China Huaneng, Peabody and Calera to pursue development of clean coal project in Inner Mongolia

Source: Peabody Energy

China Huaneng Group, Peabody Energy and Calera Corp. have agreed to pursue development of a green coal energy campus in the Xilinguole Region of Inner Mongolia. The energy project would include a 1,200 megawatt supercritical power plant that would capture a portion of carbon dioxide (CO2) and convert it into green building materials, advancing carbon capture technology.

The agreement demonstrates the growing alliance on clean energy and carbon initiatives between China and the United States fostered by the U.S. Energy Cooperation Program (ECP). Peabody is a founding member of the ECP and a member of its executive committee.

The plant would be fueled by a 12 million ton-per-year surface mine operated by Peabody, which brings world-class safety, operations and environmental practices to the partnership. Huaneng, the largest generator in China and second largest in the world, will serve as the power plant operator.

Calera brings its proprietary technology to convert CO2 into solid carbonates that can be used as building materials. Every ton of captured CO2 is expected to produce two tons of cement construction material. The planned location has good access to serve electricity customers and industrial users in the Xilinguole Region.

"Peabody is a global leader advancing near-zero emissions from coal, and we are proud to partner with Huaneng and Calera in a world-class energy project that would serve as a new global model for clean energy," said Peabody Energy Chairman and Chief Executive Gregory H. Boyce. "Recycling carbon will create beneficial building products for fast-growing cities that are becoming home to hundreds of millions of Chinese citizens migrating from rural areas."

By 2025, China is expected to have more than 200 cities with populations greater than 1 million people, versus just 35 such cities today. China also is the world's largest and fastest-growing coal market, using coal to fuel approximately 80 percent of its electricity.
Its coal demand is expected to increase by 1 billion metric tons in less than five years, bringing annual use to 4.3 billion metric tons, according to the China National Energy Administration. Globally, coal has been the fastest-growing fuel the past decade.

In the coming months, the parties will evaluate engineering plans. Project development also will require a customary permitting and regulatory approval process. The power plant is expected to operate at least 30 years.

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