Peabody Plant Proposal

Peabody Energy joins with a second company on a proposal to construct a $3-billion coal-gasification plant .

Peabody reported on July 23, 2007, that Conoco-Phillips would partner in the project to convert coal to synthetic natural gas.

Governor Fletcher and Kentucky lawmakers are hoping to lure the plant to the state with some $300-million in tax breaks.

The proposal is to build the plant near an existing Peabody mine in Illinois, Indiana or Kentucky.

Feasibility studies are under way to determine the preferred location.
A Peabody spokeswoman said the studies should be done by the end of the year and a final site will be based on the analysis.

Governor Fletcher, along with House and Senate leaders, are scheduled to meet with Gregory Boyce, Peabody President and Chief Executive Officer, on July 25.

They will try to persuade him to build the plant in Kentucky. The coal-gasification plant has caused much contention among lawmakers because the tax incentives were to be discussed in the special session.

Earlier this month, House lawmakers adjourned after meeting for less than an hour. They are scheduled to return next week.

Nineteen potential sites for the plant have been identified around Kentucky, including Brier Creek and Paradise Mine in Muhlenberg County and D.B. Wilson Power Station in Ohio County.

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