Kentucky was in line for the first aluminum plant in the country in decades. Instead, the project went to Oklahoma.
Century Aluminum on Monday entered an agreement to build its new plant in Tulsa, Oklahoma, instead of northeastern Kentucky.
It’s a dramatic shift from two years ago, when Century’s CEO identified Kentucky as the preferred site of the plant. It was hailed then by Gov. Andy Beshear as an economic development prize.
Lane Boldman is director of the Kentucky Conservation Committee. She said Kentucky lacks what Oklahoma has: cheaper, cleaner electricity.
“I know century really wanted to keep the plant in Kentucky, and certainly there were spots that were being looked at to have it in Kentucky,” Boldman said. “But the bottom line was that aluminum is a heavy energy user industry, and it really comes down to the price of energy.”
For example, Kentucky Power generates 72% of its power from coal and 27% from natural gas. Public Service Company of Oklahoma generates mostly from wind and gas, with very little coal.
Both are subsidiaries of American Electric Power.
Kentucky Power’s Oklahoma sister company generates 6% of its electricity from coal, 26% from gas and 29% from wind.
Overall, wind generates more than 40% of Oklahoma’s power. Coal generates 67% of Kentucky’s.
The major utilities serving eastern Kentucky – Kentucky Power, East Kentucky Power Cooperative and Kentucky Utilities – are heavily reliant on coal. All are seeking to expand gas generation.
All are seeking rate increases from the Kentucky Public Service Commission. So is Public Service of Oklahoma, from its regulator, the Oklahoma Corporation Commission.
The plant was projected to be the biggest economic investment in eastern Kentucky history.
“Northeast Kentucky has been at the top of our list for potential sites,” said Century Aluminum president and CEO Jesse Gary in March 2024, noting the company was looking at other sites.
