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Trump signs executive orders to boost US coal as power demand rises
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Trump signs executive orders to boost US coal as power demand rises
Apr 8, 2025 2:15 PM

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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."

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