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Industries come together to work on CCS cement project

World Cement,

China Huaneng Group, Peabody Energy and Calera Corp. have agreed to pursue development of a green coal energy campus in the Xilinguole Region of Inner Mongolia. The energy project would include a 1200 MW supercritical power plant that would capture a portion of carbon dioxide (CO2) and convert it into green building materials, advancing carbon capture technology.

The agreement demonstrates the growing alliance on clean energy and carbon initiatives between China and the United States fostered by the U.S. Energy Cooperation Program (ECP).

The plant would be fuelled by a 12 million tpa surface mine operated by Peabody. Huaneng, the largest generator in China and second largest in the world, will serve as the power plant operator.

Calera brings its proprietary technology to convert CO2 into solid carbonates that can be used as building materials. Every 1 t of captured CO2 is expected to produce 2 t of cement construction material. The planned location has good access to serve electricity customers and industrial users in the Xilinguole Region.

"Peabody is a global leader advancing near-zero emissions from coal, and we are proud to partner with Huaneng and Calera in a world-class energy project that would serve as a new global model for clean energy," said Peabody Energy Chairman and Chief Executive Gregory H. Boyce. "Recycling carbon will create beneficial building products for fast-growing cities that are becoming home to hundreds of millions of Chinese citizens migrating from rural areas."

By 2025, China is expected to have more than 200 cities with populations greater than 1 million people, versus just 35 such cities today. China also is the world's largest and fastest-growing coal market, using coal to fuel approximately 80% of its electricity.

Its coal demand is expected to increase by 1 billion t in less than five years, bringing annual use to 4.3 billion t, according to the China National Energy Administration. Globally, coal has been the fastest-growing fuel the past decade.

In the coming months, the parties will evaluate engineering plans. Project development also will require a customary permitting and regulatory approval process. The power plant is expected to operate at least 30 years.

China Huaneng Group engages in the investment, construction, operation and management of power generation assets and the production and sale of electricity power. Calera is a California-based company that converts carbon dioxide from fossil fuels into building materials, enabling production of clean power, cement and other products.

Peabody is advancing more than a dozen near-zero emissions, low-carbon partnerships globally, which includes participation in China's GreenGen near-zero emissions power project and carbon research center where Peabody is the only non-Chinese partner. The first phase of GreenGen operations is expected to be online in 2011.

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