President Donald Trump on Thursday announced a nearly $700 million initiative Thursday at the White House aimed at supporting the U.S. coal industry, including funding for power plant upgrades, new projects and export infrastructure.
Meeting with leaders in the Oval Office, Trump said he will invoke the Defense Production Act, a Cold War-era law that grants presidents broad authority over industries considered vital to national security, to direct federal support to coal projects across the country and to save 13 coal plants in West Virginia, Kentucky, North Carolina, Indiana, Tennessee, Arizona, Arkansas, Oklahoma, North Dakota and Wisconsin.
The president announced the plan during a White House event focused on what the administration has called “beautiful clean coal.”
“If you look at China, if you look at so many of the successful countries, they’re using coal,” Trump said. “If you look at some of the really great failures, countries they’re using wind, just keeps blowing, blowing, blowing and put you right out of business.”
EXXON CHIEF WARNS OF SKYROCKETING ENERGY PRICES AS SHAREHOLDERS APPROVED PLAN TO EXIT BLUE STATE
“China, by the way, last year built 52 coal plants,” Trump noted. “They built about two windmills. The only time they build a windmill is when they’re trying to sell them to stupid people from the United States and the suckers.”
The funding package would provide more than $425 million to upgrade 13 existing coal-fired power plants. Another $185 million would be used to match corporate funding for coal projects in Alaska, Maryland and West Virginia, while $75 million would support construction of the long-proposed West Gateway coal export terminal in Northern California, according to the White House official.
COSTCO SAYS ITS GAS STATIONS SET ALL-TIME VOLUME RECORDS AS CONSUMERS SEEK LOWER-PRICED FUEL
The latest initiative represents another step in the Trump administration’s broader effort to revive the coal industry after decades of decline.
Coal generated more than half of U.S. electricity in 2000. Today, it accounts for less than one-fifth of power generation, according to data from the U.S. Energy Information Administration, as utilities have increasingly shifted toward natural gas and renewable energy sources.
The administration has framed coal as both an energy-security and national-security priority, arguing reliable electricity generation will be critical as the United States works to meet growing power demand from artificial intelligence development and data centers while competing with geopolitical rivals.
“Without massive amounts of energy, you can’t even play the game,” said Trump.
RUBIO VISIT TO INDIA PUSHES DEEPER ENERGY TIES AS IRAN CONFLICT RATTLES GLOBAL OIL MARKETS
Trump has previously taken several actions intended to support the industry.
The Energy Department has issued emergency orders directing some coal plants to continue operating beyond planned retirement dates, while the Interior Department has moved to expand coal leasing opportunities on federal lands.
The president has also directed the Pentagon to pursue agreements to purchase electricity generated by coal-fired power plants for military purposes.
Supporters of the administration’s approach argue coal remains an important source of around-the-clock electricity generation capable of helping meet surging power demand.
CLICK HERE TO GET FOX BUSINESS ON THE GO
“It’s been the largest source of global electricity for 125 years in a row and will be for decades to come in the United States,” Energy Secretary Chris Wright said. “It remains a critical source of our electricity. Also, a critical source for our industry, we can’t produce steel and cement and other materials without coal.”
Critics, meanwhile, cite coal’s environmental impact and note that utilities have increasingly turned to lower-cost natural gas and renewable alternatives.
Bloomberg first reported details of the planned funding initiative.
Reuters contributed to this report.