Kentucky lost out on the power plant despite promising up to 90 million dollars worth of tax breaks.
The one billion dollar power plant will turn coal into highly enriched, clean-burning hydrogen gas to fuel the next generation of electricity.
Fletcher says Kentucky got into the bidding war late and that made it hard for the state to compete.
"We never had an energy strategy before I came in here. We put together an energy strategy. Another thing there, was a 3-state consortium trying to be put together.That didn't work and so that left us standing alone."
He also said the state couldn't compete with other states, such as Texas and Illinois.
Texas provided much more incentive on the liability side of things.
The news came as Fletcher was visiting Leitchfield to discuss what his administration has done over his term, such as turning a possible billion dollar deficit into surplus for the past 3 years while lowering taxes.
The governor also presented Grayson County with funding.
"We presented here checks of 11 to 12 million dollars to the community doing things like new infrastructure, more road projects, 9-11 upgrades."
Governor Fletcher says while Kentucky missed the opportunity for the plant, he's confident the state will have more.
"I think we'll be competitive in future projects. We're disappointed that we didn't get it. But none of us can say we didn't try and try hard cause we did."
Fletcher said that if Illinois was able to get the plant, Kentucky would still be able to have a lot of impact.
He says for now the state will just continue to increase its coal production.
Locations in Ohio, North Dakota, West Virginia, and Wyoming were also booted off the list, just leaving only Illinois and Texas as potential candidates.