Sell-off pressure on coal mining on the last week was driven by worries amidst deteriorating economy. But a Citi's Analyst wrote, "This [sell-off] seems profit-taking amid a deteriorating economy, and the 'End of the beginning, not the beginning of the end'". He upgraded BTU and Arch Coal (ACI) from "hold" to "buy".
Energy Department estimates that electricity from a carbon-capturing plant with sequestration will cost 8 cents to generate one KWH in today's money by 2016. That figure does not take into account any benefit from selling carbon credits or any revenue from selling carbon dioxide. The same study projects a cost of 6 cents per KWH for a conventional coal plant, 7 cents for one fueled by natural gas, 6 cents for nuclear reactions and for wind, and 29 cents for solar (after subsidies). The feds estimate that a plant like Summit's, capturing 60% of carbon, would have to sell its CO 2 for $42 or more per ton to be competitive with 6-cent electricity from a conventional coal plant.
How will the anti anthracite crowd react to a plant that spares the atmosphere only three-fifths of its waste gas? While 600 conventional coal plants currently generate half the nation's electricity, new projects are in peril: Of the 114 proposed plants, 67 still await permits. Protests come with price tags. Peabody Energy (nyse: BTU - news - people )'s 1,600mw Prairie State Energy Campus in Illinois was projected to cost $2 billion and take four years to build. Battles with the Sierra Club dragged on for six years before the plant was cleared for construction--but at a cost of $3.5 billion.
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