Indiana granted Duke Energy an air permit which will allow for construction to begin on a $2 billion coal gasification plant. The 630 MW coal gasification plant should be completed by 2012 if everything goes as planned and would be one of the first to use this technology on such a grand scale. Duke Energy intends to file plans with the state to study carbon capture and storage technology for the plant. Duke President Jim Stanley said, "This could be one of the first demonstrations of carbon capture and storage at a power plant. This project is technologically important not just for Indiana, but for the nation."

Activists groups believe that carbon regulations are likely to come and would increase the cost of the plant to a final cost of $3 billion. David Menzer, the utility campaign manage for Citizens Action Coalition, says the group will appeal the states decision. He said, "While this is certainly cleaner (than older coal plants), it is by no means clean." Rates will increase by 16 percent between 2008 and 2012 for the 770,000 customers to help pay for the plant.