Trump Promotes Coal Amid Rising Energy Demands \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ President Donald Trump has doubled down on coal, touting its potential to meet growing energy demands driven by manufacturing and AI data centers. While coal may see a temporary reprieve, experts argue that cheaper natural gas and renewables will continue dominating the energy market. The outlook for coal remains a mix of opportunities and challenges under Trump’s policies.
Trump’s Push for Coal: Quick Looks
- Coal Advocacy: Trump champions coal as a reliable energy source despite its declining role.
- Energy Demand: AI, manufacturing, and data centers will strain electricity grids.
- Temporary Boost: Coal plant retirements may be delayed, but long-term demand remains low.
- Export Growth: U.S. coal exports are rising, driven by Asian demand.
- Fossil Fuel Policies: Trump promises regulatory rollbacks to favor coal development.
Deep Look
President Donald Trump has renewed his commitment to coal, presenting it as a key solution to meet surging electricity demand fueled by AI, manufacturing, and data center expansions. Speaking via video to the World Economic Forum in Davos, Switzerland, Trump declared coal’s unmatched reliability, stating, “Nothing can destroy coal. Not the weather, not a bomb—nothing.” Yet energy experts caution that any resurgence in coal use under Trump’s policies is likely to be short-lived, as cheaper and cleaner energy sources continue to dominate the market.
The Growing Energy Demand
For the past 15 years, electricity demand in the U.S. has remained steady due to efficiency improvements, but this is now changing. Expanding industries, including the manufacturing of batteries, solar cells, and semiconductors, alongside the rapid growth of AI-driven data centers, are expected to increase electricity consumption by 10–20% annually through 2030. According to Chris Seiple of Wood Mackenzie, this surge will require additional power plants and gigawatts of energy, placing immense pressure on utilities, which often operate on decades-long planning cycles.
While Trump’s pro-coal rhetoric aligns with these developments, industry analysts suggest natural gas and renewables are better positioned to meet these needs. Natural gas’s lower cost and the expanding adoption of renewable energy make them more attractive options for utilities planning long-term investments.
Coal’s Temporary Reprieve
Trump’s energy policies, including regulatory rollbacks and executive orders prioritizing fossil fuel development, could temporarily delay the retirement of aging coal plants. Already, some coal-fired facilities in Maryland, Indiana, and Illinois have postponed closures due to rising demand and deregulation efforts. Proponents argue that coal’s ability to provide consistent, around-the-clock power gives it an edge over renewables, which depend on weather conditions unless paired with costly battery storage systems.
However, experts like Rob Godby, an economics professor at the University of Wyoming, note that while coal might experience a short-term reprieve, the economics of the energy market favor natural gas and renewables. Additionally, companies driving the data center boom—such as Google, Amazon, and Microsoft—remain committed to renewable energy and carbon neutrality, further limiting coal’s potential for a significant comeback.
Exporting U.S. Coal
Global demand for coal remains robust, especially in Asia, where economies like China continue building coal-fired power plants. In 2023, global coal production was projected to reach an all-time high of nearly 10 billion tons, with U.S. exports exceeding 100 million tons for the second consecutive year. Top destinations include China, India, Japan, Brazil, and the Netherlands.
Despite these gains, U.S. coal exporters face logistical hurdles, particularly on the West Coast, where environmental opposition has stalled the development of new export ports. Republican lawmakers have proposed utilizing federal properties or military bases as fossil fuel export sites, but such plans remain unrealized.
The Reality of Coal Reserves
The United States boasts some of the world’s largest coal reserves, particularly in the Powder River Basin of Wyoming and Montana, enough to last over 400 years at current extraction rates. However, public land coal sales have been a contentious political issue. Trump reversed an Obama-era moratorium on these sales during his first term, and his administration has vowed to keep these resources available. Energy Secretary nominee Doug Burgum has pledged to work with lawmakers to advance coal mining projects, citing advancements in “clean coal” technology and carbon capture.
Still, questions remain about the feasibility of carbon capture for large-scale commercial use. While research supports its potential to enhance oil production, scaling it to sequester emissions from coal plants remains a significant challenge.
The Long-Term Outlook
While Trump’s policies could provide coal with a temporary boost, experts agree that the long-term outlook remains bleak. Seiple predicts that natural gas will benefit the most from rising electricity demand, while new coal plants are unlikely due to their high costs and environmental concerns.
The coal industry’s future under Trump highlights the tension between market forces and policy efforts to revive fossil fuels. As Godby succinctly puts it, “The long-term trend is hard to get out of.” With the energy market favoring cheaper and cleaner alternatives, coal’s role may be relegated to filling short-term gaps rather than spearheading a sustained comeback.
Trump Promotes Coal Trump Promotes Coal
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