The increasing sense of the US becoming an international outlier was underlined in the latest Executive Order promoting coal development, as much-publicised new tariffs swing into effect.
Describing coal as ‘beautiful and clean’ is probably the last description most environmentalists would attach. And even the most ardent Republican may question it in an era of universal decarbonisation.
But US President Trump is now turning attention to this most controversial of fossil fuels, in keeping with his single-minded desire to generate more revenues and power to support the new independent, growth-oriented US economy.
“We must encourage and support our nation’s coal industry to increase our energy supply, lower electricity costs, stabilise our grid, create high-paying jobs, support burgeoning industries, and assist our allies,” he said.
Trump said he is eager to increase and diversify energy sources to support growth in fast-developing sectors such as technology.
Government secretaries have been instructed to “prioritise coal leasing and related activities” and identify regions where coal-powered infrastructure is available and suitable for supporting AI data centres.
The federal government will also assess the market, legal, and technological potential for expanding coal-based infrastructure to power data centres.
The push behind coal may also be good news for spurring hydrogen development.
Coal gasification provides around 18% of the hydrogen produced globally. It is the second-largest and most cost-effective way of producing hydrogen – but the production of synthesis gas (syngas) at high heats produces carbon monoxide and carbon dioxide as well as other gases and particles.
However at the end of last year, only 3.43% of US hydrogen production was coal based, accounting for around 0.41 mtpa, according to H2 Intelligence.
The new policy move comes as new US tariffs announced on ‘Liberation Day’ swing into effect.
Despite rising international clamour, the US President is entrenching his position, imposing a 104% tariff on some Chinese imports to the US, as well as further levies on around 60 countries he calls the “worst offenders”. Negotiations are ongoing with as many as 70 countries as hopes remain that deals can be struck.
Stock markets have reacted badly so far, with Wall Street recording its worst week since the pandemic. There were small signs of improvement yesterday, as investors responded to the notion that certain country deals, such as with Japan, were moving forward.
As US and China tit-for-tat tariffs intensify, liquefied natural gas trade continues to be one of the most impacted sectors, following the most dramatic of first quarters.
