On Wednesday, President Trump signed an executive order requiring the Pentagon to purchase electricity from coal-fired power plants, marking his latest effort to revitalize the coal industry which has been struggling to compete with industries providing cheaper energy sources.
During an event at the White House on Wednesday, Trump signed the executive order, with attendees including James Grech, CEO of Peabody Energy. The order directs the Department of War (formerly the Department of Defense) to enter into long-term power purchase agreements with coal-fired power plants to supply electricity to military facilities.
Prior to signing the order, Trump announced, “I will sign an executive order instructing the Department of War to work directly with coal-fired power plants on new power procurement agreements to ensure we have more reliable electricity and a stronger, more resilient grid. We will now purchase a large amount of coal through the military.”
Following the signing, Peabody Energy’s stock price rose by 4% in after-hours trading.
Trump also stated that he has directed the Department of Energy to allocate funds to sustain the operations of coal-fired power plants in West Virginia, Ohio, North Carolina, and Kentucky.
Shortly after, the Department of Energy announced a $175 million funding for six projects in these four states.
Wednesday’s actions represent Trump’s latest move to boost the declining fossil fuel industry.
In April last year, Trump announced that coal is crucial to America’s national security and economic security. At that time, he also issued several executive orders aimed at increasing coal production.
For years, the coal industry has been in decline as it struggles to compete with the natural gas and renewable energy sectors. According to the Energy Information Administration (EIA), in 2023, only about 16% of electricity generation in the U.S. came from coal, significantly lower than the 51% proportion in 2001.
In his speech on Wednesday, Trump emphasized the efforts his administration has made in promoting new coal mining projects, stating that he has approved over 70 coal mining permits during his tenure, with more than half approved in the past 30 days.
(*This article referenced reporting by CNBC.*)