White Energy and Peabody Energy Enter Into Clean Coal Development Agreement
Covering North America and China
ST. Louis and Sydney, May 14 /PRNewswire-AsiaNet/ --
Peabody Energy (NYSE: BTU) and White Energy Company Limited (ASX: WEC)
(OTCQX: WECFY) today announced they have signed an agreement to pursue
development of a coal upgrading plant that would be sited at a Peabody
operation in the Powder River Basin.
Under terms of the agreement, Peabody also has the first right to
participate in new coal upgrading development projects that White Energy
undertakes in North America and China. Peabody further has a right to acquire
a nearly 15 percent equity interest in White Energy.
The coal upgrading plant would utilize White Energy's patented coal
briquetting technology, a mechanical process that upgrades lower Btu coals.
The process increases the coal's overall energy content by approximately 35
percent. The resulting product is higher quality, more efficient and cleaner,
with lower carbon and other emissions. The upgraded coal can be used
interchangeably with high rank thermal coal for a number of applications,
including power generation, industrial processes and Btu Conversion, such as
coal-to-gas and coal-to-liquids.
"We view this technology as a way to unlock further value in our reserves
in the Powder River Basin and at other locations to create new marketing
opportunities for U.S. or export customers," said Richard A. Navarre,
Peabody's President and Chief Commercial Officer. "Coal has been the
fastest-growing fuel for each of the past five years and will continue to be
the world's primary source of electricity. We are pleased to be partnering
with White Energy to develop a coal product with expanded market reach."
Peabody and White Energy are proceeding with engineering design and
permitting activities for the first plant that are expected to require up to
24 months. The plant would be built in phases, with the first phase expected
to produce more than 1 million tons of upgraded coal per year. Subsequent
phases could increase plant capacity ultimately to more than 20 million tons
annually. Peabody expects substantial global growth opportunities using this
technology that will initially focus on applications in North America and
China.
John Atkinson, Chief Executive Officer of White Energy said, "The United
States is a significant consumer of coal, and public sentiment supports that
we move to a market with viable clean coal options as soon as possible.
Peabody, as the world's largest private-sector coal company, is rightfully
taking a leadership position in this initiative. White Energy is delighted to
be partnering with Peabody to build a significant clean coal business in the
United States and also to work together to develop opportunities in the China
market. Today's agreement with Peabody complements projects we have done in
other key coal markets around the world and represents another important step
for White Energy in positioning itself as one of the world's leading
providers of clean coal solutions."
About Peabody Energy
Peabody Energy (NYSE: BTU) is the world's largest private-sector coal
company, with 2008 sales of 256 million tons and $6.6 billion in revenues.
Its coal products fuel approximately 10 percent of all U.S. electricity
generation and 2 percent of worldwide electricity. Visit PeabodyEnergy.com.
About White Energy Company Limited
White Energy Company Limited, a Sydney-based company, (ASX: WEC) (OTCQX:
WECFY) and the parent of White Energy Coal North America, is the exclusive
worldwide license holder of the Binderless Coal Briquetting process, which
upgrades lower rank coal to significantly increase its energy efficiency and
lower emissions. More information can be found on White Energy's website.
Visit whiteenergyco.com.
Contacts:
For White Energy Coal North America
Ed Trissel /Annabelle Rinehart/Jim Shaughnessy
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449
Judy Tanselle, President
(301) 917-6700
For White Energy Company Limited
John Atkinson, Chief Executive Officer
+ 61 2 9959 0000
For Peabody Energy
Beth Sutton, Director Corporate Communications
(928) 699-8243
Meg Gallagher, Manager Corporate Communications
(314) 342-7963
SOURCE: Peabody Energy; White Energy Company Limited
CONTACT: Ed Trissel, Annabelle Rinehart or Jim Shaughnessy,
all of Joele Frank, Wilkinson Brimmer Katcher,
+1-212-355-4449, for White Energy Coal
North America; or Judy Tanselle,
President of White Energy Coal North America,
+1-301-917-6700; or
John Atkinson,
Chief Executive Officer of White Energy Company Limited,
+ 61 2 9959 0000; or
Beth Sutton,
Director Corporate Communications,
+1-928-699-8243, or
Meg Gallagher,
Manager Corporate Communications,
+1-314-342-7963, both of Peabody Energy
NEWS 
