After 139 years of coal mining, Peabody expands into solar

[ST LOUIS] Peabody Energy, the biggest US coal producer, is expanding into clean energy. The St Louis-based company is forming a joint venture with Riverstone Credit Parters and Summit Partners Credit Advisors to develop utility-scale solar projects on land around previous coal mining operations, according to a statement Tuesday.

The move is a notable shift for a company that has been digging up the dirtiest fossil fuel since its founding in 1883, and comes as utilities around the world increasingly shift to cleaner energy sources to combat climate change.

While coal is enjoying a surge in demand during the past six months, that's seen as a short-term trend as the global economy emerges from the coronavirus pandemic. The long-term trends for coal remain grim, and Peabody characterised the decision as a way to generate new revenue sources.

The new venture is aimed at "creating additional value from our existing assets, supporting our own and our customers' ESG ambitions and providing added economic benefits for the communities in which we work and live," Chief executive officer Jim Grech said in the statement.

The joint venture, R3 Renewables, expects to develop more than 3.3 gigawatts of solar projects and 1.6 gigawatts of battery storage during the next five years. BLOOMBERG