The coal industry is in a fight for its life. The forces arrayed against coal are many, varied and powerful. Supporters of coal — producers, consumers, suppliers, transporters — need to rally at the state and regional levels because that’s where the fundamental decisions on coal power plants will be made. National committees, debates in Washington and discussions at 30,000 feet will not prevent coal from being a footnote in America’s energy history by the time today’s Kindergarteners leave middle school. Coal needs “boots on the ground” from the industry. Our Website, seeks to get data on the value of coal into the hands of individuals and companies who want to defend coal’s future.
Despite being the cornerstone of the U.S. electricity supply system for over a century, the coal industry has become the punching bag for its opponents and now they are going for the knockout. The relatively passive approach of the coal industry is simply not working. Over 300 coal power plants have closed in the last 15 years and generating capacity has declined 46% — from 318 Gigawatts (GW) to 170 GW. And the beat goes on, based on the latest DOE Outlook, by 2030 coal capacity will be only 69 GW. After that comes oblivion for coal in the U.S. — the fuel that built the nation.
Plant by plant, decision by decision, the U.S. is losing its most reliable and affordable energy asset. The Trump Administration has filed extensions to keep some plants open but these are only temporary (e.g. 90 days) and are like putting a Band-Aid on a gaping wound. Americans will pay higher rates, have less reliable power and fall ever further behind China, which is building the most robust electric power system on earth, and it is anchored by coal. The world is becoming increasingly electrified. It will be China’s strength in coal-based electricity that will propel it to ascendance over the U.S. in Artificial Intelligence.
In the U.S., cult-like opposition to coal comes from a variety of self-serving groups:
Some utilities want to close coal plants because they can make more money through handouts from the Inflation Reduction Act than by simply providing affordable and reliable electric power to their customers. The IRA offers utilities financing to cover the costs of shifting from coal to “renewables.”
Sierra Club, with a $500 million war chest from billionaires like Michael Bloomberg, seeks to “close every coal plant in the United States.” This is the same Sierra Club that calls for a detailed Environmental Impact Statement every time a minor dam is built but is ok with closing an entire industry without even a calculation on the back of a cocktail napkin.
Politicians who curry the vote of vociferous anti-coal extremists, generously funded by not only elitist environmental groups but by industries seeking to supplant coal, e.g. wind and solar. Jason Stanek, Director of Government Services at PJM, the nation’s largest Regional Transmission Organization covering 13 states, has stated that the vast majority of coal retirements are due to politics rather than economics.
State Regulators who are intimidated by hordes of coal opponents paid to attend hearings as well as perhaps 200 lawyers, organizers and activists who have been hired to litigate and work against coal across the Nation. In fact, Bloomberg has funded a program at NYU Law School that places attorneys, referred to as “climate fellows,” directly into state attorney general offices to focus on anti-coal efforts.
Media: The knee jerk reactions of the media to anything coal related are legion. When President Trump issued an Executive Order supporting coal, the ink had hardly dried before the wails from the Press began: “Trump wants ‘clean coal’ but there’s no such thing” – ABC News ; “Trump Administration plans to give dirty U.S. coal plants a reprieve” — Reuters; “Trump gave the dying coal industry a lifeline” — Washington Post.
Competitors: The natural gas industry set the dirty tricks ball rolling with Chesapeake Energy’s “Face It, Coal is Filthy” campaign replete with photographs of children with smudged faces, apparently from coal mines. CEO Aubrey McClendon donated $26 million to the Sierra Club to oppose the building of new coal-fired power plants.
Conclusion: Despite their incredible hypocrisy these special interest groups are succeeding in closing down one of the most important industries in the U.S. By 2030, just four years from now, anti-coal groups will have eliminated 80% of coal’s electric generation capacity. Reliability will be lower, rates will be higher and the U.S. will be less competitive. Tens of thousands of well-paying jobs will be lost and businesses associated with coal industry will either go bankrupt or see their revenues greatly diminished.
Over the last two decades, the coal industry has ceded much of the battlefield to its opponents and even now seems somewhat complacent about its future. The Trump Administration will be gone three in years. And even while Trump is in office, state regulators and utilities are proceeding to close coal power plants throughout the country — Colorado, Michigan, Indiana, Pennsylvania, Virginia, Ohio, Washington, on and on. Decisions on these remaining plants will be made over the next several years. Such decisions will not be made at the national level, but rather in communities, states and regions. If they want to survive, businesses which depend on coal must get their hands dirty.
Note: Coal is the Cornerstone seeks to give a voice to supporters of coal in its many dimensions and contributions. But we need help and ask like-minded individuals and companies to help support the effort.Visit us at http://www.coaliscornerstone.com. Access to our previous articles is available on this site.
Frank Clemente PhD. specializes in research on the socioeconomic impact of energy policy and is the author of The Global Value of Coal, published by the International Energy Agency (2012). Professor Clemente has served on the faculty of the University of Kentucky, University of Wisconsin and Penn State. He has extensive experience in speaking, writing and presenting data on the value of coal to the U.S. and the world. All opinions expressed here are presented independently from any university with which he has been affiliated.
Fred Palmer Esq. served as CEO of Western Fuels before he joined Peabody Energy as Senior Vice President for Government Affairs. Palmer was Chair of the World Coal Association Board and a member of the National Coal Council. He received the American Institute of Mining, Metallurgical and Petroleum Engineers Award for “Distinguished Achievement in Coal Technology.”He also received a Statement of Appreciation from the National Coal Council in 2015 with a plaque for “Guidance since 1990.”
This article was originally published by RealClearEnergy and made available via RealClearWire.
