Mustang Energy Project

Peabody Energy proposed a 300 MW coal plant in Mustang, New Mexico.

The plant was proposed to use approximate one million tonnes of coal a year from the Lee Ranch Mine owned by Peabody. In October 2004 U.S. Secretary of Energy, Spencer Abraham announced that the project had been given a $19.7 million Clean Coal Power Initiative grant "for demonstrating technology to achieve ultra-low emissions" at the proposed power station.

The State of New Mexico required Peabody to consider advanced combustion technologies in its BACT analysis. Peabody concluded that neither Integrated Gasification Combined Cycle (IGCC) nor CFB technology was a feasible option, for economic and technical reasons. In September 2006, Peabody announced it would withdraw the Mustang plant application and instead build a syngas plant.

Project Details
Sponsor: Mustang Energy (Peabody Energy) Location: Mustang, NM Capacity: 300 MW Status: Cancelled

Financing

 * Bank of America
 * Citi
 * Credit Suisse
 * JP Morgan Chase
 * Morgan Stanley
 * Wells Fargo

Citizen Groups

 * San Juan Citizens Alliance, Dan Randolph, dan [at] sanjuancitizens.org
 * Western Resource Advocates, Regina Nichols, rnichols [at] westernresources.org
 * Environmental Defense
 * Grand Canyon Trust

Related SourceWatch Articles

 * New Mexico and coal
 * United States and coal
 * Carbon Capture and Storage
 * Existing U.S. Coal Plants
 * US proposed coal plants (both active and cancelled)
 * Coal plants cancelled in 2007
 * Coal plants cancelled in 2008
 * State-by-state guide to information on coal in the United States (or click on the map)