US President Donald Trump has signed orders to enhance coal production in the country. The move comes at a time when electricity demand in the country has increased for the first time in 20 years, driven by the rapid growth of energy-intensive data centres supporting artificial intelligence, electric vehicles, and cryptocurrency operations.
The orders include a proclamation offering a two-year reprieve to certain coal-fired power plants from stringent environmental regulations introduced during the previous administration. The relief will allow the coal plants to adhere to a less demanding version of the Environmental Protection Agency’s (EPA) Mercury and Air Toxics Standards (MATS) rule, preventing premature shutdowns due to compliance challenges.
Additionally, President Trump has signed an executive order directing the Chair of the National Energy Dominance Council to designate coal as a ‘mineral’.
The order also directs agencies to identify and prioritise coal resources on federal lands, lift restrictions on coal mining, and promote coal leasing. This includes the termination of the Jewell Moratorium, which had previously halted coal leasing on federal lands. The orders also advocate for the promotion of coal and coal technology exports, as well as the acceleration of international agreements and coal technology development.
In a broader effort to support the coal sector, the order tasked the Energy Secretary to evaluate whether coal used in steel production should be classified as a ‘critical mineral’. Such a designation could lead to the use of emergency powers to increase production levels.
The order also advocates for using coal to supply power to new AI data centres.
Currently, coal-fired power plants account for less than 20% of the country’s electricity production, a significant decline from 50% in 2000, Reuters reported quoting the Energy Information Administration data. This reduction is largely due to the rise of natural gas from fracking and the expansion of renewable energy sources such as solar and wind.
In a related development, Trump has also issued an order to ensure the reliability of the US electric grid, mandating the use of all available power generation resources, with a focus on those with secure and redundant fuel supplies for extended operations.
Meanwhile, President Trump has dismissed the EU’s proposal for ‘zero-for-zero’ tariffs on cars and industrial goods. He said that EU need to purchase $350bn worth of American energy to avoid extensive tariffs, a report from Politico said.
