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Trump Officials Announce Plan to Boost Coal Output

Interior Department officials said that the Trump administration is preparing to announce policies on Monday to increase coal production, in an effort to reverse the decline in the use of this fuel. In April, President Donald Trump signed executive orders that increased coal production. This was one of many actions he took to counter global efforts to reduce carbon emissions.

According to the Energy Information Administration (EIA), coal-burning power plants will generate about 15% of U.S. electricty in 2024. This is down from 50% in 2000. Fracking and other drilling techniques have increased natural gas production. The growth of solar and wind power has also reduced coal consumption.

In the last 10 years, coal workers have declined from 70,000 to 40,000.

A coal event is scheduled for Monday evening at the Interior Department. Secretary of the Interior Doug Burgum will be joined by the Environmental Protection Agency Administrator Lee Zeldin and a representative from the Energy Department. Chris Wright, U.S. Energy Secretary, said last week that he expected most coal-fired plants in the country to delay retirement so they can provide electricity to fuel artificial intelligent. Wright extended an emergency order last month to keep Michigan's coal plant operating, even though its operator planned to close permanently due to economic reasons.

Tom Pyle of the American Energy Alliance predicted that, on Trump's orders or out of their own volition, 38 coal plants set to close by 2028 will remain open.

Analysts are sceptical about the long-term use of coal in the United States, as economics has shifted to a less carbon-intensive fuel.

Frank Holmes, CEO of U.S. Global Investors and Chief Investment Officer, said that coal could see a temporary increase in demand from the regulatory relief. Some investors might profit on a short-term basis. Global Investors wrote after Trump’s orders. "But I think that in the end, the writing will be on the wall." (Reporting and editing by Barbara Lewis; Timothy Gardner)

(source: Reuters)