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Trump Signs Measures to Boost Coal Industry Amid Energy and AI Growth

Yuki by Yuki
09/04/2025
in Energy Futures
Trump Signs Measures to Boost Coal Industry Amid Energy and AI Growth
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President Donald Trump has signed a series of executive orders aimed at expanding coal mining and usage in the United States, a move that he argues will support American workers, miners, families, and consumers. Trump presented the initiatives as part of a broader strategy to power the booming demand for electricity in energy-hungry sectors like data centers and to revitalize the struggling fossil fuel industry.

During a White House event on Tuesday, Trump declared, “We’re going to put the miners back to work,” vowing to reopen coal plants or replace outdated ones with new facilities. He stressed that the U.S. government would provide guarantees to shield coal investments from political shifts, although the specifics of this protection remain unclear.

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The president’s directives are designed to ensure that coal continues to play a role in the U.S. energy mix despite its higher environmental costs compared to natural gas and renewable sources like solar. Trump’s plan also reflects a strong push to position coal as a key resource for both powering advanced technology sectors and supporting heavy industries like steel production, aligning coal’s future with national security concerns and the U.S.’s global competitiveness in artificial intelligence.

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Despite the bold measures, the future of coal in the U.S. remains uncertain. The industry has been in decline for years due to competition from cheaper and cleaner energy sources, along with growing environmental regulations. Technology companies, many of which have shifted toward renewable energy, may not be inclined to rely on coal to power their data centers.

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In addition to promises of investment protection, Trump’s executive order directs Energy Secretary Chris Wright to advance coal technology, including initiatives to repurpose coal byproducts for use in batteries, building materials, and graphite. The order also outlines plans to increase coal exports, designate coal as a critical mineral, and reduce royalty rates for federal coal extraction.

One of the most contentious provisions of the order involves waivers for coal plants, exempting them from strict mercury pollution controls and other environmental mandates. Under the new exemption process initiated by the Environmental Protection Agency, 47 companies operating over 60 coal plants across the country will be able to comply with less stringent regulations for the next two years.

Trump also authorized a directive aimed at preserving struggling coal and nuclear plants. This measure could allow the federal government to use emergency powers to keep these plants running in regions where they are considered essential for the stability of the electricity grid.

The president’s moves also target state-level policies that he deems detrimental to the coal industry, particularly laws addressing climate change. Trump instructed Attorney General Pam Bondi to take immediate action against state laws and regulations that could hinder the domestic energy sector. These include carbon taxes and other measures aimed at reducing greenhouse gas emissions.

Environmental advocates, however, have criticized Trump’s actions, arguing that they represent a regressive step toward maintaining reliance on coal, a source of energy that is both expensive and harmful to the environment. Kit Kennedy, managing director at the Natural Resources Defense Council, described the push as a “misguided” effort to prop up an “old and dirty” energy source, suggesting that a cleaner, more reliable grid could be built with renewable energy.

The coal industry, on the other hand, has welcomed the president’s initiatives. Michelle Bloodworth, president of America’s Power, a trade group representing coal miners and utilities, praised the executive order, calling it essential for maintaining a secure and stable electricity supply.

As of today, coal accounts for about 15% of U.S. power generation, a significant decline from over half in 2000. In that time, nearly 770 coal-fired units have been decommissioned, and more are expected to close in the future. Trump’s latest measures, however, signal his administration’s commitment to coal, even as the industry continues to face steep challenges in adapting to an increasingly clean-energy-driven market.

Related topics:

How To Trade Coal Futures?

Can You Trade Coal Futures? [Revealed]

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