Energy Department Announces $625 Million Investment to Reinvigorate and Expand America’s Coal Industry

WASHINGTON—The U.S. Department of Energy (DOE) today announced a $625 million investment to expand and reinvigorate America’s coal industry, aiming to boost energy production and support coal communities nationwide. The funding announcements are issued in accordance with President Trump’s Executive Orders, “Reinvigorating America’s Beautiful Clean Coal Industry,” and “Strengthening the Reliability and Security of the United States Electric Grid.”

“Beautiful, clean coal will be essential to powering America’s reindustrialization and winning the AI race,” U.S. Secretary of Energy Chris Wright said. “These funds will help keep our nation’s coal plants operating and will be vital to keeping electricity prices low and the lights on without interruption. Coal built the greatest industrial engine the world has ever known, and with President Trump’s leadership, it will help do so again.”

DOE has committed to providing $625 million in funding for:

• $350M for Coal Recommissioning, and Retrofit: for projects to demonstrate readiness to recommission or modernize coal power units and provide near-term electric power reliability and capacity.
• $175M for Rural Capacity and Energy Affordability Projects: for coal power projects that provide direct benefits of energy affordability, reliability, and resiliency in rural communities.
• $50M to support the Development and Implementation of Advanced Wastewater Management Systems: to demonstrate scalable, cost-effective wastewater management systems that enables coal plants to extend their service life, reduce operational costs, and enhance commercial byproduct recovery.
• $25M for Engineering and Implementation of Dual Firing Retrofits: to enable coal power plants to seamlessly switch between fuels, achieve full steam capacity, and economic flexibility to extend plant lifespans.
• $25M for Development and Testing of Natural Gas Cofiring Systems: to support investments that will maintain boiler efficiency and reliability when utilizing 100% natural gas. 

Background:

To date, the Energy Department has made numerous announcements to support America’s coal industry:

• On April 8th, DOE announced a series of actions the Department of Energy (DOE) is taking to unleash American coal production.
  • The order called for Secretary Wright to take action necessary to accelerate the development, deployment, and commercialization of coal technologies.
  • For the Secretary of Energy and Secretary of Interior authority to determine whether coal used in the production of steel is defined as a “critical mineral,” and if so, takes steps to place it on DOE and DOI’s Critical Minerals Lists.
  • The EO called to have coal designated a “mineral” by the National Energy Dominance Council, which is led by Secretary Burgum and Secretary Wright.
  • Within 60 days of the order, assess coal resources and accessibility on federal lands, and in addition, expedite coal leasing and lift barriers to coal mining on federal lands.
  • The order called to support American coal exports, promote opportunities for coal and coal technologies, and facilitate international offtake agreements for U.S. coal.
  • Within 30 days of the order, expand the use of categorical exclusions for coal under the National Environmental Policy Act.
  • Within 60 days of the order, identify where coal-fired power can be used to support AI infrastructure and data centers.
• On May 23rd, U.S. Secretary of Energy Chris Wright announced the designation of metallurgical coal as a Critical Mineral, in accordance with Executive Order 14241 “Reinvigorating America’s Beautiful Clean Coal Industry.”
• On May 23rd and August 20th, Secretary Wright issued emergency orders to minimize the risk of blackouts and address critical grid security issues in the Midwestern region of the United States. The orders directed the Midcontinent Independent System Operator, Inc. (MISO) and Consumers Energy Company to take all measures necessary to ensure that the J.H. Campbell coal-fired power plant (Campbell Plant) in West Olive, Michigan remains available to operate. As a result of the two orders, the Campbell Plant was available to generate large amounts of electricity during this summer’s heat wave and continues to remain a critical asset to maintain reliability in the Midwest. Prior to the Secretary’s orders, the Campbell Plant was scheduled to be shut down on 5/31.