Boyce outlined Peabody’s strategies for value creation against a backdrop of greater global use of coal for energy security, economic growth and environmental improvement.
He said that greater use of coal must be driven "by the ultimate vision of near-zero emissions and carbon capture and sequestration".
“Technology is the key to the twin challenges of energy independence and carbon concerns. We must accelerate commercial deployment of technologies that will maintain a secure, affordable energy supply to satisfy our growing energy needs and achieve the important sustainable goal of an improved environment," he said.
Boyce outlined a three-step technology path.
“First, build out the next generation of state-of-the-art coal-fuelled plants to ensure electric reliability. Most of the plants proposed are advanced combustion featuring efficient supercritical technologies,” he said.
“Second, fund and build the FutureGen plant, which would commercialise IGCC technology with carbon capture and sequestration. Peabody is a founding member of the FutureGen Alliance. The final host site will be selected this year, and the plant is expected to be operational within five years. Gasification is also vital for coal-to-gas and coal-to-liquids plants.
“Third, aggressively pursue technologies to capture carbon dioxide from existing coal plants. With the advent of these technologies, all coal plants are carbon-capture ready.”
In 2006 Peabody achieved world record sales of 248 million tons, and record revenues, EBITDA, operating profit and net income, with earnings rising 45%.
