Tuesday, coal producer Peabody Energy Corp. (BTU) said it signed a joint venture agreement with China's GreenGen clean coal project, becoming a full equity partner.
GreenGen is a US$ 1 billion 650 megawatt project, a commercial scale near-zero emissions power project that is under construction near Tianjin. It is China's first integrated gasification combined cycle power project and will serve as a carbon management research center.
GreenGen is being developed in phases and ultimately will capture and store carbon dioxide. Electricity generation is expected to begin in 2011 with the first 250 megawatt IGCC unit.
Peabody Chairman and Chief Executive Officer, Gregory Boyce, said, "China's coal use is expected to grow by 2 billion tons over the next two decades, driving economic prosperity and energy security. Peabody is advancing clean coal projects all over the world and is pleased to be a part of China's signature low-carbon coal initiative."
The St. Louis, Missouri-based Peabody has a 6% equity interest in GreenGen and is among nine equity participants, which include lead shareholder China Huaneng Group.
BTU is trading at $45.92, down $0.03 or 0.07%, on a volume of about 1.53 million shares.
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