Peabody drops plan for coal fueled plant

[BridgeTheGap]

Peabody Energy has ended its quest to build its Thoroughbred power plant, planned for Muhlenberg County and the focus of a six-year legal battle.

The company's decision to withdraw its application for an air quality permit was tied to Tuesday's announcement that Peabody and partner ConocoPhillips would seek a permit for a coal-to-gas plant at the same Central City-area location, said Beth Sutton of Peabody.

"Given all factors under consideration, we believe that our coal-to-gas project would create the highest value," Sutton said. "This project has multiple markets and uses for the product, including residential consumers, industrial customers and power plants.

John Lyons, director of the Kentucky Division of Air Quality, confirmed that the coal-fired Thoroughbred project has ended.

He said a coal-to-gas plant promises to be much cleaner. For example, its sulfur dioxide emissions would likely be 99 percent less than Thoroughbred, and its emissions of nitrogen oxides would be 94 percent less than Thoroughbred.

http://www.courier-journal.com/article/20081218/BUSINESS/812180337