Trump to Push Coal for Data Centers Despite Market Decline

President Trump to Issue Executive Order Supporting Coal

According to reports from Bloomberg, President Donald Trump is scheduled to sign an executive order on Tuesday with the intention of revitalizing the coal industry.

This order will instruct the federal government to classify coal as a critical mineral. Furthermore, it will require certain coal-fired power plants, previously slated for shutdown, to continue electricity generation.

Justification for the Order

The Trump administration anticipates framing this directive as a necessary step to increase electricity production. This increase is being positioned to meet the growing demands originating from an expansion in data center operations.

Limited Impact on Coal's Decline

While the executive order may temporarily prevent some plant closures, it is improbable that it will fundamentally alter the ongoing decline of coal within the power sector.

Coal’s proportion of electricity generation has consistently decreased since 2001, when it accounted for 51% of the nation’s power. Gross consumption reached its peak in 2007.

Currently, coal contributes approximately 15% to the overall electricity generation mix.

Factors Contributing to Coal's Decline

Although clean air regulations have contributed to power plant closures, the primary factor has been the availability of inexpensive natural gas.

The increasing affordability of renewable energy sources, such as wind and solar power, has also played a significant role.

Environmental and Health Concerns

Coal is recognized as the most environmentally damaging method of electricity generation.

Compared to other fossil fuels, it produces a greater amount of carbon dioxide per kilowatt-hour. Additionally, the smoke emitted contains substantial levels of sulfur dioxide, nitrogen oxides, and particulate matter.

These pollutants contribute to a variety of environmental and health issues, including acid rain, ozone depletion, heart disease, and potentially Parkinson’s disease.

The combustion of coal also releases mercury into the environment, leading to its accumulation in the food chain and ultimately impacting human health. Mercury exposure can result in reduced IQ levels and birth defects.

Metallurgical Coal Designation

The Trump administration may find greater success in designating metallurgical coal as a critical mineral.

Steel production frequently utilizes carbon derived from coal to convert iron ore into pig iron, a crucial intermediate material. While advancements have been made in green steel technologies, they generally remain more costly than traditional coal-based methods.

Challenges in the Power Sector

However, within the power sector, coal faces substantial obstacles.

Existing power plants may receive a temporary extension of their operational lifespan, but they will continue to compete with the increasingly affordable costs of solar and wind energy.

With the exception of a single facility, operating all but one coal-fired power plant in the U.S. is more economical than constructing new renewable energy facilities.

Renewable Energy Deployment

Renewable energy sources can be deployed more rapidly than new fossil fuel power plants. This makes the construction of new coal plants to address the demands of data centers a less viable option.