St. Louis renews its status as a world energy nerve center
 

St. Louis renews its status as a world energy nerve center
St. Louis Post-Dispatch
Sunday, March 6, 2011 9:00 pm

http://fortunedotcom.files.wordpress...0&h=395&crop=1
Offices of Peabody Energy

What oil is to Houston, coal is becoming to St. Louis. For those that don't know, St. Louis has been a major player in the world's coal/energy industry.

And now, the so-called "King of Coal", Chris Cline, has moved his Foresight Energy firm - one of the country's largest coal mining firms - into 16,000 square feet of Metropolitan Square, which is St. Louis' largest and tallest office building. A public offering is being considered by Foresight Energy, which if it goes public likely would add another large public coal firm to St. Louis' energy portfolio.

In March, Foresight Energy announced that it was moving its Palm Beach, Florida-based corporate headquarters from Florida to downtown St. Louis April 1st.

Already, St. Louis-based Peabody Energy is the world's largest private-sector coal producer. It claims to produce "coal products that fuel 10 percent of all U.S. and 2 percent of worldwide electricity generation," and considers itself a global leader in "clean-coal solutions" — partly through an association with Washington University in St. Louis. (Source)

With Peabody Energy, a Fortune 500 firm, and other major St. Louis-based players such Arch Coal Inc., the nation's second-largest coal producer, as well as Armstrong Land Company, Patriot Coal and now Foresight Energy, which reserves are said to be valued between $3-$4-billion, St. Louis has renewed its status as a world energy nerve center.

Like oil and gas firms locating in Texas - particularly Houston - because of oil and gas resources, coal industry companies have located and are locating in St. Louis primarily due to the large Illinois coal basin, which is one of the world's largest.

http://energy.cr.usgs.gov/images/reg.../ill_basin.gif

Articles
-St. Louis Business Journal: Foresight Energy To Move HQ to Met
-Foresight Energy Moves Headquarters
-Sourcewatch: Foresight Reserves LLC

And check out these large projects underway and proposed by St. Louis energy firms.
-$4-billion Prairie State Energy Campus
-Prairie State Energy Campus Construction Progress Photos
-FutureGen
-About FutureGen
-Morgan County Wins $1.3-billion FutureGen Clean Coal project

with cheap and plentiful coal, any number of burgeoning industrial concerns become possible for saint louis!

from pocket-watches to spats, all manner of manufactured products can easily be forged when and where coal is abundant.

Coal is nasty. Hardly anything to celebrate here.

True, but it's good for a city to be a node for various industries.

Interesting article. Good for St Louis.

Anything that enhances our nation's ability to be self-sustaining as far as energy is a huge plus in my book.

Thank you mhays,

That was the point of the editorial and my posting. The point was St. Louis is a major node for a particular form of energy – like it or not. Although a lot of research and development are already underway regarding clean coal technology, I happen to think this node of companies in St. Louis presents a good opportunity for there to be more research and development when it comes exploring efficient uses of coal and how to burn coal more cleanly – similar to what happened with oil and gas research in Houston. I am hopeful that lots of research jobs, new companies and spin-off firms will emerge in St. Louis.

For the record, St. Louis also has two of the largest private oil companies in the U.S. (Apex Oil & Center Oil), several big wind energy companies (Wind Capital, Affinity Wind etc.), one of the largest solar manufacturers in the country (MEMC) and a burgeoning biofuels industry (ex. Abengoa Bioenergy).

Personally, I am not supporting any form of energy, as long as my lights are on, I dont care whether the lights are powered by wind, coal, nuke, solar or flatulence.

The first coal miner's union was formed nearby in Springfield, IL.

There's a ton of coal in the region, evidenced by the map, but my impression was that it had high sulfur content and didn't burn as clean as Wyoming coal, and therefore wasn't used as much (or didn't meet EPA standards or something of that nature).

that's always been my understanding as well. illinois sits atop a huge coal reserve, but it's the shitty high-sulfur kind of coal that's especially harmful to the atmosphere.

Illinois coal isn't actually all that bad compared to what most places in the world burn, but it's nowhere near as good as the amazing anthracite god-coal found primarily in Pennsylvania, West Virginia, and a few pockets in the rockies. Therefore the USA doesn't waste its time with Illinois decent quality bituminous coal because the anthracite coal is far more valuable/profitable to mine.

In any case there is a shitload of coal downstate. Nearly every foot of the southern half of Illinois has coal under it. You could dig down 50 feet or so through the glacial deposits and enter a thick sheet of coal just about anywhere. It's really astounding how much of the stuff there is in the United States. We are the Middle East of coal, heaven forbid we ever decide to burn it all. They estimate the USA alone has enough coal to power the world for hundreds of years while we have between 30 and 80 years of oil left globally.

This is exactly right, Nowhereman1280. The best anthracites are found in the PA/WV Coal belt, pockets in WY and CO, and a few other places. Lots of other massive coal reserves, but they are definitely of the lower-grade, higher-sulfur content varieties.

That being said, given that coal is still going to be a pretty major player in our electrical generation needs for many years to come, it's good that St. Louis has a large number of major players in the industry. It's good for the city and the region. Same goes for Pittsburgh, honestly. Except Pitt's got some of the major coal players, plus a good number of oil & gas companies interested in the Marcellus Shale...

Aaron (Glowrock)

and daddy won't you take me back to Muhlenberg County,
down by the Green River where paradise lay
well I'm sorry my son but you're too late in asking
mister Peabody's coal train has hauled it away


there are also plenty of nodding donkeys along I-64 between St. Louis and Louisville, I guess pumping oil out of the Illinois Basin. hopefully some of these smaller operators grow as prices rise and come to st. louis.

That's too bad. Ignorance is bliss i suppose.

Don't give me ignorance is bliss. In order to supply this nation's seemingly insatiable appetite for electricity and fuel, it's going to take a combination of fossil fuels, nuclear, solar, wind, hydro, geothermal, and any other types we can dream of! No one or two types of fuel will generate everything we need.

Acting otherwise is simply naive.

Aaron (Glowrock)

The next few decades will be a battle between natural gas and coal. Both claim to be "clean" but both are still polluting, one into the air (coal) and the other into the groundwater (gas). Both have the potential to reduce the nation off Middle Eastern oil dependance if the govt. and private sector get behind them. Any city with a sizable energy presence, whether it be coal or gas, will add jobs as these sectors become even more important.

Anywhere we live, it's important to avoid using too much. My city used hydro mostly. Even though that's relatively benign (only localized destruction, i.e. river systems), if we can save a bit here we can ship power to other places that use worse sources.

Absolutely we should care. It would be naive to think we're not responsible.

US coal exports to China are up more than 500% since last year. They are so desperate for coal they will take anything.

http://www.eia.doe.gov/cneaf/coal/qu...l/t7p01p1.html
(Overall US coal exports are up about 47%)

And conservation.

Yes, of course. Forgot to mention conservation. Very important, no doubt.

Aaron (Glowrock)

I agree with this statement 100%.

Also, I want to make it clear to others that I do care about the environment, however the reality is that it is going to take all kinds of resources to keep us powered and moving - especially as the world's population continues to balloon. The more ingenious (ie. "clean coal"), I am all for it.

That said, my posting was primarily about the St. Louis region being a major coal node for supply and corporations, but I do understand the need for some to discuss relevant energy issues outside of that box.

Arch Coal to buy rival Int'l Coal Group
 

Let the mergers begin.

Arch Coal to buy rival Int'l Coal Group for $3.4B

NEW YORK (AP) -- Arch Coal will buy rival International Coal Group in an all-cash deal valued at $3.4 billion, the companies said Monday.

The new company will form the nation's second largest supplier of metallurgical coal, which is used to make steel, the companies said. Met coal is in high demand overseas, especially in China. It's used in everything from building frames to railroad tracks.

Arch Coal Inc. expects the deal to boost earnings starting next year and for sales of met coal this year to reach 11 million tons. The combined company will seek to expand production to more than 14 million tons per year over the next three years.

The acquisition, which amounts to $14.60 per share, has been approved by the boards of both companies. Shareholders that control 17 percent of International's stock have agreed to the deal, which must still be approved by regulators.

Last week, Arch Coal reported that it returned to a profit in the first quarter as higher coal prices offset a decline in sales.

The St. Louis company also raised its 2011 earnings prediction on the expected jump in global demand for coal used both to make steel and produce electricity.

It expects 2011 total sales of between 155 million tons to 160 million tons.

International Coal Group Inc. is based in Scott Depot, W.V. It produces coal in 13 mining complexes throughout Northern and Central Appalachia and Illinois


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