A Chevron Texas Power Plant Seeks School District Tax Break
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A major oil company is seeking a state tax break in Texas worth hundreds of millions of dollars to build a massive power plant.
Key facts
- The Energy Forge plant alone could emit more than 11.5 million tons of CO 2 equivalent annually—more than the country of Jamaica emitted in 2024
- According to documents from the state, the Chevron project could net more than $227 million in savings for the company over a 10-year period, depending on the eventual size of the project
- In March, following news reports that Microsoft was looking into purchasing power from the Energy Forge project, Chevron said that it had entered into an “exclusivity agreement” with Microsoft
- According to data from nonprofit Global Energy Monitor, the US at the start of the year had nearly 100 gigawatts of gas-fired power in the development pipeline solely to power data centers
Summary
Chevron subsidiary Energy Forge One has filed an application with the State Comptroller’s board to obtain a tax abatement for a power plant it’s building in West Texas. In March, following news reports that Microsoft was looking into purchasing power from the Energy Forge project, Chevron said that it had entered into an “exclusivity agreement” with Microsoft and Engine 1, an investment fund involved in the project. The potential tax abatement for the project comes as big tech companies are battling rising public fury about data centers and electricity costs. Chevron spokesperson Paula Beasley told WIRED in an email that all tax incentives under consideration for the Energy Forge project “apply solely to the power generation facility” to “support new energy infrastructure, and do not extend to any future data center facilities that may be served.