President Trump signed an executive order directing the Department of Defense to prioritize power contracts with coal providers, aiming to boost demand for the struggling fuel. The move came during a White House event celebrating the industry, where Peabody Energy $BTU ( ▲ 2.75% ) CEO Jim Grech presented the president with an award honoring his support for coal.
The directive targets the federal government’s largest energy consumer, signaling an effort to use public demand to revive a sector that has steadily lost ground in the US energy mix.
Even a full shift would barely move the needle
Critics argue the policy would have limited impact. Energy experts say that even if the Defense Department relied entirely on coal for power, it would account for only about 3% of total US electricity capacity.
Coal consumption has fallen dramatically over the past two decades as utilities switched to cheaper natural gas and rapidly expanding renewable sources such as wind and solar. Government demand alone would likely be insufficient to reverse that structural decline.
Data centers provide a modest lifeline
Coal use did tick up slightly last year as electricity demand surged from energy-hungry data centers. Still, overall consumption remains far below historical levels. Recent figures show US coal usage at roughly 60% of what it was a decade ago and just over one-third of peak levels reached in 2007.
The trend is not unique to the United States. Global coal consumption is expected to have peaked recently and is projected to decline further over the coming decade.
In short, the administration’s push highlights a political effort to support domestic energy producers, but market forces continue to favor cleaner and cheaper alternatives. Whether policy can meaningfully change that trajectory remains uncertain.