The China Huaneng Group Joins FutureGen Industrial Alliance

WASHINGTON, Oct. 27  /PRNewswire-FirstCall/ -- The FutureGen Industrial Alliance today announced that the China Huaneng Group -- China's largest coal- fueled power generator -- has joined a coalition of global electric utilities and coal companies that plan to design, construct and operate the world's first "zero-emission" coal-fueled power plant.  The Alliance is a recently formed non-profit organization that intends to partner with the U.S. Department of Energy on the $1 billion power plant project called FutureGen.

The Huaneng Group is one of the top ten power companies in the world and is the largest coal-based power generator in the People's Republic of China, representing about 9 percent of China's generating capacity.

"Huaneng's participation in FutureGen signals an exciting step forward in international cooperation to meet long-term global energy challenges, promote a cleaner environment and create solutions to address concerns about climate change," said FutureGen Alliance Chairman Dr. Charles Goodman, Senior Vice President of Generation Policy for Southern Company.  "FutureGen technology will create a viable path enabling the world's fastest-growing economies to continue to expand through the use of clean, low-cost and secure supplies of coal."

The planned 275-megawatt prototype FutureGen project will demonstrate advanced technologies for coal-fueled electricity generation, produce hydrogen to power fuel cells for transportation and capture and sequester carbon dioxide emissions resulting in a virtually emissions-free coal-fueled power plant.

  Founding FutureGen Industrial Alliance members include:

  -- American Electric Power
  -- BHP Billiton
  -- CONSOL Energy Inc.
  -- Foundation Coal Corporation
  -- Kennecott Energy Company, a member of the Rio Tinto group
  -- Peabody Energy
  -- Southern Company




"FutureGen will serve as a model for achieving energy and sustainable development goals while addressing environmental concerns," said FutureGen acting Chief Executive Officer Michael Mudd, American Electric Power's Program Manager of Technology Development.  "We are pleased to welcome the highly respected Huaneng Group and look forward to welcoming new members as the Alliance continues to grow."

"China will be experiencing steady and fast economic growth. Huaneng commits itself to powering the economy, as well as developing and adopting new technology to improve efficiency and environmental protection," said Xiaopeng Li, President of China Huaneng Group.

China has the world's third-largest coal reserve base and uses coal to generate about 70 percent of its electricity.  China and the United States are the world's two largest coal consuming nations with China's coal use expected to exceed 2.1 billion tons this year and U.S. coal use of 1.1 billion tons.

Coal fuels more than 50 percent of electricity in the United States and approximately 40 percent of the world's electricity.  Coal represents more than 85 percent of U.S. energy reserves and approximately 64 percent of global energy reserves.

The recent disruption of energy supplies along the U.S. Gulf Coast by hurricanes reinforces the need to develop new and even cleaner coal technologies to advance energy security.

Formation of FutureGen Alliance was coordinated by Battelle, a non-profit research and development institution.  The FutureGen Alliance member companies provide energy to tens of millions of U.S. and international residential, business and industrial customers.  Member companies have global operations serving customers in Asia, Australia, Continental Europe, Canada, Mexico and the United States, among other regions.

                   MEDIA CONTACTS FOR THE PARTICIPANTS

                            Fredrick D. Palmer
               Senior Vice President - Government Relations
                              Peabody Energy
                              [phone]


  Pat Hemlepp                           Jun Xiao
  Director                              Acting General Manager
  Corporate Media Relations             International Cooperation Department
  American Electric Power               China Huaneng Group
  [phone]                        86-10-62291528

  Katy Delaney                          Vic Svec
  National Media Relations Manager      Vice President
  Battelle                              Public and Investor Relations
  [phone]                        Peabody Energy
                                        [phone]

  Patrick Cassidy                       Dallas Scholes
  Director of Public Affairs            Manager
  BHP Billiton                          Government Affairs & Communications
  [phone]                        Kennecott Energy Company
                                        [phone]

  Thomas Hoffman                        Tiffany Gilstrap
  Vice President                        Media Relations
  External Affairs                      Southern Company
  CONSOL Energy Inc.                    [phone]
  Phone: [phone]                 [phone] toll free

  Ellen Ewart
  Vice President
  Investor and Media Relations
  Foundation Coal Holdings, Inc.
  [phone]


DATASOURCE: FutureGen Alliance



CONTACT: Fredrick D. Palmer, Senior Vice President - Government

Relations, of Peabody Energy, [phone]; Pat Hemlepp, Director,

Corporate Media Relations, of American Electric Power, [phone]; Katy

Delaney, National Media Relations Manager, of Battelle, [phone];

Patrick Cassidy, Director of Public Affairs, of BHP Billiton, [phone];

Thomas Hoffman, Vice President, External Affairs, of CONSOL Energy Inc.,

[phone]; Ellen Ewart, Vice President, Investor and Media Relations, of

Foundation Coal Holdings, Inc., [phone]; Jun Xiao, Acting General

Manager, International Cooperation Department, of China Huaneng Group,

[phone]; Vic Svec, Vice President, Public and Investor Relations, of

Peabody Energy, [phone]; Dallas Scholes, Manager, Government Affairs &

Communications, of Kennecott Energy Company, [phone]; Tiffany

Gilstrap, Media Relations, of Southern Company, [phone], toll free,

[phone]



Web site:  http://www.peabodyenergy.com/

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