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Released November 04, 2025 | SUGAR LAND
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)
Summary
The government offered $100 million in funding to keep coal-fired power plants open, saying previous presidents ignored the industry.$100 Million in Funding Opportunities Available
In the face of declining exports and increased clean energy, the U.S. government has opted to offer funding to refurbish and upgrade existing coal-fired power plants.
On Friday, U.S. Energy Secretary Chris Wright put $100 million in federal funding on the table to support coal-fired power, arguing that previous presidents Barack Obama and Joe Biden were relentless in targeting the nation's coal industry, which he maintained led to higher electricity costs.
"Thankfully, President Trump has ended the war on American coal and is restoring common sense energy policies that put Americans first," Wright said. "These projects will help keep America's coal plants operating and ensure the United States has the reliable and affordable power it needs to keep the lights on and power our future."
Natural Gas Was Actually Cheaper
That contradicts analysis from the Energy Information Administration (EIA), part of the U.S. Department of Energy. Looking at August prices, the EIA said Henry Hub, the U.S. benchmark for the price of natural gas, was $24.11 per megawatt hour (MWh), while the Central Appalachian coal price was closer to $36.67/MWh.
Supporting that, a coalition of environmental advocacy groups, led by the Sierra Club, issued a report during the summer that said the Trump administration's orders to keep open some coal-fired generators that were slated to close would drive up customer electric bills by $3 billion to $6 billion per year.
Elsewhere, the administration conducted a lease sale in October for coal mining rights, but received only one bid valued at one-tenth of a U.S. cent per ton. The Navajo Transitional Energy Company in New Mexico, the bidder, said coal-fired power plants have fallen out of favor due to their high operating costs and higher pollutant levels.
More recently, Babcock & Wilcox (Akron, Ohio) said it was investing heavily in efforts in the U.S. and European markets to convert coal-fired power plants to run on natural gas to address growing demand for data centers in particular, saying natural gas is cost-effective and quick to develop.
Coal Still Has Its Place
Nevertheless, coal is holding up. The EIA, in its regular monthly market report for October, said the U.S. power sector consumed 199 million short tons of coal during the first half of the year, about 15% more than during the same period last year.
Coal-fired power plants are expected to generate 9% more power over the remainder of the year than during the same period last year. This is in part due to the so-called shoulder season, when power-plant operators take facilities offline for regular maintenance.
If the EIA forecast is accurate, it would be the first time that an increase in coal-fired power generation has occurred since 2021, during the midst of the COVID-19 pandemic.
On the mining side, some $725 million in funding was made available in September to clean up abandoned coal mines, and the Department of Interior approved a plan for the Black Butte mine in Wyoming, aiming to extract some 9.2 million tons of coal from two pits.
The facility can already churn out around 3.2 million tons of coal annually.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Plant Database can see a detailed profile of the Black Butte facility here.
By the Numbers
- $725 million in funding already offered to clean up abandoned coal mines.
- 199 million short tons of coal consumed in the first half of the year.
- 1/10 of a cent per pound offered in the latest coal lease.
Key Takeaways
- The Trump administration has repeatedly thrown its support behind the coal industry.
- Coal remains relevant but still is in a long-term decline.
- Coal might not be as cheap as the administration claims.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
