Trump Wants to Boost US Coal Power Plants, Indonesia Gets Export Opportunities
19 Mar 2025, 04:37 PM
4326
The Indonesian Coal Mining Association (APBI/ICMA) stated that Indonesia has the opportunity to export coal to the United States (US) after President Donald Trump announced that he would increase electricity production from fossil fuels."Indonesia does have a chance [to export to the US] because we export to America, but the amount is not much," said Acting Executive Director of APBI/ICMA Gita Mahyarani when contacted, Wednesday (19/3/2025)."We are still looking at the prospects because so far there has been no significant demand for the US."The opportunity, said Gita, is also accompanied by existing challenges; such as logistics costs due to the distance between Indonesia and the US which is quite far.Gita said that referring to the latest data, the largest coal supplier for the US is Colombia, followed by Canada, because the two countries are relatively closer to Uncle Sam's country.“[The] thing to remember; America is also the country with the largest coal reserves. Are they going to open more coal mines?” he said.On the other hand, coal from the US is also imported to China, although in small quantities or only around 1.4 million tons of higher calorie specification coal ( high CV) for domestic coal needs.In fact, US coal has now entered Indonesia, although in small quantities or around 1% of Indonesia's total metallurgical coal imports for processing plants or smelters.Citing the latest data from the US Energy Information Administration (EIA) published in February 2025, US coal production from January to September 2024 reached 384,131 tons. This figure is down compared to the same period the previous year which was 437,122 tons. Cumulatively, US coal production in 2023 was 577,954 tons.Meanwhile, cumulative US coal consumption in January-September 2024 was 311,994 tons. This figure is down compared to the same period in 2023 of 325,175 tons.Specifically for power generation, US coal consumption in January-September 2024 reached 284,355 tons, down from the same range the previous year which reached 295,928 tons.Meanwhile, cumulative US coal exports to Indonesia in January-September 2024 were 1.46 million tons, an increase of 149% from the same period the previous year of 588,515 tons.In detail, US steam coal exports to Indonesia throughout the first-third quarter of 2024 were 352,549 tons, up annually from 61,571 tons. Indonesia's metallurgical coal exports in the first nine months of 2024 reached 1,115,391 tons, up annually from 526,944 tons.The US is also recorded as importing 56 tons of coking coal from Indonesia in the first nine months of 2024, up from the same period the previous year which was only 13 tons.Rival ChinaTrump is seeking to counter China's economic gains from coal-fired electricity by authorizing his administration to increase electricity production from the fossil fuel."I am authorizing my administration to immediately begin producing Energy with BEAUTIFUL, CLEAN COAL," Trump wrote in a social media post.It's unclear what Trump meant or how his social media decisions will impact US policy.However, Trump has signed an executive order declaring a national energy emergency and directing the Environmental Protection Agency (EPA) to increase the production and distribution of fossil fuels.Coal accounts for about 15% of electricity generation in the U.S., down from more than 50% in 2000, according to the EIA.The decline of coal-based electricity in the US has been driven by competition from renewable alternatives and cheap natural gas, as well as federal regulations that have raised its operating costs.But Trump could use emergency powers to bring back coal-fired power, repeating a maneuver from his first term, when officials drafted plans to order grid operators to buy power from struggling coal-fired and nuclear plants in an effort to extend their lifespans.Last week, U.S. Interior Secretary Doug Burgum told Bloomberg Television that the U.S. government was considering using emergency powers to restart shuttered coal-fired power plants and stop others from closing.Separately, US Energy Secretary Chris Wright said earlier this month that the administration was working on a “market-based” plan to stem the closure of US coal-fired power plants.As many as 120 U.S. coal-fired power plants are scheduled to close in the next five years in part because of environmental regulations that make them uneconomical, according to the America's Power trade group, which represents utilities and miners such as Peabody Energy Corp. and Core Natural Resources Inc.
