RWE, a renewable energy company, and Peabody, a Missouri-based coal company, on Nov. 21 announced a new partnership to strategically advance renewable energy projects by repurposing reclaimed land previously used for mining.
“This innovative 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 industry leading reclamation capabilities,” a news release said.
RWE is acquiring a majority interest in the R3 Renewables LLC ownership group alongside founding partner Peabody.
R3, a joint venture launched by Peabody, Summit Partners Credit Advisors and Riverstone Credit Partners, repurposes land previously used for coal mining to deliver renewable energy. RWE is acquiring SPCA and Riverstone's equity interest in R3 and Peabody will retain a 25 percent equity interest.
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.
The founding partners of R3 Renewables initiated the development of 5.5 gigawatt 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.
The initiative not only advances renewable energy development in the Midcontinent Independent System Operator region, “but also promotes economic development by creating local jobs and increasing tax revenues for the communities involved,” RWE and Peabody said.
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.”
RWE plays “a crucial role in this partnership by bringing its extensive experience in developing, constructing, and operating some of the most efficient renewable energy projects in the United States and beyond. Through the partnership, RWE will expand its footprint in the MISO region,” the news release said.
