Energy Dept. Invokes Defense Act to Boost Coal Output

WASHINGTON-The U.S. Department of Energy (DOE) today announced it will support 13 American coal-fired power plants and new coal export infrastructure by providing up to $500 million in Defense Production Act Title III (DPA) funds.

The DPA funding includes up to $425 million for twelve projects selected to expand and reinvigorate America’s coal fleet and up to $75 million for the West Gateway Terminal Project, a rail-served marine export terminal capable of handling more than 10 million tons of bulk commodities annually. The West Gateway project in Oakland, California, will expand West Coast export capacity and support energy exports to allied nations including Japan, South Korea, Taiwan, Vietnam, and Malaysia.

The selected projects are intended to strengthen domestic coal mining value chains, support reliable baseload power generation, and enhance the resilience of critical energy infrastructure. By leveraging DPA authorities, DOE is helping ensure the United States maintains the industrial capacity and energy resources needed to strengthen national security.

“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. “For too long, limited West Coast export capacity has constrained America’s ability to move coal and other energy resources to global markets. 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.”

“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 DOE Under Secretary of Energy Kyle 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.”

Public Release.