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Rentech, Peabody Energy enter new deal

RENTECH and Peabody Energy have settled the initial coal supply contract for Rentech Energy Midwest Corporation's ultra-clean fuels conversion project in East Dubuque, Illinois.

Staff Reporter

Coal from Peabody's Gateway Mine near Coulterville, Illinois will supply the REMC project, which will convert the existing natural gas-fired ammonia fertiliser facility into what Rentech believes will be the nation’s first Fischer-Tropsch and ammonia fertiliser production facility utilising clean coal technologies.

Peabody will provide up to approximately 7.2 million tons of Illinois coal beginning in 2009 or early 2010, through to December 2017.

Rentech and Peabody are also cooperating in the co-development of up to two potential clean fuels projects to be located on Peabody reserves. The projects would convert coal into ultra-clean transportation fuels using Rentech's proprietary Fischer-Tropsch process.

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