The U.S. Department of Energy has allocated up to $100 million for projects aimed at modernizing the nation’s remaining coal plants, nearly half of which are set to close by 2030.
This investment, considered minimal by energy experts, is unlikely to lower coal power costs.
On Friday, U.S. Secretary of Energy Chris Wright issued a Notice of Funding Opportunity, seeking applications for projects to refurbish coal plants for improved efficiency, reliability, and affordability.
The focus will be on advanced wastewater management, systems to switch between coal and natural gas, and co-firing systems for simultaneous combustion of both fuels.
This announcement follows a $625 million initiative to expand America’s coal industry, which included $350 million for recommissioning or modernizing closed coal power plants.
Energy expert Michelle Solomon from Energy Innovation described the funding as inadequate, noting that retrofitting a single plant can cost hundreds of millions, totaling billions for the entire fleet.
In April, following Trump’s “Beautiful Clean Coal” executive order, the DOE reinstated the National Coal Council, offered long-term financing for coal infrastructure, and ended a moratorium on new coal mining leases.
“You’d be putting those billions of dollars into clunkers. Literally burning that money.”
— Michelle Solomon, Energy Innovation
Last week’s funding announcement aligns with Trump’s policy to restore U.S. energy dominance. U.S. Secretary of Energy Chris Wright criticized previous administrations for policies that led to plant closures and increased electricity costs.
However, Trump’s efforts to rescue coal are unlikely to succeed. In 2001, coal powered half of U.S. electricity; now it contributes less than a fifth due to cost-effective alternatives like solar, wind, and natural gas.
Energy Innovation’s analysis revealed coal prices rose 28% between 2021 and 2024, while inflation was only 6%.
At 99% of U.S. coal plants, replacing energy with new wind and solar is cheaper than continuing operations, according to a 2023 Energy Innovation report.
The Sierra Club’s “Beyond Coal” campaign aims to close U.S. power plants. Sierra Club climate policy director Patrick Drupp criticized the new funding as detrimental to people and the planet.
Trump’s orders to keep coal plants running have cost ratepayers millions. A 90-day emergency order for Michigan’s J.H. Campbell coal plant resulted in $80 million in extra costs since May, with expenses passed to Midwest ratepayers.
Trump argues coal is essential for grid reliability, but this may be overstated. From 2013 to 2024, coal had higher forced-outage rates than other major electricity sources, according to a report by the North American Electric Reliability Corporation.
Most U.S. coal plants were built before 1990. As they age, maintaining them becomes costly, leading many utilities to schedule retirements for nearly half of all plants.
Solomon compares coal energy’s decline to owning an old car: “If you have a car with 250,000 miles, little can make it new again.”
Original Story at insideclimatenews.org