U.S. President Donald Trump has signed several executive orders that aim to boost coal production throughout America.
Trump cited the need to meet rising electricity demand from artificial intelligence (A.I.) data centres when signing the orders.
The effort to boost coal production is a reversal for the industry that has seen plants shutdown across the U.S. in recent years and lost market share to natural gas.
Coal is widely seen as a big contributor to carbon dioxide emissions that cause climate change.
However, the Trump administration has said that it wants to expand electricity output by 25% and sees an opportunity with A.I. power demands rising.
Coal stocks rose sharply on news of President Trump’s executive orders.
Peabody Energy’s (BTU) stock increased nearly 10% and Core Natural Resources (CNR) gained 7%. The stock of Ramaco Resources (METC) rose 14%.
Despite Trump’s move, it remains unclear whether data centres will turn to coal as a fuel source due to its greenhouse gas emissions.
Many technology leaders have cited a preference for natural gas as a power source.
The technology sector is taking a lead role in building A.I. data centres and has focused on using renewable energy and possibly nuclear power to meet its environmental goals.
About 16% of U.S. electricity generation came from burning coal in 2023, down from 51% in 2001, according to U.S. government data.
Natural gas has largely displaced coal’s market share over the past 25 years.
U.S. production of coal in 2023 was less than half of the total in 2008, according to the U.S. Energy Information Administration (EIA).