FINWIRES · TerminalLIVE
FINWIRES

Update: Trump Plans to Invoke Cold War Authority to Boost US Coal With $700 Million

By

(Updates with White House response in the 1st paragraph and paragraphs 4-14.)

US President Donald Trump is expected to make three "historic beautiful, clean coal announcements" in the Oval Office on Thursday, a White House official toldin an emailed response, confirming details of the expected coal initiatives.

Trump plans to invoke the Defense Production Act to fund US coal infrastructure with nearly $700 million, several media outlets reported on Wednesday.

More than half of the allocation is reportedly earmarked directly for critical structural upgrades across 13 existing coal-fired plants, the reports said. The funding will also target critical logistical bottlenecks across the domestic supply chain.

The announcements are expected to include $425 million in Defense Production Act funding for existing coal plants, $75 million for a new California coal export terminal, and nearly $200 million in Department of Energy funding for new coal generation projects and a plant restart, according to the White House.

The $425 million allocation will support 13 coal-fired power plants across the US and help fund upgrades that "extend their operational life, reinforce grid reliability, and keep electricity prices low as demand grows."

According to the White House, the funding will also support coal mines supplying those power plants.

Coal plants receiving funding are located in West Virginia, Kentucky, North Carolina, Indiana, Tennessee, Arkansas, Arizona, Oklahoma, North Dakota and Wisconsin.

Trump is also expected to announce $75 million in Defense Production Act funding to support construction of the West Gateway coal export terminal in Oakland, California, the White House official said.

The terminal will operate "24 hours a day, 7 days a week-moving over 12 million tons and $1 billion of beautiful, clean American coal each year," the official said.

The project is expected to break ground this summer and begin shipping coal by summer 2028, according to the White House.

The White House said the terminal is projected to create over 1,400 jobs on-site and support thousands more across the Western US, including miners, railroad workers, port workers, engineers and construction workers.

Trump is expected to roll out almost $200 million in Department of Energy grant funding to help build two new coal plants in Alaska and West Virginia and restart a coal plant in Maryland, according to the White House.

The projects would be "the first new US coal plants since 2013," while participating companies are expected to match or exceed the federal funding, bringing the total investment to about $386 million, according to the response from the White House.

The White House said the combined initiatives are expected to support and create more than 14,000 jobs across the coal, construction, rail and maritime sectors, save consumers about $50 billion in future generation costs and increase the number of coal plants supported or preserved under Trump administration to 102.

The Cold War emergency measure aims to secure baseline power for data centers and secures the grid against energy supply disruption risks.

The administration is scrambling to meet the massive baseline electricity demands of power-hungry artificial intelligence data centers, while simultaneously seeking to insulate the domestic grid from foreign supply chains.

Coal's share of domestic power generation has plummeted from more than half of total US electricity to less than one-fifth in recent years, heavily undercut by cheaper natural gas and accelerating renewable assets, according to Reuters, citing the US Energy Information Administration.

Related Articles

Commodities

Baker Hughes Reinforces Growth Story, RBC Says

Baker Hughes (BKR) executives highlighted the breadth of the company's portfolio and exposure to multiple energy and industrial end markets at the RBC Global Energy, Power and Infrastructure Conference, RBC Capital Markets analysts said in a Wednesday note.The firm reportedly highlighted power systems within its industrial and energy technology segment as a key growth driver. RBC said management noted the business spans power generation, grid stability and energy management, and is expected to play a significant role in achieving the company's growth targets.In oilfield services and equipment, Baker Hughes pointed to improving activity trends across international markets, including Argentina, Mexico and offshore regions, while Brazil remains stable.Venezuela continues to represent an opportunity, though activity there is being managed cautiously.Middle East markets remain soft, with activity in Saudi Arabia and the UAE still muted, although Baker Hughes reported modest improvement in Qatar, RBC said.The investment bank also noted that Baker Hughes expects its acquisition of Chart Industries to close in July. It said management remains confident in the strategic rationale for the deal and its target of $325 million in cost synergies despite an anticipated one- to two-quarter integration period.Baker Hughes said it continues to evaluate portfolio optimization opportunities as it expands across energy and industrial value chains. RBC maintained its outperform rating on the shares and $71 price target.Price: $65.50, Change: $+1.23, Percent Change: +1.91%

$BKR
Commodities

Energy Firms Stay Disciplined Despite Price Rally as LNG Expansion Gains Momentum, RBC Says

Energy companies are resisting the temptation to significantly ramp up spending despite a surge in oil prices driven by geopolitical tensions, opting instead for measured growth while focusing on operational efficiency, RBC Capital Markets strategists said in a note on Wednesday.Crude producers remain cautious about committing capital to major expansion projects, even as elevated crude prices provide a near-term earnings boost, RBC analysts said, citing executives speaking at the RBC Global Energy, Power & Infrastructure Conference.The analysts said the key determinant for future investment decisions is not current spot prices but longer-dated crude contracts.Companies indicated that sustained strength in the back end of the oil futures curve through 2027 and beyond would be required before they would materially increase long-term production plans.Though some operators may accelerate existing developments, industry leaders largely refrained from signaling aggressive output growth, reflecting uncertainty about the durability of current geopolitical disruptions and their potential impact on global economic activity and future oil demand."The back end of the curve remains the North Star," RBC analysts said.Meanwhile, refiners expressed confidence that downstream profitability will remain robust. RBC said both North American and European operators pointed to tightening product inventories and resilient fuel demand, supporting expectations that refining margins will remain elevated.There is also growing optimism about Canadian energy exports as buyers seek greater diversification of supply amid ongoing geopolitical risks.RBC said executives highlighted the strategic importance of expanding access to Asian markets through a wave of liquefied natural gas projects on Canada's west coast, including LNG Canada, Cedar LNG, Woodfibre LNG, and Ksi Lisims LNG.The bank said energy-importing countries are prioritizing supply security, creating long-term opportunities for Canadian producers.On the natural gas front, LNG export growth is expected to remain the dominant driver of demand through the remainder of the decade. However, power demand from artificial intelligence-linked data centers continues to attract attention.RBC forecasts that data centers could account for 6 billion to 7 billion cubic feet a day of North American gas demand by the 2030s.Companies across the energy industry emphasized productivity improvements over expansion.RBC said advancements in drilling technology have halved well construction times compared with a decade ago, while better use of existing infrastructure and AI-enabled optimization are helping operators reduce costs and increase asset utilization.However, oilfield service firms painted a more expansionary picture. RBC said that despite producers maintaining conservative production guidance, service providers expect drilling activity to accelerate, particularly in Canada, where higher commodity prices and growing export opportunities are supporting demand for rigs and pressure-pumping equipment.

Commodities

Nayara Energy Completes Vadinar Refinery Overhaul Amid Geopolitical Uncertainty

Nayara Energy said on Thursday it had completed a scheduled turnaround at its Vadinar refinery in western India, carrying out critical maintenance, upgrades, and inspections to improve operational reliability, efficiency, and safety.The energy firm said the maintenance program was essential to ensuring the refinery's long-term performance and supporting India's energy security.Nayara, in addition to routine maintenance and inspections, implemented several projects designed to improve product quality, enhance process efficiency, and extend operating cycles between planned shutdowns.The company also introduced energy-saving measures across its refinery units to reduce energy consumption and lower emissions intensity.Nayara said it maintained uninterrupted fuel supplies across India through coordinated logistics, inventory management and business continuity measures despite the scale of the turnaround.Vadinar refinery is a key component of India's downstream energy infrastructure and serves both domestic fuel demand and the company's expanding petrochemicals business.