Cloud Peak Energy Signs Long-Term Coal Export Agreement to Supply New Japanese IGCC Power Plant
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Cloud Peak Energy’s wholly-owned subsidiary, Cloud Peak Energy Logistics (CPEL), has entered into a term coal export sales agreement with JERA Trading Pte Ltd. (JERAT), which is a trading company based in Singapore.
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 one million metric tonnes 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-megawatt IGCC plants are being developed by Mitsubishi Corporation Power Ltd., along with Mitsubishi Heavy Industries, Ltd., Mitsubishi Electric Corporation, Tokyo Electric Power Company Holdings, and Joban Joint Power Co., Ltd. IGCC systems generate power using a combined cycle format incorporating coal gasification and both gas and steam turbines. IGCC systems offer enhanced generation efficiency, as well as reductions in carbon dioxide (CO2) emissions of about 15 percent in comparison with the latest, state-of-the-art, conventional coal-fired power plant designs and substantially lower than most plants in operation in the United States. The first new IGCC plant is scheduled to commence operation in September 2020.
“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 U.S. 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,” added Marshall.
“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,” said Ronan Lory, JERA trading managing director.
About Cloud Peak Energy
Cloud Peak Energy Inc. is headquartered in Wyoming and is one of the largest U.S. coal producers and the only pure-play Powder River Basin coal company. As one of the safest coal producers in the nation, Cloud Peak Energy mines low sulfur, subbituminous coal and provides logistics supply services. The company owns and operates three surface coal mines in the PRB, the lowest cost major coal producing region in the nation. The Antelope and Cordero Rojo mines are located in Wyoming and the Spring Creek Mine is located in Montana. In 2016, Cloud Peak Energy shipped approximately 59 million tons from its three mines to customers located throughout the U.S. and around the world. Cloud Peak Energy also owns rights to substantial undeveloped coal and complementary surface assets in the Northern PRB, further building the company’s long-term position to serve Asian export and domestic customers. With approximately 1,300 total employees, the company is widely recognized for its exemplary performance in its safety and environmental programs. Cloud Peak Energy is a sustainable fuel supplier for approximately three percent of the nation’s electricity.
To stop by Cloud Peak Energy’s website, CLICK HERE
About JERA Trading
JERA Trading Pte Ltd. (JERAT) is a jointly owned company owned two-thirds by JERA Trading International Pte. Ltd., a wholly owned subsidiary of JERA Co. Inc. which is an equal joint venture between two major Japanese electric power companies, TEPCO Fuel & Power (Tepco) and Chubu Electric Power Company (Chubu), and one-third by EDF Trading, the trading arm of EDF, the French leading low carbon power producer in Europe.
JERAT is responsible for the global coal procurement of Chubu, Tepco and EDF. It operates an integrated coal and freight supply chain and has benefited from EDF Trading’s expertise in energy commodity trading and risk management to minimize the costs and optimize the revenues associated with the delivery of coal requirements of its shareholders and third party customers.
JERAT is one of the leading utility-backed coal traders globally with a presence in both the Atlantic and Pacific basins. It operates in all major coal and freight markets (Europe, Asia, North and South America) and trades both physical and financial products.
JERAT is headquartered in Singapore with offices in London and in Maryland.
To stop by JERA Trading’s website, CLICK HERE
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