ST. LOUIS (AP) - Coal miner Peabody Energy Corp. said Tuesday it would
invest up to $10 million in a coal-to-liquids project led by synthetic fuels
producer Rentech Inc.
The agreement also calls for Peabody to supply the project with about 1
million tons of coal annually and the company can exercise an option for a 20
percent stake in the development through increased funding.
Rentech plans to convert an existing fertilizer production facility it owns
in East Dubuque, Ill., into a coal gasification complex that would produce
transportation fuels. Rentech expects the plant will produce about 400,000
barrels per year of these fuels, as well as about 545,000 tons of nitrogen
fertilizer products per year, once it completes the plant's conversion in 2010.
Shares of Rentech rose 20 cents, to $2.69 in premarket morning trading,
having closed Friday at $2.49.
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