Latest news with #coalindustry
Zawya
2 days ago
- Business
- Zawya
Trump's push for a comeback in coal may turn to ashes: Maguire
(The opinions expressed here are those of the author, a columnist for Reuters.) LITTLETON, Colorado - U.S. President Donald Trump has singled out the coal industry as a key driver of U.S. energy dominance, but there are currently no new U.S. coal plants under construction and utilities have identified quicker and cheaper paths to boost power supplies. In the first few months of Trump's second term, he has signed several executive orders and deployed federal funding aimed at reviving the coal mining and power sectors. But U.S. utilities continue to prioritize adding renewables, batteries, gas and nuclear power ahead of new coal-fired capacity based on the cost and efficiency. Even the coal export market has only limited growth potential, as Indonesia and Australia - much larger exporters - boast far quicker and cheaper access to key buyers in Asia, the only region showing a sustained increase in coal demand. That means that even with strong support from the federal government, the U.S. coal sector may still struggle to generate any sustained growth over the near to medium term as global energy systems continue to lean towards cleaner power supplies. AGING OUT There's been six times more coal power plants retired than constructed in the U.S. this century, which underscores the scope of the challenge facing even the most ardent coal bulls as they try to engineer an industry revival. Between 2000 and 2024, nearly 166,000 megawatts (MW) of outdated coal capacity was retired in the United States, according to data from Global Energy Monitor (GEM). And even though around 26,000 MW of new U.S. coal plants have been constructed since 2000, the newest - the Sandy Creek Energy Station in Texas - came online over a decade ago. This has caused total U.S. coal power generation capacity to drop by around 42% in the last quarter century, to around 194 gigawatts, according to Ember. The rapid retirement pace reflects the age of the U.S. coal power network, as more than 80% of all U.S. coal power plants were built between 1950 and 1990, according to the U.S. Energy Information Administration (EIA). And over 75% of the remaining plants are already 40 years old or more, exceeding their expected lifespan. Several power networks have delayed the closure of some aged plants on the grounds that keeping them operating will avert potential power shortages. And the Trump administration has exempted several coal plants from new emissions standards that would have forced them to close within the next decade. However, the power generation sector is handling less and less coal as more plants have been retired and replaced by other forms of generation. Indeed, since 2000 there has been a 65% decline in the amount of coal used by the power sector, data from the Energy Institute shows. There is thus little appetite among utilities to construct new coal plants, given the plethora of alternatives available to them that can generate power more quickly and cheaply and with fewer emissions. COAL CRUTCH The drop in coal-fired U.S. power has led to a sharp fall in domestic coal mine output, which has more than halved since 2000 to just over half a billion short tons in 2024, EIA data shows. Wyoming (237 million tons), West Virginia (85 million tons), Pennsylvania (43 million tons) and Kentucky (28 million tons) were the top coal producing states in 2023. Lower mine output has triggered steep cuts to the number of people engaged in coal mining, which peaked this century in 2011 at around 91,600, but contracted to around 45,500 by 2023, EIA data shows. Every major coal mining state has been affected by layoffs, with some harder hit than others. Kentucky has seen coal employee levels drop by over 70% since 2011, while Pennsylvania and Virginia have seen employee numbers fall by nearly half. EXPORT CHALLENGE The hardships resulting from these mass layoffs have helped turn the coal mining sector, which is primarily found in Republican "red" states, into an influential political force, as candidates look to tout their industry-friendly credentials. This has certainly been the case with Trump. Beyond encouraging power networks to increase use of coal in generation, the Trump administration has recently approved mine expansions on federal land in order to boost supplies for export to Japan and South Korea. Targeting Asia makes sense given that the region's buyers already account for over half of all U.S. thermal coal shipments, data from Kpler shows, as well as 80% of global coal consumption. However, U.S. market share in the region can only grow so much, as rival exporters such as Indonesia still boast a significant advantage in terms of shipping times and cost. The journey time for a possible coal shipment from Westshore export port in British Columbia - the main exit point for coal mined in the Western U.S. - to Japan is around 15 days, according to LSEG. In contrast, the journey time from the largest coal export point in Indonesia to Japan is nine days. In addition to cutting the journey time by over a third, Indonesian coal exporters can also offer lower coal costs and larger cargo volumes, an attractive combination for large-scale importers. That means that U.S. vendors will likely only be able to eke out piecemeal sales to Asian buyers, while bigger exporters secure larger and more regular trade flows to the region's utilities. In combination with declining coal demand by power plants at home, this will likely leave the coal mining sector struggling to generate sustained demand for its output, regardless of how much support it enjoys in Washington, DC. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn and X. (Reporting by Gavin Maguire; Editing by Anna Szymanski and Marguerita Choy)
Reuters
5 days ago
- Business
- Reuters
Trump's push for a comeback in coal may turn to ashes
LITTLETON, Colorado, July 18 (Reuters) - U.S. President Donald Trump has singled out the coal industry as a key driver of U.S. energy dominance, but there are currently no new U.S. coal plants under construction and utilities have identified quicker and cheaper paths to boost power supplies. In the first few months of Trump's second term, he has signed several executive orders and deployed federal funding aimed at reviving the coal mining and power sectors. read more read more read more read more But U.S. utilities continue to prioritize adding renewables, batteries, gas and nuclear power ahead of new coal-fired capacity based on the cost and efficiency. Even the coal export market has only limited growth potential, as Indonesia and Australia - much larger exporters - boast far quicker and cheaper access to key buyers in Asia, the only region showing a sustained increase in coal demand. That means that even with strong support from the federal government, the U.S. coal sector may still struggle to generate any sustained growth over the near to medium term as global energy systems continue to lean towards cleaner power supplies. There's been six times more coal power plants retired than constructed in the U.S. this century, which underscores the scope of the challenge facing even the most ardent coal bulls as they try to engineer an industry revival. Between 2000 and 2024, nearly 166,000 megawatts (MW) of outdated coal capacity was retired in the United States, according to data from Global Energy Monitor (GEM). And even though around 26,000 MW of new U.S. coal plants have been constructed since 2000, the newest - the Sandy Creek Energy Station in Texas - came online over a decade ago. This has caused total U.S. coal power generation capacity to drop by around 42% in the last quarter century, to around 194 gigawatts, according to Ember. The rapid retirement pace reflects the age of the U.S. coal power network, as more than 80% of all U.S. coal power plants were built between 1950 and 1990, according to the U.S. Energy Information Administration (EIA). And over 75% of the remaining plants are already 40 years old or more, exceeding their expected lifespan. Several power networks have delayed the closure of some aged plants on the grounds that keeping them operating will avert potential power shortages. And the Trump administration has exempted several coal plants from new emissions standards that would have forced them to close within the next decade. read more However, the power generation sector is handling less and less coal as more plants have been retired and replaced by other forms of generation. Indeed, since 2000 there has been a 65% decline in the amount of coal used by the power sector, data from the Energy Institute shows. There is thus little appetite among utilities to construct new coal plants, given the plethora of alternatives available to them that can generate power more quickly and cheaply and with fewer emissions. The drop in coal-fired U.S. power has led to a sharp fall in domestic coal mine output, which has more than halved since 2000 to just over half a billion short tons in 2024, EIA data shows. Wyoming (237 million tons), West Virginia (85 million tons), Pennsylvania (43 million tons) and Kentucky (28 million tons) were the top coal producing states in 2023. Lower mine output has triggered steep cuts to the number of people engaged in coal mining, which peaked this century in 2011 at around 91,600, but contracted to around 45,500 by 2023, EIA data shows. Every major coal mining state has been affected by layoffs, with some harder hit than others. Kentucky has seen coal employee levels drop by over 70% since 2011, while Pennsylvania and Virginia have seen employee numbers fall by nearly half. The hardships resulting from these mass layoffs have helped turn the coal mining sector, which is primarily found in Republican "red" states, into an influential political force, as candidates look to tout their industry-friendly credentials. This has certainly been the case with Trump. Beyond encouraging power networks to increase use of coal in generation, the Trump administration has recently approved mine expansions on federal land in order to boost supplies for export to Japan and South Korea. Targeting Asia makes sense given that the region's buyers already account for over half of all U.S. thermal coal shipments, data from Kpler shows, as well as 80% of global coal consumption. However, U.S. market share in the region can only grow so much, as rival exporters such as Indonesia still boast a significant advantage in terms of shipping times and cost. The journey time for a possible coal shipment from Westshore export port in British Columbia - the main exit point for coal mined in the Western U.S. - to Japan is around 15 days, according to LSEG. In contrast, the journey time from the largest coal export point in Indonesia to Japan is nine days. In addition to cutting the journey time by over a third, Indonesian coal exporters can also offer lower coal costs and larger cargo volumes, an attractive combination for large-scale importers. That means that U.S. vendors will likely only be able to eke out piecemeal sales to Asian buyers, while bigger exporters secure larger and more regular trade flows to the region's utilities. In combination with declining coal demand by power plants at home, this will likely leave the coal mining sector struggling to generate sustained demand for its output, regardless of how much support it enjoys in Washington, DC. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab.
Yahoo
02-07-2025
- Business
- Yahoo
Senator sounds alarm over secretive tax change discovered last minute in 'Big Beautiful Bill': 'It will create uncertainty and freeze the markets'
Lawmakers and business leaders spoke out after potentially devastating new provisions to hobble clean energy efforts on two fronts were quietly slipped into a sweeping "megabill" — and strangely, Senators from both sides of the aisle claimed ignorance about the origins. In mid-May, the "One Big Beautiful Bill Act" was introduced in the House of Representatives and has since meandered through both chambers of Congress, with lawmakers in the House and the Senate debating, amending, and re-drafting the sprawling legislation piece by piece. On Monday, Connecticut Senator Chris Murphy tweeted about a then-newly introduced version of the bill, pledging to go "through it line by line" and to disclose the "hidden provisions [his team] found." Murphy said it was "bad enough" that the bill initially cut incentives for wind and solar energy while adding a mysteriously added tax on those industries. In a follow-up tweet, he highlighted yet another provision aimed at dismantling the clean energy industry. "A new tax break for coal companies! So the tax incentives for wind and solar are GONE, and the coal industry is getting NEW tax incentives," a shocked Murphy tweeted. "It's official policy now to not just deny global warming exists - but to actively make it WORSE," he added. Murphy was referencing a "bizarre fossil fuel handout" for metallurgical coal — a specific kind of coal used in the production of steel, not for generating energy. Not only were the changes "bizarre," they were mysterious, and Senate Republicans asserted they had no idea who added the solar one or when, per NBC News; it's unclear so far if they knew how the coal one originated. Alaska Senator Lisa Murkowski was one lawmaker perplexed by the provision, which she said was "just entirely punitive to the wind and solar industry." According to the New York Times, even those who oppose renewable energy subsidies deemed the provision excessive, with one vocally disavowing an excise tax on renewable energy. News of changes to the megabill broke overnight on a weekend, stunning clean energy advocates into action in the middle of the night. American Clean Power Association chief executive Jason Grunet told the Times that the additions to the bill "came as a complete shock." The excise tax "is so carelessly written and haphazardly drafted that the concern is it will create uncertainty and freeze the markets," Grunet warned. On July 1, after a "marathon overnight session," the megabill narrowly passed Tuesday in the Senate with a 51-50 tally, after which it headed back to the House for a vote. Clean energy investments don't just affect households with solar panels, electric vehicle owners, or individuals directly involved with those industries — experts project that the absence of support for renewables will raise energy costs in the United States across the board. Bipartisan objections and critiques from fossil fuel advocates further underscore how economically devastating the bill would be to the energy sector should the new provisions survive a House vote. While the "cost of living" has dominated political discourse in recent months, the lasting environmental impact of this proposed legislation — partly due to a loss of subsidies — would be a devastating step backwards. Should the government be paying us to upgrade our homes? Definitely Depends on how much it costs Depends on what it's for No way Click your choice to see results and speak your mind. A controversial provision aimed at selling off public land was spiked by the Senate Parliamentarian and ultimately removed from the bill following public outcry. Public pressure works, and calling lawmakers to voice opposition to anti-clean energy provisions can go a long way — particularly given bipartisan reservations voiced by Senators. Those interested can visit to look up their representatives and how to reach them. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Bloomberg
27-06-2025
- Business
- Bloomberg
China's Coal Market in Tentative Recovery as Temperatures Soar
The Chinese coal market has begun its seasonal rebound with a tentative increase in prices as the summer heat arrives in earnest. Thermal coal had been in near-continuous decline since the autumn, with the benchmark price plumbing a four-year low of 610 yuan ($85) a ton earlier this month. By Wednesday, it had inched up to 619 yuan, according to the China Coal Transportation and Distribution Association (CCTD).
Yahoo
25-06-2025
- Politics
- Yahoo
West Virginia community facing economic decline struggles after devastating flood
Welch, West Virginia — The flood waters tore through McDowell County in West Virginia so fast in February that Rev. Brad Davis barely had time to grab his two cats before his house was swamped. "The truest meaning of the word 'apocalypse' in that it pulled back the veil and just underscored all of the challenges that we are facing here as a community," Davis told CBS News of the flooding, which left at least three people dead. Four months later, one of the poorest counties in one of the poorest states in the U.S. is still working to recover. "I mean, it's hard, it really is. It kind of tears you down mentally, physically," said Shawn Rutherford, whose mountain home was heavily damaged by the flooding. The city of Welch, the McDowell County seat, boomed during the boom days of coal, but it was already sliding when former President John F. Kennedy came here to campaign in 1960. The poverty has only continued as the coal industry cratered. "We've been hemorrhaging population for the last 80 years," Davis said. The question they have been asking in McDowell County is how do they fully recover in a community where the poverty rate is so high, and where the population is leaving so quickly that even the local Walmart closed. According to the U.S. census, the average life expectancy in McDowell County is 12 years less than the rest of the U.S. McDowell County also has the highest drug overdose rate in the U.S. So far, approximately $12 million in federal relief has been provided to the area since the flooding, but the money doesn't come close to covering all the cleanup and the rebuild. It's a brutal cycle. With the devastation and the insufficient aid comes a frustration with government. Less than half the registered voters in the county went to the polls in the November election. "The people here feel like they have been forgotten," Davis said. "Everyone has effectively forgotten about them and turned their backs on them." Marine veteran's wife arrested by ICE, still in custody Reporter's Notebook: Some good news about AI West Virginia's "coal country" still recovering from February floods
