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US power demand rising from artificial intelligence
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Coal's share of power generation less than 20% from 50% in
2000
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Orders to direct coal leasing plans on US lands
(Adds comments from Trump, updates to show he signed orders)
By Jarrett Renshaw, Timothy Gardner and Trevor Hunnicutt
WASHINGTON, April 8 (Reuters) - U.S. President Donald
Trump signed executive orders on Tuesday that aim to boost coal
production in his latest action that runs counter to global
efforts to curb carbon emissions.
Coal-burning plants generate less than 20% of U.S.
electricity, a drop from 50% in 2000, according to the Energy
Information Administration, as fracking and other drilling
techniques have hiked production of natural gas. Growth in solar
and wind power has also cut coal use.
"We're bringing back an industry that was abandoned," Trump
said at the White House, standing in front of about three dozen
mostly male coal miners wearing hard hats.
"We're going to put the miners back to work," Trump said
about a workforce that has sunk to about 40,000 from 70,000 ten
years ago.
Trump, a Republican, campaigned on a promise to increase
U.S. energy output and has sought to roll back energy and
environmental regulations since taking office on January 20.
U.S. electricity demand is rising for the first time in two
decades on growth in power-hungry data centers for artificial
intelligence, electric vehicles, and cryptocurrencies.
The orders include efforts to save coal plants that were
likely to be retired, including unlocking authorities in the
1950 Defense Production Act to boost coal production.
They also direct Energy Secretary Chris Wright to
determine whether coal used in steel production is a "critical
mineral." Allowing that classification, typically reserved for
minerals needed for high-tech defense systems, for
metallurgical coal could set the table for use of emergency
powers to raise production.
In addition, the orders direct Interior Secretary Doug
Burgum to acknowledge the end of a moratorium that paused new
coal leasing, which allows private companies to buy the right to
extract coal, on federal lands, and to prioritize the leasing.
Shares in U.S. coal producers Peabody and Core
Natural Resources ( CNR ) each shot up about 9% after the news.
Still, it is uncertain what demand there is for any greater
U.S. coal output, with hundreds of domestic coal-burning plants
having closed this decade on cheaper fuels and concerns about
future regulations even if Trump's administration dismantles
current ones.
When burned, coal releases more of the main greenhouse
gas carbon dioxide than any other fossil fuel. It also emits
pollutants linked to lung and heart diseases. Much of its use
has declined due to regulations from Democrats, including former
President Joe Biden.
'STUCK IN THE PAST'
Existing U.S. coal plants only provide power to the grid
about 40% of the time. Backers say that number can be boosted
through deregulation and other measures.
In his first administration, Trump tried to prop up coal by
having his then energy secretary direct federal energy
regulators to subsidize coal plants for their contribution in
making power grids more reliable and resilient. The regulators
rejected the plan in 2018.
Coal backers were hopeful about the new approach. Trump's
orders will "clearly prioritize how to responsibly keep the
lights on, recognize the enormous strategic value of American
mined coal and embrace the economic opportunity that comes from
American energy abundance," said Rich Nolan, president and CEO
of the National Mining Association.
Environmental groups slammed Trump's coal plan. "Coal plants
are old and dirty, uncompetitive and unreliable," said Kit
Kennedy, managing director for Power at the Natural Resources
Defense Council.
"The Trump administration is stuck in the past, trying to
make utility customers pay more for yesterday's energy. Instead,
it should be doing all it can to build the electricity grid of
the future."