German energy group RWE has acquired a majority stake in R3 Renewables, a joint venture (JV) formed by US coal miner Peabody Energy, Summit Partners Credit Advisors (SPCA), and Riverstone Credit Partners.
The deal, for an undisclosed sum, involves RWE taking over the shares of SPCA and Riverstone Credit Partners, with Peabody retaining a 25% stake in the JV.
R3 Renewables focuses on repurposing former coal mining sites into clean, renewable energy projects. The JV has initiated the development of a 5.5 GW pipeline across ten potential projects located in Indiana and Illinois, aiming to provide green energy to over 850,000 homes in the Midcontinent Independent System Operator (MISO) region.
RWE will lead the development of seven projects while partnering with Peabody on the remaining three. These projects include large-scale solar and energy storage facilities, marking significant progress in transitioning former coal sites into renewable energy hubs.
Peabody’s CEO Jim Grech emphasized the strategic value of this partnership for leveraging previously mined lands for clean energy. RWE Clean Energy CEO Andrew Flanagan highlighted the economic and energy security benefits of the projects, which are expected to create construction jobs, boost local investments, and contribute to community development.