Boosting Coal’s Fortunes: Trump’s Executive Order
The Latest Attempt to Revive the Coal Industry
President Donald Trump is set to sign an executive order on Tuesday aimed at boosting coal’s flagging fortunes, reports Bloomberg. The order will direct the federal government to list coal as a critical mineral and force some coal-fired power plants that had faced closure to keep generating electricity.
Why Coal’s Decline Persists
While the executive order might forestall some closures, it’s unlikely to reverse coal’s persistent decline in the power sector. Coal’s share has declined steadily since 2001, when it generated 51% of the country’s electricity, and gross consumption peaked in 2007. Today, coal’s share of generation is about 15%.
Causes of Coal’s Decline
Clean air regulations have caused some power plant closures, but the major driver has been low-cost natural gas. Cheap renewable sources like wind and solar have played a part as well.
The Environmental Impact of Coal
Coal is the dirtiest way to generate electricity. It releases more carbon dioxide per kilowatt-hour than any other fossil fuel, and its smoke is laden with sulfur dioxide, oxides of nitrogen, and fine particulates. These pollutants cause a range of environmental and health problems, from acid rain and ozone to heart disease and possibly Parkinson’s.
Burning coal also releases mercury into the environment, where it accumulates in fish and other animals, eventually ending up in the humans who eat them. Mercury poisoning lowers IQ and causes birth defects.
Metallurgical Coal: A Potential Bright Spot
The Trump administration may have more luck in designating metallurgical coal as a critical mineral. Steelmaking often, though not always, uses carbon from coal to reduce iron ore to pig iron, an intermediary material. While green steel techniques have made headway against coal-based ones, they’re still typically more expensive.
The Challenges Facing Coal in the Power Sector
Existing power plants might get a brief reprieve, but they’ll be competing with solar and wind, which are cheap today and getting cheaper. All but one coal-fired power plant in the U.S. is less expensive to operate than building new renewables.
Renewables can also be deployed faster than new fossil fuel power plants, which makes the prospect of building new coal plants to cope with data center loads even more remote.
Conclusion
While the executive order may provide a short-term reprieve for the coal industry, it’s unlikely to reverse the long-term trend of coal’s decline in the power sector. The industry faces significant challenges from clean air regulations, low-cost natural gas, and cheap renewable energy sources.
FAQs
Q: What is the purpose of the executive order?
A: The executive order aims to boost coal’s flagging fortunes by listing it as a critical mineral and forcing some coal-fired power plants to stay open.
Q: Why is coal declining in the power sector?
A: Coal’s decline is driven by clean air regulations, low-cost natural gas, and cheap renewable energy sources like wind and solar.
Q: What are the environmental impacts of coal?
A: Coal releases more carbon dioxide per kilowatt-hour than any other fossil fuel and pollutes the air with sulfur dioxide, oxides of nitrogen, and fine particulates, causing a range of environmental and health problems.
Q: Is metallurgical coal a potential bright spot for the industry?
A: Yes, the Trump administration may have more luck designating metallurgical coal as a critical mineral, as it is still used in steelmaking and has a higher demand.
Q: Can the executive order reverse coal’s decline in the power sector?
A: No, the executive order is unlikely to reverse the long-term trend of coal’s decline in the power sector, as it faces significant challenges from clean air regulations, low-cost natural gas, and cheap renewable energy sources.
