The U.S. Department of Energy on June 4 unveiled funding plans for coal generation projects that include funds for the modernization of coal plants.
Four projects selected under DOE’s “Restoring Reliability: Coal Recommissioning and Modernization” initiative will receive up to $350 million to expand and reinvigorate America’s coal fleet through targeted upgrades that increase efficiency, extend plant life, and add dependable capacity.
DOE said that combined, these projects could add or preserve approximately 3,565 megawatts (MW) of coal-fired generation capacity:
• Two projects in Anchorage, Alaska, and Mt. Storm, West Virginia, are planning new coal-fired power plants with a combined capacity of 2,850 MW.
• One project in Guayama, Puerto Rico, will retrofit and modernize an existing 510-MW coal-fired plant.
• One project in Cumberland, Maryland, plans to recommission a 205-MW coal facility that ceased operations in 2024.
Defense Production Act Funding
In a separate announcement, DOE on June 4 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,” DOE said.
DPA Title III Project Selections: Coal Fleet Projects and West Gateway Terminal
Coal Fleet Projects
Reliable, Economical, and Local Advancement in Modernized Coal (RECLAIM-C)
Alliant Energy Corporation (Columbia County, Wisconsin) is undertaking a modernization at its Columbia Energy Center, a coal-fired plant in the Town of Pacific, Wisconsin. This initiative will maintain dependable baseload service and enhance the efficiency and environmental performance of the existing units.
DOE Funding: $19,000,000
Non-DOE Funding: $29,500,000
Total Value: $48,500,000
AEPCO ST3 Modernization Project
Arizona Electric Power Cooperative, Inc. (Cochise, Arizona) is embarking on a comprehensive modernization and resiliency program at the Apache Generating Station near Cochise, Arizona. The modernization efforts are expected to generate substantial benefits, including increased efficiency, retaining and increasing dispatchable baseload capacity, and extending the operational lifespan.
DOE Funding: $20,826,000
Non-DOE Funding: $32,574,000
Total Value: $53,400,000
Antelope Valley Station Coal Modernization Opportunity
Basin Electric Power Cooperative (Mercer County, North Dakota) proposes modernization of two coal-fired units at the Antelope Valley Station in Mercer County, North Dakota. Upgrades will mitigate unplanned outages, improve efficiency, and increase generation capacity. The project is designed to ensure continued affordable and reliable electricity while also supporting local employment at Antelope Valley Station and Freedom Mine.
DOE Funding: $27,441,000
Non-DOE Funding: $42,559,000
Total Value: $70,000,000
East Bend Coal Reliability Assurance Initiative
Duke Energy Kentucky (Boone County, Kentucky) is undertaking vital upgrades at the coal-fired East Bend Station in Boone County, Kentucky. Upgrades will bolster the plant's operational flexibility, enhance overall efficiency, and boost generation capacity. This effort is crucial for maintaining the long-term reliability and affordability of energy for its customers in rural and remote areas, while simultaneously fostering regional economic development.
DOE Funding: $33,400,000
Non-DOE Funding: $50,043,088
Total Value: $83,443,088
Roxboro 2 & 3 Coal Reliability Assurance Initiative
Duke Energy Progress, Inc. (Person County, North Carolina) will modernize and enhance the operational capabilities at the Roxboro Plant, a vital coal-fired facility in Person County, North Carolina. This effort encompasses a multitude of individual projects across critical plant areas that will systematically replace and upgrade equipment to mitigate the occurrence of emergent failures, reduce downtime, and improve operational efficiency and dependable energy production of the plant.
DOE Funding: $28,400,000
Non-DOE Funding: $44,273,513
Total Value: $72,673,513
EKPC DOE Coal Recommissioning and Modernization
East Kentucky Power Cooperative, Inc. (Maysville, Kentucky and Pulaski, Kentucky) plans to modernize coal-fired units at the H.L. Spurlock Generating Station and John Sherman Cooper Station. Each unit will undergo significant upgrades that will extend operational life, improve dispatch flexibility, and ensure grid stability. Overall, this initiative aims to enhance the reliability and affordability of EKPC’s baseload generation assets, directly supporting rural communities across Kentucky.
DOE Funding: $90,600,000
Non-DOE Funding: $271,800,000
Total Value: $362,400,000
M.O.R.E. Oklahoma (Modernizing Oklahoma’s Rural Energy)
Grand River Dam Authority (Chouteau, Oklahoma) will modernize its coal-fired unit located at the Grand River Energy Center in Chouteau, Oklahoma. This modernization will extend the asset operational life and enhance capacity and enable grid stability to support the surrounding communities.
DOE Funding: $28,518,000
Non-DOE Funding: $48,061,000
Total Value: $76,579,000
Modernizing the Merom Coal-Fired Power Station: Effluent Limitation Guideline Modernization Project
Hallador Power Company, LLC (Merom, Indiana) is planning to modernize its Merom Coal-Fired Power Station. This modernization initiative will maintain operational reliability and promote environmental stewardship.
DOE Funding: $27,200,000
Non-DOE Funding: $42,491,006
Total Value: $69,691,006
Sooner DCS Modernization Project
Oklahoma Gas and Electric Company (Red Rock, Oklahoma) is undertaking a project at the Sooner Power Station near Red Rock, Oklahoma, to modernize the Distributed Control System (DCS). Upgrades to the DCS and associated field devices are necessary to maintain system reliability and enhance operational efficiency.
DOE Funding: $22,513,000
Non-DOE Funding: $35,212,674
Total Value: $57,725,674
Flint Creek Coal Plant Modernization and Resiliency Program
Southwest Electric Power Company (Gentry, Arkansas) is embarking on a significant modernization and resiliency program at its Flint Creek Coal Plant in Gentry, Arkansas. This project involves critical upgrades that will reduce fuel requirements, improve the plant's operational efficiency, reliability, and overall power generation capacity, and extend the life of the asset to ensure its continued role in grid stability and energy supply for Northwest Arkansas.
DOE Funding: $29,814,400
Non-DOE Funding: $44,721,600
Total Value: $74,536,000
Tennessee Valley Authority Coal Revitalization Initiative
Tennessee Valley Authority (Stewart County, Tennessee) is embarking on a comprehensive coal revitalization initiative at its Cumberland Fossil Plant in Stewart County, Tennessee. This project aims to restore reliability, enhance efficiency, and extend the operational life of the coal-fired assets to meet regional demand for dispatchable power.
DOE Funding: $46,287,600
Non-DOE Funding: $69,431,400
Total Value: $115,719,000
Mitchell Mechanical Draft Cooling Tower Modernization Project
Wheeling Power Company (Moundsville, West Virginia) plans to modernize the Mitchell Plant in Moundsville, West Virginia. This upgrade will enhance regional grid reliability, reduce outage risk, and improve overall system efficiency, contributing to regional energy affordability.
DOE Funding: $51,000,000
Non-DOE Funding: $107,600,000
Total Value: $158,600,000
West Gateway Terminal Project
The West Gateway Project, spearheaded by Oakland Bulk and Oversized Terminal (OBOT) LLC, is a strategically located bulk commodities export terminal in Oakland, California, DOE said.
It offers direct access to the Pacific Ocean and Indo-Pacific markets, "forming a crucial part of a broader, multi-decade initiative to revitalize and reindustrialize the Oakland Army Base (OAB) property within the Port of Oakland, which was decommissioned in the late 1990s," DOE said.
OBOT LLC holds exclusive development rights for the property through an established ground lease with the City of Oakland.
Situated on the West Gateway portion of the former OAB site, the project benefits from a 50-foot-deep harbor channel, capable of loading and handling Panamax-class bulk carrier vessels.
OBOT LLC aims for an initial 9 to 10-million-ton throughput capacity, leveraging direct access to Class 1 rail via short-line operator Oakland Global Rail Enterprise. The terminal is also equipped to unload large, bulk commodity unit trains and store coal in on-site bulk storage sheds.
Insight Terminal Solutions (ITS) has received a sublease from OBOT LLC to develop the West Gateway marine export terminal. ITS plans to finalize design, secure outstanding permits, and complete terminal construction to enable the first cargo shipment by the end of 2028.
"Investment in this critical infrastructure for OBOT's bulk commodities export terminal is paramount to national security. It directly bolsters robust domestic coal production, diversifying energy supply chains and fostering economies of scale. By facilitating access to international markets for U.S. coal, the project helps prevent the closure of domestic coal mines by growing demand," DOE said.
"This access also preserves the reliability of the supply chain infrastructure and the coal mining workforce through increased throughput, usage, and reinvestment -- all essential for the longevity and resilience of the U.S. coal industry."
DOE Funding: $75,000,000
Non-DOE Funding: $156,773,000
Total Value: $231,773,000
