American coal producer Peabody along with investment companies Riverstone Credit Partners and Summit Partners Credit Advisors have announced the launch of a joint venture (JV) through which they plan to develop over 3.3 GW solar PV and 1.6 GW battery energy storage capacity over the next 5 years.
The JV R3 Renewables will develop this capacity on 6 potential sites on large tracts of land on or near previous coal mining operations in the states of Indiana and Illinois. Peabody said the portfolio size and strategic site locations offer the potential for the development of the largest solar and battery storage projects in these states. All the projects are in close proximity of grid injection points.
"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 and providing added economic benefits for the communities in which we work and live," said President and CEO of Peabody, Jim Grech.
R3 Renewables will be led by CEO John Jones who has previously worked with companies like Invenergy.
Peabody's move into solar comes at a time when US President Joe Biden's administration is keen on expanding the role of clean energy sources into the national build. Recently, Biden in his State of the Union Address stressed on doubling the country's clean energy production in solar, wind and 'so much more'.