Peabody Signs Multi-Year Contract to Provide Coal to Midwestern Generating Stations
Peabody (NYSE: BTU) has secured a significant long-term contract with Associated Electric Cooperative Inc. to supply 7-8 million tons of coal annually for at least seven years. The coal will be sourced from Peabody's North Antelope Rochelle Mine (NARM) in Wyoming's Powder River Basin to power Associated's New Madrid Power Plant and Thomas Hill Energy Center in Missouri.
NARM, North America's largest coal mine, delivered 60 million tons of coal in 2024 and has been supplying Associated's generating stations for over 30 years. CEO Jim Grech highlighted increasing American electricity demand, particularly driven by data centers and artificial intelligence, emphasizing coal's role in providing reliable, affordable baseload electricity.
Peabody (NYSE: BTU) ha ottenuto un importante contratto a lungo termine con Associated Electric Cooperative Inc. per fornire da 7 a 8 milioni di tonnellate di carbone all'anno per almeno sette anni. Il carbone sarà estratto dalla miniera North Antelope Rochelle (NARM) di Peabody, situata nel bacino del Powder River in Wyoming, per alimentare la centrale elettrica New Madrid e il Thomas Hill Energy Center in Missouri di Associated.
NARM, la più grande miniera di carbone del Nord America, ha prodotto 60 milioni di tonnellate di carbone nel 2024 e fornisce energia alle centrali di Associated da oltre 30 anni. Il CEO Jim Grech ha sottolineato la crescente domanda di elettricità negli Stati Uniti, soprattutto trainata dai data center e dall'intelligenza artificiale, evidenziando il ruolo del carbone nel garantire un’energia di base affidabile e a costi contenuti.
Peabody (NYSE: BTU) ha asegurado un contrato a largo plazo significativo con Associated Electric Cooperative Inc. para suministrar entre 7 y 8 millones de toneladas de carbón anualmente durante al menos siete años. El carbón se obtendrá de la mina North Antelope Rochelle (NARM) de Peabody, ubicada en la cuenca del Powder River en Wyoming, para alimentar la planta eléctrica New Madrid y el Thomas Hill Energy Center en Missouri de Associated.
NARM, la mina de carbón más grande de América del Norte, entregó 60 millones de toneladas de carbón en 2024 y ha estado suministrando a las centrales de Associated durante más de 30 años. El CEO Jim Grech destacó la creciente demanda de electricidad en Estados Unidos, impulsada especialmente por los centros de datos y la inteligencia artificial, subrayando el papel del carbón para proporcionar electricidad de base confiable y asequible.
피바디 (NYSE: BTU)는 Associated Electric Cooperative Inc.와 최소 7년간 연간 700만~800만 톤의 석탄을 공급하는 장기 계약을 체결했습니다. 이 석탄은 와이오밍 주 파우더 리버 분지에 위치한 피바디의 노스 앤텔로프 로셸 광산(NARM)에서 공급되어 미주리 주의 Associated 뉴 마드리드 발전소와 토마스 힐 에너지 센터에 전력을 공급할 예정입니다.
북미 최대 석탄 광산인 NARM은 2024년에 6천만 톤의 석탄을 생산했으며, 30년 넘게 Associated의 발전소에 석탄을 공급해왔습니다. CEO 짐 그레치는 데이터 센터와 인공지능의 수요 증가로 미국 내 전력 수요가 늘어나고 있음을 강조하며, 석탄이 신뢰할 수 있고 저렴한 기저 전력을 제공하는 데 중요한 역할을 한다고 밝혔습니다.
Peabody (NYSE : BTU) a conclu un contrat à long terme important avec Associated Electric Cooperative Inc. pour fournir entre 7 et 8 millions de tonnes de charbon par an pendant au moins sept ans. Le charbon proviendra de la mine North Antelope Rochelle (NARM) de Peabody, située dans le bassin du Powder River dans le Wyoming, afin d’alimenter la centrale électrique New Madrid et le Thomas Hill Energy Center dans le Missouri d’Associated.
NARM, la plus grande mine de charbon d’Amérique du Nord, a produit 60 millions de tonnes de charbon en 2024 et fournit les centrales d’Associated depuis plus de 30 ans. Le PDG Jim Grech a souligné la demande croissante d’électricité aux États-Unis, notamment portée par les centres de données et l’intelligence artificielle, insistant sur le rôle du charbon pour fournir une électricité de base fiable et abordable.
Peabody (NYSE: BTU) hat einen bedeutenden langfristigen Vertrag mit Associated Electric Cooperative Inc. abgeschlossen, um jährlich 7 bis 8 Millionen Tonnen Kohle für mindestens sieben Jahre zu liefern. Die Kohle stammt aus Peabodys North Antelope Rochelle Mine (NARM) im Powder River Basin in Wyoming und wird zur Stromversorgung des New Madrid Kraftwerks und des Thomas Hill Energy Centers in Missouri von Associated verwendet.
NARM, die größte Kohlemine Nordamerikas, lieferte 2024 60 Millionen Tonnen Kohle und versorgt seit über 30 Jahren die Kraftwerke von Associated. CEO Jim Grech hob die steigende Stromnachfrage in den USA hervor, insbesondere durch Rechenzentren und künstliche Intelligenz, und betonte die Rolle der Kohle bei der Bereitstellung zuverlässiger und kostengünstiger Grundlastenergie.
- Secured major 7+ year contract for 7-8 million tons of coal annually
- Growing electricity demand from data centers and AI sectors
- Maintains stable long-term revenue stream from established customer
- NARM mine demonstrated strong production with 60 million tons sold in 2024
- Heavy dependence on coal market amid global energy transition
Insights
Peabody's new 7-year contract to supply 7-8 million tons of coal annually to Associated Electric represents a significant positive development for the company's operational stability. This agreement secures approximately 12-13% of North Antelope Rochelle Mine's annual production capacity (based on NARM's 60 million ton 2024 output) with a reliable customer.
The multi-year commitment provides Peabody with crucial revenue predictability in an otherwise challenging market environment for coal producers. By locking in this substantial volume over an extended period, Peabody gains improved visibility for production planning and operational efficiency at NARM, their flagship mine and one of North America's largest coal production facilities.
Particularly noteworthy is the contract's timing amid the broader energy transition narrative. The CEO's reference to growing electricity demand from data centers and AI highlights an emerging countertrend that could temporarily bolster coal usage for baseload power generation, despite the long-term shift toward renewables. The extension of this 30+ year supplier relationship also demonstrates Associated's continued reliance on coal for its Missouri generating stations, suggesting coal remains essential for certain utilities' baseload requirements.
This contract represents a substantial commitment that strengthens Peabody's revenue foundation during a pivotal period for the company. While specific pricing terms aren't disclosed, the 7-8 million ton annual volume over at least 7 years creates a significant revenue stream that enhances Peabody's financial stability and cash flow predictability.
The agreement effectively secures demand for approximately 49-56 million tons of coal in total (at minimum), protecting a meaningful portion of NARM's output from market uncertainties. This guaranteed offtake agreement provides Peabody with improved financial planning capabilities and potentially strengthens its position with creditors and investors by demonstrating sustained demand for its primary product.
From a business resilience perspective, extending this long-standing customer relationship amid the energy transition showcases Peabody's ability to maintain critical utility partnerships despite market pressures. The reference to increased electricity demand from data centers represents a potential bright spot for coal producers, as these high-consumption facilities require reliable baseload power that coal-fired plants can provide. This contract effectively demonstrates that Peabody continues to secure its position as a key supplier in regions where coal remains central to the energy mix.
"This substantial agreement demonstrates the ongoing importance of Peabody's coal in providing reliable, affordable baseload electricity for years to come," said Peabody President and Chief Executive Officer Jim Grech. "American demand for electricity is growing for the first time in many years given increased power needs from data centers and artificial intelligence. We are pleased to extend our long-term relationship with Associated and look forward to supplying their fuel needs well into the future."
Under this new contract, Peabody will supply Associated's coal requirements for the New Madrid Power Plant and Thomas Hill Energy Center in
Peabody's NARM Mine has delivered coal to Associated generating stations for over 30 years. NARM is the largest coal mine in
Peabody is a leading coal producer, providing essential products for the production of affordable, reliable energy and steel. Our commitment to sustainability underpins everything we do and shapes our strategy for the future. For further information, visit PeabodyEnergy.com.
CONTACT:
Mary Compton
pr@peabodyenergy.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/peabody-signs-multi-year-contract-to-provide-coal-to-midwestern-generating-stations-302428068.html
SOURCE Peabody
FAQ
How much coal will Peabody (BTU) supply under the new Associated Electric contract?
What was NARM mine's coal production volume in 2024?
Which power plants will receive coal under Peabody's new contract?
What factors are driving increased demand for Peabody's (BTU) coal production?
How long has Peabody's NARM mine been supplying Associated's generating stations?
