US coal producer Peabody Energy is launching a renewable energy development company with plans to expand solar and battery storage capacity in the Midwest.
Peabody's new venture, R3 Renewables, will target building more than 3,300MW of solar and 1,600MW of battery storage over the next five years. Peabody will partner with investment firms Riverstone Credit Partners and Summit Partners Credit Advisors.
R3 Renewables will initially focus on six potential sites on or near previous coal mining operations in Indiana and Illinois. The portfolio size and site locations, all of which are located near grid interconnection points, could lead to the development of the largest solar and battery storage systems in Indiana and Illinois, according to Peabody.
"We are pleased to announce this new joint venture as part of Peabody's commitment to be the coal producer of choice, creating additional value from our existing assets, supporting our own and our customers' ESG ambitions," Peabody chief executive Jim Grech said.
Peabody did not immediately respond to a request for additional details.
While Illinois and Indiana have considerable renewable energy generation — over 7,700MW and 4,100MW, respectively, at the end of 2021 according to trade group American Clean Power Association — solar does not factor prominently into those figures.
Both states rely primarily on wind for their renewable generation. Solar energy in 2020 accounted for less than 1pc of the overall electric generation in both states, according to the US Energy Information Administration.
