ConocoPhillips and Peabody Energy have selected Kentucky, US as the location to study the development of a major commercial scale coal-to-gas facility.

The companies are conducting a feasibility study for a ‘mine-mouth’ gasification project, using ConocoPhillips’s proprietary E-GAS technology. The feasibility study will assess design standards that meet or exceed state and federal regulations to protect the environment, including technology designed to lower carbon footprints.

Peabody Energy and ConocoPhillips are working with the Midwest Geological Sequestration Consortium and Kentucky Geological Survey to examine carbon capture and storage options.

Willie Chiang, senior vice president of commercial operations at ConocoPhillips, said: We are pleased to work with Peabody Energy to pursue the development of new energy supplies from Kentucky coal. Meeting tomorrow’s demand for energy requires innovative ways to use existing resources that meet our needs today.