Coal Producer Collaborating with Renewable Energy Firm on Repurposing Old Mining Sites
One of the nation’s largest coal mining companies for the past century is stepping up recently to work with an international renewable energy partner and together cite clean energy projects atop old, retired mines in the U.S.
Coal producer Peabody is going to work with RWE on strategically advancing renewable energy projects by repurposing reclaimed land previously used for mining. The partnership incorporates RWE's expertise in developing and operating clean energy projects and Peabody's land resources, particularly in the Midwest, as well as its reclamation capabilities.
RWE, which is an offshoot of German-based electricity trading firm RWE AG, is acquiring a majority interest in the R3 Renewables ownership group alongside founding partner Peabody. R3, a joint venture launched by Peabody, Summit Partners Credit Advisors (SPCA) and Riverstone Credit Partners (Riverstone), repurposes land previously used for coal mining to deliver clean, renewable energy.
"Our new partnership with a globally recognized renewable energy leader represents significant added momentum in our initiatives to develop renewable projects on Peabody's formerly mined lands,” Jim Grech, Peabody CEO and president, said in a statement. “Peabody is committed to advancing environmental sustainability, creating additional value from our assets, and providing added economic benefits for the communities in which we work and live."
RWE also is acquiring SPCA and Riverstone's equity interest in R3 and Peabody will retain a 25 percent equity interest. The acquisition will help develop large-scale solar and energy storage projects on reclaimed mine lands as well as demonstrate RWE's commitment to innovative and clean energy solutions.
“RWE is thrilled to partner with Peabody through R3 Renewables to develop solar projects using reclaimed land on a significant scale,” Andrew Flanagan, CEO of RWE Clean Energy, said. “Solar and storage facilities are a great way to bring economic development via construction jobs, local and domestic investment, and direct community benefits and taxes as well as a contribution to energy security.
Peabody originated as the Peabody Energy Co. in the late 19th century by acquiring coal mines. The move away from coal-fired electricity generation impacted Peabody and the company sought Chapter 11 bankruptcy reorganization in 2016, emerging as simply Peabody.
Based in St. Louis, Missouri, Peabody still owns, operates and acquires coal mining operations, including a deal announced this week to buy an Australian metallurgical coal asset from Anglo American. Peabody reportedly generated $225 million in third-quarter earnings and sold more than 12 million tons of coal in the first nine months of 2024, according to investor releases.
The partners have begun to develop a 5.5 GW pipeline of 10 potential projects on reclaimed mining sites in Indiana and Illinois. RWE will acquire seven of the projects and enter into a joint venture with Peabody to continue development of the three remaining projects.
The projects are expected to generate enough electricity to power the equivalent of more than 850,000 homes across the region. The initiative not only advances renewable energy development in the Midcontinent Independent System Operator (MISO) grid system region, but also promotes economic development by creating local jobs and increasing tax revenues for the communities involved.
The projects are pledged to maintain existing agricultural lands, ensuring rural areas benefit from economic growth. The partnership aims to fulfill growing electricity demand by bringing renewable power to the grid, and jobs and revenues to communities that have contributed to U.S. energy in other forms for generations.
RWE will expand its footprint in the MISO grid region through the partnership.
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