Link here, from the Billings Gazette.
Peabody Energy, which operates several mines in the Powder River Basin in Wyoming, has inked a six-year deal to provide coal to several electrical power plants in Missouri — a deal the buyer says was driven by a need to meet stricter federal environmental regulations.
The basin’s low-sulfur coal will allow Ameren Missouri to defer purchase of costly clean air filtration equipment, which would be paid for by higher rates — an estimated 15 to 20 percent hike by 2017 — charged to customers.
The company said the deal with Peabody is the “backbone” to its strategy to comply with new stringent federal regulations that require lower sulfur dioxide emissions.
- A six-year contract for 91 million tons of coal
- Contract is between the largest Powder River Basin producer and the largest Powder River Basin customer
- The contract represents a growing market for low-sulfur Powder River Basin coal
- Ameren Missouri provides electricity for 1.2 million customers in central and eastern Missouri
- St Louis-based Peabody owns three coal mines in Wyoming's section of the Powder River Basin: Rawhide, Caballo, and North Antelope/Rochelle
- The mines produced 140 million tons of coal last year
- The total amount of coal from the entire Powder River Basin produced last year was 428 million tons
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