Arch Coal invests in coal-to-liquid
Saturday, August 26th 2006
Arch Coal Inc. of St. Louis, the nation’s second-largest coal company, has taken a 25 percent stake in DKRW Advanced Fuels LLC.
In exchange, Arch has agreed to extend its existing option agreement with DKRW Advanced Fuels, to secure coal reserves for two additional coal-to-liquid projects outside of the Carbon Basin, and to invest $25 million in the company.
DKRW Advanced Fuels is a subsidiary of Houston-based DKRW Energy LLC and the principal developer of the Medicine Bow fuel and power coal-to-liquids project in the Carbon Basin of southern Wyoming.
DKRW Advanced Fuels and its units hold various proprietary coal conversion technology licenses and represent all of DKRW Energy LLC’s coal conversion technology and development efforts within the group of DKRW Energy companies.
Coal conversion technologies are generally viewed as economic when crude oil is trading at prices above $40 per barrel and natural gas is trading at prices above $5 per million Btu.
