EPA Carbon Rules Hit Coal Companies

The Peabody Energy building in downtown St. Louis | Photo by Nicole Lunger
The Peabody Energy building in downtown St. Louis | Photo by Nicole Lunger

Stocks of leading coal companies, including Missouri-based Peabody Energy and Arch Coal, took initial hits after the Environmental Protection Agency issued its draft regulations outlining limits on carbon emissions from new power plants. The rules would impose the first cap on carbon emissions from new power plants, dealing a blow to the market for coal. Peabody’s stock fell 58 cents Friday to close at $18.16, down from more than $70 a share in April 2011. Arch Coal’s stock fell 25 cents to close at $4.74 on Friday, down from $35 a share in April 2011.

Arch’s director of public policy said coal plants with near-zero greenhouse gas emissions will be achievable in time, “but such technology is simply not available today.” Standard & Poor’s credit analyst said that while the ruling will be unlikely to have an immediate impact on utilities, the EPA’s “cumulative regulations are making it harder to build coal generation.”

Read more from Bloomberg


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