Air Pollution Control Equipment Services, Coal, Emissions

Peabody Energy receives pre-approval for Thoroughbred Energy Campus air quality permit

ST. LOUIS, Jan. 4, 2002 — Peabody Energy today announced that it has received pre-approval for the air quality permit from the Commonwealth of Kentucky regarding a proposed coal-based electricity generation project in Western Kentucky.

This project, the Thoroughbred Energy Campus, would be located near Central City in Muhlenberg County. The proposed project would consist of a 6 million ton-per-year underground coal mine that would fuel a 1,500 megawatt generating plant sited on approximately 4,500 acres of property controlled by Peabody.

The generating station is being designed to be the cleanest major coal-based power plant east of the Mississippi River. If successfully completed, the Thoroughbred Energy Campus would provide low-cost, low-emissions electricity for up to 1.5 million families.

“We’re pleased to reach another milestone in our efforts to make Thoroughbred a reality,” said Peabody Energy Executive Vice President for Corporate Development Roger B. Walcott Jr. “We look forward to continuing to work with Kentucky to move the project forward and enable its economy and people to continue to enjoy the security of energy that is reliable, low in costs and low in emissions.”

Peabody is engaged in discussions with several prospective partners regarding the scope and structure of the project. Peabody intends to manage project permitting and mine operations, and is seeking a partner that would manage generating plant operations and power marketing.

Peabody Energy is the world’s largest private-sector coal company. Its coal products fuel more than 9 percent of all U.S. electricity generation and 2.5 percent of worldwide electricity generation.