Caterpillar, Secure Energy, L.L.C. Sign Letter of Intent That Could Lead to the Development of Coal-to-Syngas Plant in Decatur

DECATUR, Ill., April 28 -- Caterpillar Inc. ( NYSE = CAT ) and Secure Energy, L.L.C. signed a non-binding letter of intent (LOI) today, which could lead to the development of a coal gasification plant that would turn Illinois coal into synthetic natural gas (syngas).

Under terms of the LOI, Secure Energy has the right to purchase property and equipment located at Caterpillar's manufacturing facility in Decatur, Illinois. The equipment includes a coal-powered boiler constructed on the Caterpillar grounds in 1980 that was never put into operation. Secure Energy plans to utilize the boiler building and several pieces of existing equipment at the Caterpillar site as part of a new coal-to-syngas plant. The plant would produce synthetic natural gas for the Decatur area. This plan would not impact Caterpillar's manufacturing facility at Decatur.

"Today marks an important step in a long process, and Caterpillar is pleased to find what we hope will be a positive and sustainable use for the coal boiler facility, which has sat idle for more than 20 years," said Doug McCallen, senior business resource manager for Caterpillar's Decatur facility.

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