Trump Directs Pentagon to Purchase Power from Coal Plants
WASHINGTON, D.C. – President Donald Trump on Wednesday ordered the Department of Defense to secure long-term power purchase agreements with coal plants, marking a significant effort to bolster a struggling industry. The move, announced at a White House event, aims to provide a financial lifeline to coal-fired power generation amid increasing competition from cheaper energy sources.
Shares of Peabody Energy Corp. Rose as much as 9.6% in U.S. Postmarket trading following the announcement, signaling investor confidence in the potential impact of the policy. The company’s CEO, James Grech, attended the event and stated that Peabody was “working with the administration on the potential to build new coal-fueled power plants.”
“We’re going to be buying a lot of coal through the military now,” Trump said during the event. The executive order directs the Pentagon to prioritize coal plants for powering military installations.
In addition to the Pentagon directive, Trump announced that the Department of Energy would issue funds to support coal plants in West Virginia, Ohio, North Carolina, and Kentucky. This builds on previous actions taken by the administration to boost coal production, including a declaration last April that coal is essential to U.S. National and economic security.
The coal industry has faced a decades-long decline as natural gas and renewable energy sources have develop into more cost-competitive. According to the Energy Information Administration, coal accounted for approximately 16% of U.S. Electricity generation in 2023, a substantial decrease from 51% in 2001. The decision to prioritize coal purchases underscores the administration’s commitment to reversing this trend, despite broader market forces.
The Tennessee Valley Authority (TVA) was also highlighted, with Trump noting actions taken to preserve the Cumberland and Kingston coal plants, ensuring they will remain operational. Peabody Energy’s stock jump reflects the market’s anticipation of increased demand.
The executive order represents the latest in a series of efforts by the Trump administration to revive the coal industry, a key promise made during his presidential campaigns.
