15 October 2004 – Peabody Energy’s Mustang energy project in New Mexico, USA has been selected to receive a grant from the US government’s Department of Energy.

The grant has been awarded under the second round of competition in President Bush’s ten-year, $2bn Clean Coal Power Initiative (CCPI).

The technologies developed under CCPI will help maintain coal resources as a cornerstone of America’s future domestic energy portfolio, particularly for power generation.

US Energy Secretary Spencer Abraham said, “Peabody Energy is undertaking a vital challenge that has the very real potential of not only improving our nation’s energy security, but improving our environment as well.”

The clean coal project teams Peabody Energy with co-sponsor Airborne Clean Energy, along with Veolia Water North America, and Icon Construction, in a commercial scale demonstration of the ‘airborne process’ scrubber, regeneration system and fertilizer production systems at the Mustang generating station in Milan, New Mexico.

The $79m project, for which the Energy Department will provide $19.7m, will develop an innovative and cost-competitive multi-pollutant control process for achieving 99.5 per cent removal of sulphur dioxide, 98 per cent removal of sulphuric acid mist precursor, 98 per cent removal of nitrogen oxides, and 90 per cent total system removal of mercury from plant emissions, while turning the by-products into a high quality, high value granular fertilizer.

The clean coal power initiative is an innovative technology demonstration programme that fosters more efficient clean coal technologies for use in new and existing electric power generating facilities in the US. Candidate technologies are demonstrated at full scale to ensure proof of operation prior to commercialisation.