Peabody Energy Becomes Founding Member of U.S. Department of Energy's National Carbon...

Peabody Energy Becomes Founding Member of U.S. Department of Energy's National
Carbon Capture Center

ST. LOUIS, May 27 /PRNewswire-FirstCall/ -- Peabody Energy (NYSE: BTU) today
became a founding member of the U.S. Department of Energy (DOE) National
Carbon Capture Center. The center is a public-private partnership to advance
the next generation of carbon capture and storage (CCS) technologies. The
effort will be based at the Power Systems Development Facility (PSDF) south of
Birmingham, Ala., the nation's premier carbon research and development
laboratory. Peabody has been a funding partner of the PSDF since 1997.

The National Carbon Capture Center will bring together scientists and
technology experts from government, industry and academia to analyze both
pre-combustion and post-combustion carbon capture technologies in a
coal-fueled power plant setting. Once fully operational in 2010, the center
will play a leading role in the global effort to advance cost-efficient,
large-scale carbon capture and storage operations at coal-fueled power plants.

"Coal continues to be the fastest-growing fuel in the world, and carbon
capture and storage will be essential to meet any carbon dioxide emissions
goals in a cost-effective manner," said Peabody Chairman and Chief Executive
Officer Gregory H. Boyce. "Peabody is the global leader in clean coal
solutions, with signature projects in Asia, Australia and North America, and
we are proud to also support the National Carbon Capture Center."

Post-combustion research will be conducted at Plant Gaston, a coal-fueled
generating plant adjacent to the PSDF that is operated by Southern Company
subsidiary Alabama Power. This power plant will be large enough to provide
meaningful performance data under realistic operating conditions, accelerating
the commercialization of CCS technologies.

Existing facilities at the PSDF will also be modified to conduct the testing
of pre-combustion carbon dioxide capture technologies.

As a global leader in clean coal technologies, Peabody Energy is advancing
signature projects to commercialize low-carbon and near-zero emission
technologies around the world. The company is:
-- The only non-Chinese equity partner in GreenGen, China's
centerpiece climate initiative;
-- A founding member in the COAL21 Fund and the Global Carbon Capture and
Storage Institute in Australia, two major initiatives channeling
public
and private investment into low-emissions power projects;
-- A founding member of the FutureGen Alliance in the United States, an
initiative to build a power plant prototype that would capture carbon
dioxide emissions;
-- A $5 million grantor to Washington University in St. Louis to help
establish the Consortium for Clean Coal Utilization, an international
partnership of universities, industry leaders and foundations to
advance
carbon solutions;
-- A founding member of the Western Kentucky Carbon Storage Foundation,
which is already testing geologic carbon dioxide storage options; and

-- An equity partner in GreatPoint Energy, a Massachusetts-based company
that converts coal into clean substitute natural gas while enabling
carbon storage.

In addition to the DOE, Peabody and Southern Company, partners include
American Electric Power, Luminant, Arch Coal and the Electric Power Research
Institute (EPRI), among others. The partnership will continue to seek new
members as research progresses.

Peabody Energy (NYSE: BTU) is the world's largest private-sector coal company,
with 2008 sales of 256 million tons and $6.6 billion in revenues. Its coal
products fuel 10 percent of all U.S. electricity generation and 2 percent of
worldwide electricity.

CONTACT
Beth Sutton
(314) 342-7798

SOURCE Peabody Energy

Beth Sutton of Peabody Energy, +1-314-342-7798