Government
Feds Tout Plans to Boost Coal Development in US to Address Grid Reliability
Federal officials describe the Sept. 29 actions as a move to spur coal development in U.S.
Trump administration officials on Sept. 29 announced steps intended to revive and expand the U.S. coal power industry as part of the effort to create global “energy dominance” and ensure electric grid reliability in light of added power needs driven by the explosion of AI and data center projects and older plant retirements.
The effort includes more than $600 million in federal coal power plant investments, but some industry sources remain skeptical of what the funding will generate and whether the U.S. will experience a revived interest in new project construction.
The U.S. Dept. of Energy said it plans to invest $350 million for coal recommissioning and retrofit projects; $175 million for rural capacity and energy affordability projects; $50 million to support development and implementation of advanced wastewater management systems; $25 million to engineer and implement dual-firing retrofits and economic flexibility to extend plant lifespans; and $25 million to develop natural gas co-firing systems to maintain boiler efficiency and reliability.
U.S. Environmental Protection Agency Administrator Lee Zeldin also announced an extended compliance date for the 2024 Effluent Limitation Guideline rule to give utilities more time to comply. EPA also released an advanced notice of proposed rulemaking to revise the Clean Air Act’s Regional Haze Rule, first established in 1999.
The actions are designed to reinvigorate coal as an energy source, according to administration officials. Energy Secretary Chris Wright said the funding “will help keep our nation’s coal plants operating and will be vital to keeping electricity prices low."
Mark Menezes, president and CEO of the U.S. Energy Association, said in an emailed statement that he welcomes any investments to spur domestic energy production, including coal. “Greater access to affordable, reliable, and responsible energy benefits USEA, its members, and the American public,” he said.
However, a 2023 report by energy analyst firm Energy Innovation Policy and Technology LLC found that 99% of existing coal-fired power plants were more expensive to run than replacement wind, solar and energy storage resources. Noting the report, Matthew Davis, former EPA scientist and vice president of federal policy at the League of Conservation Voters said, “Clean energy is simply the cheapest and fastest energy to bring online so we can all have lower costs and cleaner air and water.”Andy Shea, chief operating officer/member of RNG Energy Solutions LLC, a developer of renewable natural gas projects, including a waste to energy project in Linden, N.J., says he’s skeptical the coal-fired power sector will flip the trajectory it’s been on for decades.
Looking for quick answers on construction and engineering topics?
Try Ask ENR, our new smart AI search tool.
Ask ENR →
“Intermediate dispatched natural gas combined-cycle gas turbine projects are much more cost-effective to build and operate,” he told ENR, “I don’t know of anyone who is considering private development of coal-fired generation with flue gas desulfurization and NOx control when cheaper forms of power are available.”
Shea said natural gas, nuclear and coal-fired plants all require water for cooling, but coal presents particular challenges related to disposal of coal ash required by federal regulations that adds costs.
The administration push for coal comes as officials make it harder for renewable power projects to advance. Numerous offshore and onshore wind projects have been cancelled, delayed or halted since January—including a Trump-issued stop-work order in August on the 80% complete Revolution Wind project off the coast of Rhode Island. A federal judge lifted the order Sept. 22 after two state governors and project developer Orsted sued the administration.
