Governor Abbott welcomes NRG natural gas facility that will bring jobs and energy to southeast Texas

Austin, Texas – Governor Greg Abbott announced the approval of a $936 million natural gas facility to be built by NRG Energy, Inc. at its existing Cedar Bayou power complex in Chambers County. The planned 721-megawatt (MW) natural gas power plant has been officially designated as a qualified project under the Texas Jobs, Energy, Technology, and Innovation (JETI) program, signifying its importance to the state’s economic and energy future.

A Texas-Sized Investment in Energy Reliability and Job Growth

“Texas energy and innovation fuels record-setting job growth across diverse industries in our great state,” said Governor Abbott. “This Texas-sized $936 million investment in Chambers County and 721-megawatt investment in our state grid will increase dispatchable electricity generation and further reinforce grid reliability. The JETI program, offered in partnership with our local communities and school districts, is a critical tool to attract the significant business investments needed to ensure every Texas home and business has the power to thrive for decades to come.”

The Cedar Bayou 5 project is expected to create significant construction employment opportunities and later generate permanent jobs as the plant becomes operational. The facility is projected to begin power generation by mid-2028 and will serve the Electric Reliability Council of Texas (ERCOT) power region.

Public-Private Partnership Powers Progress

The JETI designation highlights the close collaboration between state leaders, local governments, and the private sector. In September, a loan agreement was also announced between NRG and the Public Utility Commission of Texas (PUC) under the Texas Energy Fund to help support this development.

“A big thank you to Governor Abbott, the Texas Legislature, the PUC, and the Goose Creek Consolidated Independent School District (Goose Creek CISD) for being excellent partners in helping power Texas forward,” said Robert J. Gaudette, NRG Executive Vice President and President of NRG Business and Wholesale Operations. “This development of a new, highly efficient unit at our Cedar Bayou power plant will generate significant construction jobs and once online in 2028 will provide additional permanent jobs, new electricity for Texas, and regional economic growth. With power demand surging across Texas, it takes public-private partnerships to meet that demand, and NRG is grateful that the Cedar Bayou project is part of Governor Abbott’s innovative JETI program.”

Regional Leaders Applaud Economic and Energy Impact

Local leaders across Chambers County and surrounding communities praised the announcement, citing its positive effect on regional stability and economic development.

“Chambers County continues to show why our region is one of the best places in Texas for industry to grow and thrive,” said Representative Terri Leo Wilson. “This investment by NRG strengthens our local economy, creates new jobs for our families, and supports the reliable energy infrastructure that our state depends on.”

Chambers County Judge Jimmy Sylvia echoed those remarks, saying, “The addition of NRG’s 721 MW power plant not only strengthens grid stability and reliability, it also enhances the county’s ability to retain and attract a broad cross section of industries. The Commissioners Court was pleased to join with local governmental partners in incentivizing the project.”

Supporting Schools, Sustainability, and Economic Growth

Local educational leaders are also part of the partnership, with Goose Creek CISD Superintendent Dr. Randal O’Brien emphasizing the broader benefits to the community. “Goose Creek CISD’s collaboration with NRG on the innovative Cedar Bayou project supports a more sustainable energy future. This initiative will strengthen grid resilience, drive hundreds of millions of dollars in economic growth across the greater Baytown area and help meet the evolving energy needs of our community and state.”

B. J. Simon, CEO of the Baytown West Chambers County Economic Development Foundation, added that the new facility represents a strategic step for long-term prosperity. “Undergirding any vibrant economy and effective economic development efforts requires the continuous improvement and development of infrastructure. The NRG Cedar Bayou 5 power plant is an exemplar in that regard.”

This project marks a substantial investment in Texas’ energy future and reinforces the value of public-private partnerships in meeting the state’s rapidly growing power demand.