Who Pays for Coal’s Comeback?
President Trump announced $700 million for the U.S. coal industry
The coal industry has been on a steady decline over the last two decades. Health impacts, combined with high costs have put the coal industry in a position where it is no longer economically competitive. Renewable energy, including wind and solar power, have dominated new energy generation both nationally and abroad. Ignoring clear cues from the marketplace, the Trump Administration has gone to great lengths to support the industry through regulatory actions, publicity campaigns (including the launch of a new coal mascot, “Coalie”), and most recently – direct federal funding for private development.
In early June, President Trump announced $700 million in taxpayer dollars for the U.S. coal industry. This included a special earmark for the construction of a new coal plant in the Susitna Valley led by Terra Energy Center. If the facility comes online, it will be the first of its kind to be built since 2013.
Just last year in a lengthy battle to preserve tax credits for new renewable energy infrastructure, Congressional Republicans ultimately argued that tax incentives were distorting the market in favor of solar and wind energy. In contrast, the Trump Administration has made a clear choice to support coal power, to financially prop up an industry that is no longer in demand, or popular among the general public.
Relying on coal as a primary source of fuel is disconcerting for many reasons. Coal is one of the least efficient energy sources and the most carbon intensive form of fuel. The carbon emissions created by coal power significantly contribute to local air pollution and global climate change. In short – there is no such thing as “clean coal.”
Coal has a well-documented record of contributing to adverse public health outcomes. These include respiratory illnesses and cardiovascular disease. In many cases, exposure to coal dust and toxins can lead to cancer. Certain elements like mercury, commonly found in the coal production process can enter waterways, harming fish populations, and ultimately the individuals and wildlife subsisting on them. In Alaska, where fish makes up a substantial portion of people’s diets and healthcare infrastructure is limited, impacts of coal on waterways is particularly alarming.
The growing demand for energy – largely driven by the build out of AI, has played a huge influence in the need to find new forms of capacity. Within Alaska, for example, there have been discussions of tying a data center to Terra Energy’s proposed coal project. It’s important to look at the options in front of us realistically. Customers are facing high prices, while utilities are facing the stressors of high demand and outdated infrastructure. We need fast, cheap, and efficient energy – something solar and wind have been proven to deliver on a short time frame. Looking at coal as a solution, it’s important to understand that a new facility can take years or even a decade to come online, at which time our technology will leave the sector even less competitive.
As with any form of development, it’s important that we respect potentially impacted communities and families. Concerns around health and the environment are valid, and should be treated as such. It’s important that both state and federal politics respect Alaskans.
At The Alaska Center, we are continuing to push for a just and sustainable energy future. Join us to take action for our shared vision for future generations.
In Community,
The Alaska Center


