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Peabody considers building major coal to natural gas plant

3 November 2005 - A commercial scale coal gasification project could be built in Illinois, US after Peabody Energy and ArcLight Capital Partners signed a Memorandum of Understanding to scout potential locations.

The coal gasification plant would transform coal into pipeline quality synthetic natural gas. The project would be designed with ConocoPhilips technology that features an oxygen blown gasification system. ConocoPhilips and Fluor have begun preliminary engineering design work for the project.

The plant would be one of the largest coal to natural gas plants in the US. Peabody would develop a coalmine to fuel the plant using its Illinois Basin reserves, and ArcLight, through an affiliate, would contribute its Illinois related coal to natural gas development assets.

The project would require at least 3 million tonnes of coal per year to fuel two gasifier trains that could produce more than 35 billion cubic feet of synthetic natural gas.




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