Trump orders Department of Defense to purchase coal power and provides $175 million in funding

U.S. President Donald Trump signed an executive order directing the Department of Defense to secure long-term contracts for electricity produced from coal-fired power plants. The administration stated this measure is intended to ensure an uninterrupted power supply for military and defense-related facilities, citing national security concerns. Additionally, the Department of Energy will provide $175 million in funding to upgrade six coal power plants located in Kentucky, North Carolina, Ohio, Virginia, and West Virginia. Industry analysts from ClearView Energy Partners and Capital Alpha Partners suggest these measures may only extend the lifespan of existing units rather than creating new capacity due to high private investment risks. Following the announcement, shares of coal-related companies such as Peabody Energy Corp. and Ramaco Resources Inc. saw gains in the stock market. Current estimates indicate that coal will account for approximately 16% of U.S. electricity generation this year, a significant decline from its historical peak of over 50%. While the administration frames coal as essential for energy reliability, critics point to its high costs and environmental impact as ongoing challenges for the sector.