FALLS CITY – The Falls City City Council is pursuing a feasibility study regarding a new city-owned power plant potentially linked to the Mid-America Rail Campus and Nebraska's bio-economy.

The council announced the agreement Monday with Nebraska Rural Generation, a newly-formed group of investors with interests in energy and industrial sectors.

Lucas Froeschl of Falls City Economic Development & Growth Enterprise said the dual-railroad infrastructure at Falls City has allowed the city to be in discussions with the investors.

He said an agreement has been in the works for about 10 months. The NRG team was introduced to the council on Monday, following the city’s approval of a non-disclosure agreement in March.

An EDGE press release says the agreement contemplates a city-owned power plant on locally-owned land. A new power plant is expected to serve Southwest Power Pool regional markets from North Dakota to Texas.

NRG will reimburse the city for the cost of the feasibility study.

In 2024, Citroniq Chemicals announced it had selected the Mid-America Rail Campus to construct a biochemical manufacturing facility that would transform ethanol into a versatile plastic. Polypropylene is a product commonly used in packaging, textiles and consumer products from toys to surgical devices.

Polypropylene, a pelletized plastic, is currently made mostly from crude oil, not ethanol.

Nebraska Gov. Jim Pillen has voiced support for using ethanol to make polypropylene as part of what he describes as Nebraska’s new bio-economy.

In February, Falls City leaders estimated that energy demand at the Mid-America Rail Campus would be 10 times greater than what Falls City’s utility infrastructure can currently supply.

Here is the EDGE press release

FALLS CITY, NE — The City of Falls City announced a formal partnership with Nebraska Rural Generation (NRG) to advance exploration efforts toward the potential development of a new power generation facility utilizing emerging technologies. The project, still in the early exploration phase, would not involve wind, solar, or coal technologies. The plant’s size, total investment, and final site location within Falls City’s electrical jurisdiction remain to be determined.

This partnership represents a major step forward in Falls City’s long-term energy strategy, including expanded participation in regional markets through the Southwest Power Pool (SPP).

This project will create significant new revenue streams for Falls City in both power generation sales and transmission income within the SPP footprint that stretches from North Dakota to Texas.

Under the structure being evaluated, the City of Falls City would own the power plant with underlying land locally owned. The partnership also includes analysis of how private equity investment is deployed within Nebraska’s public power framework.

City Approvals and Governance Steps On November 20th, the Falls City Board of Public Works (BPW) unanimously recommended the city pursue a Development Agreement with NRG. This agreement would guarantee that all exploration expenses incurred by the City during the evaluation phases are reimbursed by Nebraska Rural Generation.

On December 1st, the City Council unanimously approved the BPW recommendation and passed a resolution authorizing a Community Benefits Agreement (CBA) with NRG. The CBA outlines a set of measurable commitments ensuring that any future development, construction, or operation of a power generation or industrial facility delivers meaningful long-term benefits to Falls City and Richardson County.

Community Benefits Agreement Highlights

The City of Falls City and Nebraska Rural Generation have proposed the following provision

framework, pending availability of local construction labor and operational staff:

  1. Local Workforce Participation

At least 40% of total construction labor hours will be performed by residents of Falls City

and Richardson County.

  1. Local Hiring for Operations

At least 25% of operational staff positions will be filled by local residents within three

years of the facility’s start of operation.

  1. Local Business Contracting

A minimum of 20% of all construction and operational contracts will be awarded to

qualified businesses located in the 68355 zip code.

  1. Annual Community Scholarship Fund

NRG will contribute $50,000 per year to establish a Community Scholarship Fund

supporting local students pursuing education in engineering, energy generation, and

skilled trades.

  1. Ongoing Community Engagement

At least one public community meeting will be held annually to provide updates, receive

input, and discuss future opportunities related to the facility.

A Collaborative Vision for the Future

“We appreciate the opportunity to continue working with Nebraska Rural Generation as we

evaluate this project’s potential role in Falls City’s economic and energy future,” said City

Administrator Anthony Nussbaum. “Through the Community Benefits Agreement, we’re making sure our community’s interests stay at the forefront throughout the process.”

NRG leadership expressed enthusiasm for the partnership as well, noting that Falls City’s dual rail infrastructure, leadership vision, and commitment to community impact make it an ideal location to explore next-generation technologies.

The City of Falls City and Nebraska Rural Generation will now proceed with detailed feasibility studies, engineering reviews, legal and regulatory assessments, and continued community engagement as they evaluate advancing the project to development.

About Nebraska Rural Generation

Nebraska Rural Generation (NRG) is a Midwest-based energy development organization focused on innovative, grid-connected power generation solutions designed to support rural community growth, economic development, and long-term energy resilience.

About the City of Falls City

Falls City, Nebraska, is a community committed to responsible growth, public-power leadership, and long-term economic opportunity through strategic partnerships and forward-thinking infrastructure investment.