Peabody invests $15 million in Calera

Coal miner Peabody Energy Corp. has purchased a $15 million equity interest in Calera Corp., the company with the proprietary technology to convert carbon dioxide into green building materials.  CaleraÔÇÖs technology captures carbon dioxide emissions from coal or gas fueled power facilities, cement plants and refineries, before converting it into solid carbonates such as cement-type materials that can be utilized in the construction process. Every ton of building material produced┬áis expected to store as much as half a ton of carbon dioxide. Los Gatos, California-based Calera's process also removes minerals and other constituents from water, so it acts as a freshening system to produce clean water. Commenting on the investment, PeabodyÔÇÖs senior vice president Fredrick D. Palmer, said: "Peabody is a global leader in clean energy solutions and is advancing more than a dozen projects and partnerships to commercialize low-carbon technologies. "Calera's emerging technology represents an innovative solution to advance our energy, environmental and economic goals by recycling carbon dioxide into beneficial building products." "We are pleased to partner with Peabody to advance development of clean energy technologies," said CaleraÔÇÖs CEO Brent Constantz. "We believe that the CO2 used in our process for producing materials could exceed the current generation rate of CO2 from all global industrial and utility sources. The potential is enormous." Calera recently completed a demonstration project near Moss Landing, California, which used the emissions stream from a natural gas-fueled power plant. The Calera technology mixes CO2 with water, causing the minerals to bond and release as synthetic limestone. By producing more eco-friendly cement, Calera hopes eventually to replace traditional cement makers. Cement production is one of the biggest sources of greenhouse gas emissions in the US. St. Louis, Missouri-based Peabody is the worldÔÇÖs biggest coal company. In 2009 it had sales of 244 million tons and $6 billion in revenues. Its coal products fuel 10 percent of all US electricity generation and two percent of electricity worldwide. PeabodyÔÇÖs investment is a clear indication that fossil-fuel companies are stepping up their efforts to get involved in greener technologies. Peabody is already an equity partner in China's GreenGen power project, which aims to develop a high-tech, low-emissions coal-based power generation plant. The company is also a founding member of the US FutureGen Alliance and a founding partner of Australia's COAL21 low-carbon project. Last year, Calera gained the backing of Menlo Park, California-based venture capital firm Khosla Ventures, which injected around $50 million into the company.