Trump Orders Pentagon to Buy Power From Coal Plants
Coal miners arrive before President Trump speaks during an event on coal power in the East Room of the White House on Wednesday. (AP Photo/Evan Vucci)
President Trump on Wednesday instructed the Defense Department to give preference to coal-fired electricity in its long-term energy contracts, reinforcing his administration’s push to support the coal industry through one of the federal government’s largest energy customers.
At a White House event, Trump signed an executive order directing the Pentagon to prioritize “coal-based energy assets,” calling coal “essential” for national and economic security, according to the Washington Post. “We’re going to be buying a lot of coal through the military,” Trump said, describing it as more cost-effective and efficient than current energy sources, though the order does not outline specific spending levels or contract changes.
Peabody Energy CEO James Grech attended the signing, and Peabody shares rose 4% in after-hours trading, CNBC reported. Last April, Trump signed several executive orders aimed at boosting coal production, part of a broader strategy to keep aging coal plants operational. The administration plans to use Energy Department funds to upgrade plants in Kentucky, North Carolina, Ohio, and West Virginia, drawing from a previously announced $625 million pool.
Energy Secretary Chris Wright has invoked emergency authority to block the planned retirement of five major coal facilities, a move now being challenged in court by at least 15 states. Critics, including utility regulators, state attorneys general, and consumer advocates, argue that the directives increase power costs and lock in pollution at plants that are more expensive to operate than alternatives. A Michigan coal facility ordered to remain online reportedly costs $615,000 per day to operate.
A study by consulting firm Grid Strategies estimated that extending such requirements to other coal plants scheduled to close by 2028 could cost over $3 billion annually, with these costs typically passed on to consumers. “Taxpayers will have to pay for whatever DOD is buying,” said Rob Gramlich, president of the firm.
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