U.S. coal sector seeks DOE financing support for existing and new power plants

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Coal sector DOE support

Highlights

The National Coal Council urged the U.S. Department of Energy on Tuesday to provide loan guarantees and grants for existing and new coal plants and supply chains.
Council recommendations include federal power purchase agreements, coal infrastructure investment, and removing regulatory, financial, and policy barriers to further coal plant construction.
U.S. coal production rose 3% in 2023 to 528 million tons, with coal powering about 17% of U.S. electricity in 2025 amid rising power demand and natural gas prices.

Coal council recommendations to the administration

As reported by Reuters, the National Coal Council on Tuesday urged the U.S. Department of Energy to provide financial support, including loan guarantees and grants, for existing coal plants, new generating facilities and related supply chains.

At a meeting in Washington, the council issued 19 recommendations to the administration. They include federal power purchase agreements, investment in coal infrastructure, and steps to identify and remove regulatory, financial and other barriers to building new plants.

President Donald Trump, who is seeking to strengthen the U.S. coal industry, reinstated the council last year after it had lapsed during the administration of former President Joe Biden. Its membership includes executives from Peabody Energy, Warrior Met Coal and Core Natural Resources.

The DOE did not immediately respond to a request for comment on the council's call for agency financing for coal plants. The department's loan office, now called the Office of Energy Dominance Financing, had been used by Democratic administrations mainly to support emerging energy businesses such as solar and wind power, electric vehicles and electricity transmission.

Policy and market implications for the coal industry

The council is also calling on the Environmental Protection Agency to finalize the repeal of greenhouse gas regulations for new and existing coal plants. It further recommends that the Department of the Interior streamline federal coal leasing, tying financial support to a broader effort to ease policy constraints on the industry.

Market conditions have recently provided some support for coal demand. U.S. coal production rose about 3% last year to roughly 528 million tons, helped by increased power demand and higher natural gas prices, while coal consumption in the U.S. contributed to higher global carbon emissions last year.

Coal generated about 17% of U.S. electricity in 2025, up slightly from the previous year. The council's proposals signal an effort to turn that modest increase into longer-term support for coal-fired generation through federal financing and regulatory relief.

In our earlier article, we covered the Trump administration’s preparations for new Section 301 trade actions tied to forced-labor concerns as the temporary 10% global tariff nears expiry. We noted that the approach could expand targeted tariffs to more countries, raising compliance risks for importers and potentially disrupting manufacturing, agriculture, and cross-border supply chains.

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