The U.S. Department of Energy (DOE) on June 4 unveiled a broad effort to expand, modernize, and preserve America’s coal fleet, committing hundreds of millions of dollars to coal-fired power plants and export infrastructure as part of what the department describes as a strategy to strengthen energy security, grid reliability, and domestic supply chains.
“To ensure our national security, the United States will continue to support our coal fleet and domestic supply chains,” said U.S. Secretary of Energy Chris Wright in announcing the plan. “These actions will help ensure affordable, reliable, and secure energy access for decades to come.”
The DOE said it will provide up to $500 million in Defense Production Act Title III funding to support 13 American coal-fired power plants and new coal export infrastructure.
The package includes up to $425 million for 12 projects intended to expand and reinvigorate the nation’s coal fleet.
On June 5, Duke Energy said it was among the 12 selected by the DOE and will use the new grants to support reliability and refurbishment projects at coal-fired power plants in Kentucky and North Carolina.
The package also includes up to $75 million for the West Gateway Terminal Project in Oakland, Calif., a rail-served marine export terminal that will be capable of handling more than 10 million tons of bulk commodities annually.
The terminal is intended to expand West Coast export capacity while supporting energy exports to allied nations including Japan, South Korea, Taiwan, Vietnam, and Malaysia, the department said.
Additionally, the selected projects are designed to strengthen domestic coal mining value chains, support reliable baseload power generation, and improve the resilience of critical energy infrastructure, the DOE said.
“For too long, limited West Coast export capacity has constrained America’s ability to move coal and other energy resources to global markets,” Wright said. “By investing in both coal generation and critical export infrastructure, including the West Gateway Terminal Project, the Energy Department is strengthening U.S. energy security, reinforcing strategic supply chains, and advancing American energy dominance.”
DOE Under Secretary of Energy Kyle Haustveit said the export project addresses a long-standing infrastructure constraint.
“The West Gateway Terminal Project fills a critical infrastructure gap in the U.S. energy export system by providing additional West Coast export capacity for American coal producers,” said Haustveit. “By expanding access to global markets, the project will support continued growth in U.S. coal exports, improve supply chain resilience, and strengthen energy partnerships with allies throughout the Indo-Pacific region.”
Grant recipients named
Among the selected recipients, Duke Energy was chosen for up to $61.8 million in additional DOE grant funding to support reliability and refurbishment projects at coal-fired power plants in Kentucky and North Carolina.
The funding builds on a previously announced $34 million grant for Belews Creek Steam Station in North Carolina, bringing total DOE funding for Duke Energy projects at those sites to nearly $96 million.
The latest awards include up to $33.4 million for East Bend Station in Kentucky and up to $28.4 million for Roxboro Station units 2 and 3 in North Carolina. DOE and Duke Energy will enter negotiations to finalize funding amounts.
“These investments at East Bend will strengthen reliability for the communities and businesses we serve while helping lower the cost of necessary upgrades over time,” said Amy Spiller, president of Duke Energy’s utility operations in Ohio and Kentucky.
“As our state continues to grow, investments like these help us meet increasing demand, support local communities, and maintain the dependable service our customers expect,” added Kendal Bowman, president of Duke Energy’s utility operations in North Carolina.
Duke Energy said the projects were previously identified as necessary refurbishments to maintain operational reliability and support growing electricity demand while reducing costs that would otherwise be passed on to customers.
The other companies and their approximate DOE grant awards are:
- Alliant Energy Corp. received $19 million to modernize its Columbia Energy Center, a coal-fired plant in the Town of Pacific, Wis.
- Arizona Electric Power Cooperative Inc. received $20.8 million for a modernization and resiliency program at the Apache Generating Station near Cochise, Ariz.
- Basin Electric Power Cooperative was awarded $27 million for proposed upgrades at two coal-fired units at the Antelope Valley Station in Mercer County, N.D.
- East Kentucky Power Cooperative Inc. nabbed $90.6 million to modernize coal-fired units at the H.L. Spurlock Generating Station and John Sherman Cooper Station.
- Grand River Dam Authority received $28.5 million to upgrade its coal-fired unit located at the Grand River Energy Center in Chouteau, Okla.
- Hallador Power Company LLC was awarded $27 million to modernize its Merom Coal-Fired Power Station.
- Oklahoma Gas and Electric Company has $22.5 million to undertake a project at the Sooner Power Station near Red Rock, Okla., to modernize the Distributed Control System.
- Southwest Electric Power Company received $30 million for a modernization and resiliency program at its Flint Creek Coal Plant in Gentry, Ark.
- Tennessee Valley Authority received $46 million for a coal revitalization initiative at its Cumberland Fossil Plant in Stewart County, Tenn.
- Wheeling Power Company nabbed $51 million to modernize the Mitchell Plant in Moundsville, W.V.
Four additional coal projects
Separately, DOE on June 4 also announced four additional coal modernization and reliability projects under its “Restoring Reliability: Coal Recommissioning and Modernization” initiative, with up to $350 million available for targeted upgrades intended to increase efficiency, extend plant life, and add dependable generation capacity.
The Energy Department said June 4 that the projects could add or preserve roughly 3,565 megawatts (MW) of coal-fired generation capacity, which it estimates is enough electricity to serve roughly three million U.S. households annually.
The selected projects include plans for two new coal-fired power plants in Anchorage, Alaska, and Mt. Storm, W.V., with a combined capacity of 2,850 MW; modernization of an existing 510-MW coal plant in Guayama, Puerto Rico; and recommissioning of a 205-MW coal facility in Cumberland, Md., that ceased operations in 2024.
The DOE said it has committed $525 million to the overall funding opportunity, including $175 million for six previously announced projects to upgrade existing coal facilities.
“Affordable, reliable energy is the foundation of human prosperity and economic growth,” said Haustveit. “These investments will help unleash America’s coal miners so they can continue delivering the energy our nation needs to keep the lights on and power the future. Rest assured, coal will play a critical role in our nation’s long-term energy security.”