Trump Authorises Surge in Coal Power to Counter China: What Are the Risks?

US President Donald Trump plans to increase domestic energy production by authorising his administration to ramp up energy production from fossil fuels to counter China’s economic advantage in the sector.

“I am authorising my Administration to immediately begin producing Energy with BEAUTIFUL, CLEAN COAL,” Trump wrote on Truth Social.

It aligns with the broader strategy the US administration is pursuing.

It’s not clear what Trump was referring to or how his social media decree would impact actual US policy. Earlier in his term, Trump had already signed an executive order declaring a national energy emergency and directed the Environmental Protection Agency to boost fossil fuel production and distribution.

In line with the orders, earlier this month, Energy Secretary Chris Wright said that the administration was working on a “market-based” plan to stem the closing of US coal-fired power plants. Coal accounts for about 15% power generation in the US today, down from more than half in 2000, reported Bloomberg.

An additional 120 coal-fired power plants are scheduled to shutdown in the next five years in part because of environmental regulations that have made them uneconomic, according to the America’s Power trade group representing utilities and miners such as Peabody Energy Corp and Core Natural Resources Inc, according to Bloomberg.

Reprieve for Some Old Coal Plants

This week, US President Trump issued executive orders calling for prioritising energy development such as by lifting regulations that obstruct development of fossil fuels. This move could lead to repeal of President Joe Biden’s power plant pollution regulations and an end to some policies that support renewables.

Environmentalists condemn the consequences for climate change- electricity generation accounts for one-quarter of US carbon emissions, according to the EPA- a move welcomed by the miners.

Despite the plans for boosting coal power, the reality of US energy production suggests that natural gas will continue to benefit the most from rising electricity demand. “It’s natural gas that will benefit the most from rising electricity generation,” said Chris Seiple, Vice Chairman, Wood Mackenzie told Associated Press.