US government to support new coal mining and upgrades to coal-fired power plants

The Trump administration has unveiled a sweeping plan to revive the US coal industry. The new measures will open federal land to coal mining and channel hundreds of millions of dollars to power plants. No long-term impact on the economy is expected, however.

This initiative is one of a series of measures underscoring the White House’s efforts to roll back climate action and secure coal’s place in the US energy mix. The plan by the US president was reported by Reuters. Interior Secretary Doug Burgum announced that vast areas in North Dakota, Montana and Wyoming would be opened for coal-mining leases. The total area is more than three times the size of the area made available under earlier Trump legislation.

The administration’s response came after former US President Joe Biden suspended new leases on federal land for coal mining. The last auction was held in January 2021. Alongside the new measure, the US Department of Energy pledged $625 million to support coal-fired power generation, while the Environmental Protection Agency extended deadlines for coal-fired power plants to meet requirements for handling toxic coal ash.

Supporters see the measures as an economic lifeline for mining communities and a pillar of national energy security. At a press conference, Secretary Burgum, surrounded by miners wearing hard hats, argued that keeping coal in the energy mix would create jobs and stabilise the power grid.

Energy Secretary Chris Wright suggested that many coal-fired power plants slated for closure would remain in operation and supply the electricity needed by rapidly growing industries such as artificial intelligence. Industry advocates such as the American Energy Alliance predict that dozens of facilities scheduled to close by 2028 could therefore stay open.

The move has, of course, drawn a sharp response from environmental groups. The US environmental organisation Sierra Club warned that the policy would not only worsen the local environment (and the climate in the long term), but also increase energy bills and harm public health. Critics have also questioned coal’s long-term viability, pointing out that the economics continue to favour natural gas and renewable energy.

Coal, once the dominant fuel for US power generation, has fallen from a 50% share of electricity generation in 2000 to around 15%. The number of workers in the industry has also halved over the past decade. Analysts predict that any economic recovery will be short-lived, as investors will continue to favour other energy sources.