(Investing) – WASHINGTON -The Trump administration will expand coal mine leasing on federal lands and provide hundreds of millions of dollars to support more coal-fired power generation, officials said on Monday.
The plan is part of a broader effort by the administration to reverse the decline of coal use in the U.S., a fossil fuel that has been hard hit by environmental regulation and competition from natural gas in recent years.
At a press conference in Washington, Interior Secretary Doug Burgum said his department would open 13.1 million acres (5.3 million hectares) of federal land for coal leasing. The area opened up, in North Dakota, Montana and Wyoming, was more than triple the area in President Donald Trump’smassive funding law.
President Joe Biden put a pause on coal leasing on federal lands and the last auction of leasing rights occurred in January 2021, just before he took office.
The Department of Energy, meanwhile, said it would provide $625 million in funds to expand power generation fueled by coal.
Lee Zeldin, the administrator of the Environmental Protection Agency, said his agency would give coal plants more time to comply with regulations on coal ash, which contains contaminants including mercury, cadmium and arsenic and must be carefully disposed of.
ENVIRONMENTAL GROUP SOUNDS WARNING
Coal-burning plants generated about 15% of U.S. electricity in 2024, a fall from 50% in 2000, according to the Energy Information Administration, as fracking and other drilling methods have hiked natural gas output. Solar and wind power growth has also cut coal use.
The Sierra Club environmental group blasted the effort. “If this dangerous agenda continues to advance, years from now we will look around at failing health outcomes, skyrocketing bills, and a decaying environment,” it warned.
The coal workforce has declined to about 40,000 from 70,000 a decade ago.
Trump had signed executive orders in April to increase coal output, in one of his many actions that run counter to global efforts to cut carbon emissions.
Burgum, surrounded by more than a dozen coal miners wearing hard hats, said that the effort to support coal will strengthen the U.S. economy and create jobs.
Chris Wright, the U.S. energy secretary, told Reuters last week he expects most of the nation’s coal-fired power plants to delay retirement to help deliver electricity needed to fuel artificial intelligence.
Last month, Wright extended his emergency order to keep a Michigan coal plant running, even though the plant’s operator had been planning to shut permanently for economic reasons.
Tom Pyle, president of the American Energy Alliance, predicted that 38 coal plants scheduled to close through 2028 would remain open, either on Trump orders or voluntarily.
Analysts, however, have been skeptical about a long-term U.S. boost in the use of coal as the economics have shifted in favor of less carbon-intensive fuel.
“Coal may see a temporary boost from regulatory relief, and some investors may profit in the short term,” Frank Holmes, CEO and chief investment officer of U.S. Global Investors, wrote after Trump’s orders. “But in the long run, I think the writing is on the wall.”
