Peabody joins hands with Chinese coal firm
Updated: 2007-12-12 13:51
The US coal company Peabody Energy yesterday joined forces with China's major coal enterprises to build the country's first near-zero emission coal-fueled power plant, at a cost of nearly $1 billion.
Peabody is the only foreign equity partner in the plant GreenGen.
Led by managing partner China Huaneng Group, GreenGen will design, develop and operate an integrated gasification combined cycle power plant near Tianjin.
A 250-MW plant will be built in the initial phase and capacity is expected to expand to 650 MW.
The agreement, reached during the 18th Sino-US Joint Commission on Commerce and Trade in Beijing, helps fulfill the Chinese central government's ambition to develop clean energy and collaborate with US businesses.
Ma Kai, minister of the National Development and Reform Commission, told China Daily in an earlier interview that China and the US should enhance cooperation to promote energy efficiency and develop biomass energy.
GreenGen said the site was ideal as it was located near a number of chemical facilities, enabling the project's syngas, heat, byproducts and power to be utilized.
Carbon dioxide will be stored to provide enhanced oil recovery.
China Huaneng is the majority shareholder in the plant GreenGen and Peabody will own 6 percent of the initiative.
Additional partners of GreenGen include China Datang Corporation, China Huadian Corporation, China Guodian Corporation, China Power Investment Corporation, Shenhua Group, China National Coal Group and the State Development and Investment Corporation.
"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," Li Xiaopeng, president of Huaneng, said.
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