Cancelled Coal Sale Spotlights Clueless Trump Energy Plans

I’m old fashioned.
I think markets tell us something important that we ignore at our peril.
Markets just gave us yet another key indicator on the fundamental assumptions of the Trump admin’s clueless energy policy.

Associated Press:

Federal officials rejected a company’s bid to acquire 167 million tons of coal on public lands in Montana for less than a penny per ton, in what would have been the biggest U.S. government coal sale in more than a decade.

The failed sale underscores a continued low appetite for coal among utilities that are turning to cheaper natural gas and renewables such as wind and solar to generate electricity. Emissions from burning coal are a leading driver of climate change, which scientists say is raising sea levels and making weather more extreme.

President Donald Trump has made reviving the coal industry a centerpiece of his agenda to increase U.S. energy production. But economists say Trump’s attempts to boost coal are unlikely to reverse its yearslong decline.

The Department of Interior said in a Tuesday statement that last week’s $186,000 bid from the Navajo Transitional Energy Co. (NTEC) did not meet the requirements of the Mineral Leasing Act. 

Agency representatives did not provide further details, and it’s unclear if they will attempt to hold the sale again.

The leasing act requires bids to be at or above fair market value. At the last successful government lease sale in the region, a subsidiary of Peabody Energy paid $793 million, or $1.10 per ton, for 721 million tons of coal in Wyoming.

President Joe Biden’s administration sought to end coal sales in the Powder River Basin of Montana and Wyoming, citing climate change.

A second proposed lease sale under Trump — 440 million tons of coal near an NTEC mine in central Wyoming — was postponed last week following the low bid received in the Montana sale. Interior Department officials have not said when the Wyoming sale will be rescheduled.

NTEC is owned by the Navajo Nation of Arizona, New Mexico and Utah.

The White House – Reinvigorating America’s Beautiful Clean Coal Industry and Amending Executive Order 14241

Section 1. Purpose. In order to secure America’s economic prosperity and national security, lower the cost of living, and provide for increases in electrical demand from emerging technologies, we must increase domestic energy production, including coal. Coal is abundant and cost effective, and can be used in any weather condition. Moreover, the industry has historically employed hundreds of thousands of Americans. America’s coal resources are vast, with a current estimated value in the trillions of dollars, and are more than capable of substantially contributing to American energy independence with excess to export to support allies and our economic competitiveness. Our Nation’s beautiful clean coal resources will be critical to meeting the rise in electricity demand due to the resurgence of domestic manufacturing and the construction of artificial intelligence data processing centers.