UPDATE: Obama Said to Ban New Coal Plants Without Strict Emission Curbs (ACI) (BTU)

(Updated - September 11, 2013 3:47 PM EDT)

Being a coal producer might just get a little more expensive.

Bloomberg reported today that, under a new rule that the U.S. Environmental Protection Agency (EPA) is close to issuing, new coal plants would need to install expensive equipment aimed at limiting climate-change emissions. The original plan was proposed last year, but met stiff resistance from the coal and utility segment. The EPA's revised plan would be structured differently, though its said plant operators aren't writing home about this one either. Revised rules would allow utilities to phase-in the capture equipment over time.

Currently, about 40 percent of U.S. emissions come from carbon pollution emitted by power plants. The new EPA rule would call for coal and nat gas plants to cap emissions at 1,000 pounds of carbon dioxide per megawatt hour. While a new, efficient nat gas plant can meet the requirements, a coal plant gives off 1,800 pounts per megawatt hour and would need special equipment to capture the excess carbon.

The new EPA rule would call for nat gas and coal to be evaluated separately with emissions requirements probably set above 1,000 pounds per megawatt hour. Despite the move, coal plants are still expected to meet a standard which is significantly less than 1,800 pounds per megawatt hour.

Names that will be affected include Peabody (NYSE: BTU), James River (Nasdaq: JRCC), Alpha Natural (NYSE: ANR), Arch Coal (NYSE: ACI), and Cliffs Natural (NYSE: CLF), among others.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Roth/MKM Upgrades Albertsons Companies Inc. (ACI) to Buy, 'Fundamental Floor and Improved Deal Likelihood'
• Tritium DCFC Limited (DCFC): Three Australian subsidiaries were determined to be insolvent or likely to become insolvent
• Albertsons (ACI) Tops Q4 EPS by 2c