Renewable energy company RWE has teamed up with Peabody repurpose reclaimed land previously used for mining to develop renewable energy projects. This global partnership brings together RWE’s expertise in developing and operating clean energy projects and Peabody’s significant land resources, particularly in the Midwest, as well as its reclamation capabilities.
RWE is acquiring a majority interest in the R3 Renewables LLC ownership group alongside founding partner Peabody. R3 is a joint venture launched by Peabody (which will maintain a 25% equity interest), along with Summit Partners Credit Advisors and Riverstone Credit Partners. The joint venture company repurposes land previously used for Peabody coal mines to deliver renewable energy. RWE is acquiring Summit and Riverstone’s equity interest in R3.
“This partnership is an exciting opportunity for RWE to invest in rural regions of Indiana and Illinois and bring strong economic development,” said Andrew Flanagan, CEO of RWE Clean Energy. “RWE is thrilled to partner with Peabody through R3 Renewables to develop solar projects using reclaimed land on a significant scale. Solar and storage facilities are a great way to bring economic development via construction jobs, local and domestic investment, and direct community benefits and taxes as well as a contribution to energy security.”
The acquisition, which is focused on the development of large-scale solar and energy storage projects on reclaimed mine lands, demonstrates RWE’s commitment to innovative and clean energy solutions. As a founding partner of R3 Renewables, Peabody is leveraging its substantial land resources to foster sustainable energy development, highlighting its dedication to environmental stewardship and community revitalization.
“Our new partnership with a globally recognized renewable energy leader represents significant added momentum in our initiatives to develop renewable projects on Peabody’s formerly mined lands,” said Jim Grech, president and CEO of Peabody. “Peabody is committed to advancing environmental sustainability, creating additional value from our assets, and providing added economic benefits for the communities in which we work and live.”
The founding partners of R3 Renewables initiated the development of 5.5 GW pipeline of 10 potential projects on reclaimed mining sites in Indiana and Illinois. RWE will acquire seven of the projects and enter into a joint venture with Peabody to continue development of the three remaining projects.
“We are grateful to Riverstone and Summit for their partnership in assisting us in launching this joint venture,” said Patrick Forkin, Peabody chief development officer and R3 Chairman. “Championing the development of utility-scale solar and storage projects on reclaimed land previously used by our coal mining operations is consistent with our mission and beneficial for all our stakeholders.”
The renewable projects planned for the reclaimed lands have the potential to generate enough electricity to power the equivalent of more than 850,000 homes across the region. The initiative not only advances renewable energy development in the Midcontinent Independent System Operator (MISO) region, but also promotes economic development by creating local jobs and increasing tax revenues for the communities involved. The projects maintain existing agricultural lands, ensuring that rural areas benefit from economic growth. The partnership intends to fulfill growing electricity demand by bringing renewable power to the grid, and jobs and revenues to communities that have contributed to U.S. energy in other forms for generations.
Tags: RWE
