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CONSOL Energy, FirstEnergy to Evaluate Advanced Coal Technologies

CONSOL Energy Inc. and FirstEnergy Corp. have formed a joint task force to evaluate advanced clean coal technologies, including Integrated Gasification Combined Cycle (IGCC), combustion of waste coal, and other technologies that can potentially meet future baseload power generation needs while reducing the overall environmental impact of generating electricity from coal.

The Task Force, which will be comprised of engineering and business developments staffs of the two companies, will evaluate the commercial feasibility of various advanced technologies using coal to generate electricity that may be pursued by the two companies or in partnership with various government entities.

"The industrial heartland of the United States contains vast resources of coal that could be tapped to generate abundant electricity at affordable prices," said J. Brett Harvey, president and chief executive officer of CONSOL Energy. "These advanced technologies will ensure that the conversion of coal to electricity is done in a manner consistent with the environmental objectives all Americans share."

"As electricity consumption in our region has grown, we have not seen a corresponding increase in baseload generation," said Anthony J. Alexander, president and chief executive officer of FirstEnergy. "In fact, it's been more than a decade since a new baseload power plant was built in Ohio."

"Any meaningful effort to expand baseload generation in Ohio and Pennsylvania should recognize the central role of our region's most abundant energy resource, coal -- and specifically, the need to use this resource in an environmentally responsible manner. The work of our joint task force is an important part of this effort, and is designed to provide us with key information that will help us meet the future energy needs of our customers," Alexander added.

Harvey said he believes that coal-producing states would be very supportive of advanced technology projects, particularly those that use coal waste from abandoned sites as a fuel to generate electricity. "Based on my conversations with state leaders, I am convinced that viable projects that can convert coal wastes into electricity while reclaiming the old coal disposal sites at the same time would receive enthusiastic support."

Although no timetable has been formally established, the two companies hope to identify technologies and projects that could begin development over the next five years, based on an evaluation of electricity markets and future utility regulation.

CONSOL Energy provides more than 7 million tons of coal per year to FirstEnergy power plants in Pennsylvania and Ohio. In 2002, Consol received a U.S. Environmental Protection Agency Climate Protection Award.

FirstEnergy is a registered public utility holding company headquartered in Akron, Ohio.


9/3/2004

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