The U.S. Department of Energy announced a $625 million investment on September 29, 2025, to expand and reinvigorate the American coal industry, directing funds across five program areas covering plant recommissioning, rural energy affordability, wastewater management, dual-fuel retrofits, and natural gas cofiring systems. The announcement was issued in accordance with two executive orders signed by President Trump: “Reinvigorating America’s Beautiful Clean Coal Industry” (Executive Order 14241) and “Strengthening the Reliability and Security of the United States Electric Grid.” “Beautiful, clean coal will be essential to powering America’s reindustrialization and winning the AI race,” Secretary of Energy Chris Wright said in the release.
What it means
The largest share of the funding — $350 million — is directed at Coal Recommissioning and Retrofit projects intended to demonstrate readiness to recommission or modernize existing coal power units. An additional $175 million targets Rural Capacity and Energy Affordability Projects, which DOE said are aimed at providing energy affordability, reliability, and resiliency in rural communities. The remaining $100 million is split among three technical programs: $50 million for advanced wastewater management systems to extend coal plant service life and reduce operational costs, $25 million for dual firing retrofits to enable plants to switch between fuels at full steam capacity, and $25 million for natural gas cofiring systems to maintain boiler efficiency when operating on 100% natural gas.
The September 29 announcement follows a sequence of DOE actions taken since April. On April 8, DOE announced steps to accelerate coal technology development, assess coal resources on federal lands, expedite coal leasing, support American coal exports, and identify where coal-fired power could support AI infrastructure and data centers. On May 23, Secretary Wright designated metallurgical coal a Critical Mineral under Executive Order 14241. Also on May 23, and again on August 20, Wright issued emergency orders directing grid operator MISO and Consumers Energy Company to keep the J.H. Campbell coal-fired power plant in West Olive, Michigan, available to operate; the plant had been scheduled to shut down May 31. DOE said the Campbell plant generated electricity during a summer heat wave and remains a critical asset for Midwest grid reliability.
Key facts
- Total investment: $625 million, announced September 29, 2025
- $350 million for Coal Recommissioning and Retrofit projects
- $175 million for Rural Capacity and Energy Affordability Projects
- $50 million for Advanced Wastewater Management Systems to extend coal plant service life
- $25 million for Dual Firing Retrofits enabling fuel switching at full steam capacity
- $25 million for Natural Gas Cofiring Systems to maintain boiler efficiency at 100% natural gas
- Authorized under Executive Order 14241, “Reinvigorating America’s Beautiful Clean Coal Industry,” and a second executive order on electric grid reliability
- Metallurgical coal designated a Critical Mineral by Secretary Wright on May 23, 2025, under Executive Order 14241
- J.H. Campbell plant, West Olive, Michigan — kept operational by DOE emergency orders issued May 23 and August 20; plant had been scheduled to close May 31
Source: U.S. Department of Energy news release (energy.gov)