Energy Department Announces $100 Million in Funding to Refurbish US Coal Plants

In a statement, the DOE said it has issued a notice of funding opportunity for “practical, high-impact projects” that are aimed at refurbishing and modernizing the nation’s existing coal-fired power plants.

The funding will support projects designed to enhance efficiency, extend operational lifespan, and improve the performance of coal and natural gas facilities, according to the department.

Energy Secretary Chris Wright said the initiative aims to keep U.S. coal plants running and ensure access to affordable energy, while criticizing past administrations for adopting policies he said targeted the coal sector.

“For years, the Biden and Obama administrations relentlessly targeted America’s coal industry and workers, resulting in the closure of reliable power plants and higher electricity costs,” Wright said in the statement.

“Thankfully, President [Donald] Trump has ended the war on American coal and is restoring common sense energy policies that put Americans first.”

The initiative follows the DOE’s announcement in September that it would invest $625 million in funding to expand and reinvigorate the U.S. coal industry in an effort to increase energy output.

The Trump administration is seeking to reverse the decline of coal use in the country. In April, Trump signed an executive order directing federal agencies to “identify coal resources on federal lands, lift barriers to coal mining, and prioritize coal leasing on those lands.”

The president also directed federal agencies to “rescind any agency policies that seek to transition the Nation away from coal production or otherwise establish preferences against coal as a generation resource,” according to a White House fact sheet.

Following the order, the DOE unveiled initiatives to boost domestic coal production, including facilitating new investments in coal-powered electricity generation, commercializing coal ash conversion technologies, and designating steelmaking coal as a critical material and mineral.

The Energy Information Administration (EIA) stated on July 14 that coal consumption in the U.S. power sector has decreased since the 2000s due to rising competition from natural gas and renewable energy sources, as well as stricter emissions regulations on coal-fired power plants.

The EIA projected that the total operating capacity of U.S. coal-fired power plants will drop to 145 gigawatts (GW) by the end of 2028, a decline of more than 15 percent from the 172 GW in operation as of May.