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US Manufacturing Coal Use Halves, Southern Use Declines 75%, EIA Says

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-- Coal deliveries in the US for non-power uses, mainly manufacturing, have dropped sharply, falling by roughly half over the past 15 years. The steepest regional decline occurred in the South, where coal use for these purposes plunged 75% between 2010 and 2025, the US Energy Information Administration said on Monday.

The 75% drop in the South is a decrease of 14.7 million short tons, based on data from the EIA's Annual and Quarterly Coal Distribution Reports. In 2010, the South received more than twice as much coal as the Northeast, but by 2025, the two regions were receiving similar amounts. This shift was largely driven by manufacturers switching to natural gas and the shutdown of coal-dependent facilities.

Most Southern states saw coal receipts decline compared with 2010 levels. The biggest drops in total volume occurred in Appalachian states, West Virginia, Alabama, Virginia, Tennessee, Kentucky, and Georgia, each averaging a reduction of about 1.7 MMst. Percentage-wise, Florida, West Virginia, Georgia, Texas, and South Carolina experienced declines of 90% or more. Louisiana was the only exception, with coal receipts rising by 775%, or about 0.2 MMst, though it still accounted for only around 5% of the South's total non-power coal distribution in 2025.

Coal has historically played a role in Southern manufacturing, with about 8% of regional coal distribution used for purposes other than electricity generation. However, data from the 2022 Manufacturing Energy Consumption Survey show coal use in US manufacturing fell from 60 MMst in 2010 to 43 MMst in 2022, a 28% decline. The South contributed most to this drop, with usage falling 60%, from 20 MMst to 8 MMst. Key industries behind the decline include paper, primary metals (especially iron and steel), chemicals, and coke production. In some cases, reduced demand reflects plant closures, such as coking facilities in Alabama and West Virginia. Meanwhile, these same industries increased their use of natural gas by 16% to 200% over the same period.

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