US commits US$100m to modernise ageing coal plants amid rising power demand

THE US government has announced a US$100m investment to refurbish and modernise the country’s existing coal plants, as part of a wider effort to “reinvigorate” the nation’s coal industry.

The initiative forms part of the Reinvigorating America’s Beautiful Clean Coal Industry executive order, published earlier this year, through which the government has pledged a total of US$625m to boost domestic coal production.

Chris Wright, the US secretary of energy, said: “These projects will help keep America’s coal plants operating and ensure the United States has the reliable and affordable power it needs to keep the lights on and power our future.”

Environmental toll

Coal production in the US has halved since 2008, according to data published by the US Energy Information Administration (EIA), driven by the rise of renewables and stricter environmental regulations. The decline has been accompanied by growing evidence of coal’s environmental and health impacts.

Research published this year by the Rocky Mountain Institute (RMI) found that emissions from coal plants have cost communities US$13–26bn annually in health-related damages.

Coal need

Despite the environmental concerns, the order emphasises the need to bolster the industry to keep up with the demand of domestic manufacturing and AI data processing centres.

Spending on data centre construction in the US hit an all-time high of US$40bn in June according to the Bank of America Institute, representing a 30% increase year-on-year.

Technology giants Google and Meta have announced multibillion-dollar investments in new US data centres, many of which plan to source power from natural gas and nuclear facilities. However, the US government hopes its investment into extending the life of existing coal plants – and constructing new ones – will attract more investment from the tech sector.

The government has also challenged certain environmental regulations, including the Clean Air Act, with Donald Trump establishing an email address earlier this year for fossil fuel operators to raise concerns about air pollution rules.

Wright added: “Beautiful, clean coal will be essential to powering America’s reindustrialisation and winning the AI race.”