Cloud Peak Energy’s wholly-owned subsidiary Cloud Peak Energy Logistics (CPEL) has entered into a long-term coal export sales agreement with JERA Trading Pte Ltd (JERAT).
Shipments are expected to commence as early as the end of 2019 and continue for a period of between thirty and forty months, reaching up to 1 million t in the final contract year.
Coal produced at Cloud Peak Energy’s Spring Creek mine, located near Decker, Montana, will be carried by the BNSF Railway to Westshore Terminals at Roberts Bank, Vancouver, for loading onto ocean-going vessels for subsequent delivery to two new state-of-the-art Integrated coal gasification combined cycle (IGCC) coal-fired power plants in Fukushima Prefecture, Japan.
The two 540 MW IGCC plants are being developed by Mitsubishi Corp. Power Ltd, along with Mitsubishi Heavy Industries Ltd, Mitsubishi Electric Corp., Tokyo Electric Power Co. Holdings Inc. and Joban Joint Power Co. Ltd.
“Cloud Peak Energy is pleased to be part of the Fukushima IGCC project and to help support Japan’s investment in next generation coal technology,” said Colin Marshall, Cloud Peak Energy’s President and CEO. “If similar plants were to be built in the US, it would go a long way to addressing concerns about CO2 emissions while providing low cost reliable electricity. Today’s announcement also demonstrates the strategic importance of American energy resources to key Asian allies.”
Ronan Lory, JERA Trading Managing Director, indicated that “JERA Trading is glad to have secured a long-term coal sourcing agreement with Cloud Peak Energy, it demonstrates that North America remains a key supplier of quality coal for exports and vindicates our decision to set up our new subsidiary JERA Trading North America LLC.”
Read the article online at: https://www.worldcoal.com/coal/17012018/cloud-peak-energy-to-export-coal-to-japanese-igcc-power-plant/