Trump Administration Funds Feasibility Studies for Two New Coal Plants

The Trump administration announced last month that it will provide more than $100 million in federal funding for early-stage feasibility studies of two proposed coal-fired power plants—one in West Virginia and one in Alaska. The projects would be the first large coal plants built in the United States in 13 years. Both designs call for carbon-capture technology, which received a tax credit in former President Joe Biden’s 2022 clean-energy law.

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An independent analysis prepared for the Wyoming Energy Authority estimates construction costs of over $10 billion for a 1.6-gigawatt plant in West Virginia and over $8 billion for a 1.25-gigawatt plant in Alaska. Those figures are more than double the cost of a natural-gas plant with carbon capture and four times the cost of new solar projects. Energy data analyst Seth Feaster noted that the “cost of that power is going to be far higher than the other forms of energy that are out there, including gas, solar and wind.” Recent coal units such as Comanche Unit 3 in Colorado and Sandy Creek in Texas have suffered prolonged mechanical outages, raising questions about the reliability of new coal capacity.

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An Energy Department spokesperson for the Hydrocarbons and Geothermal Energy Office said the projects had been “competitively selected” and emphasized the administration’s commitment to “stabilizing, optimizing, and growing the American coal industry while restoring coal as a cornerstone of the US energy mix.” The spokesperson declined to detail the Department’s funding criteria or confirm outside financing or power-purchase agreements.

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Experts argue the funding is insufficient and the technology unproven. Phil Wagner of McCloskey by OPIS said the technology “is still ‘not proven’” and that “it’s still super uncertain whether either of these (new coal) plants will be built.” Will Toor of the Colorado Energy Office described recent coal outages as “perhaps the major source of unreliability on our electric system.” Analysts suggest that directing resources toward existing plants may yield greater benefits than pursuing new builds.

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• “My baseline reaction is these plants will never get built,” — Seth Feaster, Analyst, Institute for Energy Economics and Financial Analysis

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• “It’s still super uncertain whether either of these (new coal) plants will be built,” — Phil Wagner, Associate Director, McCloskey by OPIS

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• “Unlike renewable energy sources, coal plants can generate electricity at all times of day and in all weather conditions,” — Michelle Bloodworth, President and CEO, America’s Power

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• “is perhaps the major source of unreliability on our electric system,” — Will Toor, Executive Director, Colorado Energy Office

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