March 12, 2010 (FinancialWire) — Arch Coal, Inc. (NYSE: ACI) and announced TODAY that Arch has acquired a 35% equity interest in the Trailblazer Energy Center, which is being developed by Tenaska, Inc. near Sweetwater, Texas.

Arch said it investment will be staged over time as the development of the project reaches key milestones.

The Trailblazer Energy Center is a fossil-fuel-based power plant meant to act as a strategic source of carbon dioxide for enhanced oil recovery applications in West Texas.  Trailblazer will also supply the Texas economy with an additional 600 megawatts of electric generating capacity.

By capturing 85 to 90 percent of the carbon dioxide emissions from the plant, Trailblazer will emit 70 percent less carbon dioxide than the cleanest natural gas-based power plants, according to Arch.

Trailblazer will ship the captured carbon dioxide to the nearby Permian Basin, where it will be used to boost oil production and extend the life of that critically important domestic energy resource.

As part of the agreement, Arch will supply the plant’s fuel needs for the first 20 years of operation from its Powder River Basin operations in Wyoming.

Missouri-based Arch Coal is a U.S. coal producer that supplies low-sulfur coal to U.S. power producers to fuel roughly eight percent of the nation’s electricity.

The company also ships coal to domestic and international steel manufacturers as well as international power producers.

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