Peabody

IEEFA Research

Why Navajo Generating Station Is No Longer Commercially Viable

Why Navajo Generating Station Is No Longer Commercially Viable

The Institute for Energy Economics and Financial Analysis (IEEFA) has done extensive research into the difficult circumstances facing Navajo Generation Station. Key findings: Declining energy market prices and rising production costs have made power produced by the plant more expensive than competing sources. Market trends are not likely to change, leaving the plant’s financial viability […]

August 16, 2017 Read More →
IEEFA Report: ‘End of an Era’ for Navajo Generating Station; Vast Subsidies Would Be Required to Keep Aging Plant Online; Retirement Seen as Most Viable Option

IEEFA Report: ‘End of an Era’ for Navajo Generating Station; Vast Subsidies Would Be Required to Keep Aging Plant Online; Retirement Seen as Most Viable Option

‘No Longer Competitive’ With Rise of Natural Gas and Renewables; Staying Open Through 2022 Would Require a $740-Million-to-$1-Billion Subsidy; Through 2030 Would Require a $1.4 to $2.4 Billion Subsidy

May 10, 2017  (IEEFA.org) – The Institute for Energy Economics and Financial Analysis today published a report detailing how the failing coal-fired Navajo Generating Station in northern Arizona will require hundreds of millions of dollars in subsidies to remain online for any length of time. The report—“End of an Era: Navajo Generating Station Is No […]

IEEFA Research Brief: Coal in Decline, Blow by Blow

IEEFA Research Brief: Coal in Decline, Blow by Blow

Plant Closings and the Likely Effects on Specific Companies and Mines

We’ve published a research brief today that presents an expansive snapshot of a moving target: the decline in U.S. coal-fired generation nationally. As global energy markets continue to undergo rapid transformation, change has swept the U.S. as well. Our brief—“U.S. Coal Phase-out, Blow by Blow: Plant Closings and the Likely Corresponding Effect on Specific Companies […]

April 21, 2017 Read More →
IEEFA U.S. Coal Outlook 2017: Short-Term Gains Muted by Prevailing Weaknesses in Fundamentals

IEEFA U.S. Coal Outlook 2017: Short-Term Gains Muted by Prevailing Weaknesses in Fundamentals

Production Declining by as Much as 40 Million Tons; Prices Failing to Benefit Shareholders or Stimulate New Investment; Anemic Exports; Little or No Gain From Regulatory Relief; Increasingly Dim Employment Prospects

We’re out this morning with our annual outlook for U.S. coal markets, and the picture isn’t pretty. We see the potential for some short-lived strength in the current uptick for coal producers but the title of our assessment sums up the larger view: “Short-Term Gains Will Be Muted by Prevailing Weaknesses in Fundamentals.” You can […]

As Texas Coal-Fired Power Plants Close, Powder River Basin Mines Are Losing Their Largest Customers

Trends Will Force Closures and Complicate Efforts by Alpha Natural Resources, Arch Coal and Peabody Energy to Work Their Way Out of Bankruptcy

CLEVELAND, Aug. 3, 2016 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis today published a report detailing how Powder River Basin coal producers are losing their largest customers as Texas power producers turn increasingly to other sources of energy. The report, “Texas’ Outsize Role in the Decline of the Powder River Basin Coal […]

August 2, 2016 Read More →
The Federal Government’s Coal-Leasing Program Is Broken: Here’s How to Fix It

The Federal Government’s Coal-Leasing Program Is Broken: Here’s How to Fix It

Appoint a Price-Setting Commission; Ban Exports; Cancel Some Leases; Eliminate Self-Bonding; Mandate Set-Asides for Mine Clean-up and Miner Pensions; Require Twice-a-Year Audits; Assume Smaller Markets

It’s time for the U.S. to modernize how it manages its publicly owned coal reserves. That’s the essence of comments we’ve filed today with the Department of the Interior as it begins a review of its federal coal-leasing program in the Powder River Basin, a program that has been mismanaged for years at taxpayer expense […]

Coal Won’t Solve the Energy Poverty Problem

Coal Won’t Solve the Energy Poverty Problem

Times Have Changed; Old Electricity-Generation Models Don’t Work Anymore

Coal-fired electricity is no longer the economy builder its proponents say it is. Time was when coal in fact did contribute to growth in many economies, but times have changed. Today governments and private interests worldwide concede—even emphasize—the economic and environmental dysfunction of coal. We’ve just published an IEEFA Briefing Note (“Energy Poverty, Then and […]

March 3, 2016 Read More →
If Peabody Is to Recover, It Must Close More Mines

If Peabody Is to Recover, It Must Close More Mines

The World’s Biggest Private-Sector Coal Company’s Current Turnaround Strategy Won’t Work

Peabody Energy, the largest private-sector coal-mining company in the world, is out with a dismal review today of its 2015 performance. The metrics unto themselves are damning, and Peabody’s plan for turning things around is even worse. In a report we’ve just published (with the Seattle-based Sightline Institute)—“Peabody’s Strategies for Survival Ignore Market Realities and Risks […]

February 11, 2016 Read More →
For U.S. Coal, Market Realities Grow Increasingly Harsh

For U.S. Coal, Market Realities Grow Increasingly Harsh

Debt Hurdles, Reclamation and Pension Challenges, Abandonment by Hedge Funds

We distributed a briefing note this week that delves into some of the many pressing difficulties confronting U.S. coal producers. In the note (“Struggling U.S. Coal Companies Face Debt Hurdles, Complications From Reclamation and Pension Obligations, Pressure from Hedge Funds”) we talk about how the cumulative impacts of the industry’s many mounting liabilities—reclamation costs, pension […]

PEABODY ENERGY:  Management Is Rewarded as Investors Lose and Workers Are at Risk

PEABODY ENERGY: Management Is Rewarded as Investors Lose and Workers Are at Risk

Peabody Energy Management Is Rewarded as Investors Lose and Workers Are at Risk By David Schlissel, Director of Resource Planning Analysis, IEEFA

April 29, 2015 Read More →

More News and Commentary

Subsidizing Declining Appalachian Coal Seen as Having ‘Marginal’ Effect

St. Louis Post-Dispatch: Appalachian coal, high in sulfur and costly to mine, has been losing market share to other American coal-producing regions for years. Looking to stem the tide, West Virginia Gov. Jim Justice last week proposed that the federal government subsidize coal-fired power plants that buy from Appalachian mines by $15 a ton, up […]

August 18, 2017 Read More →
Why Navajo Generating Station Is No Longer Commercially Viable

Why Navajo Generating Station Is No Longer Commercially Viable

The Institute for Energy Economics and Financial Analysis (IEEFA) has done extensive research into the difficult circumstances facing Navajo Generation Station. Key findings: Declining energy market prices and rising production costs have made power produced by the plant more expensive than competing sources. Market trends are not likely to change, leaving the plant’s financial viability […]

August 16, 2017 Read More →

Coal-Gasification Proposal Seen as Unlikely to Save Navajo Generating Station

Bloomberg BNA: The biggest coal-fired generating station west of the Mississippi could be replaced by a coal gasification plant, raising concerns among environmentalists as well as questions from financial analysts about the economic costs and risks. The tribe “has considered the development of potential energy industries, including [a] gasification plant,” Navajo Nation presidential spokesman Mihio […]

August 7, 2017 Read More →

Wyoming Coal Production Tails Off

Casper (Wyo.) Star-Tribune: After a surge of coal production at Wyoming’s mines through fall and winter, production dropped by spring, according to preliminary counts by federal mine regulators. Wyoming, the origin of about 40 percent of the country’s coal, produced 72 million tons between April and June, the second quarter of the year. From January […]

July 21, 2017 Read More →

IEEFA Op-Ed: To Avoid Heavy Losses, Insurance Companies Must Wake Up to Risks of Fossil Fuel Projects

Some Insurance Giants Have Divested from Coal, Yet Sector Continues to Underwrite Coal Projects and Fails to Ask the Right Questions

Insurance underpins our industrial society. Without prudent risk management by the insurance industry, no high rise can be built and no major factory can be operated. Taking a long-term view on risk, insurance companies have warned about the impacts of global warming and encouraged climate action since the 1970s. Their far-sighted position is not purely […]

July 13, 2017 Read More →

Analyst: U.S. May Never Have an Investment Grade Coal Company Again

Taylor Kuykendall in SNL: Despite near-term improvements in the U.S. coal sector, getting investors excited about the industry may still prove a tough sell. “I don’t necessarily think we are ever going to get back to a situation where we’re going to have an investment-grade coal company again,” Chiza Vitta, an analyst with S&P Global Ratings, said […]

July 11, 2017 Read More →

Peabody Seeks a Buyer for Navajo Generating Station

Arizona Republic: The Navajo Nation Council on Monday approved a new $350 million lease for the coal plant near Page that could allow it to remain open another two years. Salt River Project, Arizona Public Service Co., Tucson Electric Power and NV Energy agreed to run the Navajo Generating Station through 2019 if the tribe […]

June 28, 2017 Read More →

On the Blogs: Fate of Navajo Generating Station ‘Likely to Be Significant for the Coal Industry in General’

Seeking Alpha: In concluding highlights of qualitative events that signal big change, I’ve thought for some time that the fate of the Navajo Generating Station in Arizona is likely to be significant for the coal industry in general and Peabody Energy (NYSE:BTU) in particular. Navajo Generating Station is a big old and dirty 2.25 GW […]

June 28, 2017 Read More →

Letter to the Editor: What Happened to Ohio Shouldn’t Happen in Arizona

Gallup (N.M.) Independent: The Navajo Generating Station is thousands of miles away from my community of Galion, Ohio. But recent news around the difficulties of the coal-fired power plant in Arizona, which gets its coal from a Peabody Energy mine, reminds me of what happened here in Galion. Our small Ohio City, along with 200 […]

June 20, 2017 Read More →

Proposal Offers a Transition Plan for Regional Economy Affected by Closure of Navajo Generating Station

KJZZ Phoenix: The impending closure of the Navajo Generating Station in Navajo Country in northern Arizona could be devastating for the region. More than 600 jobs are on the line — as well as millions in losses to the Navajo and Hopi tribes. But the coal plant and the mine that supports it are not […]

June 14, 2017 Read More →