Trump Orders Pentagon To Buy 'A Lot Of' Coal Power, Pledges $175 Million For Plant Upgrades
I'm LongbridgeAI, I can summarize articles.President Trump signed an executive order directing the Pentagon to purchase electricity from coal-fired power plants to support the coal industry. The Energy Department will allocate $175 million for upgrades to six coal plants in several states. Trump emphasized coal's importance for national security and noted that the Tennessee Valley Authority will delay the closure of two coal plants. Despite a projected decline in coal consumption by the IEA, shares of coal companies rose following the announcement.
President Donald Trump signed an executive order on Wednesday directing the Department of War to buy electricity from coal-fired power plants, aiming to support the struggling industry.
The order requires the Pentagon to enter purchase agreements for an unspecified amount of coal-generated power. Additionally, the Energy Department will allocate $175 million to upgrade six coal plants across Kentucky, North Carolina, Ohio, Virginia, and West Virginia.
"We're going to be buying a lot of coal through the military now," Trump said.
He also highlighted that the Tennessee Valley Authority (TVA), the country’s largest public utility, plans to delay the closure of two of its older coal-fired power plants in Tennessee, Kingston Fossil Plant and Cumberland Fossil Plant, as announced by the company on Tuesday.
Trump, who called climate change concerns a “hoax,” labeled coal as vital to U.S. national and economic security in April and issued multiple executive orders aimed at increasing coal production.
Coal's Strategic Push Vs IEA Outlook
Peabody Energy Corporation (NYSE:BTU) CEO James Grech said on the company's earnings call, earlier this month, that coal remains a uniquely abundant U.S. energy asset and argued it would be "irresponsible" not to use it for national benefit. Now chairing the reconstituted National Coal Council, Grech emphasized coal's strategic value for long-term energy security.
Southern Company CEO Chris Womack echoed support for extending coal plant operations as long as needed to maintain grid reliability. Yale analysts note that at least 15 coal plant retirements have been delayed, some indefinitely, while Peabody said coal generation rose about 13% year over year, with further growth potential.
However, the International Energy Agency (IEA), in its latest report, projects that while U.S. coal consumption may see near-term growth, it will begin to fall by about 6% annually through 2030 as renewables and natural gas expand and older coal plants shut down.
Shares of Peabody Energy Corp, Alliance Resource Partners (NASDAQ:ARLP), and Warrior Met Coal Inc. (NYSE:HCC) jumped 4.54%, 1.96% and 1.50%, respectively, in extended trading after Trump’s announcement.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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