Evergy, a Kansas energy provider, recently made headlines when it announced a pause in its plans to transition away from coal power. The reason? The company needed to meet the energy demands of a new $4 billion electric vehicle (EV) battery manufacturing factory being built by Panasonic Energy in De Soto, Kansas. This decision has sparked controversy and raised concerns among environmental advocates and Kansas officials.
Last year, Panasonic Energy broke ground on a massive 4 million-square-foot EV project in De Soto, Kansas, which is set to be one of the largest facilities of its kind in the U.S. To meet the energy demands of this project, Evergy, the utility company serving the factory, will continue burning coal at part of its Lawrence Energy Center until at least 2028. This delay in transitioning to natural gas has drawn criticism from environmental advocates, who argue that Evergy’s reliance on coal is costly, dirty, and harmful to communities, particularly Black and LatinX populations.
In addition to continuing to burn coal, Evergy plans to ask the Kansas Corporation Commission (KCC) for a rate increase on residential customers‘ energy bills in parts of the state to help pay for the infrastructure needed to meet Panasonic’s electricity demand. This move has further fueled the debate surrounding the project and its impact on the environment and local communities.
Despite the controversy, the Panasonic project was initially hailed as a significant win for the state of Kansas. Governor Laura Kelly praised the project for its potential to create 8,000 high-quality jobs and drive technological innovation in the state. However, the energy demands of the EV factory, which will require between 200 and 250 megawatts of electricity to operate, have presented challenges for Evergy in terms of resource adequacy and infrastructure development.
In response to the rate increase requests filed by Evergy, the KCC and the utility company reached a settlement agreement last week. The Commission expressed uncertainty about the need for rate increases in the future, given the estimated expenditures related to the Panasonic project. This uncertainty reflects the complex nature of balancing energy demands, infrastructure development, and environmental concerns in the transition to cleaner energy sources.
Despite the push for green energy initiatives, there is a growing recognition that coal still plays a significant role in meeting energy needs in the U.S. American Coal Council CEO Emily Arthun emphasized the importance of coal in the energy mix and highlighted the challenges of premature coal-fired power plant closures. This perspective underscores the ongoing debate about the role of coal in the transition to cleaner energy sources.
In a statement to Fox News, a Panasonic spokesperson acknowledged the need for a diverse energy mix to support rapid growth in the electric vehicle industry. While the company is investing $4 billion in the project, it could receive up to $8 billion in incentives from local, state, and federal governments. This reliance on government subsidies has raised concerns among some lawmakers, who question the financial burden placed on taxpayers to support green energy initiatives.
Overall, the controversy surrounding Evergy’s decision to pause its transition away from coal power in favor of meeting the energy demands of the Panasonic project highlights the complex challenges of balancing economic growth, environmental sustainability, and energy needs. As the EV industry continues to expand, finding a sustainable and equitable energy solution will be crucial for the future of clean transportation and energy production.