SOURCE: Industrial Info Resources

Industrial Info Resources

August 25, 2011 06:30 ET

EPA Cross-State Rule Drives Increased Demand for Powder River Basin Coal, an Industrial Info News Alert

SUGAR LAND, TX--(Marketwire - Aug 25, 2011) - Written by John Egan for Industrial Info Resources (Sugar Land, Texas) -- The newly finalized Cross-State Air Pollution Rule (CSAPR) from the U.S. Environmental Protection Agency (EPA) (Washington, D.C.) is driving increased demand for low-sulfur sub-bituminous coal from the Powder River Basin (PRB) at the expense of higher-sulfur coal mined in other regions.

Reducing power-plant emissions of sulfur dioxide (SO2) by switching to low-sulfur PRB coal is a time-honored tactic among North American electric generators. Sub-bituminous coal from the PRB has a lower heating value compared to bituminous coal mined in Appalachia. But for some plants, the lower emissions from PRB coal could delay or preclude the need to install flue-gas desulfurization (FGD) equipment at some power plants.

Earlier this month, Peabody Energy Corporation (NYSE:BTU) (St. Louis, Missouri) announced it would sell 91 million tons of low-sulfur PRB coal to Ameren Corporation (NYSE:AEE) (St. Louis).

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