Arch Coal acquires shares in Trailblazer

SWEETWATER, TEXAS - Arch Coal has acquired a 35% equity interest in the Trailblazer Energy Center, which is being developed by Tenaska near Sweetwater, Texas.

Trailblazer will rank among the worldÂ’s cleanest fossil-fuel-based power plants and act as a strategic source of carbon dioxide for enhanced oil recovery (EOR) applications in West Texas. Moreover, Trailblazer will supply the Texas economy with an additional 600 MW of clean, secure, reliable electric generating capacity.

“We are enthusiastic about partnering with Tenaska — a successful and highly respected leader in power plant development — to make the Trailblazer Energy Center a reality,” said David B. Peugh, Arch’s Vice President of Business Development. “Trailblazer will harness the most advanced coal-based technologies to supply secure, low-carbon production of electricity to the rapidly growing Texas marketplace. Furthermore, Trailblazer’s success could set the stage for a new generation of power plants fueled with America’s most abundant, reliable and cost-competitive fuel.”

Tenaska Business Development President David Fiorelli said the partnership with Arch will bring a number of strategic benefits to the Trailblazer project. “The agreement is another indication of the significant progress Tenaska, as managing partner, is making in the development of the pioneering Trailblazer Energy Center,” said Fiorelli. “As one of the largest suppliers of low-sulphur Powder River Basin coal, Arch brings its 40 years of experience in the energy and coal industries. By working together, we will help lead the way to using our nation’s most abundant energy resource in an environmentally responsible manner.”

In capturing 85 to 90% of the carbon dioxide emissions from the plant, Trailblazer will emit 70% less carbon dioxide than the cleanest natural gas-based power plants. Moreover, Trailblazer will ship the captured carbon dioxide to the nearby Permian Basin, where it will be used to boost oil production and extend the life of that critically important domestic energy resource.

As part of the agreement, Arch will supply the plantÂ’s fuel needs for the first 20 years of operation from its Powder River Basin operations in Wyoming.

A recent Electric Reliability Council of Texas (ERCOT) report projects that Texas will need to add more than 55 GW of new and replacement power-generating capacity over the next two decades to meet projected demand growth.

In addition to Trailblazer, ArchÂ’s technology portfolio includes an equity interest in DKRW Advanced Fuels, which is planning to convert coal into clean-burning transportation fuel on Arch reserves in southern Wyoming, and ADA-ES, a leading-edge emissions control company.