investment

Trump orders Pentagon to buy power from coal plants

CNBC

2 min read

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⚡ Quantum Brief

President Donald Trump signed an executive order Wednesday mandating the Pentagon to purchase electricity from coal plants, aiming to revive the struggling industry through long-term military contracts. The order directs the Defense Department to secure power purchase agreements for military bases, with Peabody Energy’s CEO present at the signing. Peabody’s shares rose 4% following the announcement. Trump also instructed the Energy Department to allocate funds to sustain coal plants in West Virginia, Ohio, North Carolina, and Kentucky, citing national and economic security concerns. Coal’s share of U.S. electricity generation dropped to 16% in 2023 from 51% in 2001, as cheaper natural gas and renewables dominated the market, accelerating the industry’s decline. This follows Trump’s April 2025 declaration classifying coal as critical to U.S. security, part of broader efforts to bolster domestic coal production through executive actions.

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President Donald Trump on Wednesday ordered the Defense Department to purchase power from coal plants, his latest effort to revivte an industry that has struggled to compete against cheaper energy resources.Trump signed the executive order at a White House event attended by Peabody Energy CEO James Grech. The order directs the Pentagon to secure long-term power purchase agreements with coal plants for military installations."We're going to be buying a lot of coal through the military now," Trump said. Shares of Peabody rose 4% in extended trading. The president said he also directed the Department of Energy to issue funds to keep coal plants open in West Virginia, Ohio, North Carolina and Kentucky.Trump declared coal essential to U.S. national and economic security last April. He issued several executive orders at the time that aimed boost coal production. The coal industry has been in state of decline for years as it has struggled to compete against natural gas and renewable energy. About 16% of U.S. electricity generation came from burning coal in 2023, down from 51% in 2001, according to the Energy Information Administration. Got a confidential news tip? We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services.© 2026 Versant Media, LLC.

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Source: CNBC

Website: https://www.cnbc.com/id/100003114/device/rss/rss.html

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