid.

In addition to the Oak Creek LNG project, WEC Energy Group is exploring several other energy initiatives in Wisconsin, including the development of wind and solar farms, as part of a broader strategy to meet the region’s growing demand for energy. However, questions remain about the long-term environmental impact of continued reliance on fossil fuels. The future of energy in the Midwest will likely depend on how stakeholders address both economic growth and environmental responsibility.

Originally reported by Ethan Duran in The Daily Reporter.