Coal-fired power is the most carbon-intensive and yet also maintains a high capacity factor comparable to natural gas-fired generation (nuclear is the highest capacity factor). And now the nation finds itself in a race to develop new resources to match rising load demand from artificial intelligence, data centers and industrial electrification.
For this reason and others, the fossil-friendly Department of Energy under President Trump has issued a notice of funding opportunity (NOFO) for up to $100 million to aid in upgrading and modernizing the nation’s existing coal-fired power generation fleet.
The announcement follows the Department’s September notice of its intent to invest $625 million to expand and strengthen America’s coal industry. The Trump Administration also has issued Executive Orders and pilot programs supporting funding for next-gen nuclear and natural gas power, while curtailing longstanding incentivization of renewables and decarbonization efforts.
“For years, the Biden and Obama administrations relentlessly targeted America’s coal industry and workers, resulting in the closure of reliable power plants and higher electricity costs," said U.S. Secretary of Energy Chris Wright. “These projects will help keep America's coal plants operating and ensure the United States has the reliable and affordable power it needs to keep the lights on and power our future."
The NOFO will accept applications for projects to design, implement, test, and validate three strategic opportunities for refurbishment and retrofit of existing American coal power plants to make them operate more efficiently, reliably, and affordably:
- Development, engineering, and implementation of advanced wastewater management systems capable of cost-effective water recovery and other value-added byproducts from wastewater streams.
- Engineering, design, and implementation of retrofit systems enabling fuel switching between coal and natural gas without compromising critical operational parameters.
- Deployment, engineering, and implementation of advanced coal-natural gas co-firing systems and system components, including highly fuel-flexible burner designs and advanced control systems, to maximize gas co-firing capacity to provide a low cost retrofit option for coal plants while minimizing efficiency penalties.
DOE’s National Energy Technology Laboratory, under the purview of DOE’s Office of Fossil Energy, will manage projects selected under this NOFO.
Coal-fired power once reigned atop America’s electricity generation portfolio, while natural gas leads now with close to 40% of the mix. The nation’s utilities built more than 200 GW of coal-fired power in the 1960s through the 1980s.
By the 1990s and into 2000s, coal-fired power started losing the economics argument to abundant natural gas, while environmental concerns and regulatory headwinds also drove retirements. The most recent U.S. coal-fired power plant built is the 932-MW Sandy Creek Energy Station in Texas, which operated until a mechanical failure earlier this year and now is offline at least until 2027, according to reports.
