Trump orders Pentagon to buy electricity generated by coal

"United States President Donald Trump has ordered the Pentagon to buy electricity generated by coal, his latest effort to boost demand for the fossil fuel amid its declining cost competitiveness and climate change concerns. In an executive order signed on Wednesday, Trump directed the US Department of Defence to enter into long-term purchase agreements with coal-fired plants and prioritise the preservation and strategic utilisation of coal-based energy assets."

"Trump's order did not specify how much energy the Pentagon would purchase or under what financial terms. You do so much, Trump said at a White House event attended by coal industry executives and miners. You heat our homes, fuel our factories, and turn natural resources into American riches and dreams, he said. Trump also announced that the US Department of Energy would invest $175m to upgrade six coal plants in North Carolina, Ohio, West Virginia, Kentucky and Virginia."

"Coal production in the US has been in decline for decades amid growing competition from natural gas and renewables, including wind, hydropower and solar. Production fell by more than half between 2008 and 2023, when output hit 578 million tonnes, according to the US Energy Information Administration. The fossil fuel accounted for about 16 percent of US energy production in 2023, behind natural gas and renewables at 43 percent and 21 percent, respectively."

The President ordered the Pentagon to buy electricity generated by coal and to enter long-term purchase agreements that prioritise preserving and strategically utilising coal-based energy assets. The order did not specify purchase volumes or financial terms. The Department of Energy will invest $175 million to upgrade six coal plants in North Carolina, Ohio, West Virginia, Kentucky and Virginia. The President praised coal workers and framed coal as vital to American prosperity. Coal production has fallen by more than half from 2008 to 2023 to 578 million tonnes, representing about 16 percent of US energy in 2023 while natural gas and renewables supplied larger shares. In 2023, 99 percent of coal-powered facilities were more expensive to run than renewable replacements.

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