WKYT | Lexington, Kentucky | News

Peabody Chooses Site For Planned Coal-To-Gas Plant

CENTRAL CITY, Ky. (AP) - Peabody Energy has chosen a site in
western Kentucky near Central City for a proposed
multibillion-dollar coal-to-gas plant.

Peabody of St. Louis and ConocoPhillips, a Houston-based
company, announced Tuesday that they have chosen a site in Kentucky
and have started the permit process. The companies are in a joint
venture, with ConocoPhillips providing the coal gasification
technology.

The companies said Tuesday they have filed an air permit with
the state. Peabody spokeswoman Beth Sutton said Tuesday that the
filing is the beginning of a one- to two-year permitting process.

Sutton said the cost of the plant, pitched last year as a $3
billion facility, has yet to be determined.

Peabody chose Kentucky in October 2007 after considering several
sites here and in Illinois and Indiana.

"The site that we have selected is particularly attractive
based on existing infrastructure," Sutton said. She said the site
has access to coal reserves, water and rail transport.

The facility in Muhlenberg County would be called Kentucky
NewGas.

The gasification process turns coal into clean-burning natural
gas. The plant would have less than five percent of the emissions
of a traditional coal plant of the same size, the companies said in
a statement.

Company officials said the plant would create 500 jobs and
produce enough energy for nearly 750,000 homes. It would take four
years to build.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


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