BEIJING, Dec. 11 /PRNewswire-FirstCall/ -- Peabody Energy (NYSE: BTU)
today became the only non-Chinese equity partner in "GreenGen," the first
near-zero emissions coal-fueled power plant with carbon capture and storage
which is under development in China. Peabody joined the initiative at a
formal signing ceremony at the prestigious State Guest House in Beijing. The
agreement was announced during the Sino-U.S. Joint Commission on Commerce and
Trade meetings attended by U.S. and Chinese dignitaries, including U.S.
Secretary of the Treasury Henry M. Paulson, Jr. and China's Vice Premier Wu
The US$1 billion GreenGen project will use advanced coal-based
technologies to generate electricity for Chinese families and businesses using
China's most abundant energy resource. It will be capable of hydrogen
production and will advance carbon dioxide capture and storage, providing a
clean energy prototype to address carbon dioxide concerns.
"Peabody is honored to represent the rest of the world in China's most
important climate initiative," said Peabody Chairman and Chief Executive
Officer Gregory H. Boyce. "Peabody is a leader in advancing technology-based
solutions to climate concerns. GreenGen joins other important carbon
initiatives involving Peabody on several continents, including the Coal21
program in Australia, FutureGen in the United States, and the Asia-Pacific
Led by managing partner China Huaneng Group, the GreenGen Company will
design, develop and operate an integrated gasification combined cycle power
plant near Tianjin, southeast of Beijing. A 250-megawatt plant will be built
in the initial phase, expanding to 650-megawatts in later phases.
Project design and review is complete, a site has been selected at the
Lingang Industrial Park, and construction is expected to commence in early
2008, with the first phase of the plant expected on line by 2009. The project
includes multiple phases for additional generation and carbon capture.
GreenGen believes the site is in an optimum location near a number of
chemical facilities that create opportunities to utilize the project's syngas,
heat and byproducts and power, while storing carbon dioxide to provide
enhanced oil recovery.
"We are pleased to have Peabody Energy join GreenGen as a leading coal
company to advance this important energy and environmental project," said
President of China Huaneng Group Xiaopeng Li. "Peabody's participation
represents another important step forward in voluntary global partnerships to
meet long-term energy challenges, promote a cleaner environment and create
technology solutions to address concerns about climate change."
China Huaneng is the majority shareholder in GreenGen. Peabody will own 6
percent of the initiative. Huaneng is one of the top 10 power companies in
the world, and the largest power generator in the People's Republic of China.
Both Huaneng and Peabody also are members of the FutureGen Alliance, which
includes the world's largest coal companies and utilities partnering with the
U.S. Department of Energy to develop and site a 275-megawatt technology
prototype that also would achieve near-zero emissions with carbon capture and
storage. FutureGen will select a host site this year and will begin
electricity generation in 2012.
Additional partners represent some of China's largest utility and coal
companies and include the China Datang Corporation, the China Huadian
Corporation, the China Guodian Corporation, the China Power Investment
Corporation, the Shenhua Group, the China National Coal Group and the State
Development and Investment Corporation.
The world's largest and best economies are using coal to fuel prosperity
and a better quality of life. Coal is central to economic growth, and prized
as a source of energy security for both China and the United States. Coal has
been the world's fastest-growing fuel the past five years, and coal use is
expected to increase nearly 75 percent over the next 25 years, driven by huge
growth in China and throughout Asia.
China is the world's largest and fastest-growing coal-consuming nation,
using coal to power nearly three-fourths of its electricity. Peabody opened
its Beijing office in fall 2005, began trading activities in China in 2007 and
is increasing its commercial presence to serve these fast-growth markets.
Peabody Energy is the world's largest private-sector coal company. Its
coal products fuel approximately 10 percent of all U.S. electricity generation
and more than 2 percent of worldwide electricity.
SOURCE Peabody Energy
CONTACT: Vic Svec, 314-342-7768, VSvec@PeabodyEnergy.com, or Beth
Sutton, 505-287-2636, BSutton@PeabodyEnergy.com, both of Peabody Energy