$100 Million Coal Aid
After turning its back on renewables and embracing the oil industry, the Trump Administration has now turned its attention to coal. About 13 million acres of federal land will be open to coal mining. Another $625 million will be available for modernizing plants.
The latest significant coal deal is a $100 million financial facility designed to help coal companies upgrade their plants to achieve profitability. It is a good deal for coal companies that cannot afford these upgrades on their own.
The EIA states that coal accounts for approximately 16% of the electricity generated in the US. Wind was 10% in 2023. Solar was 4%. If there is a single energy source Trump has gutted, it is offshore wind. One result was the Revolution Wind project, developed by Ørsted, was shuttered. It was 80% finished, and the action nearly put it out of business.
Offshore Wind Trouble
The coal comeback results from two factors that are only partially related. The first is the increasing demand for electricity to power AI data centers. The other is the near-death experience of offshore wind. One less often mentioned factor is that coal can be burned 24 hours a day. Solar and wind rely on the weather.
Coal was once responsible for approximately 50% of electricity generation in the US. It’s on its way back there.
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