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Welcome to our energy sources, come from New York.
Federal Reserve tariff uncertainty and tariff threats circled Wednesday as the Federal Open Market Committee voted unanimously to hold back interest rates for the third meeting.
Meanwhile, the slump in oil prices is weighing producers’ revenues, warning that Diamondback energy and Kotella energy will cut capital expenditures unless there is a rapid turnaround.
International benchmark Brent Crude settled 0.2% low at $61.02 per barrel, while the US West Texas intermediate fell 0.1% to close at $58.02.
Crossing the Atlantic, Spanish Prime Minister Pedro Sanchez denounced the overreliance of wind and sun for last week’s nearly 24-hour blackouts, rebelling against critics who said they would not deviate “single millimeters” from their commitment to renewable energy.
Today’s energy sources look at what appears to be the reversal of the fate of American coal. This states that the industry is essential to meet the growing electricity demand caused by the artificial intelligence boom.
All hail king coal?
Despite having turned on much of American lighting since the 1880s, coal plants have been increasingly shut down over the past few decades.
In 2023, the US produced 578 million tonnes of short coal, according to data from the Energy Information Agency.
Meanwhile, since 2002, coal plant capacity worth 144,000 megawatts has been abolished, leaving 186,000 MW remaining.
In contrast to the era of “King Coal” rule, it is being amortized as an increasingly dirty, unrelated power source.
But now, the industry may be finding a second wind. Nationwide, many delays in resigning plants help predict generations. Meanwhile, President Donald Trump has pledged to protect the country’s “beautiful and clean coal industry.”
The coal case is reopening as policymakers and executives explore ways to meet the bulging demand for power caused by the electrification and the AI boom. National electricity demand is projected to increase by 15.8% by 2029, according to the consulting firm’s grid strategy.
“Everyone talks about AI and the electrification of the industry, but there’s far less conversation about how to meet that electricity demand,” said James Stevenson, research lead in coal, metals and mining at data and analytics firm OPIS.
“I think it’s very difficult to do that while you’re away from coal.”
In late April, the Federal Energy Regulation Commission allowed Talen Energy Corporation to continue operating two Maryland coal plants until 2029, but the Tennessee Valley Department chief executive said it was reconsidering plans to shut down coal operations by 2035.
Meanwhile, 66 plants across the country have been given sculptures from the administration from the Biden-era pollution cap, with Wyoming’s representatives exploring plans to build their first new coal plant since 2013.
When technology companies compete to ensure the energy they need to bolster their efforts in the global AI race, coal has advantages over energy sources such as the solar, wind, and nuclear, as much of its infrastructure already exists.
“We’re committed to providing a range of services to our customers,” said David Forsberg, managing partner at Ascent Energy Ventures. “Therefore, these operators have to do something to meet the demand requirements.”
The American power, the industry’s trade institution, believes the number of plant resignations delayed due to support from the White House will increase.
“What’s changed in this administration is that they recognize the value of coal,” CEO Michelle Bradworth said.
And another part of the appeal of coal is the costs associated with other energy resources, according to Wood Mackenzie analyst Patrick Finn. Natural gas prices have risen by nearly 64% over the past year.
“If natural gas is $2 (a UK heat unit of 1 million), coal is very difficult to compete, but with higher prices, coal looks better from an economic standpoint.”
However, operators can often face difficulties in driving aging plants.
One company floating to maintain a part of the fleet is North Carolina Utility Duke Energy. It will run a coal plant in Gibson, Indiana for another three years, allowing others to be replaced with gas-fired combined cycle units.
Executive Vice President and Chief Financial Officer Brian Savoy said Duke Energy will “test how these plants can serve at peak capacity” during high demand periods, but issued a warning about operating costs and reliability.
“There are a huge investment we may need to make. These plants have been very useful to our customers for 50-60 years, but they’re very old.” (Martha Muir)
Job movements
Schneider Electric has appointed Chris Collins as Senior Vice President of Digital Building.
Bayotech has appointed David Best as Chief Executive Officer.
Central Hudson Gas & Electric Corporation has appointed Lauren Preston as Chief Customer Service Officer and Joel Erin as Chief Transformation Officer.
power point
The energy source has been written and edited by Jamie Smith, Martha Muir, Alexandra White, Tom Wilson and Malcolm Moore, with the support of FT’s global team of reporters. Contact us at Energy.source@ft.com and follow us on X at @ftenergy. Check out previous editions of our newsletter here.
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