Trump Turns To 'Beautiful, Clean Coal' To Address Domestic Energy Demand

U.S. President Donald Trump is turning to coal as a solution to meet the nation's growing energy demands.

In a statement on Truth Social, Trump declared: "I am authorizing my Administration to immediately begin producing Energy with BEAUTIFUL, CLEAN COAL," touting the effect on energy prices and leveling the playing field with foreign countries, particularly China.

According to the U.S. Energy Information Administration, coal currently accounts for about 15% of U.S. power generation, a significant decline from over 50% in 2000.

Despite this drop, Trump's administration is pushing to keep coal plants operational, arguing that they are essential for stabilizing energy costs and meeting the surging demand from power-intensive industries, particularly artificial intelligence (AI).

AI technologies are notoriously energy-hungry, with electricity demand for data centers projected to grow by 10-20% annually through 2030. This surge, coupled with increased manufacturing and electric vehicle adoption, is straining the aging U.S. power grid, which will require a big overhaul as electricity demand rises.

An energy consulting firm, Grid Strategies, estimated that demand will increase by 128 GW over the next five years, five times more than projected just two years ago.

Energy Secretary Chris Wright confirmed the administration is working on a "market-based" strategy to prevent the continued shutdown of coal-fired power plants. Twelve such plants were scheduled for shutdown in the next five years.

While coal once dominated the energy mix, utilities have increasingly turned to cheaper natural gas and renewables. However, coal plants provide continuous baseload power, unlike renewables like solar and wind, which require battery storage to maintain steady output.

Thus, it is unsurprising that, despite environmentalists' efforts, global coal production reached an all-time high in 2024, at almost 10 billion metric tons, according to the International Energy Agency.

The U.S. coal production has declined, although its exports have risen, with over 100 million tons shipped in 2024, mainly to India, China, and Brazil. Yet, infrastructure challenges, including limited port access on the West Coast, have hindered further expansion.

Trump's turn to coal is not entirely unexpected. Earlier this year, at the World Economic Forum in Davos, he signaled the possibility of ramping up fossil fuels to counter China's economic strategies.

Price Watch: Range Global Coal ETF COAL is down 13.88% year-to-date.

Read Next: